Roger Stamper as Trustee of the Stamper Revocable Trust v. Hon Linda Rae Bramlage Special Judge, Grant Circuit Court

Kentucky Supreme Court·Decided May 2, 2016·No. 2015 SC 000477·Unknown

Opinion

IMPORTANT NOTICE NOT TO BE PUBLISHED OPINION

THIS OPINION IS DESIGNATED "NOT TO BE PUBLISHED." PURSUANT TO THE RULES OF CIVIL PROCEDURE PROMULGATED BY THE SUPREME COURT, CR 76.28(4)(C), THIS OPINION IS NOT TO BE PUBLISHED AND SHALL NOT BE CITED OR USED AS BINDING PRECEDENT IN ANY OTHER CASE IN ANY COURT OF THIS STATE; HOWEVER, UNPUBLISHED KENTUCKY APPELLATE DECISIONS, RENDERED AFTER JANUARY 1, 2003, MAY BE CITED FOR CONSIDERATION BY THE COURT IF THERE IS NO PUBLISHED OPINION THAT WOULD ADEQUATELY ADDRESS THE ISSUE BEFORE THE COURT. OPINIONS CITED FOR CONSIDERATION BY THE COURT SHALL BE SET OUT AS AN UNPUBLISHED DECISION IN THE FILED DOCUMENT AND A COPY OF THE ENTIRE DECISION SHALL BE TENDERED ALONG WITH THE DOCUMENT TO THE COURT AND ALL PARTIES TO THE ACTION.

RENDERED: MAY 5, 2016

NOT TO BE PUBLISHED

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ROGER STAMPER, AS TRUSTEE OF THE STAMPER REVOCABLE TRUST APPELLANT

ON APPEAL FROM COURT OF APPEALS V. CASE NO. 2015-CA-000885-OA GRANT CIRCUIT COURT NO. 07-CI-00050

HONORABLE LINDA RAE BRAMLAGE, SPECIAL JUDGE, GRANT CIRCUIT COURT APPELLEE

AND MIA STAMPER; AND MICHAEL A. STAMPER REAL PARTIES IN INTEREST

MEMORANDUM OPINION OF THE COURT AFFIRMING

The Appellant, Roger Stamper, owns various items of real property in trust that he is alleged to have acquired with funds transferred to him by his son as part of the son's fraud on the marital estate in his divorce action. The Montgomery Circuit Court has ordered the properties held in constructive trust for the benefit of the son's wife, and has ordered the judicial sale of the properties to satisfy a judgment against the son. The court allowed a supersedeas bond, but one has not been posted. Is the remedy of an appeal, with a supersedeas bond, an adequate one for Roger so as to bar the availability of a writ of prohibition barring the judicial sale? We conclude that it is.

I. Background

Roger's son, Michael Stamper, was married to Mia Stamper. Michael and Mia began divorce proceedings in 2007. Michael had substantial assets in the form of a trucking company and bank deposits. The trial court ordered the parties not to dispose of or sell any assets while the divorce was pending. Mia alleged that Michael nevertheless fraudulently transferred these assets to his father during the divorce action to avoid their being used in calculating the marital estate.

The details of the alleged transactions are irrelevant here, and are the subject of ongoing appeals at the Court of Appeals. It suffices to note that the assets of the trucking company made their way into Roger's hands, and were then transferred to a pair of companies that he owned. There may also have been a transfer of cash reserves, as Michael's previously seven-figure bank account dropped to zero, and Roger's increased by that amount (and more over time). Additionally, Roger bought nine pieces of real estate in Montgomery County, which were placed into a pair of trusts. The trial court concluded that these transactions and the operation of Roger's trucking companies were actually on behalf of Michael.

Given these allegations, the trial court allowed Roger and his trucking company to be joined in the divorce action. The trusts were never drawn into the action. Roger was never served, however, and he refused to appear or to be deposed.

