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Carter v. Percy | 708 N.W.2d 645 (2006)

After being given a check by the listed payor, a person may assume that he or she is entitled to the amount listed on the check. In Carter versus Percy, we’ll explore whether the check’s payee could recover from the payor’s estate after the payor died before the check could be cashed.

Deborah Carter was Edward Lamplaugh’s home aide for ten years. She performed tasks like cleaning, doing laundry, paying bills, and accompanying Lamplaugh to the doctor. On June tenth, two thousand two, Carter found Lamplaugh dead in his home. Later that day, Carter deposited two checks written to her from Lamplaugh’s account. One was from June sixth for fifty dollars for her cleaning services. The other was dated June ninth for eighty thousand dollars. The bank notified Lamplaugh’s sister, the account’s pay-on-death beneficiary, reversed the transaction, and placed a hold on the account. Charles Percy was later appointed as the personal representative of Lamplaugh’s estate.

Carter filed a claim against the estate for approximately eighty thousand dollars of uncashed checks in a Nebraska county court. At trial, Carter and several other witnesses testified that Lamplaugh had expressed his love for Carter, his desire to give her all his money, and his intention to give her eighty thousand dollars so she could purchase a liquor store and operate her own business. Carter testified that Lamplaugh gave her the eighty-thousand-dollar check and that she believed it was a gift. Percy argued that Lamplaugh’s death prevented him from completing transfers of any gift to Carter.

The county court found that Lamplaugh’s donative intent was supported by competent evidence and granted Carter’s claim in full. Percy appealed to the Nebraska Supreme Court.

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