Kroupa v. Kroupa, 19888

• Decision Date: 14 January 1998
• Docket Number: No. 19888,19888
• Parties: Delores KROUPA, Plaintiff, v. Marvin KROUPA, Defendant and Appellant, and Greg Kroupa and Diane Kroupa, Defendants and Appellees, and Edwin Kroupa, Robert Kroupa, Marie Kroupa, and Cheryl M. Younkin, Defendants.
• Court: South Dakota Supreme Court

Page 208

574 N.W.2d 208

1998 SD 4

Delores KROUPA, Plaintiff, v. Marvin KROUPA, Defendant and Appellant, and Greg Kroupa and Diane Kroupa, Defendants and Appellees,

and

Edwin Kroupa, Robert Kroupa, Marie Kroupa, and Cheryl M.

Younkin, Defendants.

No. 19888.

Supreme Court of South Dakota.

Argued Oct. 21, 1997.

Decided Jan. 14, 1998.

James C. Roby of Green, Schulz, Oviatt, Cummings & Linngren, Watertown, for defendant and appellant.

Brent A. Wilbur of May, Adam, Gerdes & Thompson, Pierre, for defendant and appellee Greg Kroupa.

Kimberley A. Mortenson of Mortenson Law Offices, Ft. Pierre, for defendant and appellee Diane L. Kroupa.

MILLER, Chief Justice.

¶1 In this appeal, Marvin Kroupa asserts that the trial court erred in ruling that it lacked jurisdiction over the trust property interests of Diane Kroupa and Cheryl Younkin when it earlier finalized a settlement agreement. In the alternative, Marvin argues that, even if the court did lack jurisdiction, it erred in vacating only a portion of the settlement agreement. We affirm in all respects.

FACTS

¶2 The Kroupa family is involved in an extensive farming and ranching operation in various South Dakota counties, including Brule. Otto Kroupa and his wife Marie started the operation in the 1950s. They had one son, Edwin. Edwin and his wife Delores had five children: Marvin Kroupa, Greg Kroupa, Robert Kroupa, Diane Kroupa, and Cheryl Younkin. Edwin assisted Otto in the farming and ranching operation, and they were later joined by Edwin's sons Marvin, Greg, and Robert. Otto died on January 7, 1988, leaving part of his estate to the Otto Kroupa Trust which he created in his will. ¹ Marie was appointed executrix of Otto's estate and Edwin was named trustee of the Otto Kroupa Trust. ²

¶3 In November of 1991, Delores filed for divorce from Edwin. While the divorce was pending, she filed a second lawsuit making claims against Marie, Edwin, Marvin, Greg, and Robert. In the second lawsuit, Delores alleged that Edwin, Marvin, Greg, and Robert had become partners in the farming and ranching operation even though no formal partnership was ever formed. She claimed that the others had conspired to exclude her from the operation. She sought compensatory and punitive damages on four separate grounds: (1) alleged fraud by Marie, Edwin, Marvin, Greg, and Robert; (2) conversion by Greg; (3) for an accounting of the family operation; and (4) civil assault and battery against Edwin. This lawsuit was ultimately consolidated with the divorce action.

¶4 After the two suits were consolidated, Robert made a motion, in which Marvin joined, seeking to join Diane and Cheryl as additional parties defendant based on their status as devisees, legatees, and beneficiaries under Otto's last will and testament. Delores then amended her complaint to add Diane and Cheryl as defendants. Diane answered the amended complaint and asserted that it failed to state a claim upon which relief could be granted. She also admitted that she owned an interest in real property in Brule County, South Dakota.

¶5 Robert filed and served an answer and cross claim to the amended complaint. The cross claim was against all of the defendants and included a claim for compensatory and punitive damages against Greg based on conversion. Robert agreed that an accounting should be had and that, if a partnership did indeed exist, it should be dissolved and its assets distributed. He also claimed that Diane and Cheryl had no rights or interest in any partnership property.

¶6 Marvin also responded with an answer and cross claim. He agreed that a partnership existed and should be dissolved, and also that an accounting should be had. His cross claim alleged conversion against Greg and claimed that Diane and Cheryl had no interest in any of the property. ³

¶7 The consolidated cases were set for trial starting on November 27, 1995. On that date, Delores, Edwin, Greg, Robert, and Marvin all personally appeared. Marie and Cheryl did not appear. Although Diane did not appear, she submitted a stipulation to the court. ⁴

¶8 The parties who appeared entered into a settlement agreement, which was placed on the record. Part of the settlement provided that Diane and Cheryl would retain their real estate interests which they had received by gift during Otto's lifetime. There was some discussion with the trial court as to whether or not Diane's and Cheryl's permission was needed to include their interests in the trust property in the settlement. Upon Marvin's request, the court ordered that their permission was not needed as they failed to appear even though they had sufficient notice of the issues.

