Ramer v. Smith

• Decision Date: 17 November 2008
• Docket Number: No. 57A04-0804-CV-202.,57A04-0804-CV-202.
• Citation: 896 N.E.2d 563
• Parties: Janice RAMER and Burdette Ramer, Appellants-Petitioners, v. Betty SMITH, Appellee-Respondent.
• Court: Indiana Appellate Court

896 N.E.2d 563

Janice RAMER and Burdette Ramer, Appellants-Petitioners, v. Betty SMITH, Appellee-Respondent.

No. 57A04-0804-CV-202.

Court of Appeals of Indiana.

November 17, 2008.

Robert J. Hardy, Thomas & Hardy, LLP, Auburn, IN, Attorney for Appellants.

Grant Vanhorne, Auburn, IN, Attorney for Appellee.

OPINION

ROBB, Judge.

Case Summary and Issues

Janice and Burdette Ramer appeal the trial court's special findings of fact and conclusions of law granting interlocutory judgment in favor of Betty Smith and ordering partition of the property in question. The Ramers raise three issues on appeal: 1) whether the trial court erred when it determined that the Ramers, as tenants by the entireties, and Betty each hold a one-half joint tenancy interest in the property; 2) whether the trial court erred when it refused to award the Ramers contribution for value added to the property; and 3) whether the trial court erred when it determined that the property cannot be equitably divided. Concluding that the language of the deed sufficiently evidences intent to create joint tenancy interests in the property, but that the Ramers are not entitled to contribution, we reverse in part and affirm in part. In addition, we remand this case to the trial court to determine whether the property can be equitably divided in light of our holding.

Facts and Procedural History

Betty is the mother of Janice. Betty and her husband, Richard, originally owned approximately 78 acres of real estate ("the Estate"). In 1998, the Ramers began construction of a residence on the Estate. Richard assisted the Ramers with excavation work and also provided some equipment for the construction. The Ramers began living in the basement of the uncompleted residence in December of 1998 and have lived there continuously until the present. On May 17, 2000, the Smiths executed a warranty deed ("Deed 1") conveying a 6.60 acre tract of the Estate, including the Ramers' unfinished residence, to the Ramers. The granting clause of Deed 1 reads: "RICHARD W. SMITH and BETTY J. SMITH, husband and wife, ... Conveys and warrants to BURDETTE RAMER and JANICE RAMER, husband and wife. . . ." Appellant's Appendix at 81. However, problems with the conveyance arose involving the local zoning authority. Subsequently, the Smiths and the Ramers executed a second warranty deed ("Deed 2") on September 6, 2000, with the Smiths conveying a 16.99 acre tract of the Estate and the Ramers conveying the 6.60 acre tract to all four individuals creating a 23.59 acre tract (the "Property"). The granting clause of Deed 2 reads: "RICHARD W. SMITH and BETTY J. SMITH, husband and wife, and BURDETTE RAMER and JANICE RAMER, husband and wife, ... Conveys and warrants to: RICHARD W. SMITH, BETTY J. SMITH, BURDETTE RAMER, and JANICE RAMER, as Joint Tenants With right [sic] of Survivorship. . . ." Appellant's App. at 74. The same attorney prepared both Deed 1 and Deed 2.

On November 16, 2004, Richard died. The Ramers completed construction of their residence in 2005. On November 17, 2006, Betty filed a petition for partition of the Property. The trial court held a hearing on the petition on January 4, 2008, and issued its Special Findings of Fact, Conclusions of Law and Judgment on February 15, 2008. The trial court concluded that Deed 2 conveyed a one-half joint tenancy interest to the Smiths, which they held as tenants by the entireties, and a one-half joint tenancy interest to the Ramers, which they held as tenants by the entireties. The trial court further concluded that Betty succeeded to Richard's interest in the Property upon his death and therefore the Property should be partitioned one-half to Betty and one-half to the Ramers.

Relying upon the testimony of an appraiser presented by the Ramers, the trial court valued the Property at $308,940.00¹ consisting of $83,940.00 for the land within the 16.99 acre tract, $39,600.00 for the land within the 6.60 acre tract, and $185,400.00 for the residence on the 6.60 acre tract. The trial court refused to adjust the partition of the Property because of any alleged contributions made by the Ramers. Finally, the trial court concluded that the Property cannot be divided into equal shares of value between Betty and the Ramers without physically dividing the residence,² and therefore the trial court appointed a commissioner to sell the property at public sale. The Ramers now appeal.

