Kimball v. Kimball

2009 UT App 233, 217 P.3d 733, 637 Utah Adv. Rep. 6, 2009 Utah App. LEXIS 246, 2009 WL 2619225
CourtCourt of Appeals of Utah
DecidedAugust 27, 2009
Docket20060263-CA
StatusPublished
Cited by84 cases

This text of 2009 UT App 233 (Kimball v. Kimball) is published on Counsel Stack Legal Research, covering Court of Appeals of Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kimball v. Kimball, 2009 UT App 233, 217 P.3d 733, 637 Utah Adv. Rep. 6, 2009 Utah App. LEXIS 246, 2009 WL 2619225 (Utah Ct. App. 2009).

Opinion

OPINION

ORME, Judge:

INTRODUCTION

{1 This consolidated appeal arises from a divorcee action filed by James Lewis Kimball (Husband) against Merae Kimball (Wife), and a fraud and unjust enrichment action filed by Wife against Husband. The key issues, among the many others raised, are whether Wife's stock proceeds that were originally deposited into joint accounts but later transferred to Wife's individual account retained their nature as separate property; whether prejudgment interest was appropriate on the unjust enrichment award, which award was calculated based on canceled checks showing both a date and the amount; and whether the trial court erred in refusing to award attorney fees to Husband when it reasoned that Husband had no financial need because his family had already paid his attorney fees. Except for the attorney fees determination, we affirm the trial courts' various rulings in the two actions.

BACKGROUND

2 On March 18, 2002, after being married to Wife for a little over fifteen years, Husband sought a divorcee. The August 7, 2003 decree of divorce dissolved the parties' marriage. When the matter ultimately went to trial, the main issues remaining involved whether money obtained after the sale of Wife's stock was separate property and whether Husband was entitled to an award of attorney fees. The trial court determined both matters in Wife's favor. Wife filed a fraud and unjust enrichment action against Husband on February 7, 2008, claiming that Husband altered the amounts of, and forged Wife's name on, certain checks, and that Husband was unjustly enriched thereby. 2 At trial, the court dismissed the fraud claim against Husband but ruled in Wife's favor on the unjust enrichment claim. Both parties appeal from the trial court's final rulings in the divorce and unjust enrichment actions. The record is extensive. We discuss the relevant factual findings from both proceedings doing our best-believe it or not-to be as succinet as possible.

I. Wife's Stock

A. Wife's Receipt of the Stock

1 3 Wife's father formed Utah Bearing and Fabrication, Inc. (the Corporation). After her father's death in 1998, Wife, her mother, and her siblings reached an arrangement whereby Wife received 1005 shares of the Corporation's stock, which the Corporation repurchased for $2,500,000 in 1995. Under the terms of the sale, "[Wife]l received a down payment of $500,000 during March of 1995, and a ten year trust deed note for $2,000,000 payable at the rate of $25,835.15 per month." Wife received the scheduled monthly payments through June 1997. During July 1997, she received the remaining balance owed, $1,697,089.70. Mindful of the family origins of the stock proceeds, the trial court characterized the money Wife received *739 from the stock transaction as an "inheritance."

B. Separate Property that Was Not Commingled

{4 Even though Wife used some of the stock proceeds for family purchases, and even though some of the stock proceeds at times were deposited into the parties' joint accounts, the trial court determined that Wife's actions as a whole manifested an intent to keep her stock proceeds as separate property. Wife also opened and used an individual account with Fidelity Investments to hold some of the stock proceeds. Wife "filed an individual tax return for 1998 and reported all earnings ... from the Fidelity Account." While during "1996 and 1997(] the trust deed monthly payment[s were] deposited in the parties' joint account," Wife's practice was to later transfer some of that money to her individual Fidelity account. The trial court accordingly characterized the joint account as "conduits" not "repositories" for her inheritance. While acknowledging that the money may have had a marital character while in the joint accounts or when used to purchase family items, the trial court determined that when the funds were removed from the joint accounts "they resumed their character as [Wifel's inherited funds and as such they became the sole and separate property of [Wife]." The trial court viewed the stock proceeds as readily traceable, and further determined that "[tlo the extent ... inherited funds were placed in [other] joint accounts," such placement "was done as a convenience and did not have the legal, the factual or the intended legal [elf-fect of either commingling the funds or making them marital property."

