Larmore v. Larmore

⁵⁸⁷ Marbury, J., delivered the opinion of the Court. Suit was instituted in the Circuit Court for Wicomico County by E. Hugh Larmore, appellee, against his son Larry H. Larmore and the latter’s estranged wife, Betty Jean Larmore, on the common counts, including the count for money lent, to recover the sum of $10,000. The son filed no responsive pleadings to the suit but Betty Jean Larmore filed general issue pleas. A jury trial was held on April 21, 1965, and a verdict was returned in favor of the plaintiff for $10,000 against both defendants.

On this appeal by Betty Jean Larmore from the judgment entered upon the verdict (the defendant Larry H. Larmore did not appeal), the only question which is argued in the appellant’s brief is whether the evidence was sufficient to allow the jury to find that the transaction here involved constituted a loan of money from the plaintiff to the defendants. At the trial, E. Hugh Larmore testified that in July of 1963 he was informed by his son and daughter-in-law, who were then living in a furnished apartment, that they wished to purchase a home in the Salisbury, Maryland, area. Knowing that they did not have the wherewithal to make the purchase, he .suggested that they look for a house costing about $10,000. He accompanied the couple, at their request, in their search for such a house, and finally one on Cedar Drive, which was listed for sale at $10,500, was shown by a realtor and selected by them.

After an offer of $10,000 had been accepted by the owners, the plaintiff testified that it was orally agreed between himself and the two defendants that he would loan them, without interest, the entire purchase price, that the house would be conveyed to his son and daughter-in-law, and that he would require no mortgage on the property to secure the loan or any other written evidence of indebtedness. Plaintiff Larmore testified that he did not wish the property to be encumbered by a mortgage to him because he knew that it would be necessary for the defendants to borrow money to buy furniture for the newly acquired house and that he, in fact, suggested that the defendants mortgage the house to finance the needed furnishings. Plaintiff further testified that: “It was distinctly understood Larry and Betty Jean would pay me back; start paying on the loan of ten thousand dollars—there was no doubt in ⁵⁸⁸ anybody’s mind that it was a loan—after the mortgage (to secure the furniture purchase) was cleared up.” The senior Larmore, an accountant, who for twenty-seven years had been engaged in the business of aiding others in filing tax returns, was allowed to testify, over objection, that a federal gift tax return would be required to be filed if the $10,000 here involved had been a gift rather than a loan, but since he never considered it a gift, no such return was ever filed by him. Defendant Larry H. Larmore, called as a witness for the plaintiff, generally corroborated his father’s testimony as to the events which culminated in the purchase of the house.

He testified that the $10,000 had been paid by his father to the realtor for the purchase of the house, that the property on the date of the settlement had been conveyed to him and his wife in their joint names, and that soon after the settlement the house had been mortgaged, pursuant to his father’s suggestion, so as to secure a loan from a bank to buy the furniture for the house. Young Larmore testified that the understanding between the three parties had been that “when we got on our feet we would start paying him back in whatever amounts we could afford.” Betty Jean Larmore, who was not living with her husband at the time suit was filed or on the date of trial, testified that she understood that the $10,000 was a gift to her husband to enable him to. purchase the house. She