Miller v. Estate of Prater, 29541.

• Decision Date: 22 February 2005
• Docket Number: No. 29541.,29541.
• Citation: 141 Idaho 208,108 P.3d 355
• Parties: Thomas MILLER, Plaintiff-Respondent, v. ESTATE OF Wid J. PRATER, and Susan Lewis, as the personal representative of the Estate of Wid J. Prater, Defendants-Appellants.
• Court: Idaho Supreme Court

108 P.3d 355

141 Idaho 208

Thomas MILLER, Plaintiff-Respondent, v. ESTATE OF Wid J. PRATER, and Susan Lewis, as the personal representative of the Estate of Wid J. Prater, Defendants-Appellants.

No. 29541.

Supreme Court of Idaho, Boise, January 2005 Term.

February 22, 2005.

Perkins Coie, LLP, Boise, for appellants. Shelley H. Cozakos argued.

White, Peterson, Morrow, Gigray, Rossman, Nye & Rossman, P.A., Nampa, for respondent. William A. Morrow argued.

JONES, Justice.

This is an action for breach of a contract made by a married couple for disposition of the survivor's estate. Thomas Miller (Miller) brought suit against the survivor's estate, claiming violation of the agreed disposition provisions. The district court entered judgment in favor of Miller upon jury verdicts (1) finding the survivor's estate liable for breaching the contract and (2) awarding damages. The estate appealed, claiming the district court erred in denying its motion for summary judgment and in allowing the jury to determine the amount of damages. This Court affirms the determination of liability but reverses with regard to the issue of damages. The case is remanded with instructions as to the determination of the issue of Miller's monetary entitlement.

I. FACTUAL AND PROCEDURAL BACKGROUND

Wid and Bernice Prater were married in 1974. Wid had two adult children from a previous marriage, Karen McGrath and Michael Prater. Bernice also had two adult children from a previous marriage, Susan Lewis and Miller.

In 1975, Wid and Bernice entered into a contract (Contract), whereby they agreed to leave their entire estates to each other in consideration for their mutual promises that neither would alter the ultimate disposition of their property equally among their four children, upon the death of the survivor. The Contract made reference to contemporaneously executed wills but no such wills have been produced. The parties further agreed that (1) any property then or thereafter held by them as joint tenants, either with each other or with any of their children, and (2) the proceeds of any accounts or insurance policies on which any of their children were designated as beneficiaries, would also be distributed to the four children in equal shares. The four children signed the Contract to acknowledge this understanding. In 1981, Wid and Bernice executed wills that divided Michael Prater's one-fourth share equally between him and his daughter, Danielle Prater, so each would receive 12.5 percent of the survivor's estate. Otherwise, the distribution scheme remained intact. In 1984, Wid and Bernice, who then resided in the state of Washington, entered into a Community Property Agreement (Agreement), which classified all of the property owned by them as community property. The Agreement provided that all such property was to go to the survivor in fee simple. It contained no provisions relating to their wills or to the ultimate disposition of the survivor's estate.

Bernice passed away in 1993 and her 1981 will was probated. Wid remarried in 1996. On October 28, 1996, he established a revocable trust (Trust) and executed a will leaving the remainder of his estate to the Trust. The Trust called for distribution of the corpus in generally the same manner as provided for in 1981 will, as did three subsequent amendments, dated April 22, 1999, January 20, 2000, and November 29, 2000. On February 28, 2001, Wid executed a new will, which again left the remainder of his estate to the Trust, along with a fourth amendment to the Trust, which substantially changed the distribution scheme. Wid died on March 17, 2001 and thereafter a probate was initiated for the 2001 will.

On November 21, 2001, Miller filed a Complaint in district court against Wid's estate and its personal representative, Susan Lewis (collectively the Estate), alleging breach of the Contract. In August 2002, the Estate filed a motion for summary judgment, arguing the 1981 will and/or Agreement rescinded, cancelled or abandoned the 1975 Contract. The district court denied the motion, finding a genuine issue of material fact as to whether the terms of the Agreement revoked the disposition provisions of the Contract.

A telephonic pretrial conference was held on January 27, 2003. The substance of the conference was reduced to a Pretrial Order dated January 28, 2003. In the Pretrial Order, the trial judge provided that the only issue for the jury was to decide whether the Contract was revoked or abandoned. The disbursement amounts were to be determined in the pending probate. The trial judge changed that ruling on the first day of a four-day jury trial, which took place in February of 2003. The judge bifurcated the trial into two phases — the first to determine liability and the second to determine damages, if applicable. On February 5, the jury returned a verdict in favor of Miller, finding the Contract had been breached. In the second phase the jury awarded Miller $124,000 in damages. A Judgment was entered on the jury verdicts on February 26, 2003. Miller sought costs and attorney fees and was awarded costs. An Amended Judgment was entered on May 23, 2003. The Estate timely appealed, arguing it was error to deny the motion for summary judgment and to allow the jury to determine the amount of Miller's damages. Both parties seek attorney fees on appeal.

