Barbara Kauffman v. Teresa K. Kelly (mem. dec.) ( 2020 )

MEMORANDUM DECISION
Pursuant to Ind. Appellate Rule 65(D),
this Memorandum Decision shall not be FILED
regarded as precedent or cited before any Oct 28 2020, 9:06 am
court except for the purpose of establishing CLERK
the defense of res judicata, collateral Indiana Supreme Court
Court of Appeals
estoppel, or the law of the case. and Tax Court
ATTORNEY FOR APPELLANT ATTORNEY FOR APPELLEE
Bryce Runkle Jeffrey Elfman
Peru, Indiana Kokomo, Indiana
IN THE
COURT OF APPEALS OF INDIANA
Barbara Kauffman, October 28, 2020
Appellant-Defendant, Court of Appeals Case No.
20A-PL-45
v. Appeal from the Miami Superior
Court
Teresa K. Kelley, The Honorable J. David Grund,
Appellee-Plaintiff, Judge
Trial Court Cause No.
52D01-1811-PL-558
Robb, Judge.
Court of Appeals of Indiana | Memorandum Decision 20A-PL-45 | October 28, 2020 Page 1 of 10
Case Summary and Issues
[1] Barbara Kauffman lived in a trailer on land previously owned by her sister Billie
Childers. Childers allegedly promised Kauffman that she could live on the
property for the rest of her life. When Childers died, the land was inherited by
Childers’ daughter Teresa Kelley. Kelley subsequently filed a claim for
immediate possession seeking to eject Kauffman from the property which was
granted by the trial court. Kauffman now appeals raising several issues; we find
the following two restated issues to be dispositive: (1) whether the record
establishes that there was an oral agreement between Kauffman and Childers
and (2) whether the trial court erred in finding that any oral agreement granting
Kauffman an interest in property was barred by the statute of frauds. We
conclude the trial court incorrectly found that the statute of frauds barred a fully
performed oral agreement and the only conclusion that can be drawn from the
record is that there was an oral agreement between Kauffman and Childers.
Accordingly, we reverse the trial court’s judgment.
Facts and Procedural History
[2] In 2001, Kauffman allegedly made an oral agreement with Elva Triplett and
Childers, her mother and sister respectively, that in exchange for being
Triplett’s caretaker for the remainder of Triplett’s life Kauffman would be
allowed to live at 1096 E. 5th Street in Peru (the “Property”) for the rest of her
life. The Property was originally owned by Billie and Killus Childers and was
transferred to Elva Triplett for a period but was eventually returned to the
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Childerses by warranty deed executed in March of 2000. See Transcript of
Evidence, Volume II at 32; Index of Exhibits, Volume III at 7-9.
[3] In October 2001, Kauffman moved into a 1979 Commodore trailer (“Trailer”)
on the Property and became Triplett’s caregiver.1 Kelley testified that Kauffman
was in fact the “care taker of [Triplett].” Tr., Vol. II at 32. Kauffman was
Triplett’s caregiver until 2005 when Triplett died. After Triplett’s death,
Kauffman continued to live on the Property.
[4] In 2011, Childers died. Childers willed the Property to her three children,
Kelley, Eugene Snowden, and Kenneth Childers, in equal shares.2 Childers’ will
was executed in 1996 prior to the alleged agreement. Snowden and Kenneth
both transferred their interest in the property to Kelley via quit claim deed.3 See
Ex., Vol. III at 10-11. Snowden testified that Childers granted Kauffman a life
estate in the Property; however, he did not know if the agreement had ever been
reduced to writing. See Tr., Vol. II at 118. Snowden further testified that he did
not believe that the agreement was mentioned in Childers’ will but that Childers
1
In 2010, the title to the Trailer was transferred into Kauffman’s name.
2
Killus Childers predeceased Billie Childers at which time the Property became titled to Billie Childers as the
surviving tenant by the entireties. See Ex. Vol. III at 8.
3
Neither of the quitclaim deeds executed by Snowden and Kenneth made a reference to a life estate interest
in the Property. See Ex., Vol. III at 10-11. Further, the quit claim deeds were not executed at the same time.
Kenneth transferred his interest to Kelley in July 2012 while Snowden did not execute a quit claim deed until
July 2016. Kelley stated that she “bought [her] step-brother out. [And her] brother signed his third over[.]”
Tr., Vol. II at 65. But she also stated that she “paid the property to my brother, [Kenneth] Childers” when
asked if she paid for the property. Id. at 30. It is therefore unclear which brother Kelley paid money to in
exchange for his interest in the Property.
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had agreed that Kauffman could live in the Trailer on the Property for the rest
of her life “[a]s long as she kept the yard up and paid the taxes.”4 Id. at 120.
