Marriage of Knight CA4/1

CourtCalifornia Court of Appeal
DecidedApril 28, 2023
DocketD080680
StatusUnpublished

This text of Marriage of Knight CA4/1 (Marriage of Knight CA4/1) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marriage of Knight CA4/1, (Cal. Ct. App. 2023).

Opinion

Filed 4/28/23 Marriage of Knight CA4/1 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

COURT OF APPEAL, FOURTH APPELLATE DISTRICT

DIVISION ONE

STATE OF CALIFORNIA

In re the Marriage of BRIAN and REENA KNIGHT. D080680 BRIAN KNIGHT,

Respondent, (Super. Ct. No. 18FL009961C)

v.

REENA KNIGHT,

Appellant.

APPEAL from an order of the Superior Court of San Diego County, Jose S. Castillo, Judge. Affirmed. Antonyan Miranda, Anthony J. Boucek and Andrew Rosenberry for Appellant. Bickford Blado & Botros and Andrew J. Botros for Respondent. Reena Knight appeals the findings and order after hearing issued by the family court regarding her former husband Brian Knight’s request for reimbursement after the parties’ dissolution proceeding. The court ordered Reena to reimburse Brian for half of a judgment he was ordered to pay Reena’s parents in a separate civil action for repayment of a loan to the former couple during their marriage, and half of the attorneys’ fees he incurred in the civil action. The parties do not dispute that the original loan of $150,000 to them from Reena’s parents represents a community obligation. Rather, the crux of this appeal is whether the $150,000 obligation was divided into two separate property obligations, for which each was separately responsible, before Brian’s request for reimbursement. Reena contends that this division occurred at some point during the civil lawsuit Reena’s parents filed against Brian to recover half of the loaned money, and the trial court therefore erred in ordering Reena to reimburse Brian for half of the civil judgment he paid to Reena’s parents from his separate funds as a result of that lawsuit, as well as half of the attorneys’ fees he incurred during the civil lawsuit. Brian contends that the civil judgment remained a community obligation at the time the family court ruled on his request for reimbursement, and the family court thus properly granted the request. We agree with Brian and therefore affirm the trial court’s order. FACTUAL AND PROCEDURAL BACKGROUND A. The Parties’ Marriage and Dissolution Case Brian Knight and Reena Knight were married in 2006 and purchased a home in San Diego in 2009 (the marital residence). Around that same time, Reena’s parents provided funds to Brian and Reena totaling $150,000, which were used for the down payment and to make certain improvements on the marital residence. Brian and Reena signed a written promissory note reflecting an obligation to repay the $150,000, plus specified interest, to Reena’s parents.

2 The parties separated in June 2018. Their marital status was terminated in May 2019, and a dissolution trial was held in September 2019. In June 2019, Reena’s parents filed a civil lawsuit against Brian for repayment on the promissory note Brian and Reena had executed in their favor, seeking a judgment in the amount of $75,000 plus interest. (Gupta v. Knight (Super. Ct. San Diego County, 2021, No. 37-2019-00033648-CU-BC- CTL) (the civil case).) Reena’s parents did not name her as a defendant in the civil case. B. Dissolution Judgment and Family Court Reservation of Jurisdiction

In December 2020, the family court1 entered judgment on reserved issues (the dissolution judgment) after a trial was held in the dissolution case. The dissolution judgment awarded the parties’ marital residence to Reena and directed her to pay Brian an amount that represented half of the acquired equity in the marital residence, which the family court determined was community property. The dissolution judgment referenced the pending civil case between Brian and Reena’s parents and noted that Reena’s parents had not been joined to the dissolution case. Accordingly, the family court reserved jurisdiction as to the issue of the promissory note, explaining that after the civil case concluded, the family court would “determine the community nature of any obligation that may arise from the civil case, including, but not limited to, principal, interest, and/or attorney’s fees owed by either party.”

1 To avoid confusion, we refer to the trial court that presided over the parties’ dissolution case as the family court and to the trial court that presided over the civil case as the civil court. 3 C. Civil Case Judgment In April 2021, the trial court in the civil lawsuit filed by Reena’s parents against Brian found in favor of plaintiffs and against Brian, concluding that the $150,00 promissory note was a loan, not a gift as Brian had contended. The civil court found in favor of Brian, however, on his statute of limitations defense, determining that all interest accrued prior to June 28, 2015 was time barred. The civil court then stated: “There is little doubt in my mind that this is a – this was a community property obligation. . . . Ultimately, Mr. Knight will only be responsible for one-half of the principal and one-half of the interest payments. The other half will be borne or allocated, if you will, by Ms. Knight.” At this point, the civil court paused, stating to counsel: “Folks, I can make all of the additional findings and save you a trip back to Family court or I can stop my analysis at this point in time and you can go back to Family court and let your judge in Family decide what to do. What do you want me to do?” Counsel for Reena’s parents responded: “I don’t think we have a choice, Your Honor. I think the Family court’s already ruled on that and reserved its own jurisdiction. Can you overrule that?” The civil court responded: “I cannot overrule a call in Family. So again, it’s real easy for me to imagine Mr. Knight going into a Family court department and asking that he be relieved of one-half of the principal and all of the interest payments or obligation that would have accrued from June 28th, ’015 to present. However, I think I’m hearing you say I should stop.” Counsel for Reena’s parents replied: “No, no, I don’t think so. I just . . . was wondering if you even had the jurisdiction to do it. If you have the jurisdiction. . . . I will stipulate.” Counsel for Brian stated: “We’re ready for you to move forward.”

4 The civil court went on to state that the $150,000 loan was a community property obligation and that Brian was “entitled to a 50 percent offset in the principal and . . . 50 percent of all interest payments accrued.” Counsel for Brian then clarified for the court that the complaint only sought one-half of the promissory note amount and asked whether the court’s calculations were based on the $150,000 figure or the $75,000 figure. The civil court responded: “You’re correct. I saw the 150- in the body of the complaint, but the prayer limits it to 75-.” The court continued, speaking directly to counsel for Brian: “I agree . . . that plaintiff is limited to what they asked for in the complaint. But again, we’re going to get there no matter what. Your client is not going to be obligated for more than his share of one- half of the – or his share of the one-half of the principal, which is 75-. All right?” Counsel for Reena’s parents then asked: “So, in essence, the judgment is 75,000 plus 5 percent interest from June 28, 2015 until the judgment is issued; right?” The civil court replied: “Yeah, and then you don’t have to get into the offset part.” The court directed counsel for Reena’s parents to prepare a judgment reflecting the court’s findings and orders. In May 2021, the civil court signed the civil judgment, which provides: “1. The Court finds that the underlying transaction was a loan and not a gift. [¶] 2. Plaintiff is the prevailing party. [¶] 3.

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Marriage of Knight CA4/1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marriage-of-knight-ca41-calctapp-2023.