DocketNumber: No. 78321-7
Citation Numbers: 161 Wash. 2d 655
Judges: Bridge, Sanders
Filed Date: 9/20/2007
Status: Precedential
Modified Date: 11/16/2024
¶1 Cung Ho’s and Thuy Nguyen Ho’s 14-year relationship ended when they and several others were killed in a car accident. We must determine whether the trial court abused its discretion when it allowed a party asserting a tort claim against the couple’s property to intervene in an action between their estates. We must also determine whether Washington’s law of meretricious
I
Facts and Procedural History
¶3 The parties do not dispute that Cung Ho (Cung) and Thuy Nguyen Ho (Thuy) lived in a committed intimate relationship for at least 14 years, and they had two children together, Harry and Rebecca Ho.
¶4 In July 2003, the Ho family went on vacation in Idaho with Duong Nguyen, Kathy Nguyen, and Kathy’s two
¶5 Julie Fowler was appointed special administrator of Cung’s estate, while Michael Olver was appointed special administrator of Thuy’s estate. Fowler submitted to the King County Superior Court a probate asset inventory appraisement, which included all assets to which Cung held title. The assessment included the Ho family residence, the family business, three rental properties, several investment and bank accounts, life insurance, household furniture, and two cars. The real property was valued at approximately $716,250, the investment and banking accounts were valued at approximately $269,361, and the remaining property was valued at approximately $37,688. Thus, the property to which Cung held title at the time of his death was valued at approximately $1,023,300. The record reflects that Thuy’s estate contained $2,893 in cash and checks that were in Thuy’s purse at the time of her death. It is unclear from the record what else was in Thuy’s estate, but the parties do not dispute that the vast majority of the couple’s assets had been titled in Cung’s name.
¶6 Cung left a will leaving his entire estate to Thuy. Thuy’s will is not in the record, but documents in the record state that she left all of her estate to Cung. Neither provided for an alternate beneficiary. No party disputes that once the contents of each estate are established, intestacy will control their distribution.
¶8 The trial judge granted summary judgment in part, finding a committed intimate relationship but leaving the equitable division of the property for trial. Then, a court commissioner revoked nonintervention powers in Cung’s probate estate and ordered the parties into mediation, which the parties agreed would be binding. The commissioner required Thuy’s estate to present prima facie evidence that the inventoried assets were acquired during the committed relationship.
¶9 The mediator found that neither Cung nor Thuy owned substantial assets prior to their union and all of the assets inventoried in Cung’s estate were acquired jointly during the committed intimate relationship. The couple’s property was titled in Cung’s name, an established practice in the Vietnamese culture. Neither party received substantial separate property after they began living together. The mediator concluded that 50 percent of the assets in Cung’s estate should be transferred to Thuy’s estate. The mediator asked the parties to prepare the necessary order for presentation to the superior court.
¶10 Following the mediator’s directive, Olver sought to present corresponding findings of fact, conclusions of law, and a judgment disbursement in the superior court. On the day that judgment was entered, Vu, Dianna’s father,
¶11 The trial judge considered briefing and oral argument and granted the motion to intervene. But the trial court declined to amend the findings of fact, conclusions of law, and judgment. The trial judge concluded that Cung and Thuy lived in a committed intimate relationship from 1988 or 1989 until their deaths in 2003, and each of their estates was entitled to an undivided 50 percent interest in all assets inventoried in Cung’s estate. The trial judge also explained that the legal effect of the committed intimate relationship upon a tort creditor’s claim should be determined in the context of the liability case. The trial judge ordered that one half of the property inventoried in Cung’s estate be disbursed to Thuyas estate.
¶12 Vu appealed, arguing that the trial court erred as a matter of law by disbursing Cung’s property according to committed intimate relationship equity after both partners had died. Vu also asserted that even if the doctrine could be applied upon the death of both partners, it should not be applied in this case because doing so served the sole purpose of putting property beyond Dianna’s reach. Finally, Vu argued that the trial court should have made it clear that Thuy’s estate could be subject to joint liability for
¶13 The Court of Appeals concluded that the trial court did not abuse its discretion when it permitted Vu to intervene. Olver v. Fowler, 131 Wn. App. 135, 140,126 P.3d 69 (2006). The court then held that “where unmarried, committed intimate partners are separated by death, as when they separate during life, any property acquired during the relationship that would have been community property [had the parties been married] is jointly owned and subject to a just and equitable division” between their estates. Id. at 146. Once their jointly acquired property is equitably divided, then the relevant wills or statutes operate on each estate. Id. at 145. Finally, because the trial court did not rule on the issue, the Court of Appeals declined to decide whether assets in the estate of one partner are subject to joint tort liability where the partners were engaged in a committed intimate relationship, deferring resolution of this issue to the suit against Thuy’s estate. Id. at 146 n.41.
