Economic Theory Shows that People Will Make Choices that Worsen the Pandemic

NEIL H. BUCHANAN

UF Levin College of Law professor and economist Neil H. Buchanan points out some of the ways in which congressional Republicans misunderstand economics to justify withholding unemployment payments from Americans during the COVID-19 pandemic. Buchanan argues that economic theory soundly demonstrates that given the opportunity, people will make choices that worsen the toll of the pandemic.

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Rallo v. O'Brian

Court: California Courts of Appeal

Docket: B290526(Second Appellate District)

Opinion Date: August 3, 2020

Judge: Egerton

Areas of Law: Trusts & Estates

This appeal arose from judgments entered after the trial court sustained demurrers without leave to amend to two probate petitions filed by the adult children of actor Hugh O'Brian. The adult children each claim a right to the decedent's assets under Probate Code section 21622 as children he omitted from his trust solely because he was unaware of their births. In the published portion of the opinion, the Court of Appeal held that the trial court did not err in considering the trust's disinheritance provisions to assess whether plaintiffs could state facts showing they were entitled to relief under section 21622. The court also held that the trial court correctly found that, to obtain a distribution of the trust assets contrary to its express terms under section 21622, plaintiffs must plead and prove facts demonstrating "the sole reason" O'Brian did not provide for them in his trust was his unawareness of their births.

Porcello v. Estates of Porcello

Court: Idaho Supreme Court - Civil

Docket: 46443

Opinion Date: August 3, 2020

Judge: Stegner

Areas of Law: Civil Procedure, Contracts, Family Law, Real Estate & Property Law, Trusts & Estates

In the summer of 2014, Mark and Jennifer Porcello sought to purchase property In Hayden Lake, Idaho. After making various pre-payments, the amount the couple was still short on a downpayment. Mark and Jennifer could not qualify for a conventional loan themselves. They hoped another property in Woodinville, Washington, owned by Mark’s parents, in which Mark and Jennifer claimed an interest, could be sold to assist in the purchase of the Hayden Lake property. In an effort to help Mark and Jennifer purchase the property, Mark’s parents, Annie and Tony Porcello, obtained financing through a non-conventional lender. "In the end, the transaction became quite complicated." Annie and Tony’s lawyer drafted a promissory note for Mark and Jennifer to sign which equaled the amount Annie and Tony borrowed. In turn, Mark signed a promissory note and deed of trust for the Hayden Lake house, in the same amount and with the same repayment terms as the loan undertaken by his parents. In mid-2016, Annie and Tony sought non-judicial foreclosure on the Hayden Lake property, claiming that the entire balance of the note was due and owing. By this time Mark and Jennifer had divorced; Jennifer still occupied the Hayden Lake home. In response to the foreclosure proceeding, Jennifer filed suit against her former in-laws seeking a declaratory judgment and an injunction, arguing that any obligation under the note had been satisfied in full when the Woodinville property sold, notwithstanding the language of the note encumbering the Hayden Lake property. Annie and Tony filed a counter-claim against Jennifer and a third-party complaint against Mark. A district court granted Jennifer’s request for a declaratory judgment. However, by this time, Annie and Tony had died and their respective estates were substituted as parties. The district court denied the estates’ request for judicial foreclosure, and dismissed their third-party claims against Mark. The district court held that the Note and Deed of Trust were latently ambiguous because the amount of the Note was more than twice the amount Mark and Jennifer needed in order to purchase the Hayden Lake property. Because the district court concluded the note and deed of trust were ambiguous, it considered parol evidence to interpret them. Ultimately, the district court found the Note and Deed of Trust conveyed the Hayden Lake property to Jennifer and Mark “free and clear” upon the sale of the Woodinville property. Annie’s and Tony’s estates timely appealed. Finding that the district court erred in finding a latent ambiguity in the Note and Deed of Trust, and that the district court's interpretation of the Note and Deed of Trust was not supported by substantial and competent evidence, the Idaho Supreme Court vacated judgment and remanded for further proceedings.

In re Estate of Adelung

Court: Nebraska Supreme Court

Citation: 306 Neb. 646

Opinion Date: July 31, 2020

Judge: William B. Cassel

Areas of Law: Trusts & Estates

In this county court probate case, the Supreme Court affirmed as modified the judgment of the probate court determining that a son must reimburse his mother's estate $190,550, holding that, except as to the son's statute of limitations defense, there was no merit to the son's appeal or the estate's cross-appeal. Specifically, the Supreme Court held (1) the county court correctly exercised jurisdiction over this proceeding; (2) there was no merit to the estate's cross-appeal; (3) except as to the defense of the statute of limitations, the son's appeal lacked merit; and (4) upon this Court's de novo review, the statute of limitations barred the estate's recovery for transactions that occurred before February 1, 2012.