[5] Kauffman continued to live on the Property after Childers’ death and continued
to pay the property taxes until 2018. In 2018, Kelley filed a verified claim for
immediate possession to eject Kauffman from the Property. The trial court
found that any oral agreement allowing Kauffman to live on Property for the
remainder of her life violated the statute of frauds and granted Kelley’s claim
for immediate possession. Kauffman now appeals.
Discussion and Decision
I. Standard of Review
[6] Where, as here, the trial court enters findings of fact and conclusions thereon
without an Indiana Trial Rule 52 written request from a party, the entry of
findings and conclusions is considered to be sua sponte. Samples v. Wilson, 12
N.E.3d 946, 949 (Ind. Ct. App. 2014). When the trial court enters specific
findings sua sponte, the “findings control our review and the judgment only as to
the issues those specific findings cover. Where there are no specific findings, a
general judgment standard applies and we may affirm on any legal theory
4
Kenneth Childers did not testify.
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supported by the evidence adduced at trial.” Argonaut Ins. Co. v. Jones, 953
N.E.2d 608, 614 (Ind. Ct. App. 2011), trans. denied.
[7] We apply a two-tier standard of review to the sua sponte findings and
conclusions. Estate of Henry v. Woods, 77 N.E.3d 1200, 1204 (Ind. Ct. App.
2017). First, we determine whether the evidence supports the findings and
second, whether the findings support the judgment. Id. We will set aside
findings and conclusions only if they are clearly erroneous, that is, when the
record contains no facts or inferences supporting them. Id. In conducting our
review, we consider only the evidence favorable to the judgment and all
reasonable inferences flowing therefrom. Id. We do not reweigh the evidence
nor do we assess witness credibility. Id.[8] We defer to the trial court’s findings of fact, but do not defer to its conclusions
as to the applicable law. Atterholt v. Robinson, 872 N.E.2d 633, 639 (Ind. Ct.
App. 2007). Additionally, a judgment is clearly erroneous under Indiana Trial
Rule 52 if it relies on an incorrect legal standard. Trabucco v. Trabucco, 944
N.E.2d 544, 549 (Ind. Ct. App. 2011) (quotation omitted), trans. denied. We
evaluate questions of law de novo and owe no deference to a trial court’s
determination of such questions. Id.III. Existence of Oral Agreement
[9] Kauffman alleges that there was an oral agreement between Childers and
herself granting her a life estate in the Property in exchange for being Triplett’s
caretaker for the remainder of Triplett’s life. The trial court concluded that the
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statute of frauds barred oral agreements granting an interest in land and
therefore did not make a finding regarding whether an oral agreement between
Kauffman and Childers existed.
[10] Because Kauffman did not prevail at trial, she appeals from a negative
judgment. Garling v. Ind. Dep’t of Nat. Res., 766 N.E.2d 409, 411 (Ind. Ct. App.
2002) (stating that a negative judgment is one entered against a party who bore
the burden of proof at trial), trans. denied. On appeal, we will not reverse a
negative judgment unless it is contrary to law. Mominee v. King, 629 N.E.2d
1280, 1282 (Ind. Ct. App. 1994). A judgment is contrary to law when the
evidence is without conflict and leads to but one conclusion which is contrary
to that reached by the trial court. In re Marriage of Wooten, 563 N.E.2d 636, 638
(Ind. Ct. App. 1990). And in determining whether a judgment is contrary to
law, we consider the evidence in the light most favorable to the appellee,
together with all the reasonable inferences to be drawn therefrom. J.W. v.
Hendricks Cnty. Office of Family & Children, 697 N.E.2d 480, 482 (Ind. Ct. App.
1998).
[11] Here, the record is without conflict that an oral agreement between Kauffman
and Childers existed. Kauffman testified that in exchange for taking care of
Triplett she had been promised that she would be allowed to live on the
Property for the rest of her life. This testimony was corroborated by two other
witnesses, both of whom are related to Childers. Snowden testified, and when
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asked whether “Kauffman [was] promised a life estate by [] Childers” 5 in
exchange for taking care of Triplett and whether “Kauffman would be able to
remain in the [Trailer] for the rest of her life[,]” he responded with “yes” and
“[t]hat was the agreement.” Tr., Vol. II at 118, 120. Reeves also testified that
Kauffman had been promised that she could live on the Property “as long as
she lived.”6 Id. at 42.
[12] Kelley presented no evidence disputing the existence of the oral agreement.
Kelley’s testimony focused on the agreement’s failure to be in writing. Kelley
testified that Childers’ will did not leave Kauffman “any type of [] life estate or
any type of interest” in the Property. Id. at 26. She further testified that there
was no language in the warranty deed from Triplett to Childers or the quit
claim deeds executed by Snowden and Kenneth reserving any interest in the
Property for Kauffman. Kelley responded “no” when asked whether she
believed that she was bound by “any prior arrangement,” id.; however, she did
not ever testify that the agreement did not exist, only stating that she was not
“privy” to any promise made to Kauffman, id. at 31. Kelley did not ever
disclaim the existence of an oral agreement.
