Nitzel v. Wickman

940 P.2d 451, 283 Mont. 304, 54 State Rptr. 684, 1997 Mont. LEXIS 140
CourtMontana Supreme Court
DecidedJuly 2, 1997
Docket95-557
StatusPublished
Cited by18 cases

This text of 940 P.2d 451 (Nitzel v. Wickman) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nitzel v. Wickman, 940 P.2d 451, 283 Mont. 304, 54 State Rptr. 684, 1997 Mont. LEXIS 140 (Mo. 1997).

Opinions

JUSTICE NELSON

delivered the Opinion of the Court.

Barbara Nitzel, as personal representative of the estate of Lloyd Robert McKay (Mac) brought this action seeking dissolution of the partnership known as M & M Walkers and an equal distribution of partnership assets. The District Court for the Ninth Judicial District, [306]*306Pondera County, dissolved the partnership giving one half of all partnership assets to Mac’s estate (the Estate) and one half to the surviving partner, Marsha Wickman (Marsha). Marsha appeals. We affirm.

We address the following issues on appeal:

1. Did the District Court err in ruling that the August 24, 1987 document is invalid as a contractual obligation between Mac and Marsha?

2. Did the District Court err by failing to address Marsha’s arguments that the Estate was estopped from claiming that the August 24, 1987 document was not binding and enforceable?

Factual and Procedural Background

On August 18, 1986, Marsha and Mac formed M & M Walkers, an equal partnership. The purpose of the partnership was to breed, raise, train and market Tennessee Walking Horses. Marsha and Mac did not enter into a written partnership agreement. Instead, they had an oral agreement sealed with a handshake.

Marsha had raised Tennessee Walkers before and after the formation of the partnership, Marsha worked with the horses on a daily basis. She also maintained the books and records of the partnership. Mac had a full-time job with an implement company and did not spend as much time working with the horses as did Marsha. Although Marsha and Mac agreed that Mac would only contribute money when he had the funds and contribute time when he was not at his full-time job, they agreed that it would be an equal partnership.

On or about August 24, 1987, Mac executed a document wherein he purported to convey his interest in the partnership to Marsha in the event something happened to him. The document was prepared without the assistance of an attorney and stated as follows:

I, Lloyd McKay am a partner in the M & M WALKER Horse business. If anything happens to me all the horses SUPREMES DESERT FAWN, SO SO SHADOW SIS, NAMRONS KO KO DELIGHT, SUPREMES ROYAL FLAME, AND ANY OTHER HORSES PURCHASED will belong to my partner Marsha Wick-man. In the business also are my two hay trailers, my horse trailer, baler, my brown Ford three quarter ton pickup. They will stay in the business and belong to Marsha Wickman and anything else we purchase with the M & M Walker and or our names on it. There is numerous equipment that has been purchased and is in my garage, house, horse trailer etc. Halters, bridles, saddles, ropes, harness, pack saddle, pads, curry brushes, rubber tubs, water tubs, fencing, [307]*307grain bin, cover blankets, feeders, saddle pads etc. and anything else purchased after the date of this paper August 24, 1987 will stay in the business and belong to Marsha Wickman.
All the business records are kept at my house at 120 s. Minnesota. Marsha has access to my house to get anything pertaining to the business and what ever belongs to her as she has things stored in my spare room and garage. Description of trailers and any other machinery on attached sheets.

Marsha testified at trial that she typed the document at Mac’s direction, leaving blanks for the insertion of a name where appropriate. The names “Lloyd McKay*’ and “Marsha Wickman” were written in by hand, purportedly by Mac. The document was signed by Mac and witnessed by Linda Duncan on September 2, 1987, and by Sandra Becker on September 3, 1987. It was subsequently notarized by Randy Wahl.

Mac passed away on June 25, 1992, without leaving a will or other testamentary disposition of his property. Mac and his wife, Sally, had divorced in 1985. They had two sons, Robert, who was killed in an automobile accident, and Tim. Mac had also adopted Sally’s two daughters, Barbara and Vicky, sometime after Mac and Sally were married. When Mac and Sally divorced, Tim moved with his mother to Billings, the two girls having moved away several years earlier. Mac’s family also included two sisters and three brothers. Mac’s daughter, Barbara, was appointed personal representative of the Estate.

