Matter of Matheny Family Trust
2015 SD 5
S.D.2015Background
- Karen Bridges sues Wayne Matheny (co-trustee) for undue influence in the 2004 contract for deed with their mother Annabelle, a trust action in the SD Supreme Court.
- Annabelle, as sole trustee after 1997, entered into a 2004 contract for deed selling 480 acres at $600/acre to Wayne.
- Karen knew of the contract terms in 2004 and later agreed to an appraisal condition tied to equal estate shares, but did not object at the time.
- Annabelle dies in 2009; Wayne and Karen become co-trustees and the matter proceeds with court supervision of the Trust.
- Wayne moves for summary judgment arguing Louise’s (Karen’s) undue-influence claim is time-barred and the oral appraisal agreement is barred by the statute of frauds.
- Circuit court grants summary judgment, finding timely accrual and that the oral agreement falls within the statute of frauds; Karen appeals.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does statute of limitations bar undue influence claim? | Karen argues accrual upon wrongful acquisition per Meyer. | Wayne argues accrual from contract for deed in 2004; claim untimely. | Yes; claim barred by six-year accrual from 2004 contract. |
| When does the undue-influence claim accrue for a constructive trust scenario? | Takes the wrongful acquisition time as accrual. | Equitable title holder’s use/possession triggers accrual. | Accrual occurs in 2004; timely filing not shown. |
| Is the oral agreement to appraise post-death enforceable under the statute of frauds? | Agreement relates to appraisal value, not price terms. | Agreement to appraise constitutes an agreement for sale of real estate or interest and must be in writing. | barred by the statute of frauds. |
| Does the oral agreement relate to a separate transaction independent of the 2004 contract? | Alleges separate, wholly independent agreement. | Agreement is inseparable from the 2004 sale as Karen seeks the appraised value affecting estate share. | unenforceable under statute of frauds; not separate. |
Key Cases Cited
- Meyer v. Kneip, 457 N.W.2d 463 (S.D. 1990) (accrual begins at wrongful acquisition for constructive trusts)
- Anderson v. Aesoph, 697 N.W.2d 25 (S.D. 2005) (vendor holds legal title; vendee holds equitable title)
- First Fed. Sav. & Loan Ass’n of Storm Lake v. Lovett, 318 N.W.2d 133 (S.D. 1982) (equitable title concepts and notices relevant to constructive ownership)
- Renner v. Crisman, 127 N.W.2d 717 (S.D. 1964) (possession and ownership 'for all practical purposes' controls)