Myrland v. Myrland

508 P.2d 757, 19 Ariz. App. 498, 1973 Ariz. App. LEXIS 576
CourtCourt of Appeals of Arizona
DecidedApril 17, 1973
Docket2 CA-CIV 1300
StatusPublished
Cited by23 cases

This text of 508 P.2d 757 (Myrland v. Myrland) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Myrland v. Myrland, 508 P.2d 757, 19 Ariz. App. 498, 1973 Ariz. App. LEXIS 576 (Ark. Ct. App. 1973).

Opinion

HOWARD, Judge.

This appeal arises out of an action for divorce filed by Bertha Myrland, appellee, wherein she alleged that the parties had no community property and sought an order determining that all real and personal property in dispute which was in her name only, was her sole and separate property.

In his answer and two-count counterclaim the defendant-appellant alleged that the parties had substantial community property and common income in excess of $1,250 per month which was under the control of the plaintiff; that the parties had entered into a partnership in 1942; and that the assets acquired by the plaintiff were assets of the partnership acquired prior to the parties’ marriage in 1952 and were community assets acquired by them after marriage in continuation of the partnership.

Otto Myrland appeals from that portion of the judgment decreeing certain property to be the sole and separate property of the appellee and awarding him the net amount of $937.43 together with interest as his share of the community property. 1 He also attacks the trial court’s findings and conclusions that he failed to sustain his burden of proving a partnership agreement and that no such agreement of partnership was entered into.

The action was tried to the court, sitting without a jury, and required four days of trial due to the complex fact situation involved. The salient facts, viewed in a light favorable to the judgment, are as follows: In 1941, appellee, then Bertha Lester, was a widow with three minor children. She owned and operated a business known as the Rio Rita Bar, which she had inherited from her husband, on leased property located on East Speedway and *500 •Tucson Boulevard in Tucson, Arizona. At that time appellant, a disbarred lawyer, was married to Imogene Myrland. The parties became acquainted during 1941 and in 1942, Mr. Myrland began to work as a bartender at Mrs. Lester’s bar. He also supervised a program of remodeling the premises in order to improve the business. This included moving toilets to the interior of the building, placing a window in front of the building, changing the lighting, and making some other improvements, which were all paid for by Mrs. Lester. Both parties devoted their entire working time to the operation of the bar business on a daily basis from 1942 through July 31, 1947, when the lease expired. At that time the landlord wanted a substantial increase in rent and Mrs. Lester permanently closed the business.

Mr. Myrland’s testimony concerning the foregoing period was that on or about May, 1942, the parties entered into an agreement to jointly operate the Rio Rita Bar for profit. Mrs. Myrland’s testimony was that at all times Mr. Myrland was an employee and was paid in cash on an hourly basis. No written agreement was produced.

In 1947, at Mrs. Lester’s request, Mr. Myrland established his residence in Mrs. Lester’s home and did not pay for meals or rent. During the same year, Mrs. Lester purchased a vacant lot in her own name at Speedway and Dodge Boulevard in Tucson. A building was constructed on the lot for the operation of a new bar business, also to be known as the Rio Rita Bar. The lot •cost $8,750 and the construction and bar furnishings cost approximately $23,000. Of this sum; $24,750 was derived from the earnings of the old Rio Rita Bar and $7,000 was in the form of a loan from the Valley National Bank, which was secured by a mortgage on Mrs. Lester’s home, her separate property.

The appellant assisted Mrs. Lester at every step in the establishment of the new Rio Rita Bar. He worked with the real estate broker, the architect, and the workmen involved in the construction of the new building. Prior to opening, both parties went to Los Angeles to purchase furniture and fixtures for the bar from a hotel supply company which paid their travel expenses.

The new Rio Rita Bar at Speedway and Dodge Boulevard was opened for business on December 24, 1947, and both parties operated it. The Number 6 liquor license remained in Mrs. Lester’s name.

On July 31, 1948, Mrs. Lester sold the Rio Rita Bar and the premises were leased for a rental of $400 a month. From that time until June, 1949, the parties had no business, were not engaged in any moneymaking operations, continued to live together at appellee’s home and sustained themselves from the proceeds of the sale of the Rio Rita and the rental income from the bar property.

In June, 1949, the parties began negotiations to purchase property located at Jaynes Station, Tucson, known as Johnny’s Outpost, which consisted of two and one-half acres of land, a pump, a well, a building in which a bar business known as Johnny’s Outpost was being conducted, a one-bedroom house, a cafe, a service station and an unfinished cement block building.

The property was purchased in Mrs. Lester’s name for approximately $50,000. The sale was consummated on July 1, 1949, and Mr. Myrland established a temporary residence at Jaynes Station. Both parties commenced operation of the bar business in the same manner as they had operated the Rio Rita Bar and devoted substantially all their time to its operation.

In 1951, the State of Arizona initiated the first of two condemnation actions on a portion of the Jaynes Station-property for construction of the Interstate Highway from Tucson to Phoenix. Settlement negotiations failed and the matter went to trial. Mrs. Lester was represented by her son, Ralph Lester, an attorney, and since she was out of state at the time, Mr. Myr-land testified as to damages. Appellee received an award of $15,000 plus interest of *501 approximately $2,000. The $17,000 was applied to the mortgage on the property and the liquidation of a note.

The new highway was located at the rear of Johnny’s Outpost and Mr. Myrland remodeled the building so as to place the front entrance where the rear of the building had been.

In June, 1952, Mr. Myrland obtained a divorce from his wife and on July 29, 1952, he and appellee were married in New Mexico. After the marriage there was no substantial change in the manner in which the Outpost business was conducted or in the manner in which the parties lived in appellee’s home.

The Outpost Bar was operated by them until it was sold in August, 1953. Appellee also leased part of the property and in one lease to the Standard Oil Company appellant executed a disclaimer to that portion of the property. In 1966, the State initiated a second condemnation action. Appel-lee received approximately $42,000 as damages and interest of $9,000. In addition, she was receiving the following rental income: $300 a month from the Outpost Bar; $112.50 a month from American Oil Company; $150 a month minimum from Standard Oil; and $500 per month from the Rio Rita Bar.

From 1953 when the Outpost Bar was sold, until August 19, 1969, the date appel-lee filed her complaint for divorce, the parties maintained themselves from the rents derived from the properties in appel-lee’s name. Their home and two adjacent lots remained in the name Bertha Lester, as did the Rio Rita Bar property and Jaynes Station, and all of these properties were acquired by appellee prior to her marriage to appellant in July, 1952.

Appellee maintained several bank accounts over which she exercised almost total and complete dominion.

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Cite This Page — Counsel Stack

Bluebook (online)
508 P.2d 757, 19 Ariz. App. 498, 1973 Ariz. App. LEXIS 576, Counsel Stack Legal Research, https://law.counselstack.com/opinion/myrland-v-myrland-arizctapp-1973.