Jones v. Pizon
Jones v. Pizon
Opinion of the Court
¶ 1 A jury concluded that Raymond Jones, Sr., was incompetent when he entered into two contracts to sell real estate to Brian Pizon. Pizon appeals from a judgment invalidating the transfers on several grounds. Most notably, he argues that incompetency to enter a contract must be proven by clear and convincing evidence, not by the greater weight of the credible evidence as the jury was instructed. Pizon also takes issue with the court's decision to allow certain testimony regarding Jones' competence and the court's denial of a motion for mistrial. We find no error in the proceedings and affirm.
BACKGROUND
¶ 2 Jones owned two parcels of land in Oshkosh-a thirty-acre parcel and a five-acre parcel. Jones listed the parcels for sale in late 2014 for $689,000 and $199,000 respectively.
¶ 3 Less than two weeks after the sales closed, Jones was placed under emergency protective placement due to dementia. His son was eventually appointed as his guardian and brought this lawsuit to undo the transactions. Jones argued that he did not have "sufficient mental ability to know what he was doing when he signed the offers to purchase, deeds, closing statements and other documents related to the transfer of the" properties.
¶ 4 The action proceeded to a two-day jury trial where numerous witnesses testified. Jones presented evidence of a number of incidents calling into question his mental capacity around the time of the contracts. The following are some of the noteworthy incidents:
• On April 11, 2015, police were called after Jones-while pounding on his neighbor's door-shouted a number of statements to the effect of "she left me for a lesbian, she needs to go see Perry before she gets hurt and I used to be married to her and [she] left me with three kids." Jones' wife was deceased. The police report indicated that it appeared Jones was suffering from "early dementia or [A]lzheimer symptoms."
• On April 24, 2015, police performed a welfare check prompted by Jones showing up at a hospital in a confused state to look for a friend who was not there. During the check, Jones identified his internet modem as his phone and could not explain how to use his telephone.
• On May 13, 2015-one day prior to Pizon's first offer-Jones went to the sheriff's department to report he thought someone had broken into his home and stolen his wallet. The deputy who took the report testified that Jones "was somewhat hard to understand meaning that he was kind of confused." Upon investigating Jones' residence, the deputy found no signs of break in, and the wallet was found in the bathroom.
• On May 26, 2015, Jones' next-door neighbor became concerned and contacted social services. She testified that Jones had exhibited some strange behavior around late April through May. Jones had wrapped his phone in aluminum foil and put it in the refrigerator "[a] couple times," had pulled wires out of a working television, and would visit the neighbor several times a day to report that his wife was having heart surgery. Once, Jones came to the neighbor's house and brought over a wad of cash. The neighbor also testified that Jones had barricaded himself in his garage.
• On June 5, 2015, the day after closing on the thirty-acre parcel, Jones caused an accident by failing to yield. When questioned about the accident, Jones misstated the date as April 18, 2005. Jones could not remember who the president was or his ethnicity.
• On June 22, 2015, five days after closing on the five-acre parcel, a neighbor reported that Jones was outside and confused. Police assisted Jones in getting back inside his home.
• On June 27, 2015, police were again called due to Jones visiting a neighbor's home in an agitated state four to five times worried that someone was stealing his mail.
• On June 29, 2015, police were called for another welfare check because neighbors had seen Jones climbing in and out of his front window.
¶ 5 Pizon countered by producing four witnesses who had observed Jones around the time of the contested real estate transactions. Jones' real estate listing agent testified she did not "notice anything unusual or erratic or uncommon" about Jones' behavior from late 2014 through early to mid June 2015. She was present at both closings. Two closing agents similarly testified they did not observe anything out of the ordinary with Jones' behavior during the closings; both testified that Jones had no trouble understanding the closing process. Finally, a lifelong friend of Jones who accompanied him to both closings testified that Jones seemed excited to make the deal. She averred that she observed nothing suggesting Jones was not in possession of his faculties.
¶ 6 Both Pizon and Jones introduced expert testimony regarding Jones' mental condition at the time he entered into the contracts to sell the parcels, setting up a battle of the experts. Pizon presented the testimony of Dr. Deborah Collins. After reviewing Jones' history, Collins testified there was no "support for a conclusion that at the times in question Mr. Jones was not competent." Jones presented the testimony of Dr. Allen Hauer; it is this testimony Pizon challenges on appeal. Hauer offered a contrary view to that of Collins, stating that Jones was "definitely incompetent" long before June 2015 due to dementia. He explained that Jones' dementia, apparent when he was placed under emergency protective placement on June 29, "did not appear overnight" or "in the last month" but was "a persistent and deteriorating condition that has an onset" of at least one year prior. When asked about Jones' seemingly normal behavior at times, Hauer dismissed those instances as mere "apparent lucidity." Hauer opined that Jones could not make rational decisions due to his condition despite appearing lucid at times. Hauer explained that around the time of the transactions "any lucid, rational moment was brief and that [Jones'] actions during that time ... were not products of rational and considered thought and planning."