15 Based on these facts, the trial court found that "[elvery act of [Wife] manifested her intent that her inheritance be handled separately" when the "inheritance was placed in a separate account accessible through the writing of checks by [Wife] only"; the "inherited funds were placed in the Fidelity Account that was in [Wife's name at all times"; and the parties' "[JJoint accounts were used as conduits for inherited funds, not as repositories in which they became commingled."

C. - Husband's Claimed Enhancement

€ 6 When Wife received the first offer for her stock, the amount proposed was $1,700,000. Husband claims he discouraged acceptance of the offer. As mentioned above, Wife ultimately sold her stock for considerably more, namely $2,500,000. The trial court determined that "[Husband] did not enhance [Wifel's inheritance," finding that "Inlo act of [Husband] increased the [number] of shares of the Family Business that [Wife] received, caused [Wife]'s holdings in the Family Business to have greater value or resulted in [Wife] receiving a greater price for her holdings." It reasoned that "[Husband's] efforts ... were to at best encourage seeking brief replacement stock; but there is no evidence that his efforts directly resulted in a greater price being paid, or that the stock had a greater value because of his efforts."

II. Husband's Dishonest and Questionable Actions

17 In the divorcee proceeding, the trial court found that "[Husband], without authorization, forged [Wifel's name on Fidelity Account checks totaling $142,467 made payable to himself or [to] 'cash' that he converted to cash." While claiming that he used the money "for family purposes," Husband did not disclose the transactions to Wife at the time, did not at any time tell Wife how he used the funds, and did not provide an accounting of how the funds were spent. The trial court found that "[Husband] did not substantiate his testimony by producing receipts, can-celled checks or other documentation." Husband additionally, "without authorization, altered 6 checks given to him by [Wife] by increasing them from $1,000 to $4,000" and these "alterations reduced [Wife]'s balance in the Fidelity Account [by] $18,000 more than [Wife] intended when she wrote the checks." Husband also did not substantiate his claim that he used the $18,000 for family expenses. In making its ruling on the altered checks, however, the trial court found Husband's testimony credible and determined that "[i]t *740 [wals reasonable that the money so obtained by [Husband] was used for family purposes for the benefit of all members of the family, including [Husband]." The trial court further determined that "[Husband] should not be punished in this [divorce] proceeding" for altering or forging the checks at issue.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Kelly v. Johnson
2025 UT App 175 (Court of Appeals of Utah, 2025)
State v. Hembree
2025 UT App 166 (Court of Appeals of Utah, 2025)
Marri v. Rizwan
2025 UT App 137 (Court of Appeals of Utah, 2025)
Terry v. Terry
2025 UT App 117 (Court of Appeals of Utah, 2025)
Cascade Collections v. Corray
2025 UT App 9 (Court of Appeals of Utah, 2025)
Ward v. McGarry
2024 UT App 168 (Court of Appeals of Utah, 2024)
Thorup v. Thorup
2024 UT App 93 (Court of Appeals of Utah, 2024)
S and W Hunting Ranch v. Fautin
2024 UT App 60 (Court of Appeals of Utah, 2024)
Lamb v. Lamb
2024 UT App 16 (Court of Appeals of Utah, 2024)
Lobendahn v. Lobendahn
2023 UT App 137 (Court of Appeals of Utah, 2023)
In re Agusta National Trust 1
2023 UT App 135 (Court of Appeals of Utah, 2023)
Heath v. Consumer Protection
2023 UT App 45 (Court of Appeals of Utah, 2023)
Mintz v. Mintz
2023 UT App 17 (Court of Appeals of Utah, 2023)
Nakkina v. Mahanthi
2021 UT App 111 (Court of Appeals of Utah, 2021)
Gukeisen v. Department of Public Safety
2020 UT App 32 (Court of Appeals of Utah, 2020)
DeAvila v. DeAvila
2017 UT App 146 (Court of Appeals of Utah, 2017)
West v. Christensen (In re Christensen)
561 B.R. 218 (D. Utah, 2016)
Andersen v. Andersen
2016 UT App 182 (Court of Appeals of Utah, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
2009 UT App 233, 217 P.3d 733, 637 Utah Adv. Rep. 6, 2009 Utah App. LEXIS 246, 2009 WL 2619225, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kimball-v-kimball-utahctapp-2009.