White v. McCabe

Valuent White (plaintiff), a 67-year-old woman in poor health, sold her home to Douglas McCabe (defendant) for approximately $25,000 in a combination of cash and McCabe’s assumption of certain liens on the property. Prior to the sale, Karen Daly, McCabe’s real estate agent, repeatedly visited White to convince her to sell the property to McCabe. During those visits, Daly told White that the house was subject to foreclosure by the county for unpaid property taxes. Several months after McCabe purchased the home from White, he listed the house for resale for $67,500. White sued McCabe, alleging financial elder abuse and violations of Oregon’s Unlawful Trade Practices Act (UTPA). White alleged that McCabe, through Daly, made disparaging statements about the property’s tax status to pressure White into selling the property to McCabe for less than market value. At a hearing, White admitted that, prior to the sale, the house was condemned by the city as a drug and gang house and was subject to foreclosure by the county for White’s failure to pay property taxes. White also admitted she knowingly sold the house to McCabe below market value. McCabe moved for summary judgment, arguing that (1) neither he nor Daly made any false claims disparaging the property; and (2) because McCabe was not in a fiduciary relationship with White, White could not state a claim for financial elder abuse. The trial court granted McCabe summary judgment. White appealed.