Montgomery v. Montgomery

• Citation: 147 Idaho 1,205 P.3d 650
• Decision Date: 02 April 2009
• Docket Number: No. 33943.,33943.
• Court: United States State Supreme Court of Idaho
• Parties: In the Matter of the Estate of James Everett Montgomery, Jr., Deceased. Nancy MONTGOMERY, Plaintiff-Appellant-Cross Respondent, v. Mans MONTGOMERY, Defendant-Respondent, and Mary L. Simmons, personal representative of the estate of James Everett Montgomery, Defendant-Respondent-Cross Appellant.

205 P.3d 650

147 Idaho 1

In the Matter of the Estate of James Everett Montgomery, Jr., Deceased.

Nancy MONTGOMERY, Plaintiff-Appellant-Cross Respondent, v. Mans MONTGOMERY, Defendant-Respondent, and Mary L. Simmons, personal representative of the estate of James Everett Montgomery, Defendant-Respondent-Cross Appellant.

No. 33943.

Supreme Court of Idaho, Boise, December 2008 Term.

April 2, 2009.

Rehearing Denied April 16, 2009.

Marcus, Christian & Hardee, Boise, for appellant. Craig Marcus argued.

Ringert Clark Chartered, Boise, for respondent Mans Montgomery. James Kaufman appeared.

Stoppello & Kiser, Boise, for respondent Mary L. Simmons. Frank Stoppello argued.

SUBSTITUTE OPINION,

THE COURT'S PRIOR OPINION DATED MARCH 4, 2009 IS HEREBY WITHDRAWN

HORTON, Justice.

This case concerns the probate of the will of Jim Montgomery (Jim). Appellant Nancy Montgomery (Nancy) appeals the district court's affirmance of the magistrate judge's grant of partial summary judgment, in which the magistrate judge concluded that Nancy was not an omitted spouse under I.C. § 15-2-301. Nancy also appeals the district court's affirmance of the magistrate judge's dismissal of her consolidated creditor's claim suit for untimely service of process. Finally, Nancy asks this Court to review the district court's failure to address the magistrate judge's order indefinitely deferring resolution of Nancy's claim for family allowance. Respondent/Cross-Appellant Mary Simmons (Mary), the personal representative of Jim's estate, appeals the district court's reversal of the magistrate judge's grant of partial summary judgment in which the magistrate judge concluded that Nancy and Jim were not engaged in a partnership that co-owned the Alibi Bar and its related assets.

We affirm the district court's decision vacating the magistrate judge's grant of summary judgment on the partnership issue and affirming the dismissal of the creditor's claim suit. We reverse the district court's decision affirming the magistrate judge's grant of partial summary judgment on the omitted spouse issue. We further instruct the district court to direct the magistrate judge to determine Nancy's entitlement, if any, to a family allowance.

I. FACTUAL AND PROCEDURAL BACKGROUND

Jim was married and the father of two children, Mans Montgomery (Mans) and Dannell Montgomery, when he met Nancy in late 1986. Jim had previously worked in the food service industry, but not in the business of selling alcohol by the drink. Nancy, however, had considerable experience in the bar business. After meeting Nancy, Jim leased the Alibi Bar (Alibi) in Boise, Idaho beginning in January 1987. Nancy assisted in setting up the business, and at about the same time, Jim and Nancy began to live together. Jim subsequently purchased the Alibi, including real and personal property, in late 1987. Jim was divorced in November 1987.

Jim purchased a liquor license in March of 1991. The real property and the liquor license were titled in Jim's name, although there is evidence that Nancy contributed $2,500 toward the purchase of the license.

After owning the Alibi for several years, Jim formed a corporation and a limited liability company (LLC) for the purpose of limiting personal liability and shielding the bar's assets. The parties dispute whether these entities were ever viable, and it is disputed whether any of the Alibi assets were ever transferred to these entities prior to Jim's death.

On July 5, 1990, Jim executed a will in which he bequeathed a house located at 2358 Wyoming Street, Boise, Idaho to Nancy, and left his remaining property to his sons in equal shares. Jim and Nancy were married on October 17, 1991, and remained married until Jim's death on December 2, 2003. During the marriage, Jim sold the Wyoming Street house. Also during their marriage, Jim and Nancy acquired certain community property by way of joint tenancies with rights of survivorship, including a condominium in Arizona, and bank, brokerage, and retirement accounts, all of which passed directly to Nancy upon Jim's death. Jim's will, which was never changed, was admitted to probate and Mary (Jim's sister) was appointed personal representative.

Nancy filed a petition in the probate proceedings seeking an intestate share of Jim's estate as an omitted spouse. Mary filed a motion to have an inventory confirmed by the court that designated the Alibi and related assets as Jim's separate property. In response, Nancy asserted that she and Jim were partners in the Alibi business.

