Heldenbrand v. Stevenson
| Decision Date | 29 October 1957 |
| Docket Number | No. 5581.,5581. |
| Citation | 249 F.2d 424 |
| Parties | Louise HELDENBRAND and O. J. Heldenbrand, Appellants, v. Bloise STEVENSON, Administrator of the Estate of Charles Oscar Stevenson, deceased, Appellee. |
| Court | U.S. Court of Appeals — Tenth Circuit |
John B. Dudley, Jr., Oklahoma City, Okl. (Clyde E. Robinson (of Robinson & Armstrong), Watonga, Okl., and J. B. Dudley (of Dudley, Dudley & Dudley), Oklahoma City, Okl., on the brief), for appellants.
Ted R. Fisher, Tulsa, Okl., for appellee.
Before MURRAH, PICKETT and LEWIS, Circuit Judges.
The Administrator of the Estate of Charles Oscar Stevenson brought this action to recover money and property which the defendants Louise Heldenbrand and her husband, O. J. Heldenbrand had received from Stevenson during his lifetime. The case was tried to the court without a jury, which found that the money and properties in question had been received from Stevenson when he was physically and mentally incompetent and incapable of transacting his own business affairs; that during this time the Heldenbrands had exercised undue influence upon Stevenson in violation of the trust and confidence reposed in his niece, Louise Heldenbrand, at a time when Stevenson was dependent upon her to manage his business affairs and look after his welfare. After allowing the defendants the sum of $9,200 for services in caring for Stevenson, the court entered judgment against the defendants for $23,179.71.
Charles Oscar Stevenson, a single man, died in Blaine County, Oklahoma on September 26, 1954, at the age of 82 years. For a period of about two years prior to his death, Stevenson had lived with the Heldenbrands at their home in Watonga, Oklahoma. During this period substantially all of his assets were liquidated and a bank account, containing the sum of approximately $36,000 was established at Watonga. In April of 1953 Stevenson suffered a cerebral hemorrhage and subsequently, until his death, was more or less incapacitated. Thereafter he was in the hospital at different times but the majority of the time he was in the home of the Heldenbrands under the constant care of Louise. In August of 1953 Stevenson created a joint bank account for himself and Louise, with the right of survivorship, by signing the customary form used by the bank for this purpose. Beginning in September of 1953 Louise freely checked out the money in the joint account, some of it even after Stevenson's death. Some of the withdrawals were for the payment of expenses incurred by and on behalf of Stevenson, but most of them were for the purpose of building a home and purchasing an automobile, the titles to which were in the Heldenbrands jointly. The amount of money obtained for the benefit of the Heldenbrands is not in dispute. A gift tax return for the year 1953 was prepared and signed by Stevenson from information furnished by Louise. It listed cash gifts to each of the Heldenbrands of $10,000 during that year, which amounts came out of the joint account.
The Administrator alleges that the joint bank account was made at a time when Stevenson was mentally incompetent and was the result of undue influence exerted upon him by those in a position of trust and confidence, and is therefore ineffective. The Heldenbrands allege that prior to February 4, 1953, while Stevenson was living with them, he entered into an oral agreement with Louise, with the consent and approval of her husband; that by this agreement Stevenson was to continue to live with them in their home during his lifetime and that they were to take care of and look after him until his death; and to pay all necessary expenses in connection therewith, including his medical and burial expenses. That as a consideration therefor Stevenson agreed to create a joint bank account with Louise Heldenbrand with right of survivorship. It was further alleged that it was agreed that Louise should buy a site for a new home on such terms as she saw fit and enter into a contract for the construction and equipping of such home, the title to which home was to be taken solely in the Heldenbrands; and that Stevenson was to furnish the money for said home but was to have no interest in it other than the right to live there during his lifetime. It was further alleged that the purchase of the automobile by the Heldenbrands was also a part of the oral agreement. It is the contention of the Heldenbrands "that all the money and property received from the deceased was valid bona fide gifts and was for services, care, comfort, support, love and affection rendered (Stevenson) pursuant to a valid bona fide contract."
The trial court found that the Heldenbrands, particularly Louise, constantly took care of Stevenson from the date of his cerebral hemorrhage until his death; that during this time he was entirely dependent upon them for all of his personal needs and the conduct of his business affairs to such an extent that a relationship of trust and confidence existed between the parties; that the Heldenbrands, particularly Louise, were in a position to and did exercise great influence over Stevenson who, because of his age and illness, was susceptible to suggestions and susceptible to the whims and desires of his niece. The court further found that Stevenson, sometime prior to the alleged contract, was unable to manage or take care of his property unassisted, and by virtue of this circumstance was compelled to rely upon, and did rely upon, the defendants for such assistance; that Stevenson was subject to being influenced by the Heldenbrands; and that he was mentally incapable of making the alleged gifts or arranging for the joint bank account with right of survivorship. The court also found that when the transactions involved herein were made, Stevenson did not have the opportunity or benefit of conferring independently with any person who was competent to inform him correctly as to the legal effect of his transactions with the Heldenbrands.
The evidence as to the mental capacity of Stevenson during the period in question was in sharp conflict. Numerous witnesses, who had known him for years and had had occasion to observe him during this period, testified as to his physical and mental weakness and expressed opinions that he lacked the mental capacity to transact business after he had suffered the cerebral hemorrhage. This evidence was supported by a competent doctor of medicine, a specialist in mental and nervous disorders, who testified to the effect that, in his opinion, a person suffering as Stevenson was, lacked the mental capacity to transact ordinary business. Witnesses for the Heldenbrands, including a doctor of medicine, testified to the contrary. There was evidence that, except for one or two short periods early in 1953, Stevenson lived with the Heldenbrands in their upstairs apartment and was looked after constantly by Louise. There was some evidence that it was difficult for others to have an opportunity to talk to him alone.1
For the purpose of proving the oral contract of February 4, 1953, Louise testified as follows:
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