James v. Smith

1

Larissa M. James and Robert James Brantner, trustees of the Robert Jay Brantner Living Trust, Dated March 20, 2013, et al., appellants, v. Sylinda Smith, Personal Representative of the Estate of Carol Smith, et al., appellees.

No. A-23-464

Court of Appeals of Nebraska

August 27, 2024

THIS OPINION IS NOT DESIGNATED FOR PERMANENT PUBLICATION AND MAY NOT BE CITED EXCEPT AS PROVIDED BY NEB. CT. R. APP. P. § 2-102(E).

Appeal from the District Court for Sarpy County: Nathan B. Cox Judge. Affirmed.

Steven G. Ranum, of Croker Huck Law Firm, for appellants.

Ryan P. Watson and John Andrew McWilliams, of Gross, Welch, Marks & Clare, P.C., L.L.O., for appellee Sylinda Smith.

Moore and Arterburn, Judges.

MEMORANDUM OPINION AND JUDGMENT ON APPEAL

Moore Judge.

I. INTRODUCTION

Larissa Michelle James and Robert James Brantner (Rob) in their individual capacities, as well as in their capacities as trustees of the Robert Jay Brantner Living Trust (collectively the Appellants), appeal from the order of the district court for Sarpy County that determined ownership interests in certain residential property in Bellevue, Nebraska (the Nebraska property) and ordered partition of the property. For the reasons set forth herein, we affirm.

II. STATEMENT OF FACTS

1. The Parties and Property

This case involves a dispute between the families of Robert J. Brantner (Bob) and Carol Smith over title to the Nebraska property. Bob and Carol were the grantees (as joint tenants) on the warranty deed issued when the property was purchased in 2018. Also at issue is the effect of an agreement signed by Bob and Carol in 2019 on title to the Nebraska property.

Bob is the father of Larissa and Rob. Larissa and Rob live in California. Bob, who lived in California at the time the Nebraska property was purchased, was a trial attorney; the record does not otherwise specify what kind of law Bob practiced. Bob died on March 6, 2021, in California.

Carol, a friend of Bob's, is the mother of Sylinda Smith. Sylinda, her husband Daryl Isaacs, and their daughter Alyssa, as well as Carol and Bob, lived on the Nebraska property at certain points after its purchase. Carol died on June 10, 2021. Sylinda is the personal representative (PR) of Carol's estate.

The Nebraska property was purchased on November 30, 2018. Bob paid the purchase price for the property with funds he obtained from the sale of his interest in agricultural real estate in South Dakota (the South Dakota property). Carol was not an owner of the South Dakota property, and she did not contribute any funds to the purchase price of the Nebraska property. A warranty deed, executed on November 29 and filed on December 4 with the Sarpy County Register of Deeds, conveyed the property to "[Bob], a single person and [Carol], a single person, as joint tenants with right of survivorship, and not as tenants in common." In June 2019, Bob and Carol signed a document with respect to the Nebraska property, containing both ownership and rental provisions, which we have referred to as "the ownership agreement." We set forth the details of that agreement and other relevant documents in the trial evidence below.

Bob established the Robert J. Brantner Living Trust in 2013. Larissa and Rob are the trustees of that trust. Prior to his death, Bob transferred his interest in the Nebraska property to himself, Larissa, and Rob, and then further transferred his interest in the property to the trustees to hold in his trust.

2. Pleadings

The Appellants filed a complaint in the district court on March 19, 2021, and an amended complaint on March 30, naming as defendants Carol and anyone having an interest in the Nebraska property. They alleged that Bob had paid the entire purchase price for the property in 2018, that he was unable to obtain homeowner's insurance for the property if it was titled solely in his name because of the loss of his previous house by wildfire, and that Carol's name was added to the warranty deed for the Nebraska property as a joint tenant solely for the purpose of enabling Bob to acquire homeowner's insurance. They alleged Bob and Carol agreed that her interest was "in name only" and that she would execute and deliver a deed removing her name from the title and granting whatever interest in it she held back to Bob or his nominee upon Bob's request. The Appellants alleged that Carol and Bob also entered into a subsequent written agreement, providing that Bob was sole owner of the property, that Carol's name would be removed from the title once Bob could procure home insurance, and that Carol's true status with respect to the property was that of a tenant with monthly rent of $700. They alleged that to sever any joint tenancy in the property, Bob subsequently transferred his interest in the property to himself, Larissa, and Rob, and further transferred his interest in the property to the trustees to hold in his trust. They further alleged that after various requests, Carol refused to transfer her interest in the property, that her tenancy terminated after she had failed to comply with a 7 day notice and she had not paid rent, and that she wrongfully remained in possession of the property. The Appellants asked the district court to determine whether Carol had any ownership interest in the property, setting forth causes of action/theories of recovery for breach of contract, quiet title, restitution, and alternative causes/theories for unjust enrichment and partition.

