Stauffer v. Stauffer

Donald Stauffer (plaintiff) and his wife Theresa (defendant) jointly owned their house. After Theresa learned of Donald's affair with her sister, Donald confessed in writing and ended the affair, and the couple continued living together. Theresa threatened that they might lose the house to a lawsuit and suggested she wanted to reconcile; relying on this, Donald signed the house over to her. Once the transfer was complete, Theresa cut off relations and moved out of their bedroom. Donald sued to impose a constructive trust, testifying he transferred the house believing it would remain a family home. The trial court agreed the transfer was fraudulently induced, and Theresa appealed, arguing there was no confidential relationship between them and that Donald's affair gave him unclean hands.