Estate of Lampert Ex Rel. Thurston v. Estate of Lampert Ex Rel. Stauffer

896 P.2d 214, 1995 Alas. LEXIS 58
CourtAlaska Supreme Court
DecidedMay 26, 1995
DocketS-6233, S-6234
StatusPublished
Cited by12 cases

This text of 896 P.2d 214 (Estate of Lampert Ex Rel. Thurston v. Estate of Lampert Ex Rel. Stauffer) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of Lampert Ex Rel. Thurston v. Estate of Lampert Ex Rel. Stauffer, 896 P.2d 214, 1995 Alas. LEXIS 58 (Ala. 1995).

Opinion

OPINION

MOORE, Chief Justice.

I. INTRODUCTION

This case arises from the probate of the estates of Chester and Helen Lampert, husband and wife. The main issues in dispute are the validity of a postnuptial property agreement and the ownership rights to a condominium located in Hawaii. The lower court entered summary judgment in favor of the Estate of Helen Lampert, and after trial, awarded Helen’s estate damages for lost use of property. Each estate appeals. We affirm the decision in part and reverse in part.

II. FACTS AND PROCEEDINGS

Chester and Helen Lampert were in their late fifties when they married in 1965. Each had adult children by prior marriages.

Five years into their marriage, with the assistance of an attorney, the Lamperts entered into a postnuptial property agreement. Under the agreement, entitled the “Joint Submarital Agreement Waiving Rights to Receive One-Third of Net Estate of Spouse,” the couple waived their statutory rights to take a one-third elective share of the other’s estate, released all claims for dower, curtesy, or similar statutory rights of the surviving spouse, and pledged not to contest the other’s will. Chester promised to deed their Anchorage home (the “Karluk residence”), together with its furniture and fixtures, to Helen, and Helen promised to provide Chester with a life estate in this property through her will. Chester further promised to arrange for Helen to receive $2,000 per month for the period which she might outlive him.

Pursuant to this agreement, Chester immediately executed a warranty deed conveying the Karluk residence, its fixtures, and furniture to Helen. Chester also executed a will, which established a trust to provide Helen with the agreed upon cash payments. *216 Helen executed her own will, in which she granted Chester a life estate in the Karluk property.

Several years later, in 1980, the Lamperts again met with an attorney to discuss estate planning. The two were advised that Chester would achieve significant estate tax savings if he were to commence an annual gift program during his lifetime. The discussion focused upon a condominium which Helen and Chester owned in a tenancy by the entirety with full rights of survivorship. The meeting resulted in Chester executing three quitclaim deeds to convey “his right, title, and interest” in the Hawaii condo to Helen’s daughter, Grace Stauffer. 1 Helen signed none of these three deeds, and Stauffer paid nothing for the property.

During this period, on two occasions Helen and Chester formally renewed their commitment to the terms of the “Joint Submarital Agreement.” In December 1980, the Lam-perts amended the agreement to increase the monthly payments due Helen to $5,000. The remaining terms were expressly “recon-firmfed].” Again, in 1981 the Lamperts revised their wills. The provisions fully conformed with the couple’s estate plan as embodied in the amended postnuptial agreement. Helen additionally certified at the conclusion of Chester’s will that she “hereby reaffirm[ed]” the provisions of the couple’s marital estate agreement.

Despite these assurances, in September 1988, Helen secretly visited an attorney and modified her estate plan. 2 Helen executed a codicil to her will which stated that with regards to the Lamperts’ postnuptial property agreement, “my legal rights were never adequately explained to me at the time of the execution of those documents, and ... the provisions applicable to me under my spouse’s Will and Trust do not meet his obligations to me.” The codicil deleted Chester’s life estate in the Karluk furniture, and an amended trust revoked his life estate in the residence itself. Helen never told Chester about these events. Less than three months later, Helen died.

Grace Stauffer was appointed the personal representative of the Estate of Helen Lam-pert. After Helen’s death, the estate formally notified Chester that his life estate in the Karluk residence, fixtures, and furniture had been revoked. Chester did not vacate the property, however, and lived in the home until his death which followed several months later. Meanwhile, a title report prepared for the Hawaii property after Helen’s death indicated that despite the three quitclaim deeds to Stauffer, Chester might in fact be the condo’s true owner. Despite this revelation, Stauffer retained actual control over the Hawaii property.

A few months before his death in August 1989, Chester brought suit against the Estate of Helen Lampert. Rather than seeking to enforce the couple’s postnuptial agreement, Chester alleged that Helen’s secret alteration of her estate plan entitled him to rescind their contract. Chester accordingly sought restitution of his consideration, title in fee simple to the Karluk residence, and made an election for one-third of Helen’s estate. In a separate count, Chester sought possession of the Hawaii condo, under a theory that title passed to him as survivor and that previous attempts to unilaterally sever his interest in the property were legally ineffective and void.

Shortly after Chester’s death, the Estate of Helen Lampert filed and served Chester’s attorney with a “Statement of Death of Party.” Although Chester’s estate failed to move the court to substitute a party within ninety days of the notice as required by Alaska Civil Rule 25(a), the court ultimately ruled that the delay constituted “excusable neglect.”

Following these events, the Estate of Helen Lampert filed a claim against the Estate *217 of Chester Lampert, based upon the refusal of Chester’s heirs to vacate the Karluk residence. The claim sought possession of the Karluk residence and damages for lost use of the property for the period following Chester’s death. Stauffer also initiated an individual claim against the Estate of Chester Lampert, requesting that title to the Hawaii condo be quieted in her. Finally, Chester’s estate counterclaimed against Stauffer, demanding compensation for lost rental income based upon lost use of the Hawaii property. The entire matter was consolidated, and each estate moved for summary judgment.

In addressing the continued effect of the Lamperts’ postnuptial agreement, the lower court commented on the “extreme nature of rescission” and noted that the remedy is proper only in cases involving a material breach of contract. The court was unconvinced that Helen’s actions amounted to a material breach since “the breach did not defeat the object of the parties.” The court reasoned that because Chester was not ousted from the Karluk residence following Helen’s death, Chester, in effect, received the promised life estate. The court additionally stated that based upon the circumstances, Chester received all of the other benefits that he bargained for under the contract. 3 Given the conclusion that Helen’s actions did not amount to a total failure of consideration, the court refused to rescind the twenty-year-old warranty deed executed by Chester or allow him to elect a one-third spousal share of Helen’s estate.

The court went on to address the ownership of the Hawaii property.

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Cite This Page — Counsel Stack

Bluebook (online)
896 P.2d 214, 1995 Alas. LEXIS 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-lampert-ex-rel-thurston-v-estate-of-lampert-ex-rel-stauffer-alaska-1995.