II. ANALYSIS

The issues raised by the Estate are matters of law. This Court exercises free review over matters of law. Iron Eagle Dev., L.L.C. v. Quality Design Sys., Inc., 138 Idaho 487, 491, 65 P.3d 509, 513 (2003).

A. This Court Declines Review Of The District Court's Denial Of The Estate's Motion For Summary Judgment.

The Estate asks this Court to hold the district court erred in denying its motion for summary judgment. Miller contends that an order denying a motion for summary judgment cannot be considered on appeal.

The Idaho Supreme Court has consistently held that an order denying a motion for summary judgment is not to be reviewed on appeal from a final judgment. Gunter v. Murphy's Lounge, LLC, 105 P.3d 676 (2005); Courtney v. Big O Tires, Inc., 139 Idaho 821, 823, 87 P.3d 930, 932 (2003); Hunter v. State, Dept. of Corrections, 138 Idaho 44, 47, 57 P.3d 755, 758 (2002); Idaho Power Co. v. Cogeneration, Inc., 134 Idaho 738, 743, 9 P.3d 1204, 1209 (2000); Bowles v. Pro Indiviso, Inc., 132 Idaho 371, 376, 973 P.2d 142, 147 (1999); and Watson v. Idaho Falls Consol. Hospitals, 111 Idaho 44, 46, 720 P.2d 632, 634 (1986). We recently reiterated the rationale for this rule in Gunter v. Murphy's Lounge, LLC, as follows:

[B]y entering an order denying summary judgment, the trial court merely indicates that the matter should proceed to trial on its merits. The final judgment in a case can be tested upon the record made at trial, not the record made at the time summary judgment was denied. Any legal rulings made by the trial court affecting that final judgment can be reviewed at that time in light of the full record. This will prevent a litigant who loses a case, after a full and fair trial, from having an appellate court go back to the time when the litigant had moved for summary judgment to view the relative strengths and weaknesses of the litigants at that earlier stage. Were we to hold otherwise, one who had sustained his position after a fair hearing of the whole case might nevertheless lose, because he had failed to prove his case fully on the interlocutory motion.

Id. at 686. (citing Keeler v. Keeler, 124 Idaho 407, 410, 860 P.2d 23, 26 (Ct.App.1993)). In Gunter, this Court further noted, "It would be unjust to allow appellate reconsideration of the motion when a jury has made a determination of the case on the merits." Id.

The Estate contends that there is an exception under Idaho law where the summary judgment involved only issues of law. However, the Estate cites no persuasive authority for this contention. And, the contention is in error because material factual issues precluded summary judgment.

The Estate asserts that, since the Agreement was made while the parties were residing in the State of Washington, the district court should have applied Washington law to determine whether the Agreement conflicted with and rescinded the Contract. Had the court done so, the Estate argues, it would have determined, as a matter of law, that the Contract was rescinded. However, under the law of either Washington or Idaho, the question of whether the later contract rescinded the earlier contract was a factual issue properly submitted to the jury. The courts of both states apply general rules of contract interpretation in determining the intent of contracting parties where a later agreement made by them appears to be in conflict with an earlier one.

In Higgins v. Stafford, 123 Wash.2d 160, 866 P.2d 31 (1994), the Washington Supreme Court was considering the effect of subsequently executed mutual wills on an earlier community property agreement. The court reviewed a number of previous decisions and determined that there must be a demonstration of a mutual intent to do so in order for a later instrument to rescind an earlier one. Id. at 35. General rules of contract interpretation are applied. Id. If there is no ambiguity on the issue, it may be decided as a matter of law. However, if an inconsistency between the instruments creates an ambiguity, a factual inquiry is required to determine the intent of the parties. Id.

The analysis under Idaho is similar. This Court held in Silver Syndicate, Inc. v. Sunshine Min. Co., 101 Idaho 226, 235, 611 P.2d 1011, 1020 (1979), that the earlier and later instruments must be read and construed as one in order to determine the intent of the parties, utilizing rules of construction applying to the interpretation of a single contract. Id. If the composite contract is ambiguous, extrinsic evidence is appropriate in order to determine the true intent of the parties. Id. at 236, 611 P.2d at 1021.

Here, the...