Reilly v. Sageser

467 P.2d 358, 2 Wash. App. 6, 1970 Wash. App. LEXIS 1077
CourtCourt of Appeals of Washington
DecidedMarch 6, 1970
Docket131-40740-2
StatusPublished
Cited by4 cases

This text of 467 P.2d 358 (Reilly v. Sageser) 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
Reilly v. Sageser, 467 P.2d 358, 2 Wash. App. 6, 1970 Wash. App. LEXIS 1077 (Wash. Ct. App. 1970).

Opinion

Pearson, J.

On June 1, 1966 the plaintiffs and appellants, Glen A. Reilly and Mabel C. Reilly, acquired a vend-ee’s interest under a real estate contract of three parcels of real property in Pierce County, Washington. This property had two homes situated thereon, one of somewhat larger size than the other.

On October 31, 1966 the plaintiffs executed a quitclaim deed to themselves and to the defendants, Bernard F. Sage-ser and Marguerite A. Sageser, husband,and wife. The deed specified that the parties were to be “joint tenants with the right of survivorship and not as tenants in common.”

*7 On November 25, 1966 the parties signed an agreement which recited the creation of the joint tenancy by quitclaim deed. The agreement provided that the parties would pay one-half of the principal, interest, taxes, insurance, and other purchaser’s obligations under the real estate contract of June 1, 1966. Concurrently with the execution of the agreement, $1,500 was paid by the defendants as consideration for the transaction.

The agreement further provided that the cost of operation and upkeep of the properties would be borne equally between the Reillys and the Sagesers. It allowed the Sage-sers to occupy the small home without rental, and the Reillys were permitted to occupy the larger home without rental. Each was to provide for his own property improvements and his own costs of living.

The agreement contains two provisions which are pertinent to this appeal. Paragraph 8 provided: “That if one side defaults in the obligations set forth in this agreement causing the other party to spend money for which such party is not obligated, such defaulted obligation shall be immediately due upon demand.”

It appears that at the time the agreement was signed, the parties believed that an omission had occurred. Consequently, after the signature lines, and in the handwriting of the attorney for the defendants Sageser, appeared the following provision:

If at any time in the future any party to this agreement desires to withdraw, or if either Mr. Reilly or Mr. Sageser should become permanently disabled or die, then the surviving interest shall arrange to purchase the entire interest of Reillys or Sagesers, as the case may be, at the actual contract investment of the withdrawing party, plus cost of permant [sic] improvements invested by such withdrawing party, and such purchase shall be evidenced by standard real estate contract (Form L 138 of Commonwealth Title Co.) payable in equal monthly inr staüments over 10 years, or sooner, at the option of tfie the purchaser, payments to include interest at Q% on declining balances. .
This handwritten paragraph was initialed by the parties.

*8 In February, 1968 the plaintiffs, relying upon paragraph 8 of the agreement, commenced an action against the defendants in which the only relief sought was contribution for contract payments, taxes, and repairs to a water pump servicing the entire property. The complaint alleged that since the inception of the agreement, the defendants had paid nothing toward the expenses they had agreed to pay and had vacated the home which the defendants had agreed to occupy. There was nothing in the complaint, however, indicating that plaintiffs sought to withdraw from the agreement.

The defendants filed an answer and cross complaint, which in effect denied that any sums were due under the agreement and by way of cross complaint sought damages of $3,000 on account of the plaintiffs’ refusal to permit them to occupy the smaller home, and other miscellaneous items of damages.

It was also alleged in the cross complaint that the plaintiffs had consented to relieve the defendants from the contract payments, since they were occupying the smaller house and inasmuch as they had rented out the larger home. The defendants asked that the complaint be dismissed, that they be given damages, and that the property be partitioned.

The trial court entered findings of fact that the plaintiffs were entitled to contribution in the sum of $605.48 for contract payments, insurance, taxes, pump repairs, and propane gas for heating the smaller home. This finding was supported by substantial evidence. The trial court further found that the defendants had not proved any damages with reference to the cross complaint and dismissed the same. Our review of the record convinces us that the trial court was correct in its oral ruling on this issue when it stated: “Well, frankly, there is a lack of proof of the damage, but even if it is established there was some damage, there is no proof that any of it was due to anything that the Plaintiff did.” (Statement of facts 117).

The court further found that the parties “have been un *9 able to agree as to the use and maintenance of the property and their respective responsibilities therefor . . .”. Because of the disagreements between the parties, the court concluded that the property should be partitioned as defendants claimed. Accordingly, the court effected a division of the real estate, apportioning the contract payment and taxes between the parties.

The plaintiffs’ appeal contended that the trial court erred in refusing to give effect to the agreement of the parties and by directing a partition of the real property. The plaintiffs argue that the trial court was obliged, because of the agreement between the parties, to treat the cross complaint of the defendants as a “desire to withdraw” from the agreement and, consequently, to permit the plaintiffs to purchase the entire interest of defendants for the actual contract investment, plus cost of improvements, if any.

The issue involved in this case is whether or not the agreement altered the property interests created by the quitclaim deed to the extent that partition was not available as a remedy to the defendants. We must also ascertain whether or not the trial court’s findings support the remedy of partition.

There is no doubt that the quitclaim deed created a joint tenancy between the parties as authorized by statute, since it created a right of “survivorship and severability as at common law.” (See RCW 64.28.010). However, the agreement entered into by the parties on November 25, 1966, and in particular the handwritten paragraph, destroyed the right of survivorship by providing that in the event of death, the survivor could purchase the deceased party’s interest for the contract investment. Such an agreement, inconsistent with the common law survivorship under a joint tenancy, terminates such a tenancy. Teutenberg v. Schiller, 138 Cal. App. 2d 18, 291 P.2d 53 (1955).

A joint tenancy may be converted into a tenancy in common by agreement or by the failure of an attempt to create a joint tenancy. 4 G. Thompson, Real Property *10 § 1795, at 123 (1961). This is-also the result under RCW 64.28.020, which provides: •

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Bluebook (online)
467 P.2d 358, 2 Wash. App. 6, 1970 Wash. App. LEXIS 1077, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reilly-v-sageser-washctapp-1970.