Kulstad v. Maniaci

• Decision Date: 06 October 2009
• Docket Number: No. DA 08-0483.,DA 08-0483.
• Citation: 2009 MT 326,220 P.3d 595,352 Mont. 513
• Parties: Michelle KULSTAD, Plaintiff and Appellee, v. Barbara L. MANIACI, Defendant and Appellant.
• Court: Montana Supreme Court

220 P.3d 595

2009 MT 326

352 Mont. 513

Michelle KULSTAD, Plaintiff and Appellee, v. Barbara L. MANIACI, Defendant and Appellant.

No. DA 08-0483.

Supreme Court of Montana.

Argued April 17, 2009.

Submitted April 28, 2009.

Decided October 6, 2009.

For Appellant: Austin Nimocks (argued), Amy Smith, Alliance Defense Fund, Scottsdale, Arizona, Linda Osorio St. Peter, Attorney at Law, Missoula, Montana.

For Appellee: Elizabeth L. Griffing (argued), ACLU of Montana Foundation, Missoula, Montana, Susan G. Ridgeway, Attorney at Law, Missoula, Montana, Kevin H. Lewis, Howard, Rice, Nemerovski, Canady, Falk & Rabkin, San Francisco, California.

For Amicus Montana Family Foundation: Patrick Flaherty, The National Legal Foundation, Virginia Beach, Virginia.

For Amicus Pacific Justice Institute: Peter D. Lepiscopo, Lepiscopo & Morrow, San Diego, California.

For Amicus National Assn. of Social Workers (NASW); NASW, MT Chapter; and American Academy of Pediatrics: P. Mars Scott and Thorin A. Geist, Attorneys at Law, Missoula, Montana Luann Simmons and Sara Jeruss, O'Melveny & Myers, San Francisco, California.

For Amici Law School Professors: James P. Reynolds, Reynolds, Motl and Sherwood, Helena, Montana.

For Amicus Northwest Women's Law Center: Daniel P. Semmens, Dorsey & Whitney, Missoula, Montana.

Justice BRIAN MORRIS delivered the Opinion of the Court.

¶ 1 Far too often this Court faces a situation in which minor children have no adult fit to parent them. See e.g. In re E.D., 2008 MT 216, 344 Mont. 228, 186 P.3d 1283; In re M.P., 2008 MT 39, 341 Mont. 333, 177 P.3d 495; In re Custody and Parental Rights of A.P., 2007 MT 297, 340 Mont. 39, 172 P.3d 105. This case presents the increasingly unusual situation of two adults fit to parent minor children, L.M. and A.M. The District Court awarded a parental interest in the minor children to Appellee Michelle Kulstad (Kulstad) over the objection of the Appellant Barbara L. Maniaci (Maniaci). The court also awarded Kulstad an interest in personal and real property. We affirm.

¶ 2 Maniaci presents the following issues on appeal:

¶ 3 Whether the court's application of §§ 40-4-211 and 40-4-228, MCA, to support Kulstad's claim of a parental interest violates Maniaci's fundamental constitutional rights as a parent.

¶ 4 Whether the court properly awarded Kulstad a parental interest.

¶ 5 Whether the court properly awarded Kulstad personal property and a property interest in the parties' home.

PROCEDURAL AND FACTUAL BACKGROUND

Background

¶ 6 Maniaci moved to Clinton, Montana, in late 1994 or early 1995. Maniaci and Kulstad met in Montana in late 1995. Maniaci lived in a trailer on her sister's property and worked part-time as a chiropractor out of her sister's home. Kulstad lived in Seattle, Washington. She worked in Seattle on business ventures and supported herself with her accumulated assets. The parties' relationship progressed to the point that they began staying with each other at their respective homes. Kulstad eventually moved to Montana in 1996 to live with Maniaci.

¶ 7 Kulstad and Maniaci exchanged rings on March 18, 1996. Kulstad and Maniaci wore the rings until the fall of 2006. Maniaci also gave Kulstad three anniversary cards. Maniaci represented Kulstad as her "partner" on numerous occasions. The parties attended couples counseling in 2002, 2003, and 2006. The parties' mutual friends regarded them as domestic and intimate partners, and later as co-parents.

¶ 8 Kulstad supported the parties primarily with her accumulated assets from 1996 to 2001. Kulstad and Maniaci had a joint automobile insurance policy naming each of them as insureds. Maniaci added Kulstad to the homeowner's insurance policy. Maniaci executed a living will that authorized Kulstad to make her end-of-life decisions.

Parental Interest

¶ 9 Kulstad and Maniaci periodically discussed the possibility of co-parenting a child. L.M. came unexpectedly to them in mid-February 2001 when Maniaci's chiropractic patient, Camilla Eddy (Eddy), inquired whether Kulstad and Maniaci had an interest in adopting her great grandson, who lived in Anaconda. Eddy believed that L.M.'s mother provided inadequate care. A couple of days later, Eddy, fearing for L.M.'s life, contacted the parties. Kulstad and Maniaci drove to Anaconda where L.M.'s natural mother relinquished custody to the parties.

