1 00:00:06,266 --> 00:00:08,667 [Judge DiMango] She tells your husband about the issues 2 00:00:08,734 --> 00:00:11,533 - that she's having financially. - Correct. 3 00:00:11,600 --> 00:00:13,500 So you figured that the best bet 4 00:00:13,567 --> 00:00:16,000 was to go to a nonfamily member 5 00:00:16,065 --> 00:00:17,000 to get that money for you. 6 00:00:17,400 --> 00:00:19,133 He was more than just a friend. 7 00:00:19,200 --> 00:00:22,133 You even said she wanted him to be her sugar daddy. 8 00:00:22,200 --> 00:00:23,266 Yes. 9 00:00:23,333 --> 00:00:26,200 I don't think your late husband intended to be a sugar daddy. 10 00:00:26,266 --> 00:00:28,400 He wasn't trying to give her anything for free. 11 00:00:28,467 --> 00:00:30,033 That's like a sugar-free daddy. 12 00:00:30,100 --> 00:00:33,066 [announcer] Now on Tribunal Justice. 13 00:00:33,133 --> 00:00:36,500 ["Ride of the Valkyries" plays] 14 00:00:54,500 --> 00:00:58,433 [announcer] Today's case was filed in Murrieta, California. 15 00:00:58,500 --> 00:01:00,900 [Byrd] Your Honor, this is case number 2061 16 00:01:00,967 --> 00:01:03,600 on the calendar in the matter of Schaafs versus Heywood. 17 00:01:03,667 --> 00:01:04,934 - Thank you, Byrd. - You're welcome, Judge. 18 00:01:05,000 --> 00:01:06,333 Parties have been sworn in. 19 00:01:06,400 --> 00:01:07,900 You may be seated. 20 00:01:07,967 --> 00:01:10,433 All right, Ms. Schaafs and Ms. Heywood. 21 00:01:10,500 --> 00:01:13,100 You were actually neighbors at one point in time. 22 00:01:13,166 --> 00:01:14,600 But I'd like to bring something up upfront 23 00:01:15,000 --> 00:01:16,967 because there was something in your answer, Ms. Heywood, 24 00:01:17,033 --> 00:01:20,900 where you said you tried to reach the plaintiff's husband 25 00:01:20,967 --> 00:01:22,500 but you've not been able to. 26 00:01:22,567 --> 00:01:25,433 I think you should know upfront-- do you know that he passed away? 27 00:01:25,500 --> 00:01:27,265 - I found out recently the... - [Judge DiMango] Okay. 28 00:01:27,333 --> 00:01:28,400 ... within the last week. 29 00:01:28,467 --> 00:01:29,633 [Judge DiMango] I didn't wanna just throw it out there 30 00:01:29,700 --> 00:01:31,400 because I know you were all friends. 31 00:01:31,467 --> 00:01:34,233 So Ms. Schaafs, you're suing the defendant for her failure 32 00:01:34,300 --> 00:01:36,834 to make good on some promissory notes 33 00:01:36,900 --> 00:01:39,800 drafted by your deceased husband. 34 00:01:39,866 --> 00:01:43,934 During his life, he loaned the defendant $12,400, 35 00:01:44,000 --> 00:01:46,133 which she agreed to repay 36 00:01:46,200 --> 00:01:48,500 at the time she sold her house. 37 00:01:48,567 --> 00:01:50,633 Your husband has since died 38 00:01:50,700 --> 00:01:53,100 and you're here suing for $10,000 on promissory notes 39 00:01:53,500 --> 00:01:56,265 that the defendant received from your late husband. 40 00:01:56,333 --> 00:01:59,200 Ma'am, your position is that he forgave the debts to you 41 00:01:59,265 --> 00:02:00,600 during his lifetime. 42 00:02:00,667 --> 00:02:02,367 Also as a second defense, 43 00:02:02,433 --> 00:02:04,900 it appears from your papers that you're raising 44 00:02:04,967 --> 00:02:07,433 is what we call accord and satisfaction 45 00:02:07,834 --> 00:02:09,199 that you paid him some money 46 00:02:09,265 --> 00:02:12,467 and at that point he said you didn't have to pay him any further. 47 00:02:12,533 --> 00:02:15,433 There is a potential third affirmative defense here, 48 00:02:15,500 --> 00:02:18,567 but at this point, I'm not going to address it just yet. 49 00:02:18,633 --> 00:02:22,333 So let's start with you, Ms. Schaafs. 50 00:02:22,400 --> 00:02:24,734 There was a trust that your husband created 51 00:02:24,800 --> 00:02:27,200 and that was created in 2002. 52 00:02:27,266 --> 00:02:28,533 - Is that correct? - Correct. 53 00:02:28,600 --> 00:02:33,800 In 2011 is when he made the loans to the defendant. 54 00:02:33,867 --> 00:02:36,000 - Is that correct as well? - Yes. 55 00:02:36,066 --> 00:02:38,133 [Judge DiMango] Now, you made a big point 56 00:02:38,200 --> 00:02:40,367 in the beginning of your complaint 57 00:02:40,433 --> 00:02:42,834 that your deceased husband Ray, 58 00:02:42,900 --> 00:02:46,734 you say never dated the defendant. 59 00:02:46,800 --> 00:02:48,533 That was important to you to make that point. 60 00:02:48,600 --> 00:02:50,166 How come? 61 00:02:50,233 --> 00:02:53,567 Because that was the understanding he gave me. 62 00:02:53,633 --> 00:02:55,966 I would say that she thought 63 00:02:56,033 --> 00:02:58,834 the relationship was stronger. 64 00:02:58,900 --> 00:03:00,433 [Judge DiMango] Okay. Well, we have a picture. 65 00:03:00,500 --> 00:03:01,567 We're gonna put it up. 66 00:03:01,633 --> 00:03:03,567 - Is that your wedding day? - Yes. 67 00:03:03,633 --> 00:03:04,934 [Judge DiMango] And what date was that? 68 00:03:05,000 --> 00:03:07,633 - What year at least? - 2016. 69 00:03:07,700 --> 00:03:10,500 [Judge DiMango] Okay. So you got married in 2016. 