Neugebauer v. Neugebauer, 2011 SD 64 (Sup. Ct. S.D. 2011)

(son rented 159-acre farm from mother for nearly 20 years at $39.75/acre and, in 2008, purchased farm from her via contract for deed; purchase price was set at 1984 appraised value of $117,000 (price was 1984 option price, which option son did not exercise) with payments of $6,902.98 over 30 years; fair market value of farm was $697,000; purchase contract executed at office of son’s lawyer who never represented that he was only the son’s lawyer and did not suggest that mother obtain her own counsel; mother was 84 at time contract executed, hard of hearing and had only an eight-grade education; mother later became suspicious and sought rescission of contract on basis of undue influence, and damages for breach of pre-contract oral lease; jury decided for son on lease claim and court granted mother’s rescission claim based on presence of confidential relationship and that four elements of undue influence established; court ordered contract rescinded and ordered son to pay rent for 2009 and 2010; decision affirmed on appeal). 

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