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643 So. 2d 972

Lamb v. Scott

Supreme Court of Alabama

Decided July 1, 1994

Supreme Court of Alabama · decided 1994-07-01

Key passage — most relied on by later courts

“One who accepts a power of attorney covenants to use the power for the sole benefit of the one conferring the power and to use it in a manner consistent with the purposes of the agency relationship created by the power of attorney.”

quoted by 2 later decisions, including 910 So. 2d 780 - Barron v. Scroggins, 776 So. 2d 122 - Miller v. Jackson Hospital and Clinic

“"It is the established rule that powers of attorneys will be given strict construction, restricting the powers to those expressly granted, and such incidental powers as are essential to carry into effect the expressed powers. "To authorize a conveyance of real estate, a power of attorney must be plain in its terms. Where such power is specifically conferred, it does not authorize a conveyance by the donee to himself, unless such power is expressly granted. It will not be implied. "The conclusion, therefore, is inescapable that the conveyances and transfers attacked by the bill were not within the scope of the power granted by Mrs. Dillard to her husband. If she had intended to invest him with the title to the property, she no doubt would have executed such conveyances herself, at the time she executed the power of attorney. If it had been her purpose to give it to him at her death and deprive her heirs of the right to participate in her estate, she could have accomplished this purpose by executing a will, which she was competent to do, so far as appears, at the time the power of attorney was signed. The clear intent of the donor of the power manifested by the execution of the power of attorney was to retain the title and authorize the donee of the power to act for her and protect and preserve such interest."”

quoted by 1 later decision, including 688 So. 2d 864 - Lisenby v. Simms

Relies on Dillard v. Gill · Hall v. Cosby · 586 So. 2d 884 - Sevigny v. NEW SOUTH FEDERAL SAV. & LOAN

Good law ✅— No negative treatment on recordhow we know

Decided 1994-07-01

How this case has been cited

Cited by 9 later decisions — most recently October 2018

5 state decisions

60199420002010decided

Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.

View the full empirical analysis of this case →

¶1

¶2The issue in this case is the validity of a deed executed by Rita D. Lamb, the donee of a durable power of attorney, to herself and her sister, Judy C. Heliste.

¶3Timothy D. Scott sued Lamb and Heliste, asking that the deed executed by Rita Lamb to Rita Lamb and Judy Heliste be set aside and held for naught. The complaint also asked that the property described in that deed be sold for a division of the proceeds among joint owners. (Scott claimed to be a joint owner.) Scott moved for a summary judgment. The trial court granted Scott's motion and declared the deed void. Lamb and Heliste appeal.

¶4Dollie Scott executed a durable power of attorney to her daughter, Rita Lamb. Almost a year later, Dollie executed a will leaving all her property, including a farm located in Etowah County, to her two daughters, Rita Lamb and Judy Heliste, and her stepson, Timothy Scott, the three to share equally. About a month after Dollie executed the will, she suffered a stroke and became incapacitated; a month after Dollie suffered the stroke, Rita, as attorney in fact for Dollie, deeded Dollie's farm to herself and her sister, Judy Heliste, with right of survivorship. Dollie subsequently died.

¶5The first issue is whether the deed executed by Rita Lamb, as attorney in fact for Dollie Scott, is valid as to Rita. Our case law is clear that powers of attorney will be construed strictly, restricting the powers to those expressly granted.Sevigny v. New South Federal Savings Loan Ass'n,586 So.2d 884, 886-87 (Ala. 1991). Because Lamb's power of attorney did not specifically state that Lamb could convey land to herself, she was without the power to do so. Hall v. Cosby, 288 Ala. 191,193, 258 So.2d 897, 899 (1972). *974

¶6Lamb and Heliste argue that Ala. Code 1975, § 26-1-2, supersedes the case law regarding durable powers of attorney. We disagree. Lamb and Heliste specifically refer to § 26-1-2(b) as the subsection that supersedes our case law. That section provides:

¶7 "(b) All acts done by an attorney in fact pursuant to a durable power of attorney during any period of disability, incompetency or incapacity of the principal have the same effect and inure to the benefit of and bind the principal and his successors in interest as if the principal were competent, not disabled and not incapacitated."

¶8That subsection merely provides that the incapacity of the donor of a durable power of attorney does not change the effect of actions of the donee taken in conformity with the authority conferred by the power of attorney. It does not supersede the common law rules for determining the authority conferred by a power of attorney. Because the common law rule that a power of attorney grants only those powers expressly conferred remains unchanged, the trial court correctly held that the deed was void as to Lamb.

¶9The second issue is the effect of the deed as to Heliste. It is obvious from Dollie's will, executed after she had executed the power of attorney, that Dollie's intention was to leave all her property to her two daughters and her stepson equally. If she had intended to invest Lamb and Heliste with title to the property, she would have executed the conveyance herself at the time she executed the power of attorney; she was competent to do so. Instead, when she subsequently made her will, Dollie clearly expressed her intent that the farm should go to Lamb, Heliste, and Scott, to share equally. Therefore, Lamb was also without the power to deed Dollie's farm to Heliste. See,Dillard v. Gill, 231 Ala. 662, 665, 166 So. 430, 433 (1936).

¶10In Dillard v. Gill, Mrs. Dillard executed a power of attorney in favor of her husband. Thereafter, Mr. Dillard executed a deed to himself. In affirming the trial court's ruling that voided the deed, we noted 1) that because the power of attorney did not expressly grant Mr. Dillard the authority to execute a deed to himself, he did not have the power to do so, and 2) that Mrs. Dillard's intent was obviously to retain the property, because, had she intended to give him the property, she could have executed the deed herself at the time she executed the power of attorney. Dillard v. Gill,231 Ala. at 665, 166 So. at 433.

¶11Lamb and Heliste argue that the issue of the validity of the deed as to Heliste cannot be properly disposed of on a motion for summary judgment, because, they say, Dollie's intent is a genuine issue of material fact. However, Dollie's intention was clearly expressed almost exactly a year after she executed the power of attorney, when she executed her will leaving all her property to Lamb, Heliste, and Scott, equally. Because Dollie's intent was to leave her property to Lamb, Heliste, and Scott, equally, Lamb was without the power to deed the property to Heliste. Dillard v. Gill, 231 Ala. at 665, 166 So. at 433. One who accepts a power of attorney covenants to use the power for the sole benefit of the one conferring the power and to use it in a manner consistent with the purposes of the agency relationship created by the power of attorney. Sevigny v. NewSouth Federal Savings Loan Ass'n, 586 So.2d at 886.

¶12For the foregoing reasons, we affirm the judgment of the trial court.

¶13AFFIRMED.

¶14HORNSBY, C.J., and MADDOX, STEAGALL and INGRAM, JJ., concur.

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