Murray v. Carano
2017 Ohio 8235
| Ohio Ct. App. | 2017Background
- Decedent Dr. Joseph A. Carano died in 2015; O. Joseph Murray was executor and filed a R.C. 2109.50 complaint alleging Melissa Carano concealed estate assets.
- After family financial mismanagement (third party misuse of POA, foreclosure issues), Melissa helped manage her parents’ finances, deposited her own funds, and handled account transfers between Dr. Carano’s Chase checking and her personal savings.
- A $98,789 stock-sale deposit was later followed by a $88,000 transfer (July 7, 2015) from Dr. Carano’s account to Melissa’s savings; Melissa testified Dr. Carano instructed the transfer and that she used portions for funeral and other expenses.
- Executor sought judgment for $91,500 plus a 10% statutory penalty, alleging concealment/embezzlement; Melissa maintained the transfer was an inter vivos gift and/or done at her father’s direction to protect her from other family members.
- The probate bench trial found Melissa possessed former estate funds but concluded the transfer was a valid inter vivos gift (supported by family context and testimony) and dismissed the R.C. 2109.50 complaint.
Issues
| Issue | Plaintiff's Argument (Murray) | Defendant's Argument (Carano) | Held |
|---|---|---|---|
| Admissibility of decedent’s out-of-court statements (hearsay) | Testimony recounting Dr. Carano’s statements was inadmissible hearsay and the court improperly relied on it to find a gift | Statements were elicited in cross-exam and admissible under invited-error/curative-admissibility doctrines; court did not abuse discretion | Court admitted the testimony; no abuse of discretion because executor invited the hearsay and court allowed rebuttal evidence |
| Authority under Power of Attorney to receive/self-gift | POA prohibited self-gifting; Melissa lacked authority to take gifts to herself under the POA | The record shows Dr. Carano himself instructed/intended the transfer; Melissa did not act via POA to self-gift | Court found no evidence Melissa used the POA to gift to herself; transfer equaled an inter vivos gift by donor’s direction |
| Liability under R.C. 2109.50 (conceal/embezzle/convey away) | The transfer constituted concealment/impermissible withholding of estate assets; judgment should be entered for estate plus 10% penalty | Transfer was a valid gift to Melissa or at least not wrongful possession; executor failed to prove concealment by preponderance | Court dismissed complaint: executor failed to prove wrongful concealment; competent, credible evidence supported gift finding |
| Manifest weight / sufficiency of evidence | Trial court’s gift finding was against the manifest weight and insufficient; judgment should be reversed | Testimony, family context, and account history support the trial court’s gift finding | Appellate court affirmed: record did not show the trial court lost its way; judgment supported by credible evidence |
Key Cases Cited
- Eastley v. Volkman, 132 Ohio St.3d 328, 972 N.E.2d 517 (Ohio 2012) (standard for manifest-weight review in civil cases)
- Goldberg v. Maloney, 111 Ohio St.3d 211, 855 N.E.2d 856 (Ohio 2006) (scope and purpose of R.C. 2109.50 concealment proceedings)
- Fife v. Beck, 164 Ohio St. 449, 132 N.E.2d 185 (Ohio 1956) (inter vivos gift burden: donee must prove donor intent by clear and convincing evidence)
- In re Black's Estate, 145 Ohio St. 405, 62 N.E.2d 90 (Ohio 1945) (R.C. 2109.50 involves quasi-criminal charge of wrongful possession)
- Wozniak v. Wozniak, 90 Ohio App.3d 400, 629 N.E.2d 500 (Ohio Ct. App. 1993) (R.C. 2109.52 focuses on ownership and whether possession is impermissibly withheld from the estate)