Chambers v. Bringenberg

309 Neb. 888

963 N.W.2d 37

James CHAMBERS, Personal Representative of the Estate of David L. Chambers, appellee,

v.Angie BRINGENBERG, appellant.

No. S-20-593.

Supreme Court of Nebraska.

Filed August 6, 2021

Brian S. Koerwitz, of Endacott, Peetz, Timmer & Koerwitz, P.C., L.L.O., for appellant.

J.L. Spray, Lincoln, Christina L. Usher, and Andrew R. Spader, of Mattson Ricketts Law Firm, for appellee.

Miller-Lerman, Cassel, Stacy, Funke, Papik, and Freudenberg, JJ.

Freudenberg, J.

NATURE OF CASE

The district court on summary judgment invalidated a transfer-on-death (TOD) deed executed by the wife before her death naming her daughter as the designated beneficiary to her interest in a house titled solely in the wife's name. The court reasoned that the TOD deed was void because the husband did not execute and acknowledge the TOD deed, as set forth in a homestead statute, Neb. Rev. Stat. § 40-104 (Reissue 2016). Section 40-104 provides that the "homestead of a married person" cannot be "conveyed or encumbered unless the instrument by which it is conveyed or encumbered is executed and acknowledged by both spouses." The court quieted title of the house in the wife's estate, thereby requiring it to go through probate rather than allowing the wife's interest therein to be transferred outside of probate pursuant to the Nebraska Uniform Real Property Transfer on Death Act (TODA).¹ It also dismissed the daughter's counterclaim for slander of title. The daughter appeals.

BACKGROUND

David L. Chambers commenced the underlying action with a complaint to quiet title against Angie Bringenberg, in which he also asked for injunctive relief. During the course of the proceedings in district court, David died and his action was continued on his estate's behalf by his son, James Chambers, as the personal representative. The subject real property is a house in Village Meadows (Meadows house), in Lincoln, Nebraska. David was the surviving spouse of Eleanor Chambers, who died on March 3, 2018. David and Eleanor married in 1995. Bringenberg is Eleanor's daughter. David was her stepfather. Eleanor was James’ stepmother.

PREMARITAL AGREEMENT

At the time of their marriage, David and Eleanor entered into a premarital agreement that was drafted by David. The agreement made reference to David's separate property consisting of a house and 80 acres and Eleanor's separate property as 76 acres in "Fillmore Co." The premarital agreement, however, is ultimately not relevant to our disposition of this appeal, and we need not set it forth here in further detail.

PROPERTIES

In 2003, David and Eleanor, as husband and wife, jointly purchased a house on Wildfire Circle in Lincoln (Wildfire house). They also jointly owned a house in Arizona during their marriage.

In early 2017, David's health deteriorated. He moved into a skilled nursing care facility and later into an assisted living facility.

Sometime after 2017, the Arizona property was sold. Up until his death, David owned a house solely in his own name, which was located on a farm on Adams Street in Lincoln (the farmhouse). The farmhouse and surrounding land appears to be the same property described in the premarital agreement as David's sole property.

At some point, Eleanor inherited the land in Fillmore County, Nebraska, referred to in the premarital agreement as "Fillmore Co.," which she had held a life estate in. That land was subsequently sold by Eleanor for a substantial sum, apparently in 2012.

In June 2017, Eleanor purchased the Meadows house solely in her name. Eleanor resided in the Meadows house thereafter until her death. David never resided in the Meadows house and stated he never intended to do so.

Shortly after Eleanor acquired the Meadows house, David and Eleanor jointly executed a sale, in August 2017, of the Wildfire house.

TOD DEED

Prior to a scheduled surgery, on February 8, 2018, Eleanor recorded a TOD deed for the Meadows house, naming Bringenberg as the designated beneficiary. David did not execute or acknowledge the TOD deed. Eleanor died on March 3. On March 13, Bringenberg recorded Eleanor's death certificate and transferred the Meadows house to her name.

DISPUTED ALLEGATIONS OF DAVID'S COMPLAINT

David alleged in his complaint to quiet title and for injunctive relief that Eleanor told him the Meadows house was replacing the Wildfire house as the marital home and would be titled in joint tenancy with right of survivorship. Bringenberg denied that allegation. David alleged in his complaint that the Meadows house was purchased with marital funds; Bringenberg also denied that allegation.

