Rawlings v. Rawlings

2015 UT 85, 358 P.3d 1103, 2015 WL 5575222
CourtUtah Supreme Court
DecidedSeptember 22, 2015
DocketCase No. 20130744
StatusPublished
Cited by4 cases

This text of 2015 UT 85 (Rawlings v. Rawlings) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rawlings v. Rawlings, 2015 UT 85, 358 P.3d 1103, 2015 WL 5575222 (Utah 2015).

Opinion

Justice HIMONAS,

opinion of the Court:

INTRODUCTION

T1 "In the beginning God created the heaven and the earth," Genesis 1:1, and families have been fighting over them ever since. Today we address a conflict between five siblings over land. The eldest, Donald Raw!lings, claims full ownership of farmland deeded him by his father, while his three brothers and his sister (the siblings) argue their father never intended to vest sole ownership in Donald and to their permanent exclusion. The siblings seek to maintain a constructive trust over the property and its equal division among the children. |

12 We first addressed this dispute in Rawlings v. Rowlings, 2010 UT 52, 240 P.3d 754 (Rawlings I). There, we reversed the court of appeals and upheld a district court order imposing a constructive trust over the farm property in favor of the siblings based on a theory of unjust enrichment. Id. 125. On remand, the district court permitted discovery to resolve the question of the exact contents of the constructive trust. Because Donald's responses to the siblings' discovery requests were inadequate, the district court entered an order to compel. When Donald failed to comply with that order, the district court struck Donald's pleadings and defenses and entered default judgment against him. We hold that the entry of default judgment was not an abuse of discretion, and we affirm the form and content of the constructive trust imposed by the district court.

BACKGROUND

13 Our decision in Rawlings I, 2010 UT 52, 113-19, 240 P.3d 754, details the events leading up to this action, and thus we provide only a brief summary of them here. This case, now in its third decade, involves a family dispute over land in Utah and Washington counties. 'The dispute is between children whose father, Arnold Rawlings, owned approximately twenty-two acres of land near Orem, Utah. 1 Id. 14. In 1957, Arnold trans *1106 ferred twelve acres of the land to a third party. Id. Over the course of the next decade, he also conveyed some small portions to Donald and to Dwayne. Id.

T4 In 1966, Arnold was diagnosed with cancer and began undergoing treatment. Id. 1] 5. Approximately six months after his diagnosis, on March 24, 1967, Arnold transferred a "small parcel" of the land, "approximately half an acre" in size, to Dwayne. Id. %4. Arnold conveyed title to the remainder of the farm to Donald. Id. Donald argued that the farm transfer was to compensate him for debts he paid on Arnold's behalf. Id. At that time, the siblings also signed quitclaim deeds assigning their interests in the farm to Donald. Id. T7. The siblings maintained that Arnold transferred the farm to Donald because Arnold could not qualify for welfare assistance to help pay for his cancer treatment if the farm was in his name. Id. 16. Thus, they. argued that Donald held the land as a trustee for the family. Id. T4. Indeed, the district court found that Arnold did not believe that his conveyance of the farm to Donald to be an alienation of his ownership rights. Id. 16.

15 In line with Arnold's and the siblings' views, Arnold, his wife (Cleo Rawlings), Donald; and the siblings all remained involved in the farm from around the time of the 1967 land transfers and for years following. Id. TT 7-10. At Donald's behest, Dwayne provided $1,000 for the farm's taxes. Id. T7. Arnold managed the property and harvested crops. Id. T8. Bryce lived on the farm. Id. T9. And because Donald represented "that income from the farm property was being used to support their mother{,] ... all of the siblings, except Donald, ... helped to maintain the farm property." Id. 110.

T6 The farm was the subject of a boundary lawsuit in 1974, which arose over whether neighboring fences encroached upon the southern boundary of the farm. Id. T11. During the boundary dispute, Donald convinced the siblings to again transfer their interests in the farm to him via a quitclaim deed. In the process, he told them that the legal description on the "deed encompassed only the land being disputed." Id. However, the deed "actually described the entire farm property." Id. The boundary lawsuit settled, and Donald received approximately $52,000. Id. Donald distributed approximately $6,600 of the settlement money to the siblings and to Cleo for her expenses. Id. The district court stated that Donald thereby, at least tacitly, "acknowledg[ed] that the farm was in fact a family farm in which the parties each had a right." |

T7 The siblings were not aware that Donald considered the farm to be solely his until 1993, when Donald conveyed a portion of the farm to a third party. When Dwayne became aware of the conveyance, Donald informed him that he, Donald, owned the farm and could use the property in any way he chose.

T8 Donald brought suit in 1997 to quiet title and establish himself as rightful owner of the farm, Id, 112, The siblings counterclaimed and requested that the district court declare them equal beneficiaries of a trust Arnold intended, Id. The siblings also filed several lis pendens on the farm property and additional property they asserted was acquired with trust proceeds,. The district court found that it was "undisputed that Donald comingled the funds from the trust property with his other funds and is unable to distinguish any funds" that he spent from the time Arnold deeded him the property in 1987 to the date of trial.

[ 9 The district court bifurcated the action and found in favor of the siblings on the preliminary issue of whether to impose a constructive trust. Id. 115, The court ered-ited the testimony of the siblings and concluded that Arnold's 1967 conveyance to Donald "was to accommodate Arnold's attempts at becoming eligible for welfare, not in exchange for payment of Arnold's debt and not to transfer ownership." Id. The court there *1107 fore determined that there was an "equitable - need to impose a constructive trust on the property" conveyed by Arnold. Id. (internal quotation marks omitted). 'In Rawlings I, we upheld the district court's order imposing a constructive trust under a theory of unjust enrichment, and we remanded for further proceedings. Id. I 25. ~ .

{10 On remand, Donald contended that the constructive trust should take the form of an equitable lien and not a possessory interest in the farm or any other property. The district court disagreed and imposed a constructive trust proportionately dividing the subject property among the five children. The court also found that Donald was a "conscious wrongdoer" under Parks v. Zions First National Bank, 673 P.2d 590, 602-08 (Utah 1988). It therefore ordered that any profits or benefits derived from trust property be included in the trust res. The court also denied Donald's motion for release of the lis pendens on land known as the "18.5 Acre Property," concluding that the siblings had established a probable validity of success on their claim to that parcel. Thereafter, the. district court permitted additional discovery on the issue of what properties should be included within the trust. failed to respond, the siblings moved to compel. The district court found that Donald's.

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2015 UT 85, 358 P.3d 1103, 2015 WL 5575222, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rawlings-v-rawlings-utah-2015.