¶9 On March 20, 1996, Diane filed objections to the settlement and proposed judgment based thereon, arguing lack of jurisdiction by the trial court. Specifically, she alleged that the court was without jurisdiction to distribute assets of the Otto Kroupa Trust or Estate as she had no notice that the assets of the Trust or Estate were subject to the court's judgment, and also because the estate and the trustee were not parties to the lawsuit. The final decree of divorce and judgment was filed April 23, 1996. Diane made a motion to vacate a portion of the judgment for the reason that the court lacked jurisdiction over the land in the Otto Kroupa Trust or Estate. Marvin, Robert, and Greg all resisted the motion. Diane's motion was granted and the trial court vacated that portion of the judgment that pertained to Diane's and Cheryl's interests in the Otto Kroupa Trust and Estate. Marvin filed a motion, in which Robert joined, for reconsideration and notice of hearing. This motion was denied and Marvin appeals. We affirm.

STANDARD OF REVIEW

¶10 The trial court's holdings that it lacked jurisdiction and its decision to vacate a portion of the judgment involve questions of law. We therefore apply a de novo review. Moss v. Guttormson, 1996 SD 76, p 10, 551 N.W.2d 14, 17. Accordingly, the issues are fully reviewable and we afford no deference to the conclusions reached by the trial court. Kent v. Lyon, 1996 SD 131, p 15, 555 N.W.2d 106, 110.

DECISION

¶11 I. Whether the trial court erred in determining that it was without jurisdiction to distribute the assets of the Otto Kroupa Trust.

¶12 Marvin argues that the trial court erred when it ruled it did not have jurisdiction over Diane's and Cheryl's interests in the trust property. We disagree.

¶13 Marvin argues that Diane and Cheryl were given notice that their interests in the property used in the family operation were going to be part of the litigation. He claims that the pleadings stated that the entire farming and ranching operation was to be included in the litigation. He also claims that the executrix and the trustee do not have to be specifically named in their representative capacities in the pleadings.

¶14 SDCL 15-6-60(b)(4) states that upon proper motion a court can relieve a party from a final judgment if "[t]he judgment is void[.]" We have held that a judgment is void if "the court that rendered it lacked jurisdiction of the subject matter, or of the parties, or if it acted in a manner inconsistent with due process of law." Crowley v. Trezona, 408 N.W.2d 332, 333 (S.D.1987) (citation and internal quotations omitted).

¶15 We hold that the trial court correctly determined it lacked jurisdiction over the assets in the Otto Kroupa Estate and Trust, and thus it properly relieved Cheryl and Diane from the judgment. The trial court also correctly concluded that the pleadings did not afford Diane and Cheryl proper due process protection.

¶16 SDCL 15-6-8(a) states, in relevant part:

A pleading which sets forth a claim for relief, whether an original claim, counterclaim, cross-claim or third-party claim, shall contain

(1) a short and plain statement of the claim showing that the pleader is entitled to relief, and

(2) a demand for judgment for the relief to which he deems himself entitled.

In reviewing the pleadings, we find no claims made in any manner whatsoever against the Otto Kroupa Trust, or even a demand for relief from Diane or Cheryl so as to invoke the court's jurisdiction over the trust property.

¶17 We have held that "[t]he purpose of pleadings is to establish the issues to be tried and to advise the opposing party of the allegations and evidence that must be met." Gross v. Gross, 355 N.W.2d 4, 8 (S.D.1984) (citation omitted). A complaint need not be set out in great detail, but it must provide "fair notice" of the alleged claim "so as to allow the adverse party an opportunity to make an adequate response." Northrup v. Farmland Indus., Inc., 372 N.W.2d 193, 197 (Iowa 1985) (citations omitted); see also Williams v. State, 405 N.W.2d 615, 620-21 (N.D.1987). The notice provided to Diane and Cheryl failed in those regards.

¶18 Diane based part of her motion on the fact that neither Otto, Marie as executrix, Edwin as trustee, nor Diane as beneficiary of the trust were named parties in the lawsuit. Marvin argues that it is not legally fatal to not specifically plead the capacities of the parties being sued. Marvin is correct in relying on SDCL 15-6-9(a) for this proposition. It states, in relevant part: "It is not necessary to aver the capacity of a party to sue or be sued or the authority of a party to sue or be sued in a representative capacity[.]" Thus, it was not fatal per se to not name the parties in their representative capacities, however, SDCL 15-6-9(a) is not dispositive of the issue. The parties must still be given "fair notice" of what the litigation entails. See 59 AmJur2d Parties § 244 (1987); see also Northrup, 372 N.W.2d at 197; Williams, 405 N.W.2d at 620-21. When capacity is not alleged, the complaint or cross claim must, in some way, give "adequate notice of the nature of the suit and the fact that recovery [is] sought from the assets of the estate[.]" 31 AmJur2d Executors and Administrators § 1298 (1989).

¶19 We next examine the pleadings to see if "fair...