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Bolen v. Bolen

169 S.W.3d 59 (2005)

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Bolen v. Bolen

Kentucky Court of Appeals

169 S.W.3d 59 (2005)

Facts

Jackie Bolen (defendant) conveyed a property to Mabel Bolen, his sister; Andy Bolen (plaintiff), his sister’s husband; and Barbara Porter (plaintiff), his sister’s daughter, with rights of survivorship. A layperson prepared three documents related to the conveyance: a deed of conveyance, a consideration statement, and a sale-contract agreement. None of these documents expressly provided for retention of a lien or other security interest in the real property. Nor did any of these documents provide any details on default or failure to make monthly installment payments. At some point, Mabel and Andy died, so Barbara owned the property based on her rights of survivorship. Eventually, Barbara defaulted on the payments required and petitioned for bankruptcy. Barbara was discharged of all her personal debts. Later, Jackie sued Barbara for the balance due under the sale contract. The trial court found that Jackie’s interest in the property was not secured because he did not properly file a lien or other security interest with respect to the property. However, under its power to grant equitable relief, the trial court ordered that Barbara reconvey the property to Jackie. Barbara appealed, arguing that the trial court had no jurisdiction to order a reconveyance of the property because Jackie failed to retain a lien in the conveyance documents and Barbara had been discharged from liability due to her discharge in bankruptcy.

Rule of Law

Issue

Holding and Reasoning (Vanmeter, J.)

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