Carol counterclaimed for partition of the property. After Carol's death in June 2021, the action was revived and Sylinda, as PR of Carol's estate, and the "heirs and devisees of [Carol]" were substituted as defendants for Carol.

3. Trial

Trial was held before the district court on February 28, 2023. The court heard testimony from Larissa, Rob, and Sylinda and received various documentary exhibits into evidence.

Beginning in 2008, Carol rented a room from Bob in his house in Ventura, California. There was conflicting testimony about the nature of the relationship between Bob and Carol (whether it was simply a landlord and tenant relationship or a romantic one). However, it is clear that they resided on Bob's property in Ventura before that house burned down in a wildfire in approximately December 2017. After the fire, Bob rented another residence in Ventura. Carol lived in the rented house; Bob purchased a trailer and lived in the trailer on the rented property. Bob and Carol both resided in the house on the Nebraska property from approximately December 2019 until Bob was hospitalized in February 2021.

Because of the loss of his Ventura residence due to a wildfire, Bob was unable to acquire homeowner's insurance for the Nebraska property if that property was titled in his name alone. Accordingly, as noted above, the Nebraska property was titled to Bob and Carol as joint tenants with rights of survivorship, and not as tenants in common. There was conflicting testimony about Bob's intent in purchasing the Nebraska property. According to Larissa, Bob told her that he wanted his family to have "a place in the Midwest" so they could have similar experiences to his own experiences growing up in South Dakota. Bob also indicated that the purchase was due to tax implications from the sale of the South Dakota property. Larissa testified that Bob told her he wanted her and Rob to inherit the Nebraska property after his death and that he did not want Carol to have it. Rob's testimony on this issue was consistent with Larissa's. Sylinda testified that in phone conversations with Bob and Carol, they told her the Nebraska property was being purchased so that Carol could be closer to her family (Sylinda's daughter Alyssa was living in Bellevue at the time).

At some point, Sylinda had a federal conviction for a felony drug charge (possession with intent to deliver methamphetamine). She received a 5 year sentence and served 2 years, 8 months in facilities in Minnesota and then in Illinois, between approximately 2015 and 2018. She was then released on probation to a halfway house in Carter Lake, Iowa, where she stayed until June 2019. Daryl and Alyssa began renting the Nebraska property from Bob in December 2018. Sylinda testified that Daryl and Bob agreed that the money Daryl was paying for rent "would be put into an account for the taxes on the house." Sylinda began living full-time on the Nebraska property in June 2019 (she spent time there on weekends while living in the halfway house). Larissa testified that Carol began living on the Nebraska property after signing the ownership agreement. According to Sylinda, Carol began living there "either the month or a couple of weeks before [Sylinda] was released from the halfway house."

The ownership agreement signed by Bob and Carol is dated June 27, 2019. The ownership portion of that agreement provides:

On November 30, 2018 [Bob] bought real estate property [at a specified address in Bellevue] located in Sarpy County, Nebraska.

[Bob] owns 100% of the title, deed and property at [the specified address]. At the time of [Bob's] death, 100% ownership of [the property] will transfer to his children, [Rob] & [Larissa].

[Bob] currently shares joint tenancy with [Carol] for the sole purpose of insuring the property, due to the fact that he was not able to purchase home owner's insurance under his own name. [Carol's] name will be removed from the title once he is able to purchase home owner's insurance under his own name.

(Bullet points omitted.) The rental portion of the agreement stated, "On a year to year basis, [Bob] will rent [the property] to [Carol] for $700 per month. The monthly rental rate will cover the total cost of annual property taxes &amp home owner's insurance associated with [the...