Goggin v. Goggin

2011 UT 76, 267 P.3d 885, 697 Utah Adv. Rep. 49, 2011 Utah LEXIS 174, 2011 WL 6318713
CourtUtah Supreme Court
DecidedDecember 16, 2011
DocketNos. 20090294, 20090329
StatusPublished
Cited by18 cases

This text of 2011 UT 76 (Goggin v. Goggin) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goggin v. Goggin, 2011 UT 76, 267 P.3d 885, 697 Utah Adv. Rep. 49, 2011 Utah LEXIS 174, 2011 WL 6318713 (Utah 2011).

Opinion

Chief Justice DURHAM,

opinion of the court:

INTRODUCTION

{1 Dennis and Tamara (Tammy) Goggin separated and divorced in 2005, but are still litigating aspects of their divoree. During the pendency of the divorcee proceedings, Tammy brought a separate civil suit seeking various forms of equitable relief and monetary damages, which the district court granted. Several parties to that lawsuit, including Dennis, appeal the district court's decision. We conclude that some of the parties filed untimely notices of appeal, and accordingly we do not consider their claims.

T2 In Dennis's appeal, which was timely filed, he argues that the district court improperly imposed a constructive trust on certain property, erroneously found that an express oral agreement existed between Tammy and Dennis, and lacked authority to declare property part of the marital estate. We conclude that the district court did not err in imposing a constructive trust and declaring property part of the marital estate, but did err in its determination that an enforceable agreement existed. We therefore affirm in part and reverse in part.

BACKGROUND

13 Tammy and Dennis met in March 1995 and were married in July that same year. Their marriage lasted approximately ten years: they separated in January 2005 and a bifurcated decree of divorce was entered in December 2005.

T4 Dennis was a construction contractor prior to his marriage to Tammy. In 1986, he started an entity called Construct Tech, although it was not incorporated until 1988. At the time of incorporation, Dennis held a 60 percent interest in the company; by 1991, he had become its sole shareholder and director. Construct Tech thrived for several years, until the city of Coeur d'Alene, Idaho, defaulted on a multi-million dollar contract. That default led to a lawsuit against the city in 1993, in which Construct Tech and Dennis were the two named plaintiffs. The lawsuit resulted in a jury award in favor of Construct Tech, pursuant to which the company ultimately received approximately $2.4 million.

T5 In 1992, Dennis created another entity called Construction Industrial as a partnership between him, his mother Rosalie Hen-drickson, and his stepfather Ed Hendrickson. This partnership existed primarily to serve the needs of Construct Tech, although it maintained a separate bank account (of which Dennis was the account manager).

T6 Both Dennis and Tammy brought significant premarital assets into the relationship. Tammy brought in a home she owned in Draper, Utah. Dennis, through his connections with Construct Tech and Construction Industrial, brought in the corporate assets, which included the significant proceeds from the Coeur d'Alene lawsuit.

T7 When Dennis and Tammy married in 1995, they were living together in Tammy's Draper home. Shortly after marrying, however, they began searching for a new property on which they could build a home as well as establish and operate an equestrian business. They eventually settled on a twenty-five acre property in Riverton, Utah (the Riverbend Property). Tammy served as the real estate broker and agent for the purchase. In that role, she prepared a Real Estate Purchase Contract, which-by both parties' agreement-listed Dennis as the sole buyer. The Riverbend Property was titled, however, in Construct Tech's name. Tammy initially expressed some reservations about this arrangement, but agreed to it after Dennis explained that "it would be advantageous." The warranty deed for the River-bend Property similarly listed Construct Tech as the grantee. Despite these arrangements, Dennis has repeatedly claimed personal ownership of the Riverbend Property. The district court detailed several occasions on which Dennis represented himself as being the sole owner of the Riverbend Property, such as in loan applications, tax filings, business permits, and court filings (including his verified petition for divorce from Tammy). None of these documents reflected any corporate ownership of the Riverbend Property.

{8 After closing the real estate transaction, Tammy and Dennis jointly designed and [889]*889built their home on the Riverbend Property. They also jointly developed the property surrounding the home, installing water lines and fencing, for example. They completed construction in December 1999 and moved into the home shortly thereafter.

T9 Tammy and Dennis's primary goal in purchasing the Riverbend Property was to fulfill Tammy's "lifelong dream" of opening and operating an equestrian business. The district court found that both Tammy and Dennis "were fully involved in building all the equestrian facilities." The equestrian business began operation in April 2002, with Tammy running the business alone and "all business income ... deposited into a joint account."

T 10 In January 2005, the couple separated and Dennis filed a verified petition for divorce. Tammy and Dennis continued to operate the equestrian business jointly for several months until the divorce court ordered them to stop. Soon thereafter, Dennis's live-in girlfriend began operating a "new" equestrian business using the facilities of the previous equestrian business operated by Tammy. The district court found that "[plrior to moving in with Dennis, [the girlfriend] had no background in the equestrian business and had never received training for, nor been involved in, running such a business." Furthermore, the girlfriend "acknowledged that 'a number' of her customers" came from Tammy's equestrian business.

¶ 11 The divorce court entered a bifurcated decree of divorce in December 2005. Tammy then brought suit in district court asserting several claims against Dennis, Rosalie in both her individual and representative1 capacities, and the various corporate entities created by Dennis. First, Tammy sought to have the court "impose a constructive trust-for her and Dennis' joint benefit and use-upon any right, title and interest that may be held in" the Riverbend Property. Second, she asked the court to reform title to the Riverbend Property "to reflect that legal and equitable title ... properly belongs to Dennis, either in his own right or for their joint use and benefit." Third, she requested the court "to quiet title in [the Riverbend Property] to Dennis, either in his own right or as trustee of the constructive trust sought under the first claim for relief" Fourth, she asked for four million dollars in damages "for Dennis' alleged breach of contract to hold, use, and maintain [the Riverbend Property] for their joint use and benefit." Fifth, she sought an "order directing Dennis to specifically perform the oral agreement alleged to exist under Tammy's fourth claim for relief."

112 After a four-day trial, the district court entered its order granting Tammy the relief she requested.

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Bluebook (online)
2011 UT 76, 267 P.3d 885, 697 Utah Adv. Rep. 49, 2011 Utah LEXIS 174, 2011 WL 6318713, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goggin-v-goggin-utah-2011.