70 00:03:10,567 --> 00:03:11,934 And when was that taken, ma'am? 71 00:03:12,000 --> 00:03:14,867 [Darlene] That was taken very shortly, uh... 72 00:03:14,934 --> 00:03:16,266 - [Judge DiMango] Before he passed away? - [Darlene] Yes. 73 00:03:16,333 --> 00:03:17,767 [Judge DiMango] He had all his senses 74 00:03:17,834 --> 00:03:19,533 - about him, correct? - Correct. 75 00:03:19,600 --> 00:03:22,900 Okay. So there's no allegation here that he had dementia 76 00:03:22,966 --> 00:03:24,367 - or Alzheimer's or anything. - Oh, no. 77 00:03:24,433 --> 00:03:25,500 - No, he was... - [Darlene] No. 78 00:03:25,567 --> 00:03:27,700 - ... sharp as a tack right to the end. - Right. 79 00:03:27,767 --> 00:03:31,600 [Judge DiMango] Okay. So now, you move into this complex 80 00:03:31,667 --> 00:03:33,633 where Ray and she have been living. 81 00:03:33,700 --> 00:03:34,767 When did you move in? 82 00:03:34,834 --> 00:03:38,533 I moved into a brand new house in 1993 83 00:03:38,600 --> 00:03:42,533 and Ray and his first wife moved in a couple years later. 84 00:03:42,600 --> 00:03:45,600 [Judge DiMango] Okay. And now at some point, 85 00:03:45,667 --> 00:03:46,767 you're paying a mortgage 86 00:03:46,834 --> 00:03:48,567 - on your property and you... - [Sandra] Uh-hmm. 87 00:03:48,633 --> 00:03:50,466 ... run into some problems, is that correct? 88 00:03:50,533 --> 00:03:51,600 - Yes. - [Judge DiMango] Okay. 89 00:03:51,667 --> 00:03:53,667 Now you knew that, Mrs. Schaafs. 90 00:03:53,734 --> 00:03:56,400 You knew that Ray and she were friends, 91 00:03:56,466 --> 00:03:58,233 and actually you even said you think 92 00:03:58,300 --> 00:04:00,500 that she wanted him to be her sugar daddy, 93 00:04:00,567 --> 00:04:02,133 - would that be correct? - Really. Yes. 94 00:04:02,600 --> 00:04:07,300 My husband-to-be and I were together one day. 95 00:04:07,367 --> 00:04:09,734 Our niece and nephew was visiting 96 00:04:09,800 --> 00:04:13,467 and she walked in the house and said she needed to take a shower, 97 00:04:13,533 --> 00:04:17,567 and my husband introduced her as the neighbor 98 00:04:17,632 --> 00:04:22,367 and she walked over to the niece and nephew, said, "I'm his girlfriend." 99 00:04:22,433 --> 00:04:23,800 [Judge DiMango] Did you do that? 100 00:04:23,867 --> 00:04:25,133 God, no. 101 00:04:25,200 --> 00:04:26,700 You were not his girlfriend at the time, were you? 102 00:04:26,767 --> 00:04:27,834 I was never his girlfriend. 103 00:04:27,900 --> 00:04:30,367 [Judge DiMango] No, never, never his girlfriend. It was just you. 104 00:04:30,433 --> 00:04:32,533 - Let's clear the air on that one. - That's good. 105 00:04:32,600 --> 00:04:34,834 [Judge DiMango] All right. So now, she tells your husband 106 00:04:34,900 --> 00:04:37,633 about the issues that she's having financially 107 00:04:37,700 --> 00:04:39,767 and you--basically, you said he was a nice guy. 108 00:04:39,834 --> 00:04:41,834 Both of you say he was a very nice guy. 109 00:04:41,900 --> 00:04:43,367 And he agreed to lend you the money, 110 00:04:43,433 --> 00:04:45,300 - is that correct as well? - Yes, um... 111 00:04:45,367 --> 00:04:47,400 [Judge DiMango] How did that come about, that conversation? 112 00:04:47,467 --> 00:04:50,033 The, uh, later part of 2011, 113 00:04:50,100 --> 00:04:52,033 um, I was having some health issues 114 00:04:52,100 --> 00:04:56,200 and so Ray would take me to a couple medical appointments 115 00:04:56,266 --> 00:04:59,967 and, uh, so then I couldn't work 116 00:05:00,100 --> 00:05:02,800 and I had to--I asked him-- I thought it was in March, 117 00:05:03,200 --> 00:05:06,467 because I don't have any papers, of 2012 that I asked him 118 00:05:06,533 --> 00:05:09,333 if I could borrow my house payment when I needed it. 119 00:05:09,400 --> 00:05:11,100 [Judge DiMango] Okay. So to clear that up, 120 00:05:11,166 --> 00:05:14,667 we have the notes that were written and signed by you 121 00:05:14,734 --> 00:05:17,567 indicating that he did loan you the money. 122 00:05:17,633 --> 00:05:19,867 I believe each one is dated and signed 123 00:05:19,934 --> 00:05:23,400 and there's an amount, $1,200, January 2011. 124 00:05:23,467 --> 00:05:25,700 There are ten of them in total, 125 00:05:25,767 --> 00:05:29,166 eight of which are signed only. 126 00:05:29,233 --> 00:05:32,433 Um, the last two checks that I wrote him, 127 00:05:32,500 --> 00:05:35,400 he wrote, "Sent," and mailed them back to me. 128 00:05:35,467 --> 00:05:36,867 [Judge DiMango] Okay. We'll get to that. 129 00:05:36,933 --> 00:05:38,900 Now, the loans were 2011. 130 00:05:38,967 --> 00:05:41,233 You got married in 2016. 131 00:05:41,300 --> 00:05:46,033 But in 2014, he assigned those notes to you 132 00:05:46,100 --> 00:05:49,900 and that was to give you the right to collect on those notes 133 00:05:49,967 --> 00:05:51,533 should he not be there to collect, 134 00:05:51,600 --> 00:05:52,734 - is that correct? - Correct. 135 00:05:52,800 --> 00:05:54,900 [Judge DiMango] All right. Now there is an issue here. 136 00:05:54,967 --> 00:05:57,734 There's eight that we have signed. 137 00:05:57,800 --> 00:06:01,233 The total on that is, I believe, $9,700. 138 00:06:01,300 --> 00:06:04,800 And then there were two notes that are unsigned, 139 00:06:04,867 --> 00:06:06,867 no monetary amount. 