Cox v. Cox

• Decision Date: 03 June 2003
• Docket Number: No. 28329.,28329.
• Citation: 138 Idaho 881,71 P.3d 1028
• Parties: Charles W. COX, Plaintiff-Appellant, v. Catharine COX, Defendant-Respondent.
• Court: Idaho Supreme Court

71 P.3d 1028

138 Idaho 881

Charles W. COX, Plaintiff-Appellant, v. Catharine COX, Defendant-Respondent.

No. 28329.

Supreme Court of Idaho, Boise, March 2003 Term.

June 3, 2003.

Finney & Finney, Sandpoint, for appellant. Gary A. Finney argued.

Elsaesser Jarzabek Anderson Marks Elliot & McHugh, Chtd., Sandpoint, for respondent. Cynthia A. Elliott argued.

KIDWELL, Justice.

Charles W. Cox (Charles) sued his sister Catharine Cox (Cathy): (1) for an accounting of funds he and Cathy inherited from their mother; (2) for a lien on a home Cathy purchased with those funds; and (3) to quiet title in a home in which Charles quitclaimed a one-half interest to Cathy. Charles appeals the district court's findings in favor of Cathy. The judgment of the district court is affirmed.

I. FACTS AND PROCEDURE

Charles and Cathy are the only children of Grace R. Swartzbaugh (Grace). Grace lived with Charles in California from approximately 1985 until her death on June 8, 1992. At the time of Grace's death, Cathy and her husband lived in Alaska. Grace executed a will prior to her death. With the exception of $1,000 given to Cathy's daughter, Grace's will left her entire estate to Charles and Cathy in equal shares. The will named Charles as executor. Charles never probated the will.

Aside from some personal property, the record shows the bulk of Grace's estate consisted of a checking and savings account. Grace's accounts were held jointly with Charles. On June 8, 1992, the accounts totaled $34,814.00. After Grace's death, the accounts continued to accrue interest. In early August 1992, Cathy traveled to California and she and Charles sold Grace's personal items that neither wanted. At that time, Charles and Cathy mutually agreed to distribute $1,000 from Grace's estate to each of their children. Charles alleges he also advised Cathy that they needed to find a better way to invest the money in Grace's accounts and it was in their best interest to keep the money in one lump sum in order to get a better return. Cathy alleges she advised Charles to settle Grace's affairs and send her her share of Grace's estate. On August 31, 1992, Grace's accounts collectively held $35,173.00. Charles removed Grace from the accounts and added Cathy.

In December 1992, Charles withdrew $33,308 from the accounts and sent a cashier's check to Thomas Beauvais (Beauvais), an investment broker and friend of Cathy's in Alaska, with instructions to invest the $33,308. Cathy assumed this money represented her share of Grace's estate. There was no indication given to Beauvais by Charles that he had any interest in the $33,308. Beauvais invested the $33,308 in an annuity (Alaska account), which named Cathy as the sole annuitant and Charles as the beneficiary upon death. The remaining money paid for Grace's funeral expenses and $1,000 was distributed to Charles' son.

In 1996, Cathy divorced and moved from Alaska to California to live with Charles. In the spring of 1997, Charles and Cathy began to look for property in Sandpoint, Idaho. On May 27, 1997, Charles and Cathy entered into a sale agreement to buy a home at 4705 Upper Pack River Road (Pack River house), Sandpoint. On July 18, 1997, Cathy was removed as a party to the sale agreement because she did not qualify for financing. On the same day, Charles drafted a quitclaim deed, granting a one-half interest in the Pack River house to Cathy. Cathy alleges she was not made aware of the quitclaim deed until April 1998. Charles maintains they both intended to own the Pack River house jointly, even though Cathy's name was removed from the closing documents, and Cathy would pay Charles for one-half of all the expenses associated with purchasing the house. Cathy claims she did make a gift of $10,000 to Charles to help with the down payment. Charles denies this. Charles gave Cathy a letter acknowledging a $10,000 gift, but Charles maintains the $10,000 came from his own account and the letter was to establish Cathy gave value for the quitclaim deed. Cathy made no other payments to Charles toward expenses for the Pack River house.

Charles closed on the Pack River house. On July 29, 1997, Charles and Cathy moved to the Pack River house. On August 19, 1997, Cathy's quitclaim deed was recorded. The quitclaim deed was not recorded until after the closing in order to prevent the lender from learning of it. During the spring of 1998, Charles and Cathy began experiencing differences with one another. On June 16, 1998, Cathy transferred the funds from the Alaska account to an account with First Security Bank Investor Service (First Security account) in Sandpoint. Charles was present when the transfer occurred, but made no mention of his alleged one-half interest in the money. The original $33,308.00 had grown to $43,099.00. At some point, the bickering between the siblings escalated and Charles advised Cathy he was going to sell the Pack River house and she needed to find other living arrangements. Shortly thereafter, Cathy closed the First Security account, paying $2,585.00 on the taxable gain. Cathy moved from the Pack River house and used the remaining money from the First Security account to purchase a home at 1041 Cedar Street (Cedar Street house) in Sandpoint.