¶ 14 Vu filed a petition for review in this court. In his answer, Olver again argued that the trial court erred when it allowed Vu to intervene.
II
Analysis
¶15 Intervention: On the day that findings of fact, conclusions of law, and a judgment were entered in this case, Vu sought to contest the equitable division of Cung and Thuy’s property on behalf of his surviving daughter,
Upon timely application anyone shall be permitted to intervene in an action: (1) when a statute confers an unconditional right to intervene; or (2) when the applicant claims an interest relating to the property or transaction which is the subject of the action and he is so situated that the disposition of the action may as a practical matter impair or impede his ability to protect that interest, unless the applicant’s interest is adequately represented by existing parties.
(Emphasis added.) See also Westerman v. Cary, 125 Wn.2d 277, 303, 892 P.2d 1067 (1994). Postjudgment intervention requires a strong showing that intervention is necessary considering all of the circumstances including prior notice, prejudice to the other parties, and reasons for the delay. Kreidler v. Eikenberry, 111 Wn.2d 828, 833, 766 P.2d 438 (1989).
|16 An appellate court will review a trial court’s evaluation of timeliness only for abuse of discretion. Id. at 832. Abuse of discretion occurs where the trial court’s action is “ ‘manifestly unreasonable, or exercised on untenable grounds, or for untenable reasons.’ ” T.S. v. Boy Scouts of Am., 157 Wn.2d 416, 423, 138 P.3d 1053 (2006) (quoting State ex rel. Carroll v. Junker, 79 Wn.2d 12, 26, 482 P.2d 775 (1971)). A “ ‘ “manifestly unreasonable” ’ ” decision results if “ ‘the court . . . adopts a view “that no reasonable person would take.” ’ ” Id. at 424 (quoting State v. Rohrich, 149 Wn.2d 647, 654, 71 P.3d 638 (2003) (quoting State v. Lewis, 115 Wn.2d 294, 298-99, 797 P.2d 1141 (1990))).
¶18 Application of the Law of Committed Intimate Relationships Where Both Partners Have Died: The equitable law governing the property of committed intimate partners has evolved over the past 90 years. No Washington case has addressed the division of property between the estates of two deceased committed intimate partners. However over the years, several cases have considered property distribution where one partner has died, the deceased partner was titleholder to property, and the living partner asserted an equitable interest in that property.
¶19 In In re Brenchley’s Estate, 96 Wash. 223, 223-24, 164 P. 913 (1917), Richard Brenchley divorced his first wife and then married his second within six months of the
¶20 Then in 1948, this court again considered the division of jointly acquired property where the partners lived in a committed intimate relationship, but only the deceased female partner held title to the disputed property. Creasman v. Boyle, 31 Wn.2d 345, 347-50, 196 P.2d 835 (1948). Emphasizing testamentary freedom, the Creasman court held that in the absence of any evidence to the contrary, “property acquired by a man and a woman, not married to each other, but living together as husband and wife, must be regarded as belonging to the one in whose name the legal title stands.” Id. at 358. The Creasman court concluded that because the real property and account at issue were titled in the name of the deceased female partner, “they must both be regarded as belonging to her estate.” Id. Notably, the Creasman court also treated the division of property between the intimate partners as an initial question of what property would become part of the decedent’s estate. See id.
¶21 In subsequent cases, this court distinguished Creasman and began to question the validity of its presumption. Latham v. Hennessey, 87 Wn.2d 550, 553-55, 554 P.2d 1057 (1976) (noting that this court had developed numerous exceptions to the Creasman presumption to avoid inequitable results and indicating a willingness to
¶22 After Lindsey, the Ninth Circuit Court of Appeals asked this court to determine whether Washington law would afford the surviving partner of a 22-year, committed intimate relationship the same status as a spouse with respect to the intestate devolution of the deceased partner’s personal property. Peffley-Warner v. Bowen, 113 Wn.2d 243, 244-45, 778 P.2d 1022 (1989). In that case, the probate court had deemed the partners’ home to be the separate property of the deceased Mr. Warner, but the court granted an equitable lien against the property in the amount of $1,500 to the surviving partner, a judgment that this court never questioned. Id. at 247. In the federal courts, the surviving partner was seeking “widow” status for the purpose of acquiring Mr. Warner’s social security benefits, a status she could gain if she could show that she had the same status as a spouse under Washington law of intestacy. Id. at 248-49.