¶ 7 At the close of evidence, Pizon sought a jury instruction to the effect that incompetency must be proven by "clear, convincing, and satisfactory evidence." The circuit court did not give Pizon's desired instruction. Rather, the jury was instructed that the burden of proof was the greater weight of the credible evidence. The jury concluded Jones was mentally incompetent when he signed the contracts to sell the two parcels. The circuit court entered judgment accordingly, ordering the parcels returned to Jones and the purchase price refunded. Pizon appeals.
DISCUSSION
¶ 8 We address three arguments.
A. Burden of Proof
¶ 9 "Wisconsin has long recognized a cause of action to rescind a contract or conveyance based upon the lack of mental competency at the time of the transaction." Hauer v. Union State Bank of Wautoma ,
¶ 10 Pizon argues we should "establish that, in cases challenging competency to contract (including executing deeds), the clear and convincing burden of proof must be satisfied." Pizon claims that "there is no appellate case in Wisconsin that specifically establishes the proper burden of proof in a case in which one contends that a contract is void due to a lack of mental capacity." Accordingly, he appeals to competency assessments in other areas, like testamentary capacity, guardianship, and civil commitment, which require clear and convincing proof of mental incapacity. Pizon further asserts, "Numerous other jurisdictions and at least one leading treatise also have adopted the heightened" burden of proof. Because the circuit court instructed the jury that the burden of proof was "the greater weight of the credible evidence," Pizon maintains that we must reverse the judgment.
¶ 11 Our cases have long established the general rules governing the burden of proof in civil actions. The ordinary standard is proof by a "fair" or "mere" preponderance of the evidence. See Ball v. Boston ,
¶ 12 Contrary to the parties' assertions, it appears our supreme court has answered the question regarding the proper standard in cases such as this one. In Nyka v. State ,
The rule, with relation to the burden of proof of insanity, is generally stated to be that the burden of proof to establish insanity rests with the party who alleges it or seeks to avoid an act on account of insanity. It devolves upon such party to establish the factum of insanity by a preponderance of the evidence .
Id. (emphasis added; citation omitted).
¶ 13 As noted, Wisconsin cases have long distinguished between preponderance of the evidence and clear and convincing (or, as it was often called in older cases, "clear and satisfactory") evidence. See Boston ,
¶ 14 And contrary to Pizon's assertions, this view is not an outlier. Several treatises explain that jurisdictions are split as to the burden of proof applicable to challenges to contractual capacity. See 53 AM. JUR. 2D Mentally Impaired Persons § 157 (May 2018 update) ("The burden of proof is on the individual asserting a lack of capacity to contract, and this burden may be satisfied by clear and convincing evidence or a preponderance of the evidence."); 17 C.J.S. Contracts § 988 (June 2018 update) ("One who alleges the mental incapacity of a party to a contract usually must establish it by a preponderance of the evidence, although clear and convincing evidence ... may be required.").
¶ 15 Our supreme court later confirmed that Nyka 's analysis concerning the presumption of sanity to execute a deed was equally applicable to whether a person was competent to enter into a contract. Nennig ,
¶ 16 Thus, until and unless the supreme court withdraws or modifies Nyka 's language, a person seeking to set aside a conveyance based on lack of capacity-as distinct from fraud or undue influence-must prove lack of competence by a preponderance of the evidence, or, as our current jury instructions state, by "the greater weight of the credible evidence." See WIS JI- CIVIL 200. That is what the jury was instructed here. Because we are bound by Nyka , Pizon's arguments concerning the wisdom of imposing a heightened standard are best addressed to the supreme court.
B. Expert Testimony
¶ 17 Pizon next takes issue with the circuit court's admission of Hauer's expert testimony. He claims that Hauer's opinion was not based on any scientific or medical authority and suggests that Hauer's opinion is not recognized in the field of psychology. He also claims that Hauer's opinion on "apparent lucidity" contradicts established Wisconsin law.