140 00:06:06,934 --> 00:06:10,800 You're claiming that those two notes were 1,350 each 141 00:06:10,867 --> 00:06:14,367 and that she would then owe you $2,700 142 00:06:14,433 --> 00:06:16,467 - on top of these. - Right. 143 00:06:16,533 --> 00:06:18,300 So my question to you is, 144 00:06:18,367 --> 00:06:21,567 did he ever give you money where you did not sign 145 00:06:21,633 --> 00:06:23,367 - a promissory note? - Oh, no, no. 146 00:06:23,433 --> 00:06:26,700 [Judge DiMango] So the only time you were given money by Ray, 147 00:06:26,767 --> 00:06:28,300 - you signed a promissory... - [Sandra] Yes. 148 00:06:28,367 --> 00:06:29,967 ... note agreeing to pay. 149 00:06:30,033 --> 00:06:31,633 Yeah, I paid a hundred dollars a month. 150 00:06:31,700 --> 00:06:33,367 [Judge DiMango] All right. In your answer, 151 00:06:33,433 --> 00:06:36,100 you wrote, "I paid Ray back a hundred dollars a month 152 00:06:36,166 --> 00:06:38,332 towards the amount that I owed him. 153 00:06:38,400 --> 00:06:41,967 However, when I sent him the hundred-dollar check in November, 154 00:06:42,033 --> 00:06:44,433 it got sent back to me and was marked paid. 155 00:06:44,500 --> 00:06:46,567 The December check that I paid to him 156 00:06:46,633 --> 00:06:49,233 also got sent back to me marked paid. 157 00:06:49,300 --> 00:06:52,166 I think I paid around $600." 158 00:06:52,233 --> 00:06:54,734 Do you have any evidence as to any of these checks 159 00:06:54,800 --> 00:06:57,700 that were marked paid, Mrs. Schaafs? 160 00:06:57,767 --> 00:06:59,100 No. My... 161 00:06:59,166 --> 00:07:02,433 And do you have any of those canceled checks marked paid? 162 00:07:02,500 --> 00:07:04,133 No. Three years ago, I tore 'em up. 163 00:07:04,200 --> 00:07:05,800 [Judge DiMango] Why would you tear them up? 164 00:07:05,867 --> 00:07:08,233 Because my friend said I shouldn't keep anything 165 00:07:08,300 --> 00:07:09,600 over seven to eight years, 166 00:07:09,667 --> 00:07:10,900 and so I threw them away. 167 00:07:10,967 --> 00:07:15,767 All right. So now, the notes that she signed read, 168 00:07:16,233 --> 00:07:18,967 "Party one agrees to give Sandra Heywood 169 00:07:19,033 --> 00:07:21,600 a no interest loan of $1,200." 170 00:07:21,667 --> 00:07:23,633 And then it has that the payback 171 00:07:23,700 --> 00:07:27,300 is when her house is sold or refinanced. 172 00:07:27,367 --> 00:07:30,433 - Ma'am, when did you sell your home? - 2018. 173 00:07:30,500 --> 00:07:33,266 - April 2018. - [Judge DiMango] April of 2018. 174 00:07:33,332 --> 00:07:35,967 Had you seen him from the time he made you the loans 175 00:07:36,033 --> 00:07:37,266 until he died or you sold the house? 176 00:07:37,667 --> 00:07:41,734 Several times and--but once he and Darlene got together, 177 00:07:41,800 --> 00:07:44,500 she didn't care for me, so I didn't see him so much. 178 00:07:44,567 --> 00:07:45,633 - But you did see him. - [Sandra] Yes. 179 00:07:45,700 --> 00:07:46,800 And you're saying that during that time, 180 00:07:46,867 --> 00:07:48,567 had he ever asked you about payment? 181 00:07:48,633 --> 00:07:49,734 - Payback? - Not one time. 182 00:07:49,800 --> 00:07:51,367 [Judge DiMango] So that's why you're saying that 183 00:07:51,433 --> 00:07:53,233 you are convinced that the 600 or whatever 184 00:07:53,300 --> 00:07:55,233 was sufficient repayment for him, 185 00:07:55,300 --> 00:07:56,633 and he was forgiving you the note. 186 00:07:56,700 --> 00:07:57,967 - Is that correct? - That's what I felt. Yes. 187 00:07:58,033 --> 00:08:00,300 [Judge DiMango] Now, did you have a for sale sign up? 188 00:08:00,367 --> 00:08:01,433 For six months. 189 00:08:01,500 --> 00:08:04,633 So your husband knew that she was selling the house. 190 00:08:04,700 --> 00:08:06,667 It was for sale while she was there 191 00:08:06,734 --> 00:08:09,433 and he could have at any moment gone back to her 192 00:08:09,500 --> 00:08:11,300 and said, "Pay me back that money." 193 00:08:11,367 --> 00:08:14,100 Your Honor, he wasn't in any condition. 194 00:08:14,166 --> 00:08:15,867 He, as ill as he was, 195 00:08:15,934 --> 00:08:18,433 he went over there and tried to contact her. 196 00:08:18,500 --> 00:08:20,400 But he had six years to do it in. 197 00:08:20,467 --> 00:08:22,867 - Six years. - [Darlene] He had so much faith that 198 00:08:22,934 --> 00:08:25,200 she was going to do the right thing. 199 00:08:25,266 --> 00:08:28,700 But she had stopped paying him over all of that time. 200 00:08:30,934 --> 00:08:33,500 [announcer] Coming up on Tribunal Justice. 201 00:08:33,567 --> 00:08:35,366 I had my sister. I had my brother. 202 00:08:35,433 --> 00:08:36,567 And did they give you money? 203 00:08:36,633 --> 00:08:37,799 I didn't ask 'em. 204 00:08:37,866 --> 00:08:39,232 So you figured that the best bet 205 00:08:39,299 --> 00:08:41,799 was to go to a nonfamily member 206 00:08:41,866 --> 00:08:42,933 to get that money for you? 207 00:08:43,000 --> 00:08:44,600 He was more than just a friend. 208 00:08:44,667 --> 00:08:46,165 [dramatic musical sting] 209 00:08:48,165 --> 00:08:49,834 [theme music plays] 210 00:08:49,900 --> 00:08:53,400 [announcer] Darlene Schaafs is suing former neighbor Sandy Heywood 211 00:08:53,467 --> 00:08:56,333 for $10,000 in unpaid loans. 