Lee v. Sanders

2002 UT App 281, 55 P.3d 1127, 455 Utah Adv. Rep. 59, 2002 Utah App. LEXIS 85, 2002 WL 2031226
CourtCourt of Appeals of Utah
DecidedSeptember 6, 2002
Docket20000945-CA
StatusPublished
Cited by10 cases

This text of 2002 UT App 281 (Lee v. Sanders) 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
Lee v. Sanders, 2002 UT App 281, 55 P.3d 1127, 455 Utah Adv. Rep. 59, 2002 Utah App. LEXIS 85, 2002 WL 2031226 (Utah Ct. App. 2002).

Opinions

OPINION

THORNE, Judge:

11 Dora Sanders appeals from the trial court's order determining her money interest in a partnership property. We reverse and remand.

BACKGROUND

T2' In 1994, Sanders and Dan Lee jointly purchased property in American Fork, Utah. The couple resided on the property and shared expenses through November 1996 when Sanders moved. From that time forward, Lee assumed all responsibility for the costs associated with the property, including the mortgage, insurance, taxes, and maintenance costs.

13 In October 1999, after attempting to refinance or sell the property and learning that Sanders was still a named title holder, Lee filed suit against Sanders in an attempt to quiet title Lee's complaint listed three causes of action: (1) equitable dissolution and division of partnership property and/or judgment for contribution and payments of plaintiff; (2) quiet title; and (8) accommodation. In addition to asking the court for an order quieting title in his name, Lee requested an order

dissolving the partnership of the parties [sic], ... and an accounting and determination of all partnership proceeds and contributions, and ... an order determining the relative equitable value of each parties contribution to the investment property, which [Lee] believes should be a finding of 100% interest in the property to [Lee] and 0% to [Sanders].

Sanders filed an answer, and, on June 6, 2000, after sufficient time had passed to permit the Parties an opportunity to conduct discovery, a trial was held.

14 Following the trial, the court issued a memorandum decision wherein the court found, inter alia, that the Parties had purchased and recorded the property as joint tenants. The court also determined that "based upon principles of equity and partnership, the Parties, though unmarried[,] should share equally in the amount of equity found by the court." The court then proceeded to determine that equity was best determined by examining the change in the amount owed on the mortgage over the time that the Parties jointly occupied the property. The trial court then determined that the amount owed on the property had decreased $1160.97 during the period in question, awarded Sanders one-half of that amount, and quieted title in Lee's name.

"I 5 Sanders subsequently filed a Motion to Amend the Judgment arguing that the trial court used an incorrect method to determine equity, and asserting that because neither party had asked the trial court to determine the equity vested in the property, and because neither party had presented any evi[1129]*1129dence of the value of the property, the court had erred in making its equity determination. The trial court denied the motion, concluding that while "neither party [had] presented evidence of the property's actual or appraised value at trial," both Parties "put at issue the value of the real property at issue in the lawsuit." Sanders now appeals.

ISSUE AND STANDARD OF REVIEW

16 Sanders argues that the trial court's decision to determine the amount of equity vested in the property was improper because the issue of equity was neither pleaded nor argued by the Parties. Whether an issue was properly before the trial court presents a question of law, which we review for correctness. See Keller v. Southwood N. Med. Pavilion, 959 P.2d 102, 105 (Utah 1998); Combe v. Warren's Family Drive-Inns, Inc., 680 P.2d 733, 735 (Utah 1984).

ANALYSIS

17 Sanders argues that because the property equity issue was neither pleaded nor tried by consent, the trial court erred in determining the equity amount. A trial court's findings should fit "within the framework of the petition as originally drawn, or as amended" and should be supported by the evidence presented. In re Behm's Estate, 117 Utah 151, 213 P.2d 657, 663 (1950). Under rule 15 of the Utah Rules of Civil Procedure, a trial court may infer an amendment to the pleadings if the issue is tried by the Parties' express or implied consent. See Utah R. Civ. P. 15(b). "Implied consent to try an issue may be found where one party raises an issue material to the other party's case or where evidence is introduced without objection, [and] where it appear[s] that the parties understood the evidence [was] to be aimed at the unpleaded issue." Colman v. Colman, 743 P.2d 782, 785 (Utah Ct.App.1987) (second and third alterations in original) (citations and quotations omitted). "A trial court may not base its decision on an issue that was tried inadvertently." Archuleta v. Hughes, 969 P.2d 409, 413 (Utah 1998) (citations and quotations omitted); see also Combe, 680 P.2d at 736 (holding that a "court may not grant judgment for relief which is neither requested by the pleadings nor within the theory on which the case was tried").

T 8 In the instant case, in its ruling denying Sanders's motion to amend the judgment, the trial court concluded that while "neither party [had] presented evidence of the property's actual or appraised value at trial," both Parties "put at issue the value of the real property at issue in the lawsuit." We disagree.

T9 In his complaint, Lee asked the trial court to determine, inter alia, "the relative equitable value of each parties [sic] contribution to the investment property." Lee also asked the court for "an accounting and determination of all partnership proceeds." However, the thrust of Lee's prayer for relief is found in his request for a determination that he possessed sole interest in the property, thus entitling him to an order quieting title in his name. We have thoroughly reviewed both the complaint and the answer and can nowhere find any language that would empower the trial court to determine the actual value of the property or to reduce the Parties' relative interests to a money amount. We therefore conclude that the trial court erred in determining that value had been put at issue in the pleadings.1

[ 10 Moreover, while it is true that a trial court may infer an amendment to the pleadings when the Parties try an issue by express or implied consent, "[a] trial court may not base its decision on an issue that was tried inadvertently." Archuleta, 969 P.2d at 418 (citations and quotations omitted). Here, we have reviewed the trial record and, absent Sanders's unsuccessful attempt to introduce an appraisal of the property into evidence, there is nothing to suggest that the Parties ever presented the issue of Property value to the trial court. Accordingly, to the extent [1130]*1130that the trial court may have relied either upon evidence submitted by the Parties, or trial testimony, to support its decision, the trial court erred in deciding the issue of the property's value.

T11 Finally, even assuming that the issue of the Parties' relative equity interests was properly before the court, we can see nothing in the record to support the trial court's adoption of any figure, let alone the figure actually adopted by the trial court. "The term 'equity' is described as the money value of a property or of an interest in property in excess of claims or liens against it....

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Bluebook (online)
2002 UT App 281, 55 P.3d 1127, 455 Utah Adv. Rep. 59, 2002 Utah App. LEXIS 85, 2002 WL 2031226, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lee-v-sanders-utahctapp-2002.