Gereighty v. Domingue

• Decision Date: 30 May 2018
• Docket Number: NO. 17–CA–339,17–CA–339
• Citation: 249 So.3d 1016
• Parties: Peggy T. GEREIGHTY v. Tavis C. DOMINGUE
• Court: Court of Appeal of Louisiana — District of US

249 So.3d 1016

Peggy T. GEREIGHTY

v.Tavis C. DOMINGUE

NO. 17–CA–339

Court of Appeal of Louisiana, Fifth Circuit.

May 30, 2018

COUNSEL FOR PLAINTIFF/APPELLEE, PEGGY T. GEREIGHTY, Lisa Brener

COUNSEL FOR PLAINTIFF/APPELLEE, STATE OF LOUSIANA DEPARTMENT OF CHILDREN AND FAMILY SERVICES, Paul D. Connick, Jr., Amanda L. Calogero, Timothy P. O'Rourke

COUNSEL FOR DEFENDANT/APPELLANT, TAVIS DOMINGUE, Lizette A. Miller–Radovic, John A. Venezia

Panel composed of Judges Jude G. Gravois, Marc E. Johnson, and Hans J. Liljeberg

LILJEBERG, J.

Appellant, Jeff Bratton, in his capacity as the court-appointed independent administrator for the estate of decedent, Tavis Domingue, seeks review of the trial court's February 14, 2017 judgment, which granted an exception of no cause of action filed by appellee, Peggy T. Gereighty, and dismissed appellant's claims against her with prejudice. He also seeks review of the trial court's denial of his exception of res judicata and contends the trial court should not have ruled on Ms. Gereighty's exception of res judicata because she did not file an objection to the domestic commissioner's ruling.

For reasons set forth more fully below, we affirm the trial court's judgment which denied appellant's exception of res judicata. We further affirm the portion of the trial court's judgment which granted the exception of no cause of action and dismissed reimbursement claims for expenses Mr. Domingue allegedly paid during the marriage. However, we reverse the trial court's decision to grant Ms. Gereighty's exception of no cause of action and dismiss Mr. Domingue's claim to recover an estimated $40,000 he withdrew from his retirement plan and provided to Ms. Gereighty prior to their marriage. We also vacate the trial court's ruling with respect to Ms. Gereighty's exception of res judicata and reinstate the domestic commissioner's ruling on this exception.

Finally, we find Ms. Gereighty's exceptions of lack of procedural capacity and no right of action first filed with this Court, as well as her motion to dismiss the appeal, are moot due to the substitution of the court-appointed independent administrator in these appellate proceedings for decedent, Tavis Domingue.

FACTUAL AND PROCEDURAL BACKGROUND

This matter originated as a petition for divorce, custody and child support filed by appellee, Peggy T. Gereighty, on October 3, 2014. Ms. Gereighty alleged the parties married on October 12, 2002, and have a daughter born on August 17, 2010. On April 16, 2015, Mr. Domingue filed an answer and reconventional demand in response to the petition.

In the reconventional demand, Mr. Domingue sought reimbursement for $40,000 he allegedly provided to Ms. Gereighty for a down payment to purchase an interest in her separate property residence and other payments he allegedly made on her behalf with respect to this separate property. He alleged that on October 2, 2002, the parties entered into a Prenuptial Marriage Contract for a Separate Property Regime ("Prenuptial Contract"). Prior to their marriage, Ms. Gereighty owned a home located at 3301 Clifford Drive in Metairie, Louisiana. ("Clifford Property") with her brother.¹ Mr. Domingue alleged that he provided $40,000 out of his separate funds to Ms. Gereighty for a down payment for her to buy her brother's half interest in the Clifford Property. Mr. Domingue alleged that he provided Ms. Gereighty the down payment because he believed they would have a lasting marriage. He alleged he was entitled to a reimbursement because he only resided in the home for four and a half years during their marriage.² He also sought reimbursements for payments he made for the mortgage, taxes, property insurance and repairs to the Clifford Property.

On April 29, 2015, Ms. Gereighty filed several exceptions in response to the reconventional demand, including an exception of no cause of action alleging the Clifford Property was her separate property purchased with her separate funds. She further alleged that pursuant to the terms of the Prenuptial Contract, the parties were not under a community property regime and any funds Mr. Domingue provided to her or paid on her behalf were gifts and not subject to reimbursement.

On June 15, 2015, the domestic commissioner granted Ms. Gereighty's exception of no cause of action and denied Mr. Domingue's request to amend his reconventional demand to reallege his reimbursement claims. Mr. Domingue filed a timely objection, and following a pre-trial conference, the trial court agreed to allow Mr. Domingue thirty days to amend the allegations in his reconventional demand.