¶23 The Peffley-Warner court held that while a committed intimate partner can take an equitable share of property acquired jointly during the relationship, he or she is
Lindsey involved equitable division of property following breakup of a relationship where the parties had cohabited for several years before their 5 years of marriage. Lindsey states that courts must examine the relationship and the property accumulations and make a just and equitable distribution. By overruling Creasman (involving intestate property distribution) Lindsey did not expand the rights of a surviving partner in an unmarried cohabiting relationship to the personal property of a deceased partner. Lindsey merely overruled Creasman to the extent that Creasman had established a presumption that property acquired by a couple in an unmarried relationship is not community property and belongs to the person with legal title. The court merely recognized the contributions made by both parties to the purchase and maintenance of property and, through an equitable division of the property or analogous compensation, sought to avoid unjust enrichment of one partner at the expense of the other.
Id. The Peffley-Warner court acknowledged that the probate court had recognized a committed intimate relationship and had awarded Ms. Peffley-Warner a lien on Mr. Warner’s house in recognition of the “ ‘equities of [their] relationship during the time of the acquisition of the property.’ ” Id. But the court held that Ms. Peffley-Warner could not take an intestate share of Mr. Warner’s estate because she was neither a surviving spouse nor an heir. Id. at 253.
¶24 Then, relying in part on Peffley-Warner, we later clarified that while a spouse’s community and separate
¶25 Most recently, in Vasquez v. Hawthorne, 145 Wn.2d 103, 104-05, 33 P.3d 735 (2001), we considered equitable property distribution between two partners who had allegedly been in a committed intimate same sex relationship before one partner died. The trial court had awarded the surviving partner the property acquired during the relationship, holding this property was not part of the deceased partner’s estate. The Court of Appeals reversed, holding that the law of committed intimate relationships could not be applied to couples of the same sex who could not have legally married. Id. at 105. On review, we found sufficiently genuine issues of material fact to require trial and remanded to the trial court for determination of whether any of the surviving partner’s bases for equitable remedies, including the law of committed intimate relationships, could be proved. Id. at 107. In doing so, we made it clear that an inability to legally marry did not preclude an equitable claim per se, and each claim had to be evaluated on its facts. Id. at 107-08. More importantly for purposes of this case, the Vasquez majority did not recognize the death of one party as a barrier to any equitable claim asserted in that case, including one based on the law of committed intimate relationships, a fact the dissent ignores.
¶26 In sum, over the past 90 years, when dealing with property distribution between partners in a committed intimate relationship, Washington common law has evolved to look beyond how property is titled, requiring equitable distribution of property that would have been community
¶27 In this case, no party disputes that Cung and Thuy lived in a committed intimate relationship that would have been sufficient to justify equitable distribution of their jointly acquired property had their relationship terminated by dissolution rather than death. Relying in part on the reasoning in the Vasquez concurrences, Vu asserts that Washington’s law of committed intimate relationships should not apply where both partners have died. Pet. for Review at 11-12. Similarly, the dissent relies on concurring opinions in Vasquez to argue that the law of committed intimate partnerships should not apply where the relationship has ended because of the death of either partner. Dissent at 673-74. They argue that the intestacy statutes alone should govern distribution of the property titled in each partner’s name.
¶28 As the Court of Appeals made clear, this reasoning fails to take into account our basic framework for property distribution after death. Olver, 131 Wn. App. at 144-45. First, the decedent’s property must be inventoried; a personal representative must determine what property belongs in the decedent’s estate. RCW 11.44.015. Significantly, it was the inventory of Cling’s estate that Olver challenged in this action on behalf of Thuy’s estate. Clerk’s Papers (CP) at 14 (Contradiction of Inventory). Only after the contents of the estate are established can the personal representative distribute the contents of the estate according to a valid will or the rules of intestacy. As the Court of Appeals aptly explained, “we do not look to the intestacy statutes to determine what the decedent owned.” Olver, 131 Wn. App. at 144. Once a decedent’s share is determined, “that partner’s share is the estate upon which the inheritance rules will operate.” Id. at 145.
¶30 Vu suggests that we hold that at the moment of death, a deceased partner in a committed, intimate relationship loses his or her equitable interest in jointly acquired property titled in the other partner’s name. But this ignores the property rights of the deceased partner. In a marriage, each spouse has a present, undivided interest in the couple’s community property. Lyon v. Lyon, 100 Wn.2d 409, 413, 670 P.2d 272 (1983). By analogy to community property law, Thuy had an undivided interest in the couple’s jointly acquired property, even though it was titled in Cung’s name. The death of one or both partners does not extinguish that right; Thuy’s estate merely steps into her
¶31 Vu also argues equitable division was unnecessary here because all of the family’s property will go to Harry, regardless of which estate is the vehicle. However, regardless of how her estate will eventually be distributed, Thuy’s interest in property she jointly accumulated with Cung should be honored. As the Court of Appeals recognized, “[t]he right to devise one’s property and thereby transfer accumulated wealth is one of our society’s most firmly guarded individual rights.” Olver, 131 Wn. App. at 146. Thuy, and in her place her estate, should not be divested of that right simply because her heir and Cung’s heir are the same. Ultimately, this case involves the equitable division of property between Cung’s and Thuy’s estates; the interests of third parties are not germane until it is time to determine how the estates should be distributed. See Brenchley, 96 Wash, at 226. Moreover, to the extent that her estate might shield assets for her son, Thuy is entitled to provide that benefit for her son if such a shield is indeed available. We conclude that the law of committed intimate relationships applies where both partners are deceased, allowing equitable division between the deceased partners’ estates. We affirm the Court of Appeals and the probate court’s division of the property.
