Summary
In Drapp v. McDaniel, the Florida Second District Court of Appeal reversed a trial court’s invalidation of a deed, holding that the court improperly shifted the burden of proof to the defendants. The appellate court reaffirmed that a party challenging a deed’s validity on grounds of incapacity or undue influence bears the burden of proof, and that mere physical illness or mistake is insufficient to overcome the presumption of capacity. Because the plaintiff failed to present adequate evidence of mental incapacity or undue influence, the deed was reinstated.
Topics
Practice areas
Questions Presented
- Whether the trial court misallocated the burden of proof when it required the appellants to explain why Mr. McDaniel would voluntarily transfer the property.
- Whether the evidence was sufficient to support a finding that Mr. McDaniel lacked mental capacity or was under undue influence when executing the McDaniel-Drapp deed.
Holdings
- The trial court erred because the party challenging a deed bears the burden to prove incapacity or undue influence, and Mr. McDaniel failed to present sufficient evidence of either.
Key quotations
“The mental capacity of a grantor is 'presumed once the existence of the deed is established.'” (at 1283)
“The burden rests on those seeking to set aside a deed on the ground of incapacity of the grantor at the time the instrument was executed.” (at 1283)
“a plaintiff who contests a conveyance on the ground of undue influence bears the burden of proof throughout the proceedings.” (at 1283)
“A deed may only be set aside on the grounds of undue influence if the party contesting the deed shows that the will of the grantor was overcome, depriving the grantor of free agency.” (at 1283)
“Mere mental weakness will not authorize a court of equity to set aside a deed if it does not amount to inability to comprehend the effect and nature of the transaction and is not accompanied by evidence of imposition or undue influence.” (at 1284)
Factual background
Edward McDaniel owed delinquent property taxes on two properties. His daughter, Ms. Drapp, paid the taxes with financial help from Mr. Streiff. McDaniel then executed a quitclaim deed (McDaniel-Drapp deed) transferring both properties to Drapp. Later, Drapp, acting as attorney-in-fact for McDaniel (though the power of attorney had been revoked), executed deeds transferring one property to Streiff and the other to Streiff. Drapp and Streiff then quitclaimed the properties to South Florida Lending Corp. McDaniel sued to invalidate the deeds.
Procedural history
Mr. McDaniel filed an eight-count action seeking to invalidate multiple deeds. Only the count for declaratory relief was tried. The trial court entered final judgment in favor of Mr. McDaniel, declaring the deeds null and void. Appellants appealed.
Remand instructions
On remand, the trial court shall enter judgment in favor of Ms. Drapp and Mr. Streiff as to the validity of the McDaniel-Drapp deed; order immediate reinstatement of the McDaniel-Drapp deed and the subsequent deeds from Ms. Drapp and Mr. Streiff to South Florida Lending; and vacate the order directing sealing and removal of those deeds from electronic databases.