On July 22, 2015, Mr. Domingue filed his First Amended Reconventional Demand, which completely replaced all allegations in the original demand. He raised the same factual allegations regarding the $40,000 he provided to Ms. Gereighty for the down payment on the Clifford Property. He further alleged that the funds he provided to her were not a gift and alleged he was entitled to reimbursement of the $40,000 he paid to her from his separate funds, as well as mortgage payments he made to satisfy Ms. Gereighty's separate debt, pursuant to the doctrine of unjust enrichment set forth in La. C.C. art. 2298. Alternatively, he argued he was entitled to relief pursuant to the community property partition provisions set forth in La. R.S. 9:2801. He additionally sought reimbursement for half of the increased value of the Clifford Property during their marriage pursuant to La. C.C. art. 2368, and alleged an alternative claim based on Ms. Gereighty's alleged bad faith and fraud "regarding the $40,000 separate property funds, the purchase of her brother's portion of [the Clifford Property], and the mismanagement of the community property portion of [the Clifford Property]" pursuant to La. C.C. art. 2354.

Ms. Gereighty did not file an answer or exceptions in response to the First Amended Reconventional Demand. Mr. Domingue then engaged in discovery by issuing subpoenas duces tecum to Ms. Gereighty's bank and mortgage company. Following this discovery, Mr. Domingue filed a Second Amended Reconventional Demand, which again completely replaced all allegations set forth in the First Amended Reconventional Demand. In his Second Amended Reconventional Demand, Mr. Domingue alleged the same causes of action outlined above. However, he provided different and more detailed facts regarding the "estimated $40,000" he provided to Ms. Gereighty. He alleged for the first time that he provided the funds for the down payment "with the understanding that he would own a portion of the house and that the purpose of the down payment was to reduce their monthly mortgage note." He again reiterated that the funds were not a gift to Ms. Gereighty.

He also explained for the first time that he provided the funds for the down payment prior to signing the Prenuptial Contract on October 2, 2002 and prior to their October 12, 2002 marriage. Mr. Domingue alleged that he requested the funds for the down payment for the Clifford Property on July 10, 2002. On July 31, 2002, $39,451.46 was withdrawn from his retirement account and he received a check in the amount of $31,561.17, after deducting federal taxes. On August 14, 2002, he deposited these funds in a joint bank account with Ms. Gereighty. On August 26, 2002, $29,500.00 was withdrawn and deposited into Ms. Gereighty's separate bank account. Mr. Domingue alleged that Ms. Gereighty did not use these funds for the down payment to purchase the Clifford Property, but rather immediately withdrew the funds to pay her separate debts.³

Mr. Domingue alleged that on November 15, 2002, after the parties married, Ms. Gereighty purchased her brother's interest in the Clifford Property for $133,500 in her name only. She also entered into a mortgage on that same day borrowing $160,000.00 against the Clifford Property. Mr. Domingue alleged Ms. Gereighty told him his name could not be on the act of sale "due to his credit." Mr. Domingue claimed he relied on these representations, but contended they were false.

Mr. Domingue again alleged he was entitled to reimbursement of the funds he provided for the down payment, as well as payments he made towards the mortgage and health insurance premiums, under the theory of unjust enrichment as set forth in La. C.C. art. 2298, as well as La. C.C. art. 2373, which governs the sharing of expenses in a community property regime. Mr. Domingue also alleged community property claims in the alternative, pursuant to La. R.S. 9:2801, and realleged a claim for half of the increased value of the Clifford Property during their marriage pursuant to La. C.C. art. 2368. He also restated his previous claim for fraud and bad faith management of community property pursuant to La. C.C. art. 2354.

In response, on August 31, 2016, Ms. Gereighty filed, inter alia , an exception of no cause of action seeking dismissal of the First and Second Amended Reconventional Demands. She again argued the parties were not under a community property regime and that pursuant to the terms of the Prenuptial Contract, acknowledged by Mr. Domingue, any funds Mr. Domingue gave to her were not subject to reimbursement.

She further alleged that Mr. Domingue did not have a cause of action for unjust enrichment because all funds provided to Ms. Gereighty were gifts or donations justified by the existence of their marriage. She further argued that another remedy at law was available—that is to seek revocation of the donations.

Ms. Gereighty and Mr. Domingue also both filed exceptions of res judicata. Ms. Gereighty argued the trial court's prior rulings prohibited Mr. Domingue from continuing his efforts to pursue a reimbursement claim. Mr. Domingue argued, on the other hand, that the parties' prior agreement and the trial court rulings estopped Ms. Gereighty from filing an exception of no cause of action seeking dismissal of his amended claims.

On January 19, 2017, the domestic commissioner signed a judgment, which...