212 00:08:56,400 --> 00:08:59,400 Darlene claims her now deceased husband often helped Sandy 213 00:08:59,467 --> 00:09:01,166 with mortgage payments. 214 00:09:01,233 --> 00:09:05,133 Sandy claims Darlene's husband forgave the loans before he died 215 00:09:05,200 --> 00:09:08,367 and even returned payments she attempted to give him. 216 00:09:08,433 --> 00:09:10,200 There is another defense, 217 00:09:10,266 --> 00:09:11,900 it's an affirmative defense in the law, 218 00:09:12,300 --> 00:09:14,934 and it's called statute of limitations. 219 00:09:15,000 --> 00:09:17,767 That she cannot sue you for this money 220 00:09:17,834 --> 00:09:20,600 because too much time has passed. 221 00:09:20,667 --> 00:09:25,200 In California, six years from the date payment was due, 222 00:09:25,266 --> 00:09:27,667 which was when you sold your house in April, 223 00:09:27,734 --> 00:09:29,133 after six years, 224 00:09:29,200 --> 00:09:32,033 the position might be that her cause of action 225 00:09:32,100 --> 00:09:35,133 is time-barred here, that she cannot sue you. 226 00:09:35,200 --> 00:09:36,266 Now you didn't raise that, 227 00:09:36,333 --> 00:09:38,633 but we may have a right as a court to raise that, 228 00:09:38,700 --> 00:09:40,934 or we may decide that if you didn't raise it, 229 00:09:41,000 --> 00:09:43,500 then you're going to be precluded from doing so. 230 00:09:43,567 --> 00:09:44,667 So I'm not sure. 231 00:09:44,734 --> 00:09:45,800 These are things we're gonna have to look at, 232 00:09:45,867 --> 00:09:47,633 and we're gonna further explore this. 233 00:09:47,700 --> 00:09:48,900 Judge Levy? 234 00:09:48,967 --> 00:09:50,300 Okay. Let's start with this. 235 00:09:50,367 --> 00:09:52,600 Ms. Heywood, uh, you have no papers. 236 00:09:52,667 --> 00:09:53,734 You have no evidence. 237 00:09:53,800 --> 00:09:56,033 You have no documents that you supplied to us 238 00:09:56,100 --> 00:09:58,500 to support your case, to support your defense. 239 00:09:58,567 --> 00:10:00,767 And I get a sense that everything you're saying to us 240 00:10:00,834 --> 00:10:01,934 is based upon your memory, 241 00:10:02,333 --> 00:10:05,900 which is, you would agree, not as good as it probably should be, 242 00:10:05,967 --> 00:10:08,100 especially standing where you are as a defendant 243 00:10:08,166 --> 00:10:10,734 - in a $10,000 lawsuit, right? - Yes. 244 00:10:10,800 --> 00:10:12,266 Good. So let me give you these. 245 00:10:12,333 --> 00:10:15,033 These are the general agreements. 246 00:10:15,100 --> 00:10:17,333 This is not a promissory note. 247 00:10:17,400 --> 00:10:19,200 This is a general agreement 248 00:10:19,266 --> 00:10:21,667 with what purports to be your signature on them. 249 00:10:21,734 --> 00:10:23,800 And I want you to take a look at those. 250 00:10:23,867 --> 00:10:26,400 Do you see your signature on the bottom of those pages? 251 00:10:26,467 --> 00:10:27,600 [Sandra] Yes. 252 00:10:27,667 --> 00:10:30,233 [Judge Levy] So January, $1,200, that's your signature 253 00:10:30,300 --> 00:10:32,200 - on the general agreement. - [Sandra] Yes. 254 00:10:32,266 --> 00:10:35,400 [Judge Levy] February, March, April, May, all $1,200. 255 00:10:35,467 --> 00:10:38,300 June, July, and August, 1,200. 256 00:10:38,367 --> 00:10:39,667 And then there are two blank. 257 00:10:39,734 --> 00:10:41,700 - Okay. May I say something? - [Judge Levy] Sure. 258 00:10:41,767 --> 00:10:44,467 The two blank ones are the two checks he wrote to me 259 00:10:44,533 --> 00:10:47,266 with the--with sent--or paid on the check. 260 00:10:47,333 --> 00:10:49,266 - I don't care what it is. - I'm just telling you. 261 00:10:49,333 --> 00:10:50,867 - That's why they're blank. - [Judge Levy] I don't care about those. 262 00:10:50,934 --> 00:10:52,133 No one gets money for those 263 00:10:52,200 --> 00:10:55,934 because there are statute of limitations issues here. 264 00:10:56,000 --> 00:10:59,834 Statute of limitation on a contract in California is four years. 265 00:10:59,900 --> 00:11:01,867 Statute of limitation on a promissory note 266 00:11:01,934 --> 00:11:04,400 under the UCC is six years. 267 00:11:04,467 --> 00:11:06,166 Can I ask you what a UCC is? 268 00:11:06,233 --> 00:11:08,100 [Judge Levy] It's the Uniform Commercial Code. 269 00:11:08,166 --> 00:11:10,734 It treats things differently than a regular contract. 270 00:11:10,800 --> 00:11:13,133 General agreement, I view as a contract. 271 00:11:13,667 --> 00:11:17,166 The promissory note, this is what your deceased husband, Ray, ma'am, 272 00:11:17,233 --> 00:11:18,567 this is what he gave you, 273 00:11:18,633 --> 00:11:20,600 - an assignment of a promissory note. - Yes. 274 00:11:20,667 --> 00:11:22,133 That doesn't say promissory note. 275 00:11:22,200 --> 00:11:23,333 That says general agreement. 276 00:11:23,400 --> 00:11:25,033 - You see that? - [Darlene] Oh. 277 00:11:25,100 --> 00:11:28,333 He's assigning to you this general agreement. 