¶ 10 Kulstad and Maniaci took L.M. to the hospital and entered his name as "L.L. Kulstad-Maniaci." Kulstad and Maniaci sought legal advice regarding same-sex adoptions. Their lawyer advised them that Montana law allowed only one of them to adopt L.M. The parties decided that Maniaci would be the adoptive parent. Kulstad and Maniaci agreed that L.M. would call only one of them "mom" and they further agreed not to hyphenate L.M.'s last name. Kulstad and Maniaci also agreed that they would function equally as parents even though only one of them could adopt L.M.

¶ 11 Kulstad and Maniaci participated in a home study with social worker Cynthia Garthwait (Garthwait) in July 2001 as part of the adoption process. Kulstad and Maniaci further participated in an adoptive post-placement report with Garthwait in April 2002. Maniaci represented to Garthwait at each meeting, and Garthwait understood, that Maniaci and Kulstad were in a committed relationship. Garthwait further understood that Kulstad would co-parent and support L.M.

¶ 12 Maniaci decided in 2003 that she wanted to adopt a baby girl. Kulstad initially disagreed with Maniaci about bringing another child into the home. Maniaci pursued the adoption over Kulstad's objection. Kulstad and Maniaci understood nonetheless that Kulstad would function as a parent to any second child that Maniaci adopted.

¶ 13 Kulstad and Maniaci participated in a home study with Dennis Radtke (Radtke) to adopt a second child. Maniaci represented to Radtke that Kulstad would co-parent and support A.M. Maniaci sent an email inquiry to the Human Rights Campaign in March 2003, about adopting a second child. Maniaci stated that she and her "partner" had completed a private adoption and a home study "for our boy" and "now we would like to adopt a baby girl." Maniaci eventually adopted A.M. from Guatemala.

¶ 14 Kulstad lived with the children and functioned as a parent to the children on a day-to-day basis for the remainder of her relationship with Maniaci. Kulstad and Maniaci provided for the children's physical, psychological, and developmental needs much like any other two-parent family. Maniaci assumed primary responsibility for purchasing groceries and supplies or services for the children. Maniaci primarily cared for the children during the day while Kulstad worked outside the home. Kulstad cared for the children in the afternoon and early evening when Maniaci saw chiropractic patients in the basement office of the house in which the parties lived. Kulstad primarily cared for the children on the weekends. The parties jointly participated in holding therapy with L.M. to address his reactive attachment issues.

¶ 15 Kulstad included Maniaci and the children in her will and as beneficiaries in her life insurance policies. Kulstad also claimed L.M. as a dependent on her tax returns for the years 2001 through 2006, and head of household status, with Maniaci's full knowledge and consent. Kulstad and Maniaci agreed that Maniaci would claim A.M. on her tax returns in 2004. Maniaci had not filed tax returns for the years 1999 through 2006 at the time this action had begun. Months later, Maniaci filed back tax returns for those years in which she sought to claim L.M. as a dependent.

¶ 16 Maniaci had her tax returns prepared for 2001, 2002, and 2003, in anticipation of adopting A.M. These tax returns contained inflated income figures. Maniaci provided these inflated income figures to the Guatemalan government with A.M.'s adoption application. Maniaci never filed these tax returns with the Internal Revenue Service. Kulstad remained unaware of their existence until Maniaci produced them in response to Kulstad's discovery request in this case.

Property

¶ 17 Maniaci had purchased a 4.5 acre tract of land for $30,000 in July 1995. She paid approximately $43,214.73 for property improvements in 1995. Maniaci informed Kulstad and others, in early 1996, that she had no funds left to finish building the house. The parties understood that Kulstad would move to Montana and contribute her money and labor to help Maniaci complete construction of what would be their home. Kulstad contributed a portion of these monies from the sale of her house in Seattle to help fund the house in Montana.

¶ 18 Kulstad deposited her accumulated assets into the parties' joint checking account from 1996-2001. Kulstad began contributing money and labor to complete the construction of the house and improvements to the real property in the spring of 1996. Kulstad also constructed outbuildings and a play area for the children. Kulstad worked on the house and property nearly full-time during the spring and summer of 1996.

¶ 19 Kulstad expressed concern to Maniaci in the spring of 1996 that her name was not on the title. Maniaci assured Kulstad that the property would be divided equally should their relationship end. Kulstad relied on this assurance, as well as Maniaci's promise, that in the event of her death, Maniaci would bequeath the property to Kulstad. Maniaci executed a will in 1998 that left the real property to Kulstad.

¶ 20 Kulstad began working as her assets neared depletion. Kulstad's income failed to meet the financial needs of the parties. She used her credit cards to subsidize her income. Kulstad accrued debt for the benefit of the parties. She expended significant labor and money in helping Maniaci grow her chiropractic business. Kulstad worked to finish the basement office, entrance, deck, stairs, and trim. Kulstad's accrued debt included many items designed to facilitate Maniaci's chiropractic practice, such as paying the...