Royal v. Parado

• Decision Date: 22 January 1985
• Docket Number: No. AV-185,AV-185
• Citation: 462 So.2d 849,10 Fla. L. Weekly 226
• Parties: 10 Fla. L. Weekly 226 Carole Emerson ROYAL and James Thornton Royal, Appellants, v. Annie Chitty PARADO, Appellee.
• Court: Florida District Court of Appeals

Page 849

462 So.2d 849

10 Fla. L. Weekly 226

Carole Emerson ROYAL and James Thornton Royal, Appellants, v. Annie Chitty PARADO, Appellee.

No. AV-185.

District Court of Appeal of Florida First District.

Jan. 22, 1985.

Walter R. Stedeford, and Peter L. Dearing and Thomas F. Harkins, Jr., Mahoney, Hadlow & Adams, Jacksonville, for appellants.

Charles Cook Howell, Jr., Howell & Howell, P.A., Jacksonville Beach, for appellee.

SMITH, Judge.

Appellants seek reversal of a final judgment rescinding a quitclaim deed and quieting title to certain parcels of land located in St. Johns County, Florida. We affirm the trial court's jurisdiction, but find error on other issues, and vacate the final judgment and remand for further proceedings.

The issues are (1) whether under the "local action" rule the trial court had jurisdiction of the cause of action, which sought rescission of the deed to property located in a county other than the one in which suit was filed; (2) whether it was error to allow appellee (plaintiff), after the trial but before final judgment, to re-assert a claim for monetary relief against appellants, in addition to rescission, where appellee announced at the beginning of the trial that the claim for monetary relief was withdrawn; and (3) whether the court erred in granting rescission of appellee's deed to appellants, especially since there was no finding of fraud on the part of appellants, and the judgment does not return them to their status quo. We find error in the court's ruling on the latter two issues, requiring reversal.

I--FACTS

The facts of this drawn-out episode were found by the trial court at the conclusion of a non-jury trial substantially as follows. Appellee is an 80 year old widow who has lived on a 75 X 100 foot parcel of land located in St. Johns County since 1945. Appellants, defendants below, are the great-niece and great-nephew-in-law of appellee, respectively. During the extended illness of appellee's second husband, both appellants provided appellee with housekeeping and other assistance. The appellants' assistance to the appellee included transporting appellee to the grocery store, to the doctor, and various other errands, assisting her to purchase an automobile, repairs and other maintenance around appellee's property, cooking, and other activities. The trial court characterized the activities of appellants during this time as that of two "devoted, attentive younger relatives." Subsequently, in 1979 the parties began discussions of a possible arrangement whereby appellee would convey the easterly one-half of her land to appellants, in exchange for a promise from the appellants that they would live on the conveyed property and provide care and attention to appellee for the rest of her life. Apparently, appellee had a dread of living her later life in a nursing home, and hence was willing to give up possession of a portion of her property in exchange for assurances that this would never come to pass.

As a result of these discussions, on August 1, 1980, appellee conveyed the easterly one-half of her property to the appellants. Later, pursuant to the agreement, she granted appellants an easement across her retained western one-half of the parcel, in order to allow appellants access to the adjoining waterway. On February 25, 1981, appellee also executed a deed to herself and appellant Carole Royal, as joint tenants with right of survivorship, covering the western half of the lot, on which appellee's home was located. In order to provide a residence for themselves, appellants then borrowed approximately $33,000 from the Beach Federal Savings and Loan Association, Jacksonville Beach, mortgaging the property conveyed by appellee as security, and commenced construction of a residence on the eastern half of the property at issue here. The total investment by appellants in the residence was $74,178.

In early June 1981, appellants and their two children moved into the newly constructed residence, although the residence was still without electricity and water. With appellee's permission, appellants and their children used the utilities in appellee's home for cooking and bathing. Approximately two to three weeks after this arrangement began, the relationship between the parties began to deteriorate. From that time until August of 1981, appellants apparently provided minimal "care and attention" to appellee. For example, after appellee's hospitalization and surgery, appellee received attention from her niece, Lillian Mack Emerson (appellant Carole Emerson Royal's mother), rather than from the appellants. Also, when appellee returned to her home after surgery on October 4, 1981, she was cared for by a professional companion. According to the trial court, the only evidence that appellants were continuing to provide appellee with "care and attention," as agreed, was appellant James Royal's continued mowing of appellee's yard and watering of her tomato plants.

