Manley v. McKinney

496 P.3d 663, 313 Or. App. 544
CourtCourt of Appeals of Oregon
DecidedJuly 28, 2021
DocketA171346
StatusPublished
Cited by1 cases

This text of 496 P.3d 663 (Manley v. McKinney) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Manley v. McKinney, 496 P.3d 663, 313 Or. App. 544 (Or. Ct. App. 2021).

Opinion

Argued and submitted September 8, 2020, reversed and remanded July 28, petition for review denied December 23, 2021 (369 Or 110)

George Scott MANLEY, Jr., as Personal Representative of the Estate of Matthew Allen Manley, deceased, Plaintiff-Respondent, v. Gina M. McKINNEY, Defendant-Appellant, and NATIONSTAR MORTGAGE, LLC, dba Mr. Cooper, Defendant. Washington County Circuit Court 18CV18144; A171346 496 P3d 663

Defendant and Matt Manley were in a long-term romantic relationship. In 2009, they purchased a house together, holding title as tenants in common, and they lived there together until 2013, at which point the relationship ended, Manley moved out, and defendant continued living in the house and making house payments. In 2018, Manley died unexpectedly. Plaintiff, as personal rep- resentative of Manley’s estate, brought a partition action. The trial court ordered a “private sale” of the property, and it awarded $93,500 to Manley’s estate, rep- resenting half the equity value of the property. Defendant appeals, arguing that the trial court erred in not requiring contribution from Manley’s estate for post- separation house payments and repairs. She also asserts that the trial court erred in appointing a realtor. Held: The trial court erred in failing to require contribution. Under the regular rules of cotenancy, defendant was obligated to contribute to post-separation house payments and eligible repairs. On remand, the court should also clarify the type of sale that was ordered, as relevant to the realtor issue. Reversed and remanded.

Ricardo J. Menchaca, Judge. Ross A. Day argued the cause for appellant. Also on the briefs was Day Law, P.C. Mary W. Johnson argued the cause for respondent. Also on the brief was Mary W. Johnson, P.C. Cite as 313 Or App 544 (2021) 545

Before Armstrong, Presiding Judge, and Tookey, Judge, and Aoyagi, Judge. AOYAGI, J. Reversed and remanded. 546 Manley v. McKinney

AOYAGI, J. Defendant was in a long-term relationship with Matt Manley. In 2009, they purchased a house together, where they lived until 2013, when the relationship ended and Manley moved out. Defendant continued to live in the house. In 2018, Manley died unexpectedly. Plaintiff, as per- sonal representative of Manley’s estate, brought this par- tition action. After hearing the evidence, the trial court awarded $93,500 to Manley’s estate, as half the equity value of the property. Defendant appeals. In her first assignment of error, she contends that the trial court erred in not order- ing contribution from Manley’s estate for post-separation house payments and repairs. In her second assignment of error, she challenges the trial court’s appointment of a real- tor. For the following reasons, we reverse and remand.1 I. FACTS Defendant requests de novo review, but we are unpersuaded that this case is appropriate for de novo review. See ORS 19.415(3)(b) (granting us “sole discretion” to allow de novo review in equitable proceedings). We are therefore bound by the trial court’s factual findings if they are supported by any evidence in the record. Staveland and Fisher, 366 Or 49, 61, 455 P3d 510 (2019). We state the facts accordingly. Defendant and Manley were an unmarried couple for at least 15 years. In 2009, they purchased the property that is the subject of this lawsuit and began living there together. They took title as tenants in common. Both parties contributed to a joint bank account from which they paid the down payment, closing costs, monthly house payments (covering the mortgage, property taxes, and home insur- ance), and repairs. They did not keep track of individual contributions. In 2013, the parties ended their relationship, and Manley moved out. Defendant continued to live in the house and made the house payments. The parties did not have an express agreement about what would happen with the house, 1 We reject defendant’s third assignment of error, regarding the denial of her unjust-enrichment counterclaim, without written discussion. Cite as 313 Or App 544 (2021) 547

but, according to defendant, they had an “understanding” that she would stay in the house and that he would move out. She kept paying the house payments after he moved out because it was “assumed.” Defendant intended to refinance the property when she was in a better financial position and buy out Manley at that point. In January 2018, Manley died unexpectedly. Plain- tiff filed this partition action as the personal representative of Manley’s estate. Under ORS 105.205, when two people hold real property as tenants in common, either one of them “may maintain a suit for the partition of the real property according to the respective rights of the persons interested therein, and for a sale of all or a part of the property if it appears that a partition cannot be had without great prej- udice to the owner.” If the court determines “that the prop- erty or any part of it is so situated that partition cannot be made without great prejudice to the owners, the court may order a sale of the property[.]” ORS 105.245. In his complaint, plaintiff alleged that defendant and Manley’s heirs were “equal one-half owners as ten- ants in common” and that they were unable to agree on the management of the property. Plaintiff requested that the court order the sale of the property and distribute the proceeds between defendant, Manley’s heirs, and the mort- gage holder. In response, defendant pleaded an affirmative defense of contribution, asserting that she was entitled to a $66,002.80 credit against any award to plaintiff, represent- ing one-half of her house payments and repair costs since Manley moved out. The case went to trial. After hearing the evidence, the trial court sitting as factfinder issued a written opin- ion, identifying two issues for decision: first, what type of partition it should order; and, second, the amount (if any) that defendant was entitled to receive from Manley’s estate. On the first issue, the court ordered a prompt “partition by private sale” and named a particular person as “real- tor.” On the second issue, the court acknowledged that “the actual intent of the parties is difficult to determine.” The court found that no enforceable written agreement existed and sought to discern the parties’ intent as “implied” from 548 Manley v. McKinney

their actions. It noted evidence that the parties had a joint bank account from which they had paid the closing costs and, while living together, the house payments; that the joint account remained accessible to Manley after he moved out; that Manley had assisted with repairs to some extent after moving out; that defendant had indicated to Manley that she would refinance the house when she got into a “bet- ter financial position”; and that defendant had not yet refi- nanced at the time of Manley’s death. The court found that the parties intended that defendant would refinance the property at some point and that an equitable distribution would occur at that time. The trial court then calculated the equity and ordered for plaintiff to receive $93,500 from the “private sale” of the real property. The court did not explain its calcu- lation. However, in the context of the parties’ arguments, it appears that the court took the market value of the property at the time of trial ($440,000), subtracted the mortgage loan balance at the time of the parties’ separation ($253,000), resulting in a difference of $187,000, and then divided by two, which equals $93,500. The court made no express men- tion of contribution. II.

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Bluebook (online)
496 P.3d 663, 313 Or. App. 544, Counsel Stack Legal Research, https://law.counselstack.com/opinion/manley-v-mckinney-orctapp-2021.