Discussion and Decision

I. Standard of Review

When a trial court has made special findings of fact, as it did in this case, our standard of review is well settled:

[A]n appellate court reviews the sufficiency of the evidence in a two-step process. First, it must determine whether the evidence supports the trial court's findings of fact; second, it must determine whether those findings of fact support the trial court's conclusions of law. An appellate court shall not set aside the findings or judgment unless clearly erroneous and it shall not reweigh the evidence or determine the credibility of witnesses. Findings are clearly erroneous only when the record contains no facts to support them either directly or by inference. A judgment is clearly erroneous when it is unsupported by the findings of fact and the conclusions relying on those findings.

Estate of Reasor v. Putnam County, 635 N.E.2d 153, 158 (Ind.1994) (citations and quotations omitted). However, we evaluate conclusions of law de novo and owe no deference to a trial court's determination of such conclusions. Hay v. Baumgartner, 870 N.E.2d 568, 571 (Ind.Ct.App.2007).

II. Nature of the Estate Conveyed by Deed 2

The facts in this case are not in dispute. Therefore, the threshold question is whether Deed 2 created a joint estate among Richard, Betty, Burdette, and Janice as individuals or between Richard and Betty, as husband and wife, and Burdette and Janice, as husband and wife, with each couple taking as tenants by the entireties. If each person held an individual interest as a joint tenant, then upon Richard's death, his share devolved to Betty, Burdette, and Janice equally, leaving each with an undivided one-third share in joint tenancy. Conversely, if each couple held their respective share as tenants by the entireties, then upon Richard's death, his share devolved to Betty alone, leaving her with an undivided one-half share and the Ramers with an undivided one-half share.

The rule regarding conveyances of real estate to husband and wife is well established in this state. See Simons v. Bollinger, 154 Ind. 83, 86, 56 N.E. 23, 24 (1900). Where the deed conveying property to a husband and wife contains no qualifying words, the grantees take and hold the estate as tenants by the entirety. Richards v. Richards, 60 Ind.App. 34, 38, 110 N.E. 103, 104 (1915). This is so even where the husband and wife are not designated as such in the deed. See Hulett v. Inlow, 57 Ind. 412, 414, 1877 WL 6862, at *2 (1877); Richards, 60 Ind.App. at 38, 110 N.E. at 104. In a conveyance to husband and wife, "all presumptions must be indulged, and all doubts resolved, against [joint] estates, and in favor of estates by the entireties." Simons, 154 Ind. at 87, 56 N.E. at 24-25. However, a "husband and wife may take real estate as joint tenants or tenants in common, if the instrument creating the title use[s] apt words for the purpose." Thornburg v. Wiggins, 135 Ind. 178, 185, 34 N.E. 999, 1001 (1893); see also Hadlock v. Gray, 104 Ind. 596, 598, 4 N.E. 167, 168 (1886) ("[I]f at any time a joint tenancy or tenancy in common is desired to be created between man and wife, a joint estate will be treated as such, if that intention is clearly expressed in the deed or will.") (citation omitted).

Here we are faced not with a simple conveyance to husband and wife, but with a conveyance to two married couples. At common law, a husband and wife are one person. Thornburg, 135 Ind. at 181, 34 N.E. at 1000. As such, when real estate vests in them, they take the entirety as one person.³ Id. By contrast, when real estate vests in two individuals as joint tenants, each is seised of an undivided one-half interest and of the whole.⁴ Simons, 154 Ind. at 84, 56 N.E. at 24. Our supreme court has held that when land is conveyed to a husband and wife jointly with a third party, the husband and wife will take an undivided one-half interest as tenants by the entireties and the third party will take an undivided one-half interest as a joint tenant. Hulett, 57 Ind. at 414, 1877 WL 6862, at *2; see also Becker v. MacDonald, 488 N.E.2d 729, 732 (Ind. Ct.App.1986).

By logical extension, when land is conveyed jointly to two married couples, each couple takes an undivided one-half interest as tenants by the entireties, which they share as joint tenants with the other couple. See, e.g., Price v. Pestka, 66 N.Y.S. 297, 298, 54 A.D. 59, 59 (N.Y.App. Div.1900) (holding that since husband and wife are, in law, one person, a grant to two couples was of an undivided one-half of the estate to each of the two parties); Prario v. Novo, 168 Misc.2d 610, 645 N.Y.S.2d 269, 271 (N.Y.Sup.Ct.1996) ("A grant to two married couples as tenants by the entireties results in two tenancies by the entirety, with each couple owning one-half."). However, it also stands to reason that just as a deed may convey real estate in joint tenancy to a single married couple through use of express language, so a deed may convey real estate in joint tenancy to four individuals who happen to also be two married couples. Therefore, we hold that, as a general rule, where a deed conveys real estate to two married couples jointly, each couple takes an undivided one-half interest as tenants by the entireties, which they share as joint tenants with the other couple. However, a conveyance to two married couples will be treated as a joint tenancy or a tenancy in common between all four individuals if such an intention is clearly expressed in the deed.

Starting with the presumption that Deed 2 conveyed an...