Meyer v. Moore

802 P.2d 148, 60 Wash. App. 39, 1990 Wash. App. LEXIS 455
CourtCourt of Appeals of Washington
DecidedDecember 27, 1990
DocketNo. 9897-4-III
StatusPublished

This text of 802 P.2d 148 (Meyer v. Moore) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Meyer v. Moore, 802 P.2d 148, 60 Wash. App. 39, 1990 Wash. App. LEXIS 455 (Wash. Ct. App. 1990).

Opinion

Thompson, J.

Sharon Meyer, as personal representative, appeals the final decree of distribution entered in the estate of her late husband, Otto Meyer. At issue are (1) the ownership of $26,100.34 deposited in a credit union joint account in both Mr. and Mrs. Meyer's names, with right of survivorship, and (2) the existence of liens warranting reimbursement for community expenditures on property owned separately by Mr. Meyer. The trial court found against Mrs. Meyer on both issues. We reverse on the joint account, but affirm the remainder of the judgment.

In 1981, Otto Meyer discovered he had cancer. On March 28, 1982, after unsuccessfully undergoing various treatments, Mr. Meyer went to Salt Lake City to try another type of treatment. He participated in an outpatient program at the University of Utah Medical Center until April 10,1982. On April 14, an artery in Mr. Meyer's leg ruptured and he was admitted to the University of Utah hospital. Mr. Meyer returned to Spokane on April 24, and was admitted to Sacred Heart hospital, where he remained until April 28. He then resided at his home until his death on May 10, 1982.

Mr. Meyer died intestate. He was survived by his second wife, Sharon Meyer, whom he had married in 1978. She [42]*42applied for and was granted letters of administration on July 19, 1982. Mr. Meyer was also survived by a 20-year-old daughter from his first marriage, Linda (Meyer) Moore.

Mrs. Meyer filed a preliminary inventory in August 1982, but did not file a petition for a decree of distribution until June 13, 1985. According to the petition, Ms. Moore was entitled to $1,822.35, after satisfaction of asserted equitable liens for reimbursement for community funds expended on Mr. Meyer's separate property and payment of probate costs. Ms. Moore challenged the inventory and filed objections to the petition.

The objections relevant to this appeal concern three items of property. We summarize:

1. Mr. Meyer owned as separate property stock in a private corporation (the Austin-Meyer Corporation) which was liquidated prior to his death. His attorney sent the proceeds in the form of a check in the amount of $26,100.34 to the Spokane Teacher's Credit Union on April 8, 1982, stating that Mr. Meyer wanted the funds placed in "your Silver Eagle account". The credit union obtained a share draft agreement signed by Mr. and Mrs. Meyer on April 17, 1982, while he was seriously ill in Utah. The funds were deposited in a joint account with right of survivorship.
Ms. Moore objected to Mrs. Meyer's characterization of this account as part of the community estate, of which Mrs. Meyer was to receive all under the laws of intestate succession.
2. Mr. Meyer owned a rental house on Empire Way in Spokane, which was purchased with community funds (Empire Way property). Mrs. Meyer had quitclaimed her interest in the house to Mr. Meyer in July 1981. The quitclaim deed also transferred "any interest therein which grantor may hereafter acquire".
Ms. Moore objected to Mrs. Meyer's claim of lien on the house for payments made out of community funds subsequent to the quitclaim and for work performed on [43]*43the property. She also challenged the lack of an accounting for the rental income derived from the property.
3. Mr. Meyer owned three real estate contracts. Ms. Moore challenged Mrs. Meyer's assertions that the community made payments toward the underlying obligations on these contracts. She also challenged Mrs. Meyer's claim that the profits from these contracts were commingled with community funds and lost their status as separate property. Ms. Moore asked for an accounting.

A hearing on Ms. Moore's challenges was held in September 1986. On December 15, 1986, the court filed a memorandum opinion ruling substantially in Ms. Moore's favor. Mrs. Meyer unsuccessfully moved for reconsideration. Findings and conclusions were entered in June 1987.

