Wesley Hawley, a racehorse trainer, purchased a filly named Clever Sue. He later placed his then-fiancee, Denise Reed’s, name on the horse’s registration papers. When the relationship ended, Hawley transferred the title back to himself. Reed sued, claiming ownership of the horse and the right to its prize money.
The trial court ruled in favor of Hawley, and the Court of Appeal upheld the decision.
Why the Ruling was Upheld:
- Donations Inter Vivos: The court focused on the concept of donations inter vivos, gifts made during the donor’s lifetime. In Louisiana, such donations of corporeal things (physical objects) generally require an authentic act (a notarized document) or, in the case of manual gifts, the actual delivery of the property. La. C.C. art. 1467.
- Burden of Proof: The court emphasized that the donee (the person receiving the gift) bears the burden of proving a donation. This proof must be strong and convincing.
- Lack of Valid Donation: In this case, there was no authentic act transferring ownership of the horse from Hawley to Reed. Furthermore, Hawley never physically delivered the horse to Reed, and he continued to pay for its care and maintenance. Therefore, the court concluded that there was no valid donation.
The Hawley v. Reed decision emphasizes the importance of adhering to legal formalities when making significant gifts, even in a romantic relationship. Assumptions or verbal agreements may not suffice when transferring ownership of valuable property.
If you’re considering gifting a significant asset, it’s crucial to consult with an attorney to ensure the proper legal steps are taken. This will help prevent future disputes and protect your intentions.
Additional Sources: DENISE T. REED VERSUS WESLEY E. HAWLEY
Written by Berniard Law Firm
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