Roger K. Mendenhall and Edwin L. Mendenhall, Jr. v. Marilyn Mendenhall Judy

Summary

The Supreme Court of Iowa reviewed a challenge to a mother's transfer of family-corporation stock to one of her children. The court held that clear, convincing, and satisfactory evidence established a confidential and fiduciary relationship and that the transfer resulted from undue influence, while rejecting dismissal of the appeal under the appellate-waiver doctrine because the payments were made under compulsion of a court order. The court affirmed the judgment subject to two modifications and remanded for further proceedings.

Holdings

1. Payment of judgments under compulsion of a court order is not voluntary and therefore did not waive Marilyn's right to appeal.
2. The stock transfer was procured by undue influence and was properly set aside.
3. The accounting was properly ordered but had to conclude on the date Marilyn paid for the stock, and the district court clerk was directed to release the stock to Marilyn if it had not already been released.

Questions Presented

1. Whether Marilyn's payment of the judgments under the district court's order waived her right to appeal.
2. Whether the stock transfer from Gladys to Marilyn was procured by undue influence and therefore should be set aside.
3. Whether the district court's accounting and stock-release provisions required modification after Marilyn paid for the stock.

Disposition

affirmed