On October 21, 1992, Marsha, as sole surviving partner of M & M Walkers, and her husband, Terry, filed a creditor’s claim against the Estate claiming that they were entitled to the return of property the Estate was allegedly wrongfully withholding from them. The Estate sent a notice of disallowance of claim on January 5,1993. In addition, the Estate asserted a counterclaim against Marsha personally and as sole surviving partner, for an accounting from the partnership and for the Estate’s share of the partnership’s assets and profits. On April 5, 1993, the Estate sued Marsha alleging that the partnership had been dissolved by Mac’s death, that the Estate was entitled to an accounting and distribution of an equal share of the partnership assets and profits, and that Marsha, in refusing to account for the partnership assets and profits, was appropriating them for her own benefit.

On September 10,1993, Marsha filed an Answer and Counterclaim alleging that pursuant to the August 24, 1987 document, she was entitled to all partnership assets after Mac died and that, as a result of the document, the Estate had no interest in the partnership or its [308]*308assets. The counterclaim asserted that Marsha, Terry and the partnership were entitled to the immediate possession of property that was allegedly wrongfully withheld, and demanded its return and damages. Terry, who had not been named as a party defendant, was subsequently dismissed as a counterclaimant.

The District Court heard testimony on December 14, 15, 16 and 24, 1994. A considerable amount of testimony at trial dealt with the extent of Marsha’s relationship with Mac as well as the quality of the relationship Mac’s family, particularly Tim, maintained with Mac. It was alleged during trial that Mac and Sally’s divorce was a result of Mac’s relationship with Marsha.

On November 7, 1995, the District Court entered its Findings of Fact, Conclusions of Law, Order and Judgment concluding that, as a matter of law, the written agreement was invalid because of a lack of consideration. Additionally, the court concluded that the document did not meet the legal requirements necessary to suffice as a testamentary disposition of property even though it had not been offered as such. The court determined that the Estate was entitled to one-half of the value of the partnership’s assets, less any obligations due, as of June 25, 1992, the date of Mac’s death. Hence, the court ordered Marsha to provide the Estate with a full accounting of all partnership assets and liabilities as of that date, as well as any income received or expenses incurred subsequent to that date.

Marsha appeals the District Court’s judgment and order.

Issue 1.

Did the District Court err in ruling that the August 24,1987 document is invalid as a contractual obligation between Mac and Marsha?

In its November 7, 1995 Findings of Fact, Conclusions of Law, Order and Judgment, the District Court concluded that Marsha was under a legal obligation to contribute to M & M Walkers, consequently, her “promise” to continue to contribute to the partnership in return for the August 24,1987 document was insufficient consideration.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Monarch v. Petra
2025 MT 184 (Montana Supreme Court, 2025)
State v. M. Walton
2025 MT 184 (Montana Supreme Court, 2025)
Rimrock Chrysler, Inc. v. State
2016 MT 165 (Montana Supreme Court, 2016)
Rimrock v. Lithia
2016 MT 165 (Montana Supreme Court, 2016)
Petaja v. Montana Public Employees' Ass'n
2016 MT 143 (Montana Supreme Court, 2016)
Masters Group International, Inc. v. Comerica Bank
2015 MT 192 (Montana Supreme Court, 2015)
Winslow v. Montana Rail Link, Inc.
2005 MT 217 (Montana Supreme Court, 2005)
State v. White
2004 MT 103 (Montana Supreme Court, 2004)
Positive Systems v. Spry
2003 MT 142N (Montana Supreme Court, 2003)
State v. Keys
1999 MT 10 (Montana Supreme Court, 1999)
Moore v. Imperial Hotels Corp.
1998 MT 248 (Montana Supreme Court, 1998)
Nason v. Leistiko
1998 MT 217 (Montana Supreme Court, 1998)
Nitzel v. Wickman
940 P.2d 451 (Montana Supreme Court, 1997)

Cite This Page — Counsel Stack

Bluebook (online)
940 P.2d 451, 283 Mont. 304, 54 State Rptr. 684, 1997 Mont. LEXIS 140, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nitzel-v-wickman-mont-1997.