Ellmaker v. Calvin Tabor

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Sarah Chitwood was friends with Marjorie Ellmaker. In 2003, Chitwood contacted an attorney to draft a durable power of attorney, naming Ellmaker as her attorney-in-fact. She later had the attorney draft a will. At that time, Chitwood was 85 years old and a widow with no living children. She executed the will, which left a cake plate and glass horse to a married couple who were her friends, her cats to another friend, and the remainder of her estate to Ellmaker. In 2005, Chitwood wanted to sell part of the real property she owned in McCall. She was introduced to Calvin Tabor, a member in A1 Real Estate, LLC which was in the business of flipping houses and buying land to resell. He found a group of investors willing to purchase Chitwood's property. Chitwood entered into a written real estate contract to sell her property to "A1 REAL ESTATE LLC AND/OR AS ASSIGNED." An addendum to the real estate contract stated that Chitwood would finance $227,000 of the purchase price by two promissory notes from A1 Real Estate, LLC, one for $150,000 and the other for $77,000. The addendum also stated that the notes would be secured by A1 Real Estate, LLC and that upon default liens could be placed on the assets of that company. The original note listed "A1 Real Estate LLC" as the borrower, and Tabor signed it "as member of A1 Real Estate." Chitwood died in 2007. The attorney who had drafted her will prepared two affidavits of "Non-Probate" for Ellmaker to sign. In one affidavit, Ellmaker averred that Chitwood died leaving a last will and testament; that Ellmaker was the sole heir; that all of Chitwood's debts, the expenses of her last illness, her funeral expenses, and the applicable estate and inheritance taxes had been fully paid; that upon her death Chitwood owned real property, which was described; and that the affidavit was made for the purpose of transferring the real property to Ellmaker. Ellmaker recorded that affidavit. In the other affidavit, Ellmaker averred that Chitwood had died; that she left a will which was not probated; that Ellmaker was the sole heir; that all of Chitwood's debts, the expenses of her last illness, her funeral expenses, and the applicable estate and inheritance taxes had been fully paid; and that the affidavit was made for the purpose of transferring Chitwood's interest in the real estate contract with A1 Real Estate LLC, the promissory note dated May 9, 2005, and "the Agreement dated 2007" to Ellmaker. Ellmaker recorded this affidavit too. Then in 2010, Ellmaker filed this action against Tabor and A1 Real Estate LLC. alleging that Tabor breached an oral contract to pay the note and that all defendants breached the implied covenant of good faith and fair dealing, failed to pay the promissory note when due, and had been unjustly enriched. Tabor moved for summary judgment on the ground that he signed the promissory note as a member of A1 Real Estate, LLC and that he was not personally liable on the notes and did not guarantee payment of the note. On the same date, he filed a motion to dismiss on the ground that Ellmaker lacked standing to bring this action because the estate of Chitwood had not been probated, no personal representative had been appointed, and the three-year statute of limitations for instituting probate proceedings had expired. The district court granted the motion to dismiss and the motion for summary judgment. The court refused to admit Chitwood's will into evidence and therefore held that Ellmaker had no legal basis for enforcing the promissory note. The court also granted Tabor's motion for summary judgment on all of the claims asserted against him. Ellmaker appealed. Finding no reversible error in the district court's judgment, the Supreme Court affirmed. View "Ellmaker v. Calvin Tabor" on Justia Law