¶ 18 As with most evidentiary decisions, the court's decision to admit or exclude expert testimony is discretionary and will not be reversed unless the court erroneously exercised its discretion. State v. Giese ,
¶ 19 WISCONSIN STAT. § 907.02 governs the admissibility of expert testimony, adopting the reliability standards the United States Supreme Court explained in Daubert v. Merrell Dow Pharms., Inc. ,
(1) If scientific, technical, or other specialized knowledge will assist the trier of fact to understand the evidence or to determine a fact in issue, a [qualified] witness ... may testify thereto ... if the testimony is based upon sufficient facts or data, the testimony is the product of reliable principles and methods, and the witness has applied the principles and methods reliably to the facts of the case.
Sec. 907.02(1). Under this standard, the circuit court acts as the "gate-keeper ... to ensure that the expert's opinion is based on a reliable foundation and is relevant to the material issues." Giese ,
¶ 20 The standard is flexible, and the court has "considerable leeway in deciding in a particular case how to go about determining whether particular expert testimony is reliable." Kumho Tire Co. v. Carmichael ,
¶ 21 Our supreme court recently addressed the admissibility standard for "expert medical testimony based on a witness's personal experience"-as was given here. Seifert v. Balink ,
¶ 22 We reject Pizon's suggestion that Hauer was required to cite articles or other extrinsic sources to support his conclusion. He clearly testified based on his experience as a "clinical psychologist." His qualification as an experience-based expert in psychology was well demonstrated and uncontested by Pizon at trial.
¶ 23 We also reject Pizon's argument that Hauer's testimony disregarded Wisconsin law. It is true that "[t]he law recognizes the fact that there may be derangement of mind as to particular subjects, and yet capacity to act on other subjects." Boorman v. Northwestern Mut. Relief Ass'n ,
C. Mistrial
¶ 24 Pizon finally argues that the circuit court should have granted his motion for mistrial after Jones appeared in court on the first day of trial and had to be removed for being disruptive. Pizon moved for mistrial immediately, and the circuit court denied the motion, electing instead to grant a curative instruction. The court explained that "the encounter was fairly minor" and Jones had not been "particularly disruptive." After the incident, the court admonished the jurors to "free yourselves of any feelings of bias, prejudice, [or] sympathy" and instructed them that the issue was "the condition of Mr. Jones" at the time of the disputed transactions.
¶ 25 The decision of whether to grant a mistrial is committed to the circuit court's discretion, "and we accord great deference to a trial court's decision on a motion for mistrial." Broadhead v. State Farm Mut. Auto. Ins. Co. ,
¶ 26 Other than the conclusory assertion that "[t]he damage ... could not be undone by a simple instruction," Pizon offers little reason why the circuit court's assessment of the incident was incorrect. "We presume that the jury follows the instructions given to it." State v. Truax ,
By the Court. -Judgment affirmed.
Not recommended for publication in the official reports.
The parcels had been previously listed with another realty company.
In addition to the arguments we address substantively, Pizon claims that the circuit court prompted Jones at trial during an off-the-record conversation, and argues this prompting was somehow improper. But Pizon cites no law in support of his argument, nor does he specify what remedy he seeks. Because this argument lacks any meaningful development, we will not address it. State v. Pettit ,
The Committee concluded that "greater weight" was "much more understandable by the average juror" than "preponderance." Wis JI- Civil 200 cmt.
Some cases at the time of Nyka discussed imprecision in how courts described the higher standard. See Kuehn v. Kuehn ,
Pizon also complains that the circuit court should have granted a motion to exclude Hauer's testimony on the basis that he did not have an opportunity to examine Hauer prior to trial, and that Hauer did not prepare a report for Pizon to review. Had Hauer been deposed or provided a report, Pizon claims he "would have had an opportunity to pursue a Daubert -type motion under
After Hauer explained his academic credentials, previous academic employment, and forty-year history of practicing psychology, Pizon had "[n]o objection" to the court finding Hauer qualified. On appeal, Pizon similarly makes no argument that Hauer was unqualified, only that Hauer's reliance on his experience was somehow improper. Pizon does appear to throw a shade at Hauer by noting that he was "not board certified," but fails to mention that Hauer was licensed to practice psychology and makes no attempt to show that lack of board certification made Hauer unqualified to render an opinion.
Pizon also suggests that had Hauer filed a report, he would have raised a Daubert challenge prior to trial. But we see no error in admitting this testimony no matter when it would have been challenged.
Pizon claims (without any record citation) that "Hauer admitted that his theory [of apparent lucidity] was not recognized in the field of psychology." In fact, Pizon's counsel asked whether Hauer's theory that Jones was incompetent despite periods of apparent lucidity was "widely accepted in the psychological field." Hauer responded, "Yes."
Case-law data current through December 31, 2025. Source: CourtListener bulk data.