¶32 Application of Joint Tort Liability to Committed Intimate Relationships: Vu also argues that placing one half of the couple’s jointly acquired property into Thuy’s estate will effectively insulate that half of the community property from Cung’s tort creditors, including Dianna. Pet. for Review at 2. No Washington court has addressed whether principles of joint tort liability apply to committed intimate
¶33 Then at oral argument in this court, Olver submitted a copy of a trial court order barring Dianna’s creditor’s claim against the estate of Thuy. Order Barring Creditor’s Claim at 1. Moreover, there is no evidence in the record as to whether the challenged claims of Vu or the estate of Dalena are still viable. See CP at 249-50 (noting that those claims were being challenged). If these potential creditors no longer have viable claims against Thuy’s estate, then any holding made in the context of this case regarding the application of joint tort liability would be truly advisory. E.g., Wash. Educ. Ass’n v. Wash. State Pub. Disclosure Comm’n, 150 Wn.2d 612, 622-23, 80 P.3d 608 (2003) (requiring actual, present, existing dispute that is not moot).
¶34 We too decline to reach this issue. The extent to which Cung’s potential creditors can reach Thuy’s estate would be more appropriately addressed in the context of a case against Thuy’s estate. And if the potential creditors’ claims in this case have been dismissed, then there is no existing controversy at this time.
Ill
Conclusion
¶35 The trial court did not abuse its discretion when it allowed Vu to intervene in this challenge to the inventory of Cung’s estate. We hold that when a committed intimate relationship is terminated by the death of both parties, the couple’s jointly acquired property can be equitably divided between the partners’ estates. We decline to reach the issue
C. Johnson, Madsen, Chambers, Owens, and Fairhurst, JJ., concur.
While this court has previously referred to such relationships as “meretricious," we, like the Court of Appeals, recognize the term’s negative connotation. See Peffley-Warner v. Bowen, 113 Wn.2d 243, 247 n.5, 778 P.2d 1022 (1989); Olver v. Fowler, 131 Wn. App. 135, 140 n.9, 126 P.3d 69 (2006). Accordingly, we too substitute the term “ ‘committed intimate relationship,’ ” which accurately describes the status of the parties and is less derogatory. Olver, 131 Wn. App. at 140 n.9.
Because so many people related to this action share surnames, we refer to each by his or her first name.
The same attorneys represent Dianna, as well as the estate of her deceased sister Dalena, and the girls’ father, Vu, all of whom apparently attempted to file creditors’ claims against the estates of Cung and Thuy. There is no evidence formally in the record in this case regarding the current status of these claims. However, at oral argument, Olver submitted a copy of an order barring Dianna’s
Vu filed a reply to Olver’s cross petition, but pursuant to RAP 13.4(d), we consider only the arguments contained therein that respond to issues raised in the answer.
The parties disagree as to whether Vu objected to the proposed judgment before or after it was entered. Vu’s motion for oral argument to contest the presentation of the judgment was filed on September 7, 2004, the day that judgment was entered. On September 15, 2004, the trial court granted the motion for oral argument and explained that the court had entered its judgment before Vu’s motion was noted. The court then treated the issue as whether the judgment should be amended.
In Lindsey, the partners lived together in a committed intimate relationship and jointly improved a bam/shop during the two years before they were married. Lindsey, 101 Wn.2d at 300. The Lindsey court had to determine, in part, whether Lana Lindsey had an equitable interest in the bam/shop. Id. at 307.
The dissent ignores the Peffley-Warner court’s distinction between equitable division of property jointly acquired during the relationship and the distribution of property that was owned by the deceased partner by way of intestacy. As discussed in more detail below, this case involves the initial distribution of jointly acquired property between committed intimate partners.
We note, however, that very recently the legislature extended Washington’s law of intestacy to cover unmarried registered domestic partners. Substitute S.B. 5336, 60th Leg., Reg. Sess. § 27 (Wash. 2007) (effective July 27, 2007). Only same sex couples and couples in which one or both partners are above 62 years of age may register as domestic partners under the new law. Id. § 1.
Vu seems to argue in his supplemental brief that the trial court’s equitable division was arbitrary. Suppl. Br. of Nguyen at 2-3. However, the mediator supported his equitable division with ample uncontested facts. CP at 368-69. Vu has not established that the trial court erred in dividing the property equally between the estates.
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