Two significant events (characterized by the trial court as "shocking") took place on August 12, 1981. First, Lillian Mack Emerson and appellant Carole Royal went to the savings and loan association where appellee conducted her banking business, and attempted to cash certain certificates of deposit, in the amount of $85,000, which were owned jointly in the names of appellee, Mrs. Emerson, and appellant Carole Royal. The attempt was unsuccessful, however, because on the preceding day a freeze had been placed on the certificates of deposit by appellee after she had discovered that the certificates were missing from her safety deposit box. Appellee testified at trial that she had placed the certificates in the joint names of herself, Mrs. Emerson, and appellant Carole Royal in an effort to reduce probate costs upon her death, as well as to see to it that money would be available for her burial. Apparently, Mrs. Emerson had been allowed by appellee to write and sign checks from a joint savings account opened in the name of Mrs. Emerson and appellee for groceries and medical expenses. Regarding the August 12, 1981 effort to cash the certificates of deposit, Mrs. Emerson testified that she removed the certificates from their safety deposit box and attempted to cash them "for [appellee's] own good."

The second August 12, 1981 incident also involves Mrs. Emerson and the appellants. Mrs. Emerson petitioned the Circuit Court of St. Johns County for an emergency mental evaluation of the appellee pursuant to Section 394.463, Florida Statutes, advising the deputy clerk of court that appellee was in need of long-term convalescent care and emergency evaluation. Appellants Carole and James Royal accompanied Mrs. Emerson to the courthouse, where they signed two affidavits in support of Mrs. Emerson's petition. As a result of the petition, appellee was transported by the St. Johns County Sheriff's Department to Flagler Hospital, St. Augustine. Appellee was evaluated--and immediately released--when neither the intake examiner nor the clinical psychologist could find any basis for detention or treatment of appellee. No evidence was introduced at trial that appellee had ever received treatment for mental or emotional problems.

II--LITIGATION COMMENCED

Appellee initially filed a one-count complaint against Mrs. Emerson, seeking equitable remedies concerning the certificates of deposit Mrs. Emerson attempted to cash. Shortly thereafter, on October 30, 1981, she filed an amended six-count complaint, adding the appellants as defendants in one count seeking rescission of the deeds and easement granted to appellants. As grounds, appellee alleged that appellants had obtained the deeds and easement by fraud, by means of their promise to see that she would be cared for in her home the rest of her life, with fraudulent intent not to perform the same. Later, appellee filed an amendment to Count II of her amended complaint, requesting in paragraph D of her prayer for relief that the trial court order appellants to pay in full and satisfy the mortgage placed on the easterly one-half of her parcel of land by appellants. Appellants filed an answer and a counterclaim seeking relief, in the event rescission was granted to appellee, in the form of a lien or trust on the property due to their improvement by building the residence thereon, or in the alternative, that damages be awarded in the amount of the improvement.

Trial on Count II of the amended complaint against the appellants was held on January 31 and February 1, 1983. ¹ Prior to taking any testimony at the trial, counsel for appellee stated on the record that appellee was voluntarily waiving any claim for the relief requested in paragraph D of Count II of the amended complaint--the request that appellants continue payment of the mortgage. However, after the trial, appellee moved to withdraw her pre-trial waiver of any claim that appellants be required to pay the mortgage. Although it is unclear from the record, apparently oral argument was heard on this motion, which was granted by the terms of the final judgment.

On June 30, 1983, the trial court entered a final judgment for appellee setting aside the deeds and easement, requiring appellants either to move the house or remove themselves and their belongings from the house, and requiring them to continue making mortgage payments and otherwise denying them any relief under their counterclaim. In support of the judgment, the trial court concluded that appellants had provided no care for appellee since August, 1981; that the strong relationship of trust and confidence which appellee had for the appellants and which was a motivating factor for the conveyance of the property to the appellants was breached by appellants' participation in the efforts to redeem the certificates of deposit, and their participation in the Baker Act evaluation of appellee; and that the comfort and support given by appellants to appellee from 1978 to August 1981 was "reversed" by...