Mattingly v. Mattingly

• Decision Date: 01 September 1991
• Docket Number: No. 1301,1301
• Citation: 607 A.2d 575,92 Md.App. 248
• Parties: Orie P. MATTINGLY v. Aubrey F. MATTINGLY, et ux
• Court: Court of Special Appeals of Maryland

Page 248

92 Md.App. 248

607 A.2d 575

Orie P. MATTINGLY v. Aubrey F. MATTINGLY, et ux.

No. 1301 Sept. Term, 1991.

Court of Special Appeals of Maryland.

June 2, 1992.

Nancy E. Paige, Baltimore (Gordon, Feinblatt, Rothman, Hoffberger & Hollander, on the brief, Paul J. Bailey, Leonardtown, of counsel), for appellant.

Richard A. Cooper (Stephen P. Fitzgerald and Mudd, Mudd & Fitzgerald, P.A., on the brief), La Plata, for appellees.

Argued before ROSALYN B. BELL, WENNER and MOTZ, JJ.

MOTZ, Judge.

The central question presented here is whether the circuit court committed reversible error in submitting this case for determination by a jury. Because the issues presented and remedies requested here are purely equitable and so did not entitle any party to a jury trial, the trial court did err in submitting the case to a jury. Moreover, this error resulted in prejudice to the appellant. Accordingly, we must reverse the judgment of the Circuit Court for St. Mary's County and remand for independent findings of fact.

(i)

Lester Mattingly Sons is a farming and excavation business in Leonardtown, Maryland, started by Lester Mattingly, Sr. His sons, Lester Mattingly, Jr. ("Buddy") and appellee, Aubrey Mattingly ("Aubrey"), worked with him until his death in 1963. After 1963, Buddy and Aubrey worked together to continue the family business. ¹ For the most part, Buddy worked on the farm and operated the construction equipment, and Aubrey acquired the excavating jobs for the business. From 1963 until a few years before her death in 1976, Buddy and Aubrey's mother acted as bookkeeper for the business. After their mother's death, Aubrey's wife, Vicki Mattingly, assumed the duties of bookkeeper. There was testimony that the brothers worked "side by side" with "no cross words"; neither "boss[ed] or dominate[d]" the other. There was also testimony, however, that Buddy did not participate in the day-to-day financial affairs of the business; that he just "trusted them [Aubrey and Vicki] to tell [him] what was going on." During the first year after their father's death, Buddy earned a salary of three hundred dollars a month from the business. He then stopped receiving any regular income from the business, however, and received only "a few hundred dollars ... once or twice a year." Instead, Buddy lived off money he had previously made and money which was left to him by his mother and, it was alleged, did not have enough money to make repairs on his home.

In June 1984, at the age of 55, Buddy married appellant, Orie Penny Beasley ("Penny"). It was his first marriage and her third. Although they were both lifelong residents of St. Mary's County, they chose to marry in Charles County. They attempted to conceal their marriage from Buddy's family, especially Aubrey, because Buddy believed that Aubrey would disapprove. On their wedding day, at Penny's request, Buddy granted Penny a general power of attorney and executed a will leaving his entire estate to her, without informing Aubrey of the marriage. Penny sent Aubrey three letters asking him to "address and correct the wrongs that have been done [to Buddy in the business.]" Aubrey did not respond to any of the letters. When Aubrey finally learned of the marriage, he was very upset. He believed that Penny wanted to "break up" the family business. Buddy testified that Aubrey "almost every day" told him "to get rid of that woman or get a divorce ... turn your property over to me or get a divorce," which made Buddy feel "very bad."

A year and a half later, on December 20, 1985, after several consultations with an attorney (three times without Aubrey present), Buddy executed a no-consideration deed, conveying his share of approximately 626 acres of land to Aubrey and Vicki Mattingly. On the same date he executed another no-consideration deed, conveying an additional 143 acres to Aubrey and Vicki, and reserving a life estate in the land for himself. On January 23, 1986, Buddy entered into a written agreement with Aubrey for the sale of Buddy's interest in Lester Mattingly Sons. Under the terms of the agreement, Buddy agreed to sell to Aubrey his 40% interest in the business and equipment. Aubrey agreed to pay $50,000.00, plus repay a prior loan made by Buddy to the partnership in the amount of $23,000, for a total payment of $73,000. This total amount was to be paid at the rate of $10,000 per year beginning two and one-half years later, in July of 1988. Less than a month later, on February 5, 1986, Buddy signed a release of Aubrey from "all issues relating to all accounting" between himself and Aubrey for the business known as Lester Mattingly Sons and also released Aubrey "from all liability for claims and demands arising out of the conduct of the business, accounting of funds, and any and all other transactions between us not contained in the Agreement of Sale of my share of the business dated January 23, 1986."