David generally alleged that he was the rightful owner of the Meadows house and that a cloud had been cast upon the title. David asserted he was the rightful owner of the Meadows house due to (1) the fact that marital funds were used for its purchase, (2) David's belief the property was held in joint tenancy, and (3) the invalidity of the TOD deed because "Nebraska deeds conveying an interest in real property held by a married person must be executed by both spouses."

David sought a judgment (1) quieting title to the Meadows house in his name in fee simple absolute as against Bringenberg and (2) enjoining Bringenberg from forever asserting any claims of interest in the real estate or any portion thereof. David also asked for attorney fees and any other relief the court found to be just and equitable.

BRINGENBERG'S ANSWER AND COUNTERCLAIM

Bringenberg generally denied that David was the rightful owner of the Meadows house and alleged that David's complaint failed to state a claim and was barred under the doctrines of waiver, abandonment, estoppel, res judicata, election of remedies, and unclean hands. Bringenberg alleged that the proper action to assert David's claim was through filing a petition for an elective share for the augmented estate, which had been filed in the matter of the "Estate of Eleanor A. Chambers, in the County Court of Lancaster County, Case No. PR18-319." Further, Bringenberg alleged David's claim against the Meadows house violated the prenuptial agreement.

Bringenberg sought attorney fees for what she alleged was a frivolous lawsuit. She counterclaimed for slander of her title in relation to David's filing with the county register of deeds a notice of lis pendens against the Meadows house, which cloud on her title allegedly was filed in reckless or wanton disregard of her rights and with no legal justification. Bringenberg sought damages sustained as a result of the complaint, an order that any notice be stricken from the property records of the register of deeds, prejudgment and postjudgment interest as allowed by law, attorney fees and costs, and such other relief as the court deemed proper.

DAVID'S MOTION FOR PARTIAL SUMMARY JUDGMENT AND HEARING

David moved for "partial" summary judgment on the grounds that there was no genuine issue that the TOD deed was invalid, because David did not execute or acknowledge the deed; therefore, the deed did not effectuate a transfer of title to Bringenberg upon Eleanor's death. David asserted that Nebraska law required deeds of married persons to be executed and acknowledged by both spouses, especially deeds conveying a homestead interest.

David argued at the hearing that the court was being asked to decide the "narrow question whether a [TOD] Deed is subject to the Homestead Rule from Nebraska Revised Statute 40-104 which requires both spouses sign a deed transferring the homestead of a married person." He stated that the question was whether the TOD deed was "void and therefore title should be quieted back to the Estate of Eleanor." He claimed it was undisputed that the Meadows house was Eleanor's "homestead." Thus, David did not ask the court to decide on summary judgment if he had equitable title in the Meadows house due to the fact that marital funds were allegedly used to purchase it. David did not challenge the conveyance of the Wildfire house, the deed for which both David and Eleanor executed and acknowledged.

Bringenberg responded that it was disputed that the Meadows house was the homestead for purposes of § 40-104. David did not reside there or ever intend to do so, and no children had ever resided there. Bringenberg also argued that TOD deeds under the TODA are not subject to the requirements of § 40-104, even if the Meadows house was the homestead. She noted that nowhere in the TODA and its detailed requirements for effectuating TOD deeds did the Legislature require a spouse's signature when the deed involves jointly owned property or a "homestead."

This was consistent, Bringenberg argued, with the intent of the TODA to allow TOD deeds to function as will substitutes that avoid probate. Under the TODA, any interest by the nontransferor spouse in the property remains intact and the beneficiary takes the real estate subject to it. The TOD deed does not operate as any conveyance or encumbrance until after the death of the transferor, at which time the real estate is no longer the homestead of "a married person." Both spouses, Bringenberg pointed out, need not execute and acknowledge one spouse's will in order for it to be valid. Thus, likewise, both spouses need not execute and acknowledge one spouse's TOD deed.

Bringenberg alternatively asserted that any homestead interest in the Meadows house was waived through the premarital agreement, the validity of which David did not challenge in his motion for partial summary judgment.

Both parties submitted evidence at the summary judgment hearing pertaining to David's and Eleanor's residency and intentions regarding the ownership of their properties. David also submitted evidence pertaining to the source of the funds to purchase the Meadows house. The court sustained David's objections to exhibits 11, 16, 17, and 19. Exhibit 11 is an affidavit by Eleanor's attorney, who had prepared the TOD deed. Exhibit 16 was a quitclaim deed executed in November 2014 for the farmhouse and property from David and...