278 00:11:28,400 --> 00:11:30,400 The fact that he calls it a promissory note 279 00:11:30,467 --> 00:11:31,700 doesn't make it a promissory note. 280 00:11:31,767 --> 00:11:33,367 There's one way to look at it. 281 00:11:33,433 --> 00:11:35,700 If it is, and we'll discuss it in the back, 282 00:11:35,767 --> 00:11:39,500 if it is, this general agreement is a promissory note, 283 00:11:39,567 --> 00:11:41,667 you have six years with which to file. 284 00:11:41,734 --> 00:11:44,033 When does that six years start? 285 00:11:44,100 --> 00:11:46,500 When she sells April 2018. 286 00:11:46,567 --> 00:11:48,000 Correct. 287 00:11:48,066 --> 00:11:49,533 [Judge Levy] Putting all that aside, Ms. Heywood, 288 00:11:49,600 --> 00:11:50,667 you're going through a tough time. 289 00:11:50,734 --> 00:11:53,900 January 2011, you can't make your mortgage payment, right? 290 00:11:53,967 --> 00:11:56,500 And there was a risk that you were gonna get kicked out of your home. 291 00:11:56,567 --> 00:11:59,165 And so you went to the one person who you thought you can count on, 292 00:11:59,233 --> 00:12:01,300 - and that was Ray. - Very nice man. 293 00:12:01,367 --> 00:12:02,834 [Judge Levy] Very nice man. 294 00:12:02,900 --> 00:12:05,400 You became friendly, and when you had nowhere else to go, 295 00:12:05,467 --> 00:12:07,800 you went to him to get money so you didn't get thrown out. 296 00:12:07,867 --> 00:12:08,867 Not true at all. 297 00:12:08,934 --> 00:12:09,934 - [Judge Levy] Oh, really? - Yeah. 298 00:12:10,000 --> 00:12:11,166 Who else did you go to to get money? 299 00:12:11,233 --> 00:12:12,300 [Sandra] Let's see. I had my sister. 300 00:12:12,367 --> 00:12:13,633 I had my brother. 301 00:12:13,700 --> 00:12:14,767 [Judge Levy] And did they give you money? 302 00:12:14,834 --> 00:12:15,900 I didn't ask them. 303 00:12:15,967 --> 00:12:17,967 So you figured that the best bet 304 00:12:18,033 --> 00:12:21,900 was to go to a nonfamily member to get that money for you. 305 00:12:21,967 --> 00:12:25,200 He was my across-the-street neighbor and he was more than just a friend. 306 00:12:25,266 --> 00:12:26,633 [Judge Levy] Listen, I don't care about that. 307 00:12:26,700 --> 00:12:30,100 The fact is you had every intention, based upon the general agreement, 308 00:12:30,166 --> 00:12:31,233 to pay him back 309 00:12:31,300 --> 00:12:34,967 and there was absolutely no doubt in your mind 310 00:12:35,033 --> 00:12:37,934 that you agreed to pay back all of this money 311 00:12:38,000 --> 00:12:39,300 - when you sold the house. - Oh, yeah, uh-hmm. 312 00:12:39,367 --> 00:12:40,900 So why didn't you do it? 313 00:12:40,967 --> 00:12:44,433 Because I thought he forgave the loan by sending the two checks back. 314 00:12:44,500 --> 00:12:47,367 Okay. So we're talking about almost $10,000 in loans. 315 00:12:47,433 --> 00:12:48,433 - Uh-hmm. - [Judge Levy] You seem like 316 00:12:48,500 --> 00:12:49,500 a smart lady to me. 317 00:12:49,567 --> 00:12:50,633 So you would have known, 318 00:12:50,700 --> 00:12:52,834 at that time, if he's gonna forgive the loan, 319 00:12:52,900 --> 00:12:54,100 you get that in writing, 320 00:12:54,165 --> 00:12:57,100 so that someone doesn't have to rely on your representation 321 00:12:57,165 --> 00:12:58,767 - six years later, right? - Yeah. 322 00:12:58,834 --> 00:13:00,500 [Judge Levy] Did you get that? Did you get that in writing? 323 00:13:00,567 --> 00:13:01,934 - No. - [Judge Levy] Why not? 324 00:13:02,000 --> 00:13:03,967 - You didn't choose to ask him? - No. 325 00:13:04,033 --> 00:13:05,367 He didn't bring it up and we just didn't talk about it. 326 00:13:05,433 --> 00:13:08,200 He didn't bring it up? He doesn't have to bring up squat. 327 00:13:08,266 --> 00:13:11,300 You were the one responsible for walking across the street 328 00:13:11,367 --> 00:13:13,900 and saying, "Hey, Ray, thank you so much for getting me out of a jam 329 00:13:13,967 --> 00:13:15,967 when I really needed it and I wanna pay you back 330 00:13:16,033 --> 00:13:19,567 'cause I just sold my house for $430,000." 331 00:13:19,633 --> 00:13:21,233 That's how much you sold it for, right? 332 00:13:21,300 --> 00:13:24,233 That's how much I sold it. That's not how much I walked away with. 333 00:13:24,300 --> 00:13:25,567 [Judge Levy] How much you walked away with? 334 00:13:25,633 --> 00:13:26,900 - Um, $30,000. - [Judge Levy] Great. 335 00:13:26,967 --> 00:13:28,166 - You know what... - [Judge Levy] So you have plenty of money 336 00:13:28,233 --> 00:13:30,633 to pay him back and you just choose not to. 337 00:13:31,100 --> 00:13:32,633 Judge Acker. 338 00:13:32,700 --> 00:13:34,165 [Judge Acker] If it's any conciliation, 339 00:13:34,233 --> 00:13:37,266 Ms. Schaafs, I don't think that your late husband 340 00:13:37,333 --> 00:13:39,000 intended to be a sugar daddy, 341 00:13:39,066 --> 00:13:42,600 'cause I've never seen a sugar daddy make the beneficiary 342 00:13:42,667 --> 00:13:47,000 of his attentions sign a contract saying you're gonna pay me back. 343 00:13:47,066 --> 00:13:49,967 I mean, that's like the least-- that's like a sugar-free daddy. 344 00:13:50,033 --> 00:13:51,900 He wasn't trying to give her anything for free. 345 00:13:51,967 --> 00:13:54,567 I think that that prickled you a little bit, you know, 346 00:13:54,633 --> 00:13:57,900 maybe because you lost a great love of your life. 347 00:13:57,967 --> 00:13:59,100 But, seriously, 348 00:13:59,165 --> 00:14:00,233 he wasn't your sugar daddy. 