Jorgenson v. Pardee

McCOMB, J.

This is an action to declare a trust in real and personal property in favor of plaintiffs as the heirs of the estate of Hildred Pardee.

Hildred Pardee and defendant were married in 1929. On December 22, 1948, defendant filed an action for divorce against her. After lengthy negotiations a property settlement was signed between the parties on February 24, 1949. On March 2, 1949, Mrs. Pardee was taken to a hospital suffering from an ailment which resulted in her death on March 26,1949.

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March 5, 1949, defendant called on decedent in the hospital, and on the 6th of March had a long visit with her alone in her room. As a result of this visit he obtained decedent’s consent to a reconciliation and cancellation of the property settlement agreement into which they had entered on February 24, 1949. Defendant had his attorney prepare a formal rescission of the property settlement agreement and a deed to him of property previously conveyed to his wife. About noon of the 7th of March, 1949, defendant took the agreement to his wife where he was with her alone for about two hours and during this period decedent executed the agreement rescinding the property settlement and the deed to plaintiff of certain property.

Upon her death he claimed all of the property as his, while plaintiffs claim, as heirs of decedent, that the rescission of the property settlement agreement was fraudulent and procured under undue influence.

The trial court found in accordance with the contentions of plaintiffs and entered judgment in their favor.

Question: Was there substantial evidence to sustain the trial court’s findings that decedent in executing the rescission agreement was acting under undue influence amd through the fraud of defendant?

This question must be answered in the affirmative. Confidential relations are presumed to exist between husband and wife, and in his dealings with his wife the husband, if he obtains an advantage over her, must show that he has not abused the confidence presumably reposed in him by her and resulting from the marital relationship. If the husband fails to bear the burden of showing that the transaction with his wife was fair and just and fully understood by her, the presumption arises that the transaction was entered into by the wife under the undue influence of her husband and was fraudulent.