On November 23, 1998, Charles sued Cathy seeking an accounting of the funds from the First Security account, a lien on the Cedar Street house to the extent his share of the funds from the First Security account were used to purchase it, to quiet title in the Pack River house, and for damages resulting from personal property Cathy allegedly took when she moved. On February 23, 1999, Cathy answered and counterclaimed for a partition of the Pack River house, for a partition of personal property, and for a constructive trust for the value of one half of Grace's estate.

On June 25 and 26, 2001, the district court conducted a bench trial. Charles and Cathy resolved their claims for personal property by stipulation during trial. On November 30, 2001, the district court entered findings of fact and conclusions of law in favor of Cathy. On January 31, 2002, the district court entered judgment dismissing Charles' claims for an accounting of funds, a lien on the Cedar Street house, and to quiet title in the Pack River house. The judgment also quashed a lis pendens recorded by Charles and granted Cathy's claim for partition of the Pack River house. The district court awarded Cathy costs and attorney fees. Charles timely filed this appeal.

II. STANDARD OF REVIEW

When a lower court decides against a plaintiff based on lack or weight of evidence, the lower court finds the plaintiff failed to meet its burden of proof. Bouten Constr. Co. v. M & L Land Co., 125 Idaho 957, 965, 877 P.2d 928, 936 (Ct.App.1994) (quoting County of Canyon v. Wilkerson, 123 Idaho 377, 381-82, 848 P.2d 435, 439-40 (Ct.App.1993)). On appeal, this Court reviews the lower court's decision to determine if it was "clearly erroneous." Id. A lower court's factual findings will not be deemed clearly erroneous unless this Court, after reviewing the record, is certain the lower court erred. Id. There is no clear error if the lower court's findings are supported by substantial, competent evidence. Id. This Court defers to the lower court's unique opportunity to determine the credibility of witnesses. Id. Evidence is substantial and competent if a reasonable trier of fact would accept it and rely on it. McCray v. Rosenkrance, 135 Idaho 509, 513, 20 P.3d 693, 697 (2001); Williamson v. City of McCall, 135 Idaho 452, 454, 19 P.3d 766, 768 (2001). Findings based on substantial, competent evidence, even if conflicting, will not be disturbed on appeal. Bolger v. Lance, 137 Idaho 792, 794, 53 P.3d 1211, 1213 (2002).

The district judge's decision to grant or deny a motion to amend a complaint is discretionary. Trimble v. Engelking, 134 Idaho 195, 196, 998 P.2d 502, 503 (2000). Absent an abuse of discretion, the Court will not reverse the district judge's ruling. Id.

This Court exercises free review over Conclusions of law. Id.

III. ANALYSIS

A. The District Court Did Not Err In Deciding Charles Is Not Entitled To An Accounting Of The Funds Cathy Used To Purchase The Cedar Street House.

1. Charles failed to prove he is entitled to one-half of the funds from the First Security account.

Charles seeks an accounting of the funds invested in the annuity account on Cathy's behalf. An accounting is an equitable remedy. See Farmer v. Loofbourrow, 75 Idaho 88, 92, 267 P.2d 113, 115 (1954)

; Havelick v. Chobot, 123 Idaho 714, 718, 851 P.2d 1010, 1014 (Ct.App.1993). The goal of an accounting is to ascertain a party's interest in property and to determine the value of the party's interest. See Havelick v. Chobot at 718, 851 P.2d at 1014. When two parties are unable to settle their joint financial affairs, an accounting is an appropriate remedy. Id.

The district court concluded that Cathy possessed the funds from the First Security account and that possession of personal property was prima facie evidence of her ownership. Based on the evidence provided at trial, the district court found, "Charles has not met his burden of rebutting the presumption that Cathy was the sole owner of the personal property, the funds which were later invested in her home."

Until Charles sent the $33,308 to Beauvais, Cathy testified she was unaware of how much money Charles would send her. Cathy testified that it was her understanding Charles would send her one-half of Grace's estate. The testimony and evidence at trial reveals Charles, a person the record shows to be competent in financial matters, neither mentioned his alleged one-half interest in the $33,308 he sent to Cathy, nor took any steps to protect his alleged one-half interest, until he filed this lawsuit. The cashier's check Charles sent to Cathy was sent in Cathy's name only and did not require an endorsement from Charles. Charles failed to protest when Cathy purchased the...