Lamb v. Scott
643 So. 2d 972, 1994 WL 288388 (1994)
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Rule of Law:
An agent acting under a durable power of attorney may only exercise powers expressly granted within the document and cannot engage in self-dealing, such as conveying the principal's property to themselves, unless that power is explicitly authorized. The agent's actions must be for the sole benefit of the principal and consistent with the principal's intent, which may be evidenced by other documents like a will.
Facts:
- Dollie Scott executed a durable power of attorney, appointing her daughter, Rita Lamb, as her attorney-in-fact.
- Almost a year later, Dollie Scott executed a will devising all of her property, including a farm, to be shared equally among her two daughters, Rita Lamb and Judy Heliste, and her stepson, Timothy Scott.
- Approximately one month after executing the will, Dollie Scott suffered a stroke and became incapacitated.
- Following the stroke, Rita Lamb, acting as attorney-in-fact for Dollie Scott, executed a deed conveying her mother's farm to herself and her sister, Judy Heliste, with right of survivorship.
- Dollie Scott subsequently died.
Procedural Posture:
- Timothy D. Scott filed a complaint against Rita D. Lamb and Judy C. Heliste in an Alabama trial court, seeking to set aside a deed.
- Scott moved for summary judgment.
- The trial court granted Scott's motion for summary judgment, declaring the deed void.
- Lamb and Heliste, as appellants, appealed the trial court's judgment to the Supreme Court of Alabama.
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Issue:
Does an agent acting under a general durable power of attorney have the authority to convey the principal's real property to herself and a third party when the power of attorney does not expressly authorize such a conveyance and it contradicts the principal's subsequently expressed testamentary intent?
Opinions:
Majority - Shores, J.
No. A deed executed by an agent under a durable power of attorney conveying the principal's property to the agent is void unless the power of attorney expressly grants the authority for self-dealing. Powers of attorney are strictly construed, granting only those powers explicitly stated. The power of attorney given to Lamb did not specifically authorize her to convey land to herself, so she was without the power to do so. Furthermore, the conveyance to her sister was also invalid because it contradicted Dollie Scott's clearly expressed intent in her will to have the property divided equally among her two daughters and her stepson. An agent has a duty to use the power for the sole benefit of the principal and in a manner consistent with the principal's purposes, which Lamb failed to do.
Analysis:
This decision reaffirms the traditional common law principle of strict construction for powers of attorney and the strong prohibition against agent self-dealing without express authorization. The court clarifies that Alabama's durable power of attorney statute does not alter these foundational agency law rules. The case significantly establishes that a principal's subsequently executed will can serve as powerful evidence of their intent, limiting the discretionary authority of an agent and preventing the agent from using their power to alter the principal's established estate plan.
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