Cavitch Familo & Durkin, Co., L.P.A.

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Cavitch Prosecutes a Concealment Action and Recovers a Family’s Assets.

Cavitch shareholder and trial attorney Max Dehn recently prosecuted a successful lawsuit to recover hundreds of thousands of dollars wrongfully taken from an Ohio family. This is a summary of the family’s story, although the names have been changed to protect the privacy of the parties.

John & Ingrid

John was an elderly farmer who lived alone with his mother, Ingrid, in the rich farmlands of central Ohio. John and his mother were proud and accomplished people. Their family had farmed for generations, and had built up substantial wealth through hard work, smart investing, and modest living. John’s children had long ago moved to distant parts of the country. In many ways, John and his mother were also best friends. Each day when John returned from the fields, his mother prepared his dinner, and they would often play dominoes into the evening. But as they aged, John and Ingrid became more isolated, and more vulnerable to being taken advantage of.

Betty, Estelle & the Caregivers

John had a “friend,” Betty, who was much younger than John, but with whom he had once been romantically involved. As John reached his mid-seventies, he and Ingrid both began to decline. As Ingrid’s decline deepened, John struggled to care for her himself. Increasingly, John turned to Betty, who began to care for Ingrid while John farmed. As Ingrid worsened, Betty and her daughter Estelle hired a team of caregivers to provide round-the-clock care to Ingrid during the last year of her life.

Betty and Estelle also began to manage Ingrid and John’s joint bank account. They wrote large checks for Ingrid’s signature, even after Ingrid was incompetent to understand her finances. Many of these checks, often in excess of $10,000, were written to Betty and Estelle each month. John complained to social workers that he had lost control of the situation, but he also wanted to avoid placing Ingrid in a nursing home. In the end, he felt trapped and unable to wrest control from Betty and Estelle.

Betty Causing Family Rifts for John & Ingrid

In the year before Ingrid died, visiting family members began to sense something was amiss during visits. First, Betty was always present, making a great show of her purported love and affection for both Ingrid and John. And both Ingrid and John seemed increasingly withdrawn and quiet in Betty’s presence. Moreover, Betty was working to cause rifts between Ingrid and John and the rest of the family. During one visit, Ingrid’s daughter had an uncomfortable conversation with Betty regarding certain missing family heirloom items. Later, the daughter was devastated when Ingrid told her in a phone call that she was no longer welcome in Ingrid’s home. During the call, Ingrid’s daughter could hear Betty whispering to Ingrid, seemingly telling her what to say.

Ingrid died in 2014, and John passed away two years later. After John’s passing, the family engaged Cavitch to review bank records and other estate-related documents.

Cavitch Reviews Betty’s Questionable Actions

Cavitch attorneys discovered that Betty and Estelle had received nearly $500,000 in checks for purported caretaking services provided to John and Ingrid over the period of a few years. In addition, John had named Betty as a beneficiary of his estate, and also named her estate administrator. Betty’s conduct as administrator immediately raised concerns. Among other questionable actions, Betty fired three attorneys within months of assuming the role.

Concealment Action Filed. Family Recovers Hundreds of Thousands.

With evidence of theft and misconduct, Cavitch filed a “Concealment Action” against Betty and Estelle, a will contest, and a motion to remove Betty as estate administrator. A Concealment Action is a quasi-criminal proceeding that enables a family to retrieve money and property wrongfully taken from an estate. After a four-day trial, a jury found Betty and Estelle guilty of concealing assets from both John and Ingrid’s bank accounts. Shortly thereafter, the parties settled the entire dispute, and the family recovered hundreds of thousands of dollars from Betty and Estelle.

This is a great result that required determined effort by the family and their legal counsel. The most important takeaway: if a family believes that something is amiss, it is important to discuss the matter with an attorney as soon as possible. A careful examination of the relevant facts may reveal wrongdoing, and enable recovery of what has been improperly taken.