Nancy filed a separate suit in district court as a creditor of the estate, claiming the estate has been unjustly enriched by her contributions to the Alibi. The creditor's suit was consolidated with the probate proceedings before the magistrate judge by agreement of the parties and the case was scheduled for a jury trial. After considerable discovery, Nancy, Mary, and Mans filed cross-motions for summary judgment on the omitted spouse and partnership claims. Mary also moved to dismiss the creditor's suit. During this time, Nancy repeatedly sought an order requiring Mary to pay Nancy a family allowance during the pendency of the probate proceedings.

Both sides raised various evidentiary objections to materials submitted in connection with the cross-motions for summary judgment. At the September 28, 2005 hearing on the parties' motions, the magistrate judge expressly decided not to decide the admissibility of evidence, stating that all evidence would be considered and given "whatever weight" the magistrate judge determined to be appropriate. The magistrate judge then granted summary judgment against Nancy on the omitted spouse and partnership claims and dismissed the creditor's suit for untimely service of process. Finally, the magistrate judge denied Nancy's motion to set a deadline for Mary to complete the accounting necessary to calculate Nancy's family allowance.

Nancy appealed to the district court, which upheld the magistrate judge's decision on the omitted spouse issue, reversed the grant of summary judgment and remanded on the partnership issue, and affirmed the dismissal of the creditor's suit. The district court did not address the issue of Nancy's claim for family allowance. Nancy timely appealed to this Court and Mary timely cross-appealed.

II. STANDARD OF REVIEW

When this Court reviews a decision rendered by a district court acting in its appellate capacity, it considers the trial court's decision, and if that decision is free from error and if the district court affirmed that decision, we affirm the district court's decision as a matter of procedure. Losser v. Bradstreet, 145 Idaho 670, 672, 183 P.3d 758, 760 (2008).

When this Court reviews a trial court's decision on summary judgment, it employs the same standard as that properly employed by the trial court when originally ruling on the motion. Kolln v. Saint Luke's Regl. Med. Ctr., 130 Idaho 323, 327, 940 P.2d 1142, 1146 (1997) (citing Thomson v. Idaho Ins. Agency, Inc., 126 Idaho 527, 529, 887 P.2d 1034, 1036 (1994)). We construe disputed facts and draw all reasonable inferences in favor of the non-moving party. Lockheed Martin Corp. v. Idaho State Tax Comm'n, 142 Idaho 790, 793, 134 P.3d 641, 644 (2006). "Summary judgment is appropriate if the pleadings, depositions, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law." Id.

The fact that both sides moved for summary judgment does not in itself establish that there is no genuine issue of material fact. Casey v. Highlands Ins. Co., 100 Idaho 505, 507, 600 P.2d 1387, 1389 (1979); Farmer's Ins. Co. of Idaho v. Brown, 97 Idaho 380, 381-82, 544 P.2d 1150, 1151-52 (1976). Our rules do not contemplate the transformation of the court, sitting to hear a summary judgment motion, into the trier of fact when the parties file cross-motions for summary judgment. Moss v. Mid-America Fire and Marine Ins. Co., 103 Idaho 298, 302, 647 P.2d 754, 758 (1982) (citing I.R.C.P. 56(c)). This Court applies an abuse of discretion standard when determining whether testimony offered in connection with a motion for summary judgment is admissible. McDaniel v. Inland Northwest Renal Care Group-Idaho, LLC, 144 Idaho 219, 221, 159 P.3d 856, 858 (2007). This Court exercises free review over matters of law. Bolger v. Lance, 137 Idaho 792, 794, 53 P.3d 1211, 1213 (2002).

III. ANALYSIS

Before we consider the parties' cross-motions for summary judgment on the partnership and omitted spouse issues specifically, we must first review how the trial court handled the evidence in this case. After addressing the summary judgment decisions, we then address whether dismissal of the creditor's claim suit was proper. Finally, we examine Nancy's claim of entitlement to a statutory family allowance during probate proceedings.

A. The magistrate judge erred when he granted summary judgment in favor of Mans and Mary because he did not determine the admissibility of evidence in the first instance.

At the September 28, 2005 hearing before the magistrate judge, Nancy's attorney suggested that, pursuant to Ryan v. Beisner, 123 Idaho 42, 844 P.2d 24 (Ct.App. 1992), prior to ruling on the motions for summary judgment the court should entertain and resolve Nancy's objections to the admissibility of various evidence. Nancy informed the magistrate judge that her objections rested on grounds of hearsay, relevancy, non-responsive answers, and foundation. The magistrate judge expressed concern that it would take too much time for him to make preliminary rulings on the admissibility of each piece of evidence to which an objection had been made. Instead, while acknowledging that much of the evidence offered by the parties was inadmissible, the magistrate judge suggested the parties should simply begin to argue, and he would address evidentiary objections...