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Keywords

leasebankruptcy

trialbankruptcy

Related Cases

In re Conservatorship of Gaaskjolen, 844 N.W.2d 99, 2014 S.D. 10

Facts

Dora Gaaskjolen, an 87-year-old widow, suffered a traumatic head injury in 2007, leading to severe dementia and other health issues that impaired her ability to care for herself. Following the injury, one daughter provided in-home care while another managed her bills. After a dispute over a lease, a petition for a temporary conservator was filed, resulting in Dacotah Bank being appointed first temporarily and then permanently as conservator, despite Dora's preference for her daughter Audrey.

[¶ 2.] Dora is an 87 year-old widow who owns approximately 3,000 acres of ranchland. In 2007, Dora suffered a traumatic head injury from a farm incident that resulted in a condition called “expressive aphasia.” That condition makes communication difficult, even if the individual knows what they want to say. Dora also suffers from severe dementia, rheumatoid arthritis, chronic atrial fibrillation with a pacemaker in place, and valvular heart disease, status post mitral valve replacement.

Issue

Did the circuit court err in appointing Dacotah Bank as permanent conservator instead of Dora's daughter, Audrey?

[¶ 13.] Next, Dora argues the circuit court erred by appointing Dacotah Bank as permanent conservator instead of her nominee—Audrey.

Rule

The court must determine whether a nominee for conservatorship is eligible to act and would serve in the best interests of the protected person, as outlined in SDCL 29A–5–304.

SDCL 29A–5–304 allows Dora to make a choice, stating in part: Any individual who has sufficient capacity to form a preference may at any time nominate any individual or entity to act as his guardian or conservator. The nomination may be made in writing, by an oral request to the court, or may be proved by any other competent evidence. The court shall appoint the individual or entity so nominated if the nominee is otherwise eligible to act and would serve in the best interests of the protected person.

Analysis

The court found that while Dora expressed a preference for her daughter Audrey to be her conservator, there was insufficient evidence to support that Audrey was eligible to act in Dora's best interests. Factors such as Audrey's past bankruptcy, potential inability to post a required bond, and ongoing family conflicts were considered. In contrast, Dacotah Bank was deemed qualified and capable of serving Dora's best interests, leading the court to affirm the appointment.

[¶ 16.] Addressing Audrey's eligibility to act and serve in Dora's best interests, the circuit court's findings of fact reflect that: Audrey went through bankruptcy fifteen years ago, Audrey may not qualify for a required bond, Audrey and other family members are in conflict making her conservatorship potentially contentious, Audrey has a history of questionable financial management practices, and Audrey as conservator causes potential conflicts of interests.

Conclusion

The Supreme Court affirmed the circuit court's decision, concluding that the appointment of Dacotah Bank as permanent conservator was appropriate and in the best interests of Dora.

[¶ 20.] The circuit court found Dacotah Bank 'eligible to act and would serve the best interests of the protected person.' The circuit court found Dacotah Bank had been providing banking services to Dora 'for decades.' Further, the circuit court found the bank's qualifications and capabilities are not contested.

Who won?

Dacotah Bank prevailed in the case as the court found it to be the most suitable conservator for Dora, citing its qualifications and lack of conflicts of interest compared to Audrey.

[¶ 20.] The circuit court found Dacotah Bank 'eligible to act and would serve the best interests of the protected person.'

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Lumbard v. Farmers State Bank, 812 N.E.2d 196

Dickerson v. Union Nat. Bank of Little Rock, 268 Ark. 292, 595 S.W.2d 677

Swanson v. Parkway Estates Townhouse Ass’n, 567 N.W.2d 767

Trevitte v. Trevitte, Not Reported in S.W.2d, 1990 WL 73852

Barnum v. Fay, 320 Mass. 177, 69 N.E.2d 470