DeCoatsworth v. Jones

607 A.2d 1094, 414 Pa. Super. 589, 1992 Pa. Super. LEXIS 1278
CourtSuperior Court of Pennsylvania
DecidedMay 1, 1992
Docket969
StatusPublished
Cited by12 cases

This text of 607 A.2d 1094 (DeCoatsworth v. Jones) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DeCoatsworth v. Jones, 607 A.2d 1094, 414 Pa. Super. 589, 1992 Pa. Super. LEXIS 1278 (Pa. Ct. App. 1992).

Opinions

CIRILLO, Judge:

This is an appeal from an order entered in the Court of Common Pleas of Philadelphia County denying Charles De-Coatsworth’s petition to strike judgment for the trial court’s lack of jurisdiction. We reverse.

In December of 1983 a dwelling owned by Odessa and Louis Jones, as tenants by the entireties, was listed to be sold at a sheriff’s sale due to the owners’ failure to pay a lien of $1,700.00. Alan Alper, who arranges financing for [592]*592owners in jeopardy of losing their properties, sent a notice to the Joneses’ dwelling suggesting that he could help. Louis Jones (“Louis”) arranged to have Alper meet him at his house on December 3, 1983, two days before the scheduled sheriff’s sale. Alper took appellant Charles DeCoatsworth, a real estate investor, with him to the meeting with Louis Jones. Louis’s estranged wife and co-owner of the dwelling, Odessa Jones (“Odessa”), was not at the meeting. DeCoatsworth looked over the property and left within a half hour; Alper remained for more than eight hours. At the end of their lengthy negotiations, Louis and Alper ostensibly had an agreement of sale. The agreement provided that Alper, through one of his real estate investors (here, DeCoatsworth) would pay Louis’s outstanding debts on the property, refinance the property, and pay one dollar in consideration. In exchange, Louis signed a blank deed to the property with the understanding that he could continue to live in the dwelling and either pay rent (not to exceed $300.00 per month), enter into a lease-purchase agreement in which the full rental payment would be applied to the purchase price, or buy the property outright.

Alper contacted Odessa, and on December 4, 1983 she signed the blank deed in return for one thousand dollars. The next day Alper paid the judgment lien and stayed the sheriff’s sale. In seeking title insurance for the property, DeCoatsworth learned of two additional mortgages on the property which, under the terms of the agreement of sale, he was obligated, but failed, to pay. On January 5,1984, at settlement,1 Alper completed the deed by inserting $10,-000. 00.(and not one dollar as agreed) for the amount of consideration.2 Alper had the deed notarized,3 and simulta[593]*593neously assigned and delivered the deed to appellant De-Coatsworth as security for the $1,700.00 DeCoatsworth had already expended.

Later that same month Louis received a statement from DeCoatsworth outlining the three options for remaining in the house. The statement listed the total cost of repurchasing the house from DeCoatsworth as $15,000.00, which was to be repaid over twenty years at fourteen percent interest, the prevailing rate at that time.4 The $15,000.00 purchase price covered, among other expenses, a $5,000.00 profit for DeCoatsworth, $3,175.00 for Alper’s services in arranging the deal, and the $1,000.00 Odessa received for her signature on the deed. However, none of these charges had been agreed to in the agreement of sale.

Louis refused to pay any of DeCoatsworth’s charges and remained in the house, rent free, until September of 1984 when DeCoatsworth filed a complaint to evict him.5 Louis counterclaimed against DeCoatsworth, alleging fraud in the transaction that deprived him of his property, and seeking $20,000.00 in damages, plus attorney’s fees. Neither Louis nor DeCoatsworth added Odessa as an indispensable party to the counterclaim, despite the fact that she was co-owner of the entireties property and therefore equally a victim of the alleged fraud. The case was tried in December of 1987 and the jury found in favor of Louis. The jury rejected DeCoatsworth’s eviction claim, permitting Louis to remain in the house rent free, and awarded him $35,000.00 in damages as well. Title to the property, however, remained in DeCoatsworth’s name. The post-trial motions of Louis, [594]*594to have title transferred to him, and DeCoatsworth, for a new trial or judgment notwithstanding the verdict, were denied. On appeal to this court the panel affirmed the jury’s verdict.6 DeCoatsworth then appealed to the supreme court, but his petition for allocatur was denied in August of 1990.

Shortly thereafter, DeCoatsworth petitioned motions court, pro se, to strike the trial court judgment for that court’s lack of subject matter jurisdiction over Louis’s counterclaim. DeCoatsworth argued that since Louis’s counterclaim alleged fraud in the transaction that deprived him of title to his property, only the legal entity that was deprived of that title could sue. The property in question was owned by both Louis and his wife, Odessa.7

[595]*595In Pennsylvania, a conveyance to a husband and wife, without more, creates an estate by the entireties. Brenner v. Sukenik, 410 Pa. 324, 330, 189 A.2d. 246, 249 (1963) . “It is their actual marital status and not necessarily the words stated or omitted in the instrument that determines their right to take as tenants by the entireties.” In Re Holmes’ Estate, 414 Pa. 403, 406, 200 A.2d 745, 747 (1964) , citing Ladner on Conveyancing in Pennsylvania, § 1.16 (3rd ed. 1961). Similarly, “the presumption remains that where property is held in the names of husband and wife they hold it by entireties and not as ordinary joint tenants or as tenants in common.” Madden et al. v. Gosztonyi Savings and Trust Co., 331 Pa. 476, 484, 200 A. 624, 628 (1938). An entireties estate may only be severed under limited circumstances. During the lifetime of both spouses the tenancy may be severed only by a joint conveyance of the estate, by express or implied mutual agreement, or by divorce. Clingerman v. Sadowski, 513 Pa. 179, 183, 519 A.2d 378, 381 (1986). Neither party may unilaterally sever or destroy the entireties estate. Shapiro v. Shapiro, 424 Pa. 120, 136, 224 A.2d 164, 173 (1966).

Although Louis and Odessa had been estranged for decades, they had never divorced; title to the house was still in both of their names. Therefore, according to DeCoatsworth, since Louis’s counterclaim addressed the circumstances which also deprived Odessa of her undivided one-half interest in the entireties property, Odessa was a necessary and indispensable party whose joinder was compulsory to establish subject matter jurisdiction. DeCoatsworth’s motion to strike judgment, heard by the original trial judge, was denied. DeCoatsworth was also “ordered to pay the [596]*596sum of $2,500.00 in attorney’s fees for filing a petition [the] court finds blatantly frivolous.” DeCoatsworth filed this timely appeal.

DeCoatsworth presents four issues for our review:

1. Did both the Trial Court and the Motions Court Err in not recognizing that Odessa Jones was an indispensable party to Louis Jones' counter-claim since the property in question was owned and sold by the entireties of Louis and Odessa Jones, husband and wife?
2. Did the trial Court lack jurisdiction to hear and decide the issues presented in Jones’ counterclaim because of the absence of an indispensable party and, therefore, err in allowing the jury to reach a verdict and in entering judgment?
3.

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Cite This Page — Counsel Stack

Bluebook (online)
607 A.2d 1094, 414 Pa. Super. 589, 1992 Pa. Super. LEXIS 1278, Counsel Stack Legal Research, https://law.counselstack.com/opinion/decoatsworth-v-jones-pasuperct-1992.