The parties stipulated that Buddy was competent "to enter into contracts and agreements" and that "his competency" at the time he executed the agreements set forth above "is not an issue in the case." Nevertheless, Dr. Jonas Rappeport, a forensic psychiatrist, testified that he had evaluated Buddy and determined, from a battery of psychiatric tests, that Buddy was suffering from "dependent personality disorder." Moreover, on December 21, 1988, Penny, at the request of Buddy, and over the objection of Aubrey, was appointed the guardian of her husband's property by the Circuit Court for St. Mary's County, Mattingly v. Mattingly, Case No. 87-69, December 1988. That holding was affirmed by this Court in an unreported opinion.

The present action was brought by Penny, as the guardian of Buddy's property, to set aside, on the grounds of "undue influence and other unfair means" by Aubrey, the two deeds, the sales agreement, and the release of liability entered into by Buddy. Penny also sought a dissolution of the partnership and an independent accounting of partnership affairs from 1963 to February 1987, whereby Buddy would receive one-half of the value of the partnership assets, repayment of a $28,000 loan allegedly made by him to Aubrey and Vicki, and half of the proceeds of a right-of-way purchased by Southern Maryland Electric Company (SMECO). Finally, Penny sought recovery of costs, including attorney's and other fees, plus interest and "damages as may be proper for the delay."

Aubrey filed a demand for a jury trial, and Penny filed a motion to strike the demand. After a hearing on the motion, the trial court entered an order denying Penny's motion to strike. There is no opinion accompanying that order, or explanation for it, in the record. The case was then tried to a jury on four specific issues:

1. Whether Aubrey dominated and coerced Lester to such an extent that Lester was prevented from exercising his own free judgment and choice in executing a deed to Aubrey and Victoria of Lester's interest in more than 600 acres of land without consideration;

2. Whether Aubrey exerted such influence, with respect to a second deed from Lester to the same parties for 143 acres of land, also without consideration;

3. Whether Aubrey exerted such influence with respect to the transfer of Lester's share in the brothers' partnership; and

4. Whether Aubrey exerted such influence with respect to a release by Lester of Aubrey from all claims respecting that partnership.

The jury answered "no" to each of the questions, and the trial court entered judgment in favor of Aubrey and his wife, Vicki.

Penny appeals, presenting four questions:

1. Did the lower court err in submitting this case to the jury?

2. Did the lower court err in determining as a matter of law that there was no confidential relationship between the parties?

3. Did the lower court err in entering judgment for appellees in the absence of clear and convincing evidence that there was no abuse of confidence and that the transactions were fair and proper?

4. Did the lower court err in excluding Dr. Rappeport's testimony with respect to Lester Mattingly's competency to make a valid gift?

(ii)

Article 23 of the Maryland Declaration of Rights, ² like the Seventh Amendment of the United States constitution guarantees a right to a jury trial in actions at law. See Bringe v. Collins, 274 Md. 338, 346, 335 A.2d 670 (1975). There is, however, no right to a jury trial in actions in equity under federal, Pernell v. Southall Realty, 416 U.S. 363, 375, 94 S.Ct. 1723, 1729-30, 40 L.Ed.2d 198 (1974), or state law. Impala Platinum Ltd. v. Impala Sales (U.S.A.), Inc., 283 Md. 296, 320, 389 A.2d 887 (1978). With the 1984 "merger of law and equity" in Maryland, parties may now "join legal and equitable claims in a single legal action," in the courts of this state as they have been able to do in the federal courts since 1938 when the "merger was accomplished in the federal courts." Higgins v. Barnes, 310 Md. 532, 541, 530 A.2d 724 (1987). The "merger of law and equity" was not intended to broaden or change the right to a jury trial:

If a claim is brought that historically would have been filed on the law side of the court and a jury trial is properly demanded, a jury will hear the case. Equitable claims will be decided by the court without a jury.

Hashem v. Taheri, 82 Md.App. 269, 272-73, 571 A.2d 837 (1990) (emphasis added) (citing P. Niemeyer and L. Richards, Maryland Rules Commentary at 123, 125 (1984)). See also In re Graham, 747 F.2d 1383 (11th Cir.1984). Kahle v. McDonough Builders, Inc., 85 Md.App. 141, 149, 582 A.2d 557 (1990).

In order to preserve inviolate the right to a jury trial, however, both the Supreme Court and the Court of Appeals have directed that when "the existence of both legal and equitable issues within the same case requires the selection between the jury and the court as the determiner of common issues, the discretion of the trial court 'is very narrowly limited and must, wherever possible, be exercised to...