Carroll v. Lee
Decision Date | 24 June 1985 |
Docket Number | No. 2,CA-CIV,2 |
Citation | 148 Ariz. 21,712 P.2d 934 |
Parties | Judith (Lee) CARROLL, Plaintiff/Appellee, v. Paul T. LEE, Defendant/Appellant. 5283. |
Court | Arizona Court of Appeals |
This is an appeal of an amended judgment on a complaint for partition of certain real and personal property. The parties, Judith Carroll and Paul Lee, had lived together since the late 1960s, holding themselves out as man and wife and using the same last name (Lee), although they had never married nor seriously contemplated marriage. They filed several joint income tax returns as a married couple. For most of their 14 years together, Judy and Paul lived in Arizona, moving to Ajo around 1973. They lived together until the summer of 1982. Appellant Paul Lee spent almost all his time in his business as a mechanic, including building antique cars from scrap parts. Judith Carroll kept house and was self-employed between 1978 or 1979 and 1982 in a photography business, most of the income of which went back into the business. Judith Carroll had a separate bank account for her business. She was the only signatory. Judith and Paul had a joint checking account, which Judith opened in 1978, but which Paul never utilized, since he preferred to deal in cash in his business. Judith paid the household expenses out of this joint account, which was presumably fed by the earnings of Paul Lee, since Judith made "very, very little money" from the photography business and in any case put most of the proceeds from "Photos by Judy" into her separate business account. "Some of it [the money from the photography business] was spent on household, whatever." Appellant testified he never saw any money from the photo business.
During their years together Paul Lee bought several parcels of real property and some antique cars in various states of disrepair, which he put into his and Judy's names as husband and wife, sometimes as joint tenants with right of survivorship. These items of property, along with several items of household furnishings, are the subject of the partition action brought by Judy. It is undisputed that these purchases were financed exclusively from Paul's earnings from his business. Both parties agree that they began their relationship with virtually no personal or real property. Almost from the time the two parties arrived in Ajo, they began going their separate ways, although they continued to maintain a common household.
The sole issue on appeal is whether the evidence supports the existence of a legally enforceable agreement which would justify the awarding of essentially equal shares, when the parties were non-marital cohabitants. We agree with appellee that the key to deciding this issue is Cook v. Cook, 142 Ariz. 573, 691 P.2d 664 (1984). The type of agreement approved in Cook was one between unmarried cohabitants "to pool income, acquire assets and share in the accumulations." Mutual promises of "share and share alike" with respect to economics would seem to have been the consideration deemed proper in that cohabitant relationship. "A promise to contribute funds to a 'pool' of income is proper consideration." Cook v. Cook, 142 Ariz. at 579, 691 P.2d at 670. Such an agreement and the mutual promises which make it up can be separated from any otherwise illegal arrangement (see A.R.S. § 13-1409) and it thus becomes enforceable. But no evidence, in words or conduct, suggests mutual promises to contribute funds to a pool in the instant case. On the contrary, the implied agreement specifically described and delimited by the conduct of the parties in this case was an exchange of unlike services: one cohabitant's homemaking services for the other's monetary support. Judith Carroll described the agreement:
"Q. All right. What type of an arrangement, if any, did you and Paul discuss about what he expected from your relationship in terms of your contribution?
A. We didn't really discuss it. It just was there. He went to work. I stayed home and kept the house and, mostly because that's what he wanted me to...
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Carroll v. Lee
...of appeals reversed the award primarily on its interpretation of Cook v. Cook, 142 Ariz. 573, 691 P.2d 664 (1984). See Carroll v. Lee, 148 Ariz. 21, 712 P.2d 934 (1985). The court found that no valid agreement existed and that Judy held the property in a resulting trust for Paul's benefit. ......