349 00:14:00,300 --> 00:14:01,967 He made you sign a contract. 350 00:14:02,033 --> 00:14:05,433 He was a very nice man that everybody cared about. 351 00:14:05,500 --> 00:14:09,700 [Judge Acker] Tell me why, even though you had these other relatives, 352 00:14:09,767 --> 00:14:10,834 why'd you go to Ray? 353 00:14:10,900 --> 00:14:12,166 Why him? 354 00:14:12,233 --> 00:14:13,367 Let me back up. 355 00:14:13,433 --> 00:14:16,100 My mother died and my dad died four months later 356 00:14:16,166 --> 00:14:18,700 because the love of his life passed away. 357 00:14:18,767 --> 00:14:20,400 And Ray was married 358 00:14:20,467 --> 00:14:21,500 to the love of his life. 359 00:14:21,567 --> 00:14:22,633 And when she died, 360 00:14:22,700 --> 00:14:25,500 my daughter and I went over there to see if we could talk with him 361 00:14:25,567 --> 00:14:27,567 and he said--he shook, no. 362 00:14:27,633 --> 00:14:30,867 By the third time, he opened the door and let us come in. 363 00:14:30,934 --> 00:14:34,000 I didn't want him to give up on life like my dad did. 364 00:14:34,066 --> 00:14:37,867 [Judge Acker] So you felt like he was a bit of a father figure to you? 365 00:14:37,934 --> 00:14:38,934 Very much. 366 00:14:39,000 --> 00:14:42,700 So I'm kind of like if he took pains to put that in writing, 367 00:14:42,767 --> 00:14:46,533 why wouldn't you want some confirmation of the forgiveness of the debt? 368 00:14:46,600 --> 00:14:51,233 Well, that same year, he also bought me a recliner because I couldn't walk. 369 00:14:51,300 --> 00:14:54,000 In 2013, he recarpeted my home 370 00:14:54,066 --> 00:14:56,834 because he didn't want me to live there without any carpet. 371 00:14:56,900 --> 00:15:00,900 I didn't ask for any of that and nor did he ask me to pay him back. 372 00:15:00,967 --> 00:15:03,266 That proves the plaintiff's point, 373 00:15:03,333 --> 00:15:06,133 because when he wanted to forgive you a debt, 374 00:15:06,200 --> 00:15:07,433 he made it perfectly clear. 375 00:15:07,500 --> 00:15:09,900 When he said to you, "You know what? You need a recliner. 376 00:15:10,433 --> 00:15:13,266 I wanna get you a recliner because I'm a nice guy." 377 00:15:13,333 --> 00:15:14,967 He didn't say, "Sign this note. 378 00:15:15,033 --> 00:15:16,567 - Make sure you pay me back for that." - No, he didn't. 379 00:15:16,633 --> 00:15:18,300 [Judge Acker] He did it because he was a nice guy. 380 00:15:18,367 --> 00:15:20,934 So when Ray wanted his money back, 381 00:15:21,000 --> 00:15:23,667 Ray made his intentions very, very clear 382 00:15:23,734 --> 00:15:26,400 by presenting you with some paper. 383 00:15:26,467 --> 00:15:29,233 Sign your name on the dotted line if you want this check. 384 00:15:29,300 --> 00:15:30,300 And you did it. 385 00:15:31,834 --> 00:15:34,467 [announcer] Coming up on Tribunal Justice. 386 00:15:34,533 --> 00:15:36,767 You never went to Ray and said, 387 00:15:36,834 --> 00:15:38,734 "Does this mean I don't have to pay you back?" 388 00:15:38,800 --> 00:15:40,333 [dramatic musical sting] 389 00:15:42,266 --> 00:15:43,533 [theme music plays] 390 00:15:43,600 --> 00:15:46,834 [announcer] Darlene Schaafs claims former neighbor, Sandy Heywood, 391 00:15:46,900 --> 00:15:49,500 took advantage of her husband's generosity 392 00:15:49,567 --> 00:15:53,500 by skipping town after he loaned her over $10,000, 393 00:15:53,567 --> 00:15:56,400 but Sandy claims Darlene's husband returned any payments 394 00:15:56,467 --> 00:15:59,233 she made to him and forgave the loans. 395 00:15:59,300 --> 00:16:02,133 Ray made his intentions very, very clear 396 00:16:02,200 --> 00:16:04,834 by presenting you with some paper. 397 00:16:04,900 --> 00:16:07,834 Sign your name on the dotted line if you want this check. 398 00:16:07,900 --> 00:16:09,133 And you did it. 399 00:16:09,200 --> 00:16:10,633 If Ray changed his mind, 400 00:16:10,700 --> 00:16:14,633 I feel like Ray would have put that in writing. 401 00:16:14,700 --> 00:16:17,166 Well, see, that's where I misunderstood 402 00:16:17,233 --> 00:16:19,667 that when he sent the last two checks I wrote him, 403 00:16:19,734 --> 00:16:23,333 paid, back to me and he put them in the mail back to me. 404 00:16:23,400 --> 00:16:24,767 [Judge Acker] Yeah. And I think that's ambiguous 405 00:16:24,834 --> 00:16:28,433 and I think that you may have proceeded with a misunderstanding. 406 00:16:28,500 --> 00:16:29,967 I think you may have proceeded 407 00:16:30,033 --> 00:16:31,433 - upon a misunderstanding. - I would have never hurt Ray 408 00:16:31,500 --> 00:16:32,834 or anything, nothing. 409 00:16:32,900 --> 00:16:34,100 - You wouldn't hurt Ray... - [Sandra] No. 410 00:16:34,165 --> 00:16:36,467 ... and you wouldn't disrespect his wife, would you? 411 00:16:36,533 --> 00:16:37,533 - No. - [Judge Acker] Thank you. 412 00:16:37,600 --> 00:16:39,300 - I don't have anything further. - [Judge DiMango] Ms. Heywood, 413 00:16:39,367 --> 00:16:44,900 you should have started payment back April, 2018. 414 00:16:44,967 --> 00:16:47,834 You understand that from the notes that you signed. 