Opinion ID: 900278
Heading Depth: 1
Heading Rank: 5

Heading: Undue influence issue analyzed in this case.

Text: [¶ 15.] Anne argues the trial court erred in determining that Michael rebutted the presumption of undue influence which had arisen, and also that Anne had failed to establish the existence of undue influence. We disagree. [¶ 16.] In determining that a presumption of undue influence had arisen, the trial court first found that a confidential relationship existed between Michael and Elizabeth. A confidential relationship exists whenever a decedent has placed trust and confidence in the integrity and fidelity of another. Madsen, 535 N.W.2d at 892 (citations and internal quotations omitted). In ascertaining if a confidential relationship exists, we consider such factors as the amount of time the beneficiary spent with the testator, whether the beneficiary handled many of the personal or business affairs of the testator, and whether the testator ever sought the advice of the beneficiary. Till, 458 N.W.2d at 524. Michael managed the daily operations of the family business, handled Elizabeth's financial affairs when she was traveling, and gave her advice on family matters, including her concerns over Anne's behavior. Clearly a confidential relationship existed between Michael and his mother. [¶ 17.] The trial court also examined the other two factors needed to raise a presumption of undue influence, that is, whether Michael participated in the preparation and execution of Elizabeth's will, and whether he unduly profited therefrom. The trial court found Michael was involved in drafting the will: He had more estate planning experience than Fisher; he wrote the boiler-plate provisions of the will; he had his secretary type it; and he helped write some of the non-boilerplate language. The trial court also found that while Michael did not unduly profit from the will at present, he did have the immediate and foreseeable opportunity to unduly profit. This was evidenced by the fact that he received his half of the property outright, and he was also named as trustee over his sister's half of the property and personal representative of the estate. Given the nature of the property, and the control that Michael was given over it, the potential for him to unduly profit is great, and we cannot say the trial court was clearly erroneous in finding that a presumption of undue influence was established. Indeed, Michael does not even argue in his brief that there was no presumption. [¶ 18.] Once the presumption was raised, the burden was on Michael to go forward with evidence to show that he took no unfair advantage of Elizabeth. Metz, 78 S.D. at 222, 100 N.W.2d at 398. The trial court found Michael met his burden of rebutting the presumption. We agree. [¶ 19.] When Elizabeth was concerned about Anne, she went to Michael to discuss what should be done. He suggested she consult an attorney other than himself, and she made the decision to choose Fisher. He did take her to see Fisher, and although Michael was integral in drafting the will, Fisher testified that Michael was very silent during the times Fisher and Elizabeth met to discuss the will. Fisher also testified that from his perspective, the will provided for exactly what Elizabeth wanted, and she was not acting under the influence of anyone or anything. There was also testimony from other witnesses that Elizabeth had expressed concerns about Anne's behavior. Anne's argument consists mainly of claiming that any evidence Michael presented was not credible, and disproved by Anne's own witnesses. As mentioned above, we must give credit to the trial court's unique ability to judge the credibility of the witnesses and the evidence. Elliott, 537 N.W.2d at 662. [¶ 20.] Once Michael rebutted the presumption of undue influence, Anne had the burden of proving undue influence. See Madsen, 535 N.W.2d at 893. The trial court ruled she failed to meet two of the elements: (1) susceptibility to undue influence, and (2) a result clearly showing signs of undue influence. In reviewing the evidence, we cannot say the trial court was clearly erroneous. [¶ 21.] Anne first argues Elizabeth was susceptible to undue influence because she was physically and mentally weak. The physical and mental strength of a testator is material regarding the question of the testator's susceptibility to undue influence and fraud. Elliott, 537 N.W.2d at 665 (citations omitted). Anne argues Elizabeth was physically weak because in 1991 she stated that she had a chronic loss of energy. Further, Anne claims Elizabeth was physically weak, because she was diagnosed with cancer two months after signing her will. Anne also points to indications of mental weakness on Elizabeth's part. She argues Elizabeth was prone to rely on Michael, and did so when she bought a car, when she changed the timing of a trip, and when she chose Fisher as the attorney to draft her will. [¶ 22.] Despite Anne's assertions, there was extensive testimony to show Elizabeth was neither physically nor mentally weak. Dr. Yount, Elizabeth's primary physician in Florida since 1980, testified that Elizabeth was competent and completely capable of making her own decisions until the time of her death. William Miller, a member of the board of directors for Elizabeth's Florida condominium, stated that in his opinion Elizabeth had her own mind and was not susceptible to influence by anyone. Several of Elizabeth's close friends testified that she was not susceptible to influence, was completely competent, and demonstrated business savvy until the time of her death. Fisher testified he did not believe Elizabeth was acting under Michael's influence when she executed her will and that she knew exactly what was going on. William Lindquist, who has been the family investment banker since 1982, testified that Michael, at some point in time, had tried to convince his mother to invest more in the stock market, but Elizabeth was her own person and Michael's suggestion was rejected by her. The evidence is sufficient to support the trial court's finding that Elizabeth was not subject to undue influence. [¶ 23.] The trial court also found Anne had failed to satisfy the fourth prong of the undue influence test, that is, that the will indicated a result clearly showing the effects of undue influence. Although Anne does not argue this element extensively in her brief, she does argue that, because Michael was given control as trustee and personal representative over Anne's property, it demonstrates the result of undue influence. The trial court held that the will reflected Elizabeth's life-long goals for her family. Given Elizabeth's concerns over Anne's habits, [2] and the fact that Michael had been in charge of the family business since his father's death, we cannot say the trial court erred in finding the will did not show the effects of undue influence. [¶ 24.] Because we hold the trial court did not err in finding Anne had failed in her burden of establishing two of the elements necessary for a finding of undue influence, we need not address the remaining elements. [3]