Albrecht v. Albrecht (In re Albrecht)

938 N.W.2d 151

In the MATTER OF the ESTATE OF Sharleen ALBRECHT, Deceased

Mark Albrecht, Personal Representative, Petitioner and Appellee

v.Alan Albrecht, Respondent and AppelleeandMatthew Albrecht, Respondent

and

Glenvin Albrecht, Claimant and Appellant

No. 20190180

Supreme Court of North Dakota.

Filed January 29, 2020

Kasey D. McNary (argued), Fargo, North Dakota, for petitioner and appellee.

Alan J. Albrecht (argued), self-represented, Blaine, Minnesota, respondent and appellee.

Sara M. Monson (argued), Timothy M. O’Keeffe (on brief), and Stephen P. Welle (appeared), Fargo, North Dakota, for claimant and appellant.

Tufte, Justice.

[¶1] Glenvin Albrecht ("Glen Albrecht") appeals from a judgment entered in favor of the Estate of Sharleen Albrecht ("Estate") regarding certain assets in which he had an ownership interest. Glen Albrecht argues the district court erred by finding Sharleen Albrecht also had an interest in the assets and the court abused its discretion by allowing personal representative’s and attorney’s fees. We affirm.

I

[¶2] In February 2010, Glen Albrecht sued Sharleen Albrecht for divorce after nearly 50 years of marriage. Sharleen Albrecht died on July 29, 2013, before a final divorce judgment was entered. The district court entered a final divorce judgment after her death, and this Court reversed the judgment, holding Sharleen Albrecht’s death abated the divorce action. Albrecht v. Albrecht , 2014 ND 221, 856 N.W.2d 755.

[¶3] Sharleen Albrecht had a will, and Sharleen and Glen Albrecht’s son, Mark Albrecht, was appointed personal representative of the Estate. Glen Albrecht brought claims against the Estate, which the district court denied. This Court affirmed the district court’s decision on appeal. In re Estate of Albrecht , 2018 ND 67, 908 N.W.2d 135.

[¶4] In February 2017, the Estate petitioned for the return, partition, and sale of estate assets. The Estate alleged Sharleen Albrecht owned a one-half interest in various farm machinery, equipment, and vehicles, which were in Glen Albrecht’s control.

The Estate alleged a partition and sale of the assets was necessary to satisfy estate expenses. Glen Albrecht objected to the petition, arguing Sharleen Albrecht did not have an ownership interest in the assets.

[¶5] Glen Albrecht and Alan Albrecht, Glen and Sharleen Albrecht’s son, petitioned for the court to review the reasonableness of the Estate’s attorney’s fees and the personal representative’s fees.

[¶6] On December 13, 2018, a court trial was held. The Estate argued it was entitled to a one-half interest in the farm equipment, machinery, vehicles, and grain held by Sharleen and Glen Albrecht as tenants in common at the time of her death; and it was entitled to half of the proceeds from the sale of the 2012 crops and half of the funds in the farm checking account on the date of her death. The Estate also requested the court approve the attorney’s fees the Estate incurred during prior litigation and the personal representative’s fees. Glen Albrecht argued the Estate was not entitled to the requested return, partition, and sale of the assets because Sharleen Albrecht did not have an ownership interest in them at the time of her death. He also argued the court should disallow the request for attorney’s fees because the fees were not incurred to the benefit of the Estate and the personal representative’s fees were unreasonable. Both parties filed proposed findings of fact, conclusions of law, and orders for judgment.

[¶7] The district court granted the Estate’s petition, ordering the Estate was entitled to recover from Glen Albrecht $167,780.13 for the value of Sharleen Albrecht’s one-half interest in the 2012 crops; $142,108.50 for Sharleen Albrecht’s one-half interest in the farm equipment, machinery, and vehicles; and $20,538.54 for Sharleen Albrecht’s one-half interest in the farm checking account. The court ordered the Estate was allowed to claim attorney’s fees and other expenses of administration and the personal representative was allowed a total fee of $25,480 for his services. Judgment was entered.

II

[¶8] Glen Albrecht argues the district court erred by adopting the Estate’s proposed findings of fact and conclusions of law verbatim.

[¶9] Rule 7.1, N.D.R.Ct., authorizes the district court to assign the preparation of proposed findings of fact and conclusions of law to one or more parties. Although we have expressed disapproval of a district court’s wholesale adoption of one party’s proposed findings and conclusions, the findings become the court’s findings when the court signs the findings. Dale Expl., LLC v. Hiepler , 2018 ND 271, ¶ 8, 920 N.W.2d 750. The findings will be upheld if they adequately explain the basis for the court’s decision, unless they are clearly erroneous. Id. We will not reverse a district court’s decision solely because the court adopts counsel’s proposed findings. In re Guardianship of P.T. , 2014 ND 223, ¶ 8, 857 N.W.2d 367.