415 00:16:47,900 --> 00:16:49,033 - Yes. - [Judge DiMango] Okay. 416 00:16:49,100 --> 00:16:53,700 But you chose not to do that without any conversation. 417 00:16:53,767 --> 00:16:57,467 Once you got something back that said paid, 418 00:16:57,533 --> 00:17:00,266 you never went to Ray and said, 419 00:17:00,333 --> 00:17:02,100 "Does this mean I don't have to pay you back?" 420 00:17:02,166 --> 00:17:04,666 Because I think you didn't ask that question 421 00:17:04,733 --> 00:17:06,700 'cause you kind of knew that's not what it meant and you... 422 00:17:06,767 --> 00:17:09,032 - Neither one of us said anything. - But you're the one 423 00:17:09,099 --> 00:17:11,532 - that owed him the money, so... - [Sandra] No, I understand that. 424 00:17:11,599 --> 00:17:13,367 [Judge DiMango] You know, he was the kind of guy, it seems, 425 00:17:13,433 --> 00:17:15,500 that wasn't gonna come banging on your door to say, 426 00:17:15,567 --> 00:17:17,333 "Gimme, gimme, gimme my money." 427 00:17:17,400 --> 00:17:21,467 No, if it was a misunderstanding, it was a misunderstanding. 428 00:17:21,532 --> 00:17:23,300 Okay. Thank you. I don't have any other questions. 429 00:17:23,367 --> 00:17:24,433 - No. - Okay. 430 00:17:24,500 --> 00:17:25,800 Then we're gonna retire to deliberate. 431 00:17:26,165 --> 00:17:27,666 - Thank you both, ladies. - Uh-hmm. 432 00:17:27,733 --> 00:17:30,233 [Byrd] Court now stands in recess. This case will be recalled. 433 00:17:30,300 --> 00:17:31,967 Parties are excused. 434 00:17:32,033 --> 00:17:35,367 [dramatic musical sting] 435 00:17:35,433 --> 00:17:38,433 Let's start off with the allegations that there were 10 notes. 436 00:17:38,500 --> 00:17:40,700 Two of them we clearly know 437 00:17:40,767 --> 00:17:44,100 are not going to be awarded to the plaintiff for two reasons. 438 00:17:44,166 --> 00:17:47,367 One, they're not substantiated by any written document, 439 00:17:47,433 --> 00:17:50,333 and even if we were to assume there was an oral agreement, 440 00:17:50,400 --> 00:17:53,133 I believe that would be precluded. 441 00:17:53,200 --> 00:17:56,433 So we're looking at the January of 2011 442 00:17:56,800 --> 00:17:58,166 to the August 2011 notes. 443 00:17:58,233 --> 00:18:01,700 So the total there is $9,700. 444 00:18:01,767 --> 00:18:04,667 That being said, they don't become due, 445 00:18:04,734 --> 00:18:07,834 whether it's a contract or whether it's a promissory note, 446 00:18:07,900 --> 00:18:10,033 they don't become due until she sells the house, 447 00:18:10,100 --> 00:18:12,767 which would be April of 2018. 448 00:18:12,834 --> 00:18:15,166 If we determine that it's a promissory note, 449 00:18:15,233 --> 00:18:17,033 then she would have six years 450 00:18:17,433 --> 00:18:21,100 from that date to call in her debt on all of those. 451 00:18:21,166 --> 00:18:24,900 If we decide that it is a general note, 452 00:18:24,967 --> 00:18:28,734 then there would be a four-year statute of limitations, in which case 453 00:18:28,800 --> 00:18:30,734 all of these would be precluded. 454 00:18:30,800 --> 00:18:32,567 Now, I had looked up promissory note, 455 00:18:32,633 --> 00:18:36,700 the definition, and it says, "If the instrument is a promise, it is a note. 456 00:18:36,767 --> 00:18:40,166 And a negotiable instrument is an unconditional promise 457 00:18:40,233 --> 00:18:42,633 or an order to pay a fixed amount of money, 458 00:18:42,700 --> 00:18:46,867 with or without interest or other charges if it's payable to the bearer 459 00:18:46,934 --> 00:18:48,600 or to order," but this is to bearer, 460 00:18:48,667 --> 00:18:52,300 "Payable on demand or at a definite time." We have a definite time. 461 00:18:52,367 --> 00:18:56,433 "And does not state any other undertaking or instruction." 462 00:18:56,500 --> 00:18:58,800 And so therefore, by this definition, 463 00:18:58,867 --> 00:19:01,633 I believe that these are promissory notes. 464 00:19:01,700 --> 00:19:03,033 That being said, 465 00:19:03,433 --> 00:19:06,333 they all become due immediately upon the house being sold 466 00:19:06,400 --> 00:19:08,834 in April of 2018 467 00:19:08,900 --> 00:19:11,700 and so the plaintiff would have six years 468 00:19:11,767 --> 00:19:14,467 from April 2018 to bring this lawsuit, 469 00:19:14,533 --> 00:19:18,900 which she has, because they're all due at the same time. 470 00:19:18,967 --> 00:19:23,433 Therefore, the plaintiff is entitled to recover all $9,700 471 00:19:23,500 --> 00:19:26,900 of the notes that we have proof were signed, dated, sealed, 472 00:19:26,967 --> 00:19:29,333 and due upon selling the house. 473 00:19:30,500 --> 00:19:31,433 I happen to agree with that. 474 00:19:31,500 --> 00:19:35,166 I know that I brought up the possibility of a general agreement 475 00:19:35,233 --> 00:19:36,533 not being a promissory note. 476 00:19:36,900 --> 00:19:38,066 And that's true. 477 00:19:38,133 --> 00:19:39,700 It doesn't read promissory note. 478 00:19:39,767 --> 00:19:43,433 But as you very correctly stated, a promissory note is a promissory note. 479 00:19:43,500 --> 00:19:45,633 You can call it a potato if you want to. 480 00:19:45,700 --> 00:19:47,433 It indicates the date, 481 00:19:47,500 --> 00:19:49,133 who the parties are, the amount of money... 