5
Snowden clarified that by “life estate” he meant that “Kauffman had the right to live in the [T]railer for the
rest of her life on [the Property.]” Tr., Vol. II at 121.
6
One of Kauffman’s issues on appeal challenges five hearsay objections sustained by the trial court. Four of
the five statements were regarding the oral agreement between Kauffman and Childers while the fifth
pertained to whether the Trailer could be moved from the property. We do not need to address whether the
exclusion of those statements as hearsay was erroneous because they have no impact on the outcome due to
other testimony about the agreement being admitted into evidence. Even if the statements should have been
admitted, they would be merely cumulative and consistent with the evidence.
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[13] Because the record is devoid of any evidence disputing the existence of an oral
agreement, we conclude that the record is without conflict and the only
conclusion that can be drawn from the record is that there was an oral
agreement between Kauffman and Childers granting Kauffman the right to live
on the Property for the remainder of her life. See In re Marriage of Wooten, 563
N.E.2d at 638.
II. Statute of Frauds
[14] The trial court determined that even if there was an oral agreement between
Childers, Triplett, and Kauffman granting Kauffman an interest in the Property,
it violated the statute of frauds. The trial court concluded, “[a]ssuming that []
Triplett and [] Kauffman did have an oral agreement giving her a Life Estate
interest in the Property[,] said agreement violates the Statute of Frauds on the
well-established rule of law that contracts for real property have to be in
writing.” Appealed Order at 2. We disagree.
[15] Indiana Code section 32-21-1-13(a) states that “a conveyance of land or of any
interest in land shall be made by a deed that is: (1) written; and (2) subscribed,
sealed, and acknowledged by the grantor[.]” However, when an oral agreement
is fully performed, the statute of frauds does not apply. See McCasland v. Aetna
Life Ins. Co., 108 Ind. 130, 9 N.E. 119, 119-20 (1886). “Where one party to an
oral contract in reliance on that contract has performed his part of the
agreement to such an extent that repudiation of the contract would lead to an
unjust or fraudulent result, equity will disregard the requirement of a writing
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and enforce the oral agreement.” Summerlot v. Summerlot, 408 N.E.2d 820, 828
(Ind. Ct. App. 1980). Further, our supreme court has held that “specific
performance may be had in favor of the party who has taken possession and
fully performed his part[.]” Denlar v. Hile, 123 Ind. 68, 24 N.E. 170, 171 (1890).
We conclude that Kauffman (1) fully performed the alleged agreement and (2)
took possession of the Property.
[16] First, to fully perform the alleged oral agreement the record must establish that
Kauffman was Triplett’s caregiver for the remainder of Triplett’s life. Patricia
Reeves, Kauffman and Childers’ sister, testified that Kauffman was Triplett’s
caregiver for the rest of her life. See Tr., Vol. II at 42. Further, this testimony
was echoed by Snowden. See id. at 118. The record includes no testimony
suggesting that Kauffman was not Triplett’s caregiver from the time of the
alleged oral agreement in 2001 to Triplett’s death in 2005. Kelley even concedes
that Kauffman was in fact the “care taker of [Triplett].” Id. at 32.
[17] Second, Kauffman must have taken possession of the Property. “The possession
must be taken or delivered under and pursuant to the terms of the verbal
contract of purchase to take the case out of the operation of the statute of
frauds.” Waymire v. Waymire, 141 Ind. 164, 40 N.E. 523, 524 (1895). Snowden
testified that Kauffman was permitted to live on the property for the rest of her
life “[a]s long as she kept up the yard and paid the taxes.” Tr., Vol. II at 120.
Kauffman moved onto the Property in October 2001 to take care of Triplett and
remained there after her death. Kauffman lived on the Property for eighteen
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years and paid taxes on the property from 2006 until 2018 when Kelley filed a
claim for immediate possession to eject her. See id. at 100.
[18] We conclude that the oral agreement between Kauffman and Childers granting
Kauffman an interest in the Property is not subject to the statute of frauds
because the record shows that Kauffman fully performed and took possession of
the Property pursuant to the alleged agreement. Accordingly, the trial court
erred by relying on an incorrect legal standard. Trabucco, 944 N.E.2d at 549.
Conclusion
[19] Concluding that the record establishes the existence of an oral agreement
between Kauffman and Childers granting Kauffman the right to live on the
Property for the rest of her life and that the trial court erred in determining as a
matter of law that a fully performed oral agreement was barred by the statute of
frauds, we reverse.
[20] Reversed.
Crone, J., and Brown, J., concur.
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