Ellison et al. v. Ellison

Russell and Frances Ellison (plaintiffs) (together, the parents) were the elderly parents of Rose Ellison (defendant). Rose was an attorney who held power of attorney over Russell, represented the parents in business dealings, and had a close personal relationship with the parents. Frances suffered from dementia. In 1995, the parents gave Rose a home. In 2005, Rose drafted a deed in which the parents conveyed their 94.12-acre dairy farm to Rose in exchange for a payment of $30,000. The dairy farm had an appraised value of $300,000 to $400,000. According to Rose, Russell had agreed to sell the farm to her for a very low price in exchange for all she had done for him “over the years.” Thereafter, the parents sued Rose to set aside the deed, arguing that consideration was lacking and that the parents had lacked mental capacity to execute the deed. Following trial, the court set aside the deed, remarking that “these old people were overreached.” The court found that there was inadequate consideration to support the deed transfer and that Rose had taken “improper advantage” of her parents. The court also concluded that there was insufficient proof Rose had actually paid $30,000 in exchange for the deed. Rose did not write a check for $30,000, but instead had written herself receipts reflecting cash payments and credited herself with an amount for secretarial services she had provided to the parents. Rose appealed.