Based on what happened, the trial court concluded that Michael transferred his business property and income to his father, and that the

transfers were fraudulent and calculated to make Michael judgment proof. The trial court evidently believed parcels of property were bought with funds derived from the transfers, either from income generated by the trucking companies or the bank deposits. As a result of the fraud finding, the court ordered that the property held by Roger, his company, and the trusts be held in constructive trust for Mia's benefit. The court noted that although Roger had never been served, he had constructive notice of the proceedings, and that the court had in rem jurisdiction over the property in Kentucky, and quasi in rem jurisdiction over Roger and his companies as it relates to the Kentucky property.

Eventually, the trial court entered a divorce decree and divided the marital estate. This included a substantial judgment in Mia's favor for over $700,000 against Michael. The trial court later ordered that the real estate held by Roger in trust, and which was part of Michael's overall allegedly fraudulent scheme, be sold by the master commissioner to satisfy the judgment against Michael. The court set a supersedeas bond of $1,000,000 if Roger wished to postpone the sale while any appeal went forward. He did not post the bond, although he appealed.

This case, however, arises not from that appeal, but from a petition for writ of prohibition to bar the judicial sale. The Court of Appeals denied the petition, concluding that there was an adequate remedy by appeal.

Roger has now appealed to this Court as a matter of right.

II. Analysis

As we have noted on many occasions, cases in which a writ of prohibition or mandamus is sought proceed in two steps. Collins v. Braden, 384 S.W.3d 154, 158 (Ky. 2012). First, the court must look at whether such an extraordinary remedy is even available, before deciding the merits of the claimed legal error. Id. Second, if the court finds that the remedy is available, it may then look at the merits of the claimed error. Id. In this second step, if the trial court has erred or is about to err, the court may issue the writ. Id.

Under the first step, we have acknowledged two classes or categories of writ cases: "one addressing claims that the lower court is proceeding without subject matter jurisdiction and one addressing claims of mere legal error." Id. at 158. For both classes of case, "this Court has articulated a strict standard to determine whether the remedy of a writ is available." Cox v. Braden, 266 S.W.3d 792, 796 (Ky. 2008). That standard states:

A writ of prohibition may be granted upon a showing (1) the lower court is proceeding or is about to proceed outside of its jurisdiction and there is no remedy through an application to an intermediate court; or (2) that the lower court is acting or is about to act erroneously, although within its jurisdiction, and there exists no adequate remedy by appeal or otherwise and great injustice and irreparable injury will result if the petition is not granted.

Hoskins v. Maricle, 150 S.W.3d 1, 10 (Ky. 2004).

Roger does not claim entitlement to a writ under the first class, although he claims the trial court never had personal jurisdiction over him, as he was never served, and that this was error. Presumably, he declined to make a claim under this class of writs because this Court has held that the lack of personal

jurisdiction is not an adequate basis for a writ. See Goldstein v. Feeley, 299 S.W.3d 549 (Ky. 2009).

Instead, Roger claims entitlement under the second class of writs. Under that class, a petitioner must show two prerequisites for availability of the writ, that is, that "there exists no adequate remedy by appeal or otherwise and great injustice and irreparable injury will result if the petition is not granted." Hoskins, 150 S.W.3d at 10. Of the two prerequisites, the first is mandatory, and thus Roger is required to prove that he has no adequate remedy by' appeal. Marcum v. Scorsone, 457 S.W.3d 710, 716 (Ky. 2015).

Roger claims that he has no adequate remedy by appeal because the properties may be sold before his pending appeals are decided. Roger is correct that even if he wins on appeal, he likely will not be able to unwind any sales that happen in the meantime. Although Roger would likely be able to access any funds realized from such sales if he succeeds on appeal, real property, unlike personal property, is generally considered "unique," and its loss is not considered remediable at law (i.e., by money damages), at least where the law of contracts is concerned.

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Roger Stamper as Trustee of the Stamper Revocable Trust v. Hon Linda Rae Bramlage Special Judge, Grant Circuit Court, (Ky. 2016).

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