The court concluded proceeds from the dissolution of the Austin-Meyer Corporation were the separate property of Mr. Meyer. It also determined there was no "clear and unmistakable evidence ... on the part of Otto J. Meyer to make a gift" of the proceeds of the Austin-Meyer Corporation to Mrs. Meyer. As for the Empire Way property and the real estate contracts, the court ordered Mrs. Meyer to render an accounting of all rents, issues and profits received and the actual expenditures of community funds.

In April 1988, Mrs. Meyer submitted an inventory and appraisal complying with the court's June 1987 findings and conclusions. She listed the Austin-Meyer proceeds as separate property, as the court had determined. She continued to assert a lien of approximately $10,000 for community expenditures against the Empire Way property and against two of the three real estate contracts for payments made with community funds.

Ms. Moore again objected. She pointed out that the inventory still did not provide evidence that any payments were made with community funds. The evidence at trial was that Mr. Meyer had more money coming in on the Empire Way property and from the three contracts, when considered together, than he had going out. Finally, Ms. Moore relied upon the 1981 quitclaim of the Empire Way [44]*44property, including after-acquired interests, from Mrs. Meyer to Mr. Meyer.

In her "Final Account and Petition for Distribution", Mrs. Meyer asked the court to resolve the issues relating to the Empire Way property and the real estate contracts. The court accepted the "Statement of Asset Valuation" prepared by Ms. Moore, which set the value of her one-half portion of her father's separate property at $31,500. From that amount, the court deducted pro rata funeral expenses, attorney fees, costs, and one-half of the personal representative's fee. In light of the increase in valuation of the estate distributable to Ms. Moore over the valuation set in the original inventory, the court also awarded her attorney fees. RCW 11.76.070.1 The court ordered Mrs. Meyer to pay Ms. Moore $28,505.02, plus $5,500 in fees. Title to all property was confirmed in Mrs. Meyer, together with authority to liquidate as necessary to comply with the decree.

First, did the court err when it held that the proceeds from the Austin-Meyer liquidation were separate property, even though they had been deposited in a joint account in Mr. and Mrs. Meyer's names with right of survivorship?2

[45]*45Mrs. Meyer contends that under both the common law and the applicable statute in effect in April 1982, there existed a presumption that ownership of funds held in a joint account with right of survivorship vests in the survivor. See Kaufman v. Kaufman, 60 Wn.2d 1, 7, 371 P.2d 535 (1962); former RCW 31.12.140. In contrast, Ms. Moore argues Mrs. Meyer had the burden of proof, as the party asserting the existence of a gift, to show the transfer of the gift by clear, convincing, strong, and satisfactory evidence. Doty v. Anderson, 17 Wn. App. 464, 471, 563 P.2d 1307 (1977).

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Related

Kaufman v. Kaufman
371 P.2d 535 (Washington Supreme Court, 1962)
In Re Webb's Estate
297 P.2d 948 (Washington Supreme Court, 1956)
In Re Douglas'estate
398 P.2d 7 (Washington Supreme Court, 1965)
In Re the Estate of Davis
597 P.2d 404 (Court of Appeals of Washington, 1979)
Doty v. Anderson
563 P.2d 1307 (Court of Appeals of Washington, 1977)
In Re Green's Estate
283 P.2d 989 (Washington Supreme Court, 1955)
In Re Kruse's Estate
324 P.2d 1088 (Washington Supreme Court, 1958)
In Re the Estate of Thompson
287 P. 21 (Washington Supreme Court, 1930)
In Re Peterson's Estate
45 P.2d 45 (Washington Supreme Court, 1935)
Munson v. Haye
189 P.2d 464 (Washington Supreme Court, 1948)

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Bluebook (online)
802 P.2d 148, 60 Wash. App. 39, 1990 Wash. App. LEXIS 455, Counsel Stack Legal Research, https://law.counselstack.com/opinion/meyer-v-moore-washctapp-1990.