Shaw v. Smith

964 P.2d 428, 1998 Wyo. LEXIS 145, 1998 WL 658377
CourtWyoming Supreme Court
DecidedSeptember 28, 1998
Docket97-236
StatusPublished
Cited by20 cases

This text of 964 P.2d 428 (Shaw v. Smith) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shaw v. Smith, 964 P.2d 428, 1998 Wyo. LEXIS 145, 1998 WL 658377 (Wyo. 1998).

Opinion

TAYLOR, Justice.

Appellant, Laurie J. Shaw (Shaw), accepted employment with a California corporation, Smith, Gosnell, Nicholson & Associates (SGN), at the request of its president and major shareholder, Crayton Smith (Smith). Several years later, Shaw began a live-in relationship with Smith that lasted for over nine years. When Shaw was removed from Smith’s household and later terminated from her job, she filed claims against Smith for breach of express and implied contract and unjust enrichment, and a claim against SGN for wrongful termination. The district court dismissed SGN, ruling the corporation was not subject to personal jurisdiction, and later granted summary judgment in favor of Smith on Shaw’s remaining claims.

Since Shaw presented a prima facie case showing that SGN’s contacts with Wyoming were sufficient to establish jurisdiction, and finding evidence creating a genuine issue of material fact regarding Shaw’s claims against Smith, we reverse and remand for further proceedings.

I.ISSUES

Shaw presents the following issues for review:

1.Whether evidence of a cohabiting couple’s agreement to share in the financial growth of their ten-year association and their conduct in maintaining a stable, mutually beneficial, family relationship requires a jury decision on the ultimate issues of the creation of an express contract or an implied contract.
2. Whether evidence of the parties’ agreement to share equally in the control, direction and pecuniary outcome of then* rental property enterprise requires a jury decision on the ultimate issue of the creation of a partnership or joint venture.
3. Whether one cohabitor is entitled to recover the reasonable value of her services to the other cohabitor, when she provides such services, in part, in exchange for his commitment to share equally in the financial growth of their association.
4. Whether Wyoming recognizes a claim for just and equitable division of property earned during a long, stable, non-marital, family relationship.
5. Whether a California corporation subjects itself to the personal jurisdiction of Wyoming courts by establishing an office in Wyoming, employing workers in Wyoming, and transacting business in Wyoming.

Appellee, Smith, states the issues as follows:

1. To create an express contract, Wyoming law requires, inter alia, (1) consideration and (2) a meeting of the minds. Is there a genuine issue of material fact as to the formation of an express contract between the parties where the terms of the contract are vague and unclear, and the evidence fails to show that the consideration for the contract was bargained for by both parties?
2. For an implied contract to exist proof of the intention of the parties is essential. Is there a genuine issue of material fact with regard to the formation of an implied contract between parties where the conduct of one party does not show an intention to enter into a contractual relationship?
3. Is Appellant entitled to recover the value of household services rendered during the period of the parties’ cohabiting relationship where there is no contract between the parties and where the evidence does not reflect that Appellee had reason *431 to know that Appellant expected additional compensation for such services?
4. A partnership or joint venture is formed where the parties (1) have an equal right of control over the venture' and (2) agree to share in both the profits and losses of the business endeavor. Is there a genuine issue of fact with regard to the formation of a joint venture where Appellant did not have the right to transfer or convey the investment properties and where Appellant admits that the parties did not agree that they would share in the profits and the losses associated with the investment properties?
5. Should the property acquired by one party during the period of a cohabiting relationship be treated as marital property upon dissolution of the relationship?
Appellee, SGN, presents one issue:
Whether' a corporate officer/shareholder who telecommutes from the forum state may subject a foreign corporation to personal jurisdiction, particularly when the plaintiffs claim arises from the telecommuter’s individual activities, as opposed to his corporate activities.

II. FACTS

Pursuant to our standard of review, we present the facts in the light most favorable to Shaw. In 1979, Smith offered Shaw a job as an independent contractor for the Jackson, Wyoming office of his talent agency, SGN’s predecessor. Shaw worked for Smith until 1984, when he moved the operations back to California. During 1984 and 1985, Smith repeatedly asked Shaw to move to California and work with him at SGN. Shaw contends she agreed after Smith told her he wanted to be equal partners in both business and in life.

Shaw moved to California and received compensation from SGN of $500.00 per week, $150.00 per week in expense money, use of a company car, credit card, telephone card, a pension plan, and health insurance. Initially, Shaw resided in Smith’s home but did not share his bedroom. Between six months and a year* later, their growing personal relationship resulted in a modification of the sleeping arrangements. After moving into Smith’s bedroom, the couple lived as a family and Shaw assumed a primary role in raising Smith’s two children. Throughout their relationship, Smith insisted Shaw’s care of him and the children was one of her essential functions.

Smith provided financial resources for the household and repeatedly promised to “take better care of [Shaw] than anyone else could.” Thus, Shaw’s wages from SGN were not contributed. to household expenses, but were retained for her personal needs and gifts for Smith, his children, and her family. In 1989, the couple returned to Jackson where Shaw continued to work for SGN in an office located in their home. In addition to her job at SGN and her household responsibilities, Shaw helped in the care and showing of Smith’s prize Arabian horses. She also assisted Smith in the purchase and management of rental properties in Wyoming, California, and Arizona, with ownership of the properties held in the C. Crayton Smith Liv-' ing Trust (the Living Trust). Shaw contributed her own funds to the purchase of only one of the properties. When her interest was later purchased by Smith at a profit to her, she invested the profit independently.

At some point in 1990, Shaw expressed to Smith her concern that his repeated promises of financial security were not sufficient protection. Smith responded by modifying the revocable Living Trust and creating the Charles Crayton Smith Irrevocable Trust # 2 (Trust # 2). Trust # 2 provided that in the event of Smith’s death, Shaw would receive a distribution of income conditioned on the age of the children and the amount of time they resided with her. The Living Trust, which held the majority of Smith’s assets, was amended to provide that if his children and all their descendants were deceased at the time of Smith’s death, the trust would be terminated and seventy-five percent of the balance distributed to Shaw.

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Bluebook (online)
964 P.2d 428, 1998 Wyo. LEXIS 145, 1998 WL 658377, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shaw-v-smith-wyo-1998.