482 00:19:49,200 --> 00:19:50,467 - Correct. - ... and the really important part, 483 00:19:50,533 --> 00:19:53,100 which is that there's a date certain that the money has to be given back, 484 00:19:53,166 --> 00:19:56,200 and that date certain was upon the sale of the home. 485 00:19:56,266 --> 00:19:57,433 Defendant knew. 486 00:19:57,500 --> 00:19:58,734 She took the position, 487 00:19:58,800 --> 00:20:00,767 "Hey, if he ain't gonna ask for it, I most..." 488 00:20:00,834 --> 00:20:02,633 - I'm gonna put my head in the sand. - "... I most certainly 489 00:20:02,700 --> 00:20:04,100 am not gonna bring it up to him." 490 00:20:04,166 --> 00:20:05,400 And that's pretty horrible, 491 00:20:05,467 --> 00:20:09,166 especially because when she needed help, he helped her. 492 00:20:09,233 --> 00:20:13,500 Shame on her not to pay back him and most certainly the estate, so I... 493 00:20:13,567 --> 00:20:15,166 And therein lies the reason for small claims court. 494 00:20:15,233 --> 00:20:17,767 - [laughter] - Yeah. So I agree--so I agree with you. 495 00:20:17,834 --> 00:20:21,166 Well, I'm just gonna call it a misunderstanding. [laughs] 496 00:20:21,233 --> 00:20:22,834 That's nice. I prefer that. 497 00:20:22,900 --> 00:20:26,500 I'm gonna call it a misunderstanding, but I certainly agree with you both. 498 00:20:26,567 --> 00:20:28,367 Okay. We're done. Unanimous. 499 00:20:29,500 --> 00:20:31,834 Misunderstanding not being a sugar daddy 500 00:20:31,900 --> 00:20:34,200 - or sugar baby? - [laughter] 501 00:20:34,266 --> 00:20:37,033 [dramatic musical sting] 502 00:20:37,100 --> 00:20:38,433 [Byrd] Court is back in session. 503 00:20:38,500 --> 00:20:40,834 I remind parties you're still under oath. 504 00:20:40,900 --> 00:20:42,667 Thank you, Byrd. 505 00:20:42,734 --> 00:20:44,900 Well, ladies, you do have something in common. 506 00:20:44,967 --> 00:20:48,834 You both chose to have a form of a relationship 507 00:20:48,900 --> 00:20:53,367 in one way with a man who seemed to be a very lovely, thoughtful person. 508 00:20:53,433 --> 00:20:57,467 He thought enough of you, Ms. Schaafs, to assign 509 00:20:57,533 --> 00:21:00,767 any of these debts to you during his lifetime. 510 00:21:00,834 --> 00:21:01,934 He did that. 511 00:21:02,000 --> 00:21:04,433 So you are here. You're suing for $10,000. 512 00:21:04,500 --> 00:21:08,500 Originally, you were talking about 10 notes. 513 00:21:08,567 --> 00:21:11,767 Those 10 notes exceeded $10,000. 514 00:21:11,834 --> 00:21:14,467 But it was pretty clear from the questioning here 515 00:21:14,533 --> 00:21:19,367 that the last two notes remained unsigned, undated, incomplete, 516 00:21:19,433 --> 00:21:21,433 and so therefore they would be dismissed. 517 00:21:21,500 --> 00:21:26,266 Now, that leaves $9,700 for the eight notes 518 00:21:26,333 --> 00:21:28,633 for which we have proof that, ma'am, 519 00:21:28,700 --> 00:21:33,200 you signed, dated, put down the terms and conditions of 520 00:21:33,266 --> 00:21:36,834 along with Ray, and so therefore those are valid. 521 00:21:36,900 --> 00:21:39,800 The timeframe within which you could sue for those, 522 00:21:39,867 --> 00:21:45,734 Ms. Schaafs, was six years from April 2018. 523 00:21:45,800 --> 00:21:48,700 So that means that all of those notes 524 00:21:48,767 --> 00:21:52,266 fall within the six-year statute of limitations. 525 00:21:52,333 --> 00:21:56,533 We did find this to be a promissory note and not just a general contract... 526 00:21:56,600 --> 00:21:58,000 - [mouthing] Thank you. - [Judge DiMango] ... and so, therefore, 527 00:21:58,066 --> 00:22:00,467 you will receive in this lawsuit 528 00:22:00,533 --> 00:22:03,867 $9,700, thanks... 529 00:22:03,934 --> 00:22:05,433 - Thank you. - [Judge DiMango] ... to the well-written 530 00:22:05,500 --> 00:22:09,367 documented notes of your late husband. 531 00:22:09,433 --> 00:22:10,567 - Congratulations. - [Darlene] Thank you. 532 00:22:10,633 --> 00:22:12,700 You have prevailed unanimously in this. 533 00:22:12,767 --> 00:22:14,767 - $9,700. - [gavel bangs] 534 00:22:14,834 --> 00:22:16,033 Thank you. Thank you. 535 00:22:16,100 --> 00:22:17,533 [Byrd] This case has now concluded. 536 00:22:17,600 --> 00:22:18,633 Parties are excused. 537 00:22:18,700 --> 00:22:20,133 You may step out. 538 00:22:20,467 --> 00:22:22,133 [theme music plays] 539 00:22:22,200 --> 00:22:25,433 I was surprised because I thought the statute of limitations was up 540 00:22:25,500 --> 00:22:28,867 and I was also surprised to learn that he just died. 541 00:22:28,934 --> 00:22:33,033 I so appreciate getting justice for my husband. 542 00:22:33,100 --> 00:22:34,800 I misunderstood and that was that. 543 00:22:34,867 --> 00:22:37,300 And I'm sorry to Ray that I misunderstood. 544 00:22:37,367 --> 00:22:39,967 I think Ray can rest in peace. 545 00:22:40,400 --> 00:22:42,367 [announcer] Did someone break an agreement? 546 00:22:42,433 --> 00:22:45,700 Let Tribunal Justice decide your case. 547 00:22:45,767 --> 00:22:48,433 Find us on social media. 548 00:22:49,400 --> 00:22:52,533 ["Ride of the Valkyries" plays]