Man wasn't competent to sign contract

Jennifer Nelson
July 28, 2009
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The Indiana Court of Appeals affirmed a neighbor of a mentally ill man shouldn't have been able to purchase the man's farm because the man was incompetent when he signed the sales contract.

In James Nichols v. Estate of Ernest M Tyler,  No. 45A04-0811-CV-640, the appellate court determined the trial court didn't err when it concluded Ernest Tyler was incompetent in February 2005 to convey his farm nor did it err by determining James Nichols failed to rebut the presumption of undue influence over Tyler with regard to the real property transfer.

Tyler had a history of mental illness and was in and out of hospitals his entire life. He could answer simple questions but never carried on a conversation. Tyler lived with a brother on a farm near Nichols. Once the brother died, Tyler's family asked Nichols to look after him.

As a result of a check scam, Nichols brought Tyler to Nichols' attorney and had Tyler sign a durable power of attorney appointing Nichols as his attorney in fact, which allowed Nichols to deal with the bank directly regarding the scam. The attorney also helped Tyler form a revocable living trust and transferred the farm and farmhouse to the trust. Nichols was the trustee. Tyler then signed a contract, which sold the property in the trust to Nichols. Nichols agreed to pay Tyler $200 a month until Tyler's death. Tyler's family knew nothing about the check scam, trust, or real estate sale. The attorney was unaware of Tyler's mental health history.

The family became concerned after they discovered Nichols held the only key to Tyler's home, Tyler lived in filth, and Nichols controlled Tyler's mail and phone line. He prevented family members from visiting unannounced and videotaped their meetings with Tyler. A doctor evaluated Tyler and found he had Alzheimer's disease, but couldn't say whether he was competent when he signed the contract. Family members eventually gained guardianship over Tyler, who died several months later.

At the trial challenging the contract of sale, the court found Tyler was incompetent at all times, he had an extensive history of mental illness, the doctor who examined him testified Tyler was incompetent at the time he entered into the agreements at issue, and Nichols' undue influence resulted in Tyler deeding his property to a trust and selling it to Nichols.

The trial court didn't err in finding Tyler was mentally incompetent when he signed the contract of sale, wrote Judge Elaine Brown. The Court of Appeals refused to reweigh the evidence as to the doctor's testimony. The trial court found the doctor's expert opinion was sound, she wrote. The Court of Appeals also rejected Nichols' argument that Tyler's competency should be compared to the standards for competency to stand trial in criminal cases because the standard to be used in the instant case is like that in making a will, she wrote. The evidence shows prior to and after making the contract, Tyler had a lack of mental capacity based on his history of hospitalization and his poor living conditions and hygiene.

Nichols also failed to rebut the presumption of undue influence of Tyler. Undue influence can be proven by circumstantial evidence, which there was enough of in the instant case for the trial court to find he unduly influenced Tyler into selling his property for inadequate consideration. Nichols isn't a credible witness and many of his arguments were merely an invitation to reweigh the evidence, which the appellate court cannot do, wrote the judge.


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  1. Especially I would like to see all the republican voting patriotic good ole boys to stop and understand that the wars they have been volunteering for all along (especially the past decade at least) have not been for God & Jesus etc no far from it unless you think George Washington's face on the US dollar is god (and we know many do). When I saw the movie about Chris Kyle, I thought wow how many Hoosiers are just like this guy, out there taking orders to do the nasty on the designated bad guys, sometimes bleeding and dying, sometimes just serving and coming home to defend a system that really just views them as reliable cannon fodder. Maybe if the Christians of the red states would stop volunteering for the imperial legions and begin collecting welfare instead of working their butts off, there would be a change in attitude from the haughty professorial overlords that tell us when democracy is allowed and when it isn't. To come home from guarding the borders of the sandbox just to hear if they want the government to protect this country's borders then they are racists and bigots. Well maybe the professorial overlords should gird their own loins for war and fight their own battles in the sandbox. We can see what kind of system this really is from lawsuits like this and we can understand who it really serves. NOT US.... I mean what are all you Hoosiers waving the flag for, the right of the president to start wars of aggression to benefit the Saudis, the right of gay marriage, the right for illegal immigrants to invade our country, and the right of the ACLU to sue over displays of Baby Jesus? The right of the 1 percenters to get richer, the right of zombie banks to use taxpayer money to stay out of bankruptcy? The right of Congress to start a pissing match that could end in WWIII in Ukraine? None of that crud benefits us. We should be like the Amish. You don't have to go far from this farcical lawsuit to find the wise ones, they're in the buggies in the streets not far away....

  2. Moreover, we all know that the well heeled ACLU has a litigation strategy of outspending their adversaries. And, with the help of the legal system well trained in secularism, on top of the genuinely and admittedly secular 1st amendment, they have the strategic high ground. Maybe Christians should begin like the Amish to withdraw their services from the state and the public and become themselves a "people who shall dwell alone" and foster their own kind and let the other individuals and money interests fight it out endlessly in court. I mean, if "the people" don't see how little the state serves their interests, putting Mammon first at nearly every turn, then maybe it is time they wake up and smell the coffee. Maybe all the displays of religiosity by American poohbahs on down the decades have been a mask of piety that concealed their own materialistic inclinations. I know a lot of patriotic Christians don't like that notion but I entertain it more and more all the time.

  3. If I were a judge (and I am not just a humble citizen) I would be inclined to make a finding that there was no real controversy and dismiss them. Do we allow a lawsuit every time someone's feelings are hurt now? It's preposterous. The 1st amendment has become a sword in the hands of those who actually want to suppress religious liberty according to their own backers' conception of how it will serve their own private interests. The state has a duty of impartiality to all citizens to spend its judicial resources wisely and flush these idiotic suits over Nativity Scenes down the toilet where they belong... however as Christians we should welcome them as they are the very sort of persecution that separates the sheep from the wolves.

  4. What about the single mothers trying to protect their children from mentally abusive grandparents who hide who they truly are behind mounds and years of medication and have mentally abused their own children to the point of one being in jail and the other was on drugs. What about trying to keep those children from being subjected to the same abuse they were as a child? I can understand in the instance about the parent losing their right and the grandparent having raised the child previously! But not all circumstances grant this being OKAY! some of us parents are trying to protect our children and yes it is our God given right to make those decisions for our children as adults!! This is not just black and white and I will fight every ounce of this to get denied

  5. Mr Smith the theory of Christian persecution in Indiana has been run by the Indiana Supreme Court and soundly rejected there is no such thing according to those who rule over us. it is a thought crime to think otherwise.