Angela Lea Argo v. Christina T. Hemphill

CourtColorado Court of Appeals
DecidedSeptember 8, 2022
Docket21CA0897
StatusPublished

This text of Angela Lea Argo v. Christina T. Hemphill (Angela Lea Argo v. Christina T. Hemphill) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Angela Lea Argo v. Christina T. Hemphill, (Colo. Ct. App. 2022).

Opinion

The summaries of the Colorado Court of Appeals published opinions constitute no part of the opinion of the division but have been prepared by the division for the convenience of the reader. The summaries may not be cited or relied upon as they are not the official language of the division. Any discrepancy between the language in the summary and in the opinion should be resolved in favor of the language in the opinion.

SUMMARY September 8, 2022

2022COA104

No. 21CA0897, Argo v. Hemphill — Real Property — Nonprobate Transfers on Death — Transfer of Real Property on Death — Vesting of Ownership in Grantee-Beneficiary — Unrecorded Interests

In this property rights case, the division of the court of appeals

interprets the notice and recording requirements of section

15-15-407, C.R.S. 2021, to determine whether the plaintiff’s lifetime

lease agreement is enforceable against two defendants who received

the contested property by beneficiary deed.

Under section 15-15-407(2), a grantee-beneficiary takes title to

a property conveyed by a beneficiary deed subject to several

different types of interests at the time of the property owner’s death.

These include interests the grantee-beneficiary had actual notice of

at the time of the owner’s death and interests that were recorded

before the owner’s death. Under section 15-15-407(3), a party holding an unrecorded

interest in the property must record evidence or notice of that

interest no later than four months after the owner’s death. If the

party holding the interest fails to do so, and if the grantee-

beneficiary did not have actual notice of the interest at the time

they took title, then the party is forever barred from asserting the

interest in the property.

The division holds that the plaintiff’s unrecorded lifetime lease

agreement is unenforceable because the defendants did not have

actual notice of it at the time of the owner’s death and because it

was not recorded within four months of the owner’s death.

Further, the division concludes that the district court’s

findings were insufficient to permit meaningful appellate review of

its ruling that the lifetime lease agreement was a spurious

document and award of attorney fees and costs to the defendants.

Accordingly, the division (1) affirms the judgment that the

lifetime lease agreement is unenforceable; (2) reverses the judgment

in favor of two of the defendants on their spurious document

counterclaim; (3) reverses the order awarding attorney fees and

costs; and (4) remands for further proceedings. COLORADO COURT OF APPEALS 2022COA104

Court of Appeals No. 21CA0897 Otero County District Court No. 19CV30031 Honorable Michael A. Schiferl, Judge

Angela Lea Argo,

Plaintiff-Appellant,

v.

Christina T. Hemphill, a/k/a Christina Tara O’Berto and Dianna K. Hemphill, a/k/a Dianna K. Hemphill-O’Byrne,

Defendants-Appellees.

JUDGMENT AFFIRMED IN PART, REVERSED IN PART, ORDER REVERSED, AND CASE REMANDED WITH DIRECTIONS

Division VII Opinion by JUDGE KUHN Navarro and Hawthorne*, JJ., concur

Announced September 8, 2022

Brunette Law Office, LLC, Stephen A. Brunette, Colorado Springs, Colorado, for Plaintiff-Appellant

Jessica Hoyt, Denver, Colorado, for Defendants-Appellees

*Sitting by assignment of the Chief Justice under provisions of Colo. Const. art. VI, § 5(3), and § 24-51-1105, C.R.S. 2021. ¶1 Plaintiff, Angela Lea Argo, appeals the district court’s

judgment in favor of defendants, Christina T. Hemphill (also known

as Christina Tara O’Berto), Dianna K. Hemphill (also known as

Dianna K. Hemphill-O’Byrne), and Steven K. Rein, and its order

awarding attorney fees and costs to the Hemphills. We affirm in

part, reverse in part, and remand for further proceedings consistent

with this opinion.

I. Background and Procedural History

¶2 This case involves a property rights dispute over an

agricultural property in Otero County. The property belonged to

Don William Argo, who died on March 19, 2018, after a lengthy

illness. Angela is Don’s surviving spouse.1 The Hemphills are

Don’s nieces.

¶3 In September 2017, Don executed a last will and testament

bequeathing the property to the Hemphills upon his death. That

same month, Don also executed and recorded a beneficiary deed

conveying the property to the Hemphills upon Don’s death.

1To promote clarity and prevent confusion, we refer to Angela and Don by their first names throughout the opinion. We mean no disrespect in doing so.

1 ¶4 When Don died, title to the property passed to the Hemphills.

The Hemphills attempted to sell the property to Rein. The sale was

to be completed on March 20, 2019. The Hemphills contend the

sale fell apart because Angela recorded a lifetime lease agreement

regarding the property. When the sale did not go through, they

leased the property to Rein in October 2019.

¶5 Angela contends that she has a leasehold interest in the

property. On March 16, 2018 — three days before Don’s death —

Angela and Don executed an agreement granting Angela a lifetime

lease for the property. The agreement stated that it “shall

supersede the Beneficiary Deed should Don William Argo die. Even

though said property is transferred to the new owners upon death,

this agreement must be honored.” It further specified that “[u]pon

[Angela’s] death all uses of the land will be then transferred to [the

Hemphills].” Neither Don nor Angela recorded the lifetime lease

agreement at or shortly after the time it was created.

¶6 On August 25, 2018 — more than five months after Don’s

death — Angela personally delivered the lifetime lease agreement to

the Hemphills at a family gathering. It is undisputed that the

Hemphills did not have notice of the lifetime lease before that date.

2 ¶7 During the next few months, Angela unsuccessfully attempted

to persuade the Hemphills to honor the lifetime lease. Then, on

February 1, 2019, the Hemphills’ attorney sent Angela a letter

stating that (1) per the beneficiary deed, title to the property vested

in the Hemphills upon Don’s death; (2) the lifetime lease agreement

was unenforceable and Angela was forever barred from asserting an

interest in the property because she didn’t record her interest in the

property within four months of Don’s death; and (3) she had one

month to remove her personal belongings from the property.

¶8 On March 15, 2019, Angela recorded the lifetime lease

agreement in Otero County.

¶9 The next month, Angela filed suit against the defendants,

seeking a “complete adjudication of the rights of all parties to this

action with respect to the [property]” under C.R.C.P. 105. In the

complaint, which contained several individual claims against the

Hemphills and Rein, Angela sought a ruling that her lifetime lease

agreement is enforceable against all the defendants. In response,

the Hemphills filed several counterclaims against Angela, petitioned

the court to declare that the lifetime lease agreement is a spurious

document under C.R.C.P. 105.1 and sections 38-35-201 to -204,

3 C.R.S. 2021, and requested that the court quiet title to the property

in them. The district court held a two-day bench trial on Angela’s

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Angela Lea Argo v. Christina T. Hemphill, Counsel Stack Legal Research, https://law.counselstack.com/opinion/angela-lea-argo-v-christina-t-hemphill-coloctapp-2022.