Opinion ID: 1203230
Heading Depth: 2
Heading Rank: 2

Heading: Existence of a Confidential Relationship

Text: A confidential relationship arises when the grantor has placed his trust and confidence in the grantee, and the grantee has exerted dominion over the grantor. Bullard v. Crawley, 294 S.C. 276, 363 S.E.2d 897 (1987). The essence of the relationship is the trust and confidence. Id. Mere friendship between the parties is not sufficient. The relationship must be one implying confidence. Id. Some evidence is required that the grantor actually reposed trust in the grantee in the handling of her affairs. Id. In this case, evidence at trial revealed that Brooks placed her trust in Kay. Kay and the Children testified that Brooks entrusted her important financial papers with Kay. These papers included her bank passbook, her husband's will, and other valuable papers. Kay testified that she entrusted him with these materials because she did not trust her own son who lived with her or the son's friends who were often in the trailer. Also, one of the Children testified that instead of consulting with the family about the sale of other property owned by Brooks, she sought the advice of Kay. This evidence reveals that Brooks placed her confidence in Kay for both her personal and her business finances. The challenged transaction also reveals Brooks placed her trust and confidence with Kay. She relied on Kay to prepare everything for the transaction. Kay chose the attorney and told him how to prepare the document. Brooks had no contact with the attorney and, having only a fourth grade education, relied on Kay to ensure that the document reflected their agreement. Perhaps the strongest evidence of a confidential relationship is that when confusion arose concerning the nature of the transaction, Brooks relied on Kay for an explanation. Initially, Folk testified that Brooks thought she was only signing over the right to hunt on the property to Kay. After Brooks signed the deed transferring her property, Kay left the room to record the deed. Folk then discovered that Brooks had not intended to deed over the property. Upon Kay's return, Folk informed him of the confusion and then Brooks and Kay had a private conversation not heard by Folk. After this conversation, Brooks agreed to let Folk take the deed from them for filing. Based on the circumstances surrounding the transaction in question as well as the evidence that Brooks relied on Kay to keep her important papers and sought his advice concerning business transactions, enough evidence of a confidential relationship existed so that the burden should have been on Kay to prove absence of undue influence.