ESTATE OF DAVID HOLT RALSTON, DECEASED, BY JOHN A. RALSTON, PERSONAL REPRESENTATIVE v. FRED R. HOBBS ET AL. (Tenn. Ct. App. November 1, 2010)
The personal representative of a decedent's estate filed this action to rescind twelve deeds, all of which were executed by the decedent's attorney-in-fact without the decedent's knowledge and for which the decedent received no consideration, or alternatively for damages. The attorney-in-fact conveyed the property to himself, his mother, and his daughter. The personal representative alleges that the attorney-in-fact breached his fiduciary duty in making the transfers.
The trial court agreed, and rescinded the conveyances for property still owned by the attorney-in-fact and awarded monetary damages against the attorney-in-fact for the value of property subsequently conveyed to innocent third parties.
The attorney-in-fact appeals claiming, inter alia, the personal representative lacks standing to bring a claim on behalf of the estate involving real property, that the action is barred by the statute of limitations, and that the trial court erred in finding that the durable power of attorney did not authorize him to transfer the property.
We have determined the personal representative has standing to maintain this action and the action was timely filed. We affirm the trial court's finding that the attorney-in-fact breached his fiduciary duty by conveying the property to himself, his mother, and his daughter for no consideration to the decedent. We also affirm the rescission of the deeds to property the attorney-in-fact still owns and the award of damages against the attorney-in-fact for the value of the real property that has since been conveyed to innocent third parties.
Opinion may be found here:
http://www.tba2.org/tba_files/TCA/2010/ralstond_110110.pdf
