FAYETTEVILLE — Bernice Dunaway, an Episcopalian and fan of the public library, died in 2009 with no living children or spouse, but left loving friends, church members and neighbors.
Some of those people and organizations are in a legal battle over the sale of her house on North Juneway Terrace. Dunaway left the proceeds from the 2010 sale to be split equally between the Fayetteville Public Library Foundation and St. Paul’s Episcopal Church through her will.
Tracy and Rebecca Hutchens, Dunaway’s next-door neighbors of 19 years, bought the home from Julius Gaudet, Dunaway’s estate executor. They want their college-age son to live next door.
In October, the foundation and the church sued Dunaway’s estate and the Hutchens family over the $35,000 sale. Both argue the property is worth almost five times more. Washington County property records value of the property at $158,950.
Gaudet, according to Dunaway’s will, had the authority to “sell, lease or mortgage any property, real or personal, publicly or privately, without order of the court and without notice to anyone.” The sale of the house was approved by a circuit judge in July 2010.
The defendants said the value of the home was nowhere close to county assessments. The Hutchens spent around $70,000 in repairs since they bought the home, Tracy Hutchens said. Court records show an $120,000 estimate to fully repair the home.
The $35,000 price was a proper offer for the property because Dunaway hadn’t lived in it for more than three years, Hutchens said.
“We bought it as is,” Hutchens said. “We knew it was covered in mold. We knew all three bathrooms had to be torn to its studs. The kitchen leaked. The roof leaked. We had rotten faucets, gutters.”
Attorneys for the foundation and the church, including foundation board member Jack Butt, claim homes in the area typically sell between $100,000 and $200,000, according to court filings. Those filings also show Gaudet insured the house for up to $200,000.
Butt said Thursday charities and other organizations rarely fuss over what they receive in gifts through wills.
Sometimes circumstances make organizations feel obliged to make sure a charitable gift is fulfilled to the terms created by the giver, he said. The foundation nor the church knew of the donation until after the sale of the house, according to court records.
“In my experience, whether I’ve been involved as an attorney or family member or on a board, these gifts are very well received,” Butt said. “It’s wonderful when a person dies and leaves tens of thousands of dollars. Typically those charities use the money to help mankind.”
Butt, who specializes in estate planning and administration, said people such as Dunaway many times put language in their wills that make it easier for the disposal of assets. However, there is a principle in the law requiring executors to take care of assets in a fair, responsible and accurate manner, he said.
A two-day bench trial is set for late August, according to a letter from Butt’s law firm to the church and the Fayetteville Public Library.
Dunaway, who died at 84, built her home on North Juneway Terrace, Tracy Hutchens said. Hutchens and his wife met Dunaway about 19 years ago when they moved into the neighborhood.
“She was an extremely sweet lady, and for the first couple years, it was her and her husband,” Hutchens said.
The Dunaways owned an appliance store for many years, Hutchens said. As Dunaway aged, the Hutchens family helped with daily chores, such as taking the trash out, cleaning the house and often cooked her dinner, he said.
Hutchens said Gaudet was friends with Dunaway’s son.
Upon news of the lawsuit, Gaudet apologized multiple times to the Hutchens because they were named in the lawsuit, Hutchens said. A motion to dismiss the lawsuit was denied.
“I don’t think he did anything with malice either,” Hutchens said. “He knew (the home) was in such bad shape. He basically took care of her until she died. I felt like he wanted some closure.”