Howland v. Strahan

• Decision Date: 18 February 1969
• Docket Number: No. 68--501,68--501
• Citation: 219 So.2d 472
• Parties: Edna P. HOWLAND, formerly known as Edna P. Travis, and Nitefall Nursing Home of Miami, Inc., a Florida corporation, Appellants, v. Frank STRAHAN, as Executor of the Estate of Edith Deering, Deceased, Appellee.
• Court: Florida District Court of Appeals

Page 472

219 So.2d 472

Edna P. HOWLAND, formerly known as Edna P. Travis, and Nitefall Nursing Home of Miami, Inc., a Florida corporation, Appellants, v. Frank STRAHAN, as Executor of the Estate of Edith Deering, Deceased, Appellee.

No. 68--501.

District Court of Appeal of Florida, Third District.

Feb. 18, 1969.

Rehearing Denied March 19, 1969.

Ward, Ward, Straessley, Hiss & Klutz, Miami, for appellants.

Wepman & Wepman, Miami, for appellee.

Before CHARLES CARROLL, C.J., and PEARSON and BARKDULL, JJ.

PEARSON, Judge.

Edna P. Howland and Nitefall Nursing Home of Miami, Inc., appeal from a final judgment which ordered them to pay the plaintiff-appellee sums totalling $19,730.64 which Mrs. Edith Deering transferred to Mrs. Howland as a result of the exertion of undue influence.

The appellee had sought the return of inter vivos transfers totalling more than $40,000. He alleged the transfers were void because Mrs. Howland had exercised undue influence over Mrs. Deering to obtain them. The court found that a confidential relationship had existed between appellant Edna P. Howland and Mrs. Deering

'because of the fact that Edith Deering lived at the nursing home operated by Edna P. Howland, and apparently had a friendly relationship with her. Edith Deering relied on and placed trust in Edna P. Howland; on the whole the dealings seemed to be one of trust.'

This finding led to the conclusion:

'That by virtue of said confidential relationship, the presumption is created that the transfers from Edith Deering to Edna P. Howland are affected by undue influence, and the burden of proof shifts to Edna P. Howland to prove by clear, competent evidence that these were gifts.'

The court decided that Mrs. Howland did not carry the burden of proof with regard to certain transfers (thus rendering them invalid) but did carry it with regard to others (thus rendering them valid). The defendant-appellants have assigned errors to the findings of invalidity, and the appellee has cross-assigned error to the findings of validity. It is our conclusion that the findings of the trial judge are supported by the record and that neither party has demonstrated reversible error. Therefore we affirm.

The appellants' first point on appeal is:

'WHERE A JOINT OWNERSHIP WITH RIGHT OF SURVIVORSHIP IS CREATED IN A SAVINGS ACCOUNT AND A CERTIFICATE OF DEPOSIT, AND WITHDRAWALS ARE MADE AND THE CERTIFICATE OF DEPOSIT IS PAID DURING THE CO-OWNERS LIFETIME, MAY THE EXECUTOR OF THAT CO-OWNERS ESTATE RECOVER FOR SUCH WITHDRAWALS AND PAYMENTS WHERE THERE HAS BEEN NO RENUNCIATION OF THE JOINT OWNERSHIP (?)'

In support of their position appellants urge that the case law of Florida is that the creation of such a savings account raises a presumption that a valid gift has been made. See Maier v. Bean, Fla.App.1966, 189 So.2d 380. They thereupon argue that because there was no proper basis for the trial court to find a confidential relationship between Mrs. Deering and Mrs. Howland, the court improperly ruled that the burden of going forward with the evidence shifted to Mrs. Howland to establish the voluntary conduct of the donor. As we stated previously we find that the record supports the finding of a confidential relationship.

It is well established in Florida that when a confidential relationship exists and the superior person benefits from that relationship, transfers to or for the benefit of the superior person are presumed to result from the exertion of undue influence. See Wilkins v. Wilkins, 141 Fla. 188, 192 So. 791 (1940); Bartsch v. Wirth, Fla.App.1959, 115 So.2d 18; Wrobbel v. Walda, Fla.App.1968, 217 So.2d 340 (Fourth District Court of Appeal, filed December 30, 1968).

The appellants' second point is that the trial court erred when it refused to permit Mrs. Howland to testify as to the conditions concerning the transfers. The trial court ruled that § 90.05, Fla.Stat., F.S.A., commonly known as the Dead Man's Statute, prohibited such testimony. The substance of the appellants' argument is that § 90.05 should not apply to cases in which the representative of an estate is the plaintiff, because to apply § 90.05 in such cases would be to prevent a person charged with exerting undue influence from conducting any defense. Helms v. First Nat. Bank of Tampa, 158 Fla. 168, 28 So.2d 262 (1947), is relied on as authority for this argument. But in that case the Supreme Court of Florida declared that § 90.05 'applies to cases where the rights of the deceased at the time of his death are involved.' 28 So.2d at 263. The present case involves whatever rights (involving the...