[¶10] We conclude the district court did not err by adopting the proposed findings of fact and conclusions of law.

III

[¶11] Glen Albrecht argues the district court erred by concluding that he owned various equipment, vehicles, and machinery jointly with Sharleen Albrecht, that the Estate was entitled to half of the proceeds from the 2012 crops, and that the Estate was entitled to funds from his checking account.

[¶12] The district court exercises wide discretion in partition actions to "do equity" and make a fair and just division of the property or proceeds. In re Estate of Loomer , 2010 ND 93, ¶ 17, 782 N.W.2d 648. The district court’s findings in a partition action will not be reversed on appeal unless they are clearly erroneous. Bruce J. Wenzel Estate v. Wenzel , 2008 ND 68, ¶ 5, 747 N.W.2d 103. A finding of fact is clearly erroneous if it is induced by an erroneous view of the law, there is no evidence to support it, or this Court is convinced, on the basis of the entire record, that a mistake has been made. Id. Questions of law are fully reviewable. Id.

A

[¶13] The Estate alleged Sharleen Albrecht owned a one-half interest in various equipment, machinery, and vehicles related to the farming operation, which were in Glen Albrecht’s possession and control. The Estate sought reimbursement for the value of Sharleen Albrecht’s interest in any of the assets Glen Albrecht sold.

[¶14] The district court found Glen and Sharleen Albrecht ran a farming operation together and the farm checking account was in both of their names. The court found the farming operation was not a corporation, partnership, or limited liability company, and Glen Albrecht testified that he and Sharleen Albrecht owned the machinery and vehicles. The court found the machinery and vehicles were owned by both Glen Albrecht and Sharleen Albrecht, explaining:

Glen’s prior testimony established that he and Sharleen acquired property, machinery, and real estate during their marriage. They did not have any debts. Glen testified there was no farming entity, such as a corporation, partnership, or a limited liability company. The farm machinery was owned by both Glen and Sharleen. The vehicles were also part of the farm operation. Because there was no separate farming entity, and there was no evidence of a joint tenancy interest, Sharleen had a one-half tenant in common interest in the farm assets, including the machinery, equipment, farm checking account, 2012 crop, and vehicles, at the time of her death on July 29, 2013.

The court concluded the Estate was entitled to one-half of the value or proceeds from the sale of the farm equipment, machinery, and vehicles. The court made findings about the value of each item as of the date of Sharleen Albrecht’s death. The court found the total value of the equipment, machinery, and vehicles was $284,217, and ordered the Estate was entitled to recover $142,108.50 from Glen Albrecht for Sharleen Albrecht’s interest in the assets.

[¶15] Glen Albrecht argues the district court erred as a matter of law by concluding he and Sharleen Albrecht jointly own the machinery, vehicles, and equipment. He contends the court incorrectly determined the property was jointly owned solely because Glen and Sharleen Albrecht were married. He claims the evidence established he is the sole owner of the equipment, machinery, and vehicles.

[¶16] Married people may own property separately. See N.D.C.C. § 14-07-04. A married couple may also own personal property as joint tenants or tenants in common. "Every interest created in favor of several persons in their own right is an interest in common, unless acquired by them in partnership for partnership purposes, or unless declared in its creation to be a joint tenancy." N.D.C.C. § 47-02-08.

[¶17] The district court did not rely solely on the parties’ marital status in deciding ownership of the property. Mark Albrecht testified his parents decided together whether to purchase equipment for the farm, and the funds used to purchase the equipment and vehicles came from Sharleen and Glen Albrecht’s jointly owned farm bank account. Mark Albrecht testified his parents ran the farming operation together. Glen Albrecht testified during the trial that Sharleen Albrecht was employed outside the farm operation but she also helped with some of the farming, the farm bank account was in both their names, and the bank account was used to pay the farming expenses. During a March 2016 deposition, Glen Albrecht was asked who owned the equipment and vehicles and he testified, "[T]hey were owned by the farm. I suppose they were owned by both of us." Glen Albrecht testified during the trial that most of the equipment, machinery, and vehicles at issue were used in the farming operation, he and Sharleen Albrecht owned some of this property, and he inherited some of the property from his uncle. Although Glen Albrecht testified that he inherited some of the equipment and vehicles, he did not explain or provide any other evidence identifying which property he inher...