Leonard v. Leonard
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This memorandum opinion was not selected for publication in the New Mexico Appellate Reports. Please see Rule 12-405 NMRA for restrictions on the citation of unpublished memorandum opinions. Please also note that this electronic memorandum opinion may contain computer-generated errors or other deviations from the official paper version filed by the Court of Appeals and does not include the filing date. 1 IN THE COURT OF APPEALS OF THE STATE OF NEW MEXICO 2 G. RUSSELL LEONARD and 3 DEBRA LEONARD, husband and wife, 4 Plaintiffs/Counter-Defendants-Appellants, 5 v. NO. 30,566 6 GERALD LEONARD and SUZANNE 7 LEONARD, husband and wife, 8 Defendants/Counter-Claimants-Appellees. 9 APPEAL FROM THE DISTRICT COURT OF CHAVES COUNTY 10 Jane Shuler Gray, District Judge 11 Tucker Law Firm, P.C. 12 Steven L. Tucker 13 Santa Fe, NM 14 Phil Brewer 15 Roswell, NM 16 for Appellants 17 Hinkle, Hensley, Shanor & Martin, L.L.P. 18 Mary Lynn Bogle 19 Roswell, NM 20 for Appellees 1 MEMORANDUM OPINION 2 HANISEE, Judge. 3 {1} Plaintiffs appeal the district court s judgment quieting title to the Leonard 4 Ranch (the Ranch) in favor of Defendants. Following a bench trial, the district court 5 concluded that Plaintiffs granted Defendants a one-half interest in the Ranch in a 1995 6 quitclaim deed. On appeal, Plaintiffs contend that the district court erred in 7 determining that the delivery of the quitclaim deed constituted a valid and effective 8 present conveyance of absolute title to an undivided one-half interest in the Ranch. 9 We conclude that the district court did not err, and affirm. 10 I. BACKGROUND 11 The Ranch consists of approximately 17,000 acres of land located within {2} 12 Chaves and Lincoln Counties. Defendant Gerald Leonard (Gerald) and his first wife 13 Barbara Leonard (Barbara) acquired the Ranch in 1973. Gerald and Barbara divorced 14 some time prior to 1995, each retaining a one-half interest in the Ranch. Gerald is 15 now married to Suzanne Leonard (Suzanne), who is also a Defendant in this case. The 16 instant dispute arose pursuant to a sequence of events associated with Barbara s sale 17 of her one-half interest in the Ranch in 1995 to their son, Plaintiff G. Russell Leonard 18 (Russell), and his wife, Plaintiff Debra Leonard (Debra). 19 {3} To effectuate Barbara s sale to Plaintiffs, Russell requested that Gerald sign a 1 1 warranty deed transferring his separate, undivided one-half interest in the Ranch to 2 Plaintiffs, in order to ensure that title to Barbara s one-half interest passed smoothly 3 to Plaintiffs. In return, Plaintiffs agreed to quit claim Gerald s one-half interest in the 4 property back to Gerald. In accordance with Russell s plan, Gerald executed a 5 warranty deed in favor of Plaintiffs as agreed. Later the same day, Russell handed 6 Gerald the quitclaim deed to Gerald s one-half interest, signed by Plaintiffs, in a 7 sealed envelope. The quitclaim deed stated that Russell and Debra, for consideration 8 paid, quit claim 1/2 interest [to] Gerald Leonard[.] Russell had written a note by 9 hand beneath this language, stating, To later negotiate to an extended agreement to 10 pay Gerald Leonard [$]15,000 a year untill [sic] said amount is paid and quitclaim 11 deed is distroyed [sic]. 12 {4} Nearly eleven years later, Plaintiffs initiated the present litigation by filing a 13 complaint to quiet title in 2006. In their complaint, Plaintiffs asserted that they own 14 in fee simple all lands which comprise the Ranch, and that whatever interest 15 Defendants possessed was inferior in law and in equity to Plaintiffs interests. 16 Plaintiffs contend that based on conversations between Russell and Gerald and the 17 resulting deeds, Gerald sold his interest to Plaintiffs. Defendants responded to the 18 complaint asserting their one-half interest in the land, and ultimately filed a second 19 amended answer and counterclaim for quiet title, which additionally alleged a series 2 1 of separate torts perpetrated on Defendants by Plaintiffs. The main issue during the 2 bench trial at which Gerald, Russell, Barbara, Debra and Suzanne all testified was the 3 validity and significance of the quitclaim deed, signed by Russell and Debra, and 4 provided to Gerald, purporting to return to Gerald his one-half interest in the Ranch. 5 {5} As Defendants highlight in their brief, the district court found that, [p]ut in the 6 best light in favor of [Russell], the terms of the quitclaim deed express an intent to 7 later enter into an agreement for the sale/purchase of [Gerald s] interest in the 8 [R]anch and nothing more. The district court determined that neither the 9 conversation between Russell and Gerald, nor the warranty deed it generated, was 10 intended to be a sale of Gerald s interest in the property and that no agreement for the 11 sale of Gerald s interest was ever negotiated. The court found that Gerald agreed to 12 sign the warranty deed only on the condition that Russell and Debra execute a 13 quitclaim deed immediately following the sale to make clear and known the return to 14 Gerald of Gerald s own undivided one-half interest in the Ranch. According to the 15 district court s findings, Gerald believed that the process of having him and Barbara 16 execute warranty deeds and then having Gerald s interest quit-claimed back to him 17 assisted with the sale and made it clear that he retained his undivided one-half interest 18 in the Ranch. The court explained that [Gerald] did not sell, offer to sell, or agree to 19 sell to [Russell] and Debra . . . in 1994, 1995, or any other time, his undivided [one3 1 half] interest in the [] Ranch. The district court stated that [c]onsistent[] with the 2 intent of the parties, the quitclaim deed at issue constituted a present conveyance of 3 an interest in [the Ranch], with all the rights and privileges associated therewith. 4 {6} With regard to the handwritten language of the quitclaim deed, the district court 5 specifically stated that it was unilaterally written by [Russell], without authority or 6 knowledge of [Gerald] and is not binding on [Gerald] and Suzanne Leonard. The 7 court determined that this handwritten portion of the deed was, at most, a condition 8 or exception to the rights necessarily inherently attendant to the transfer of title, 9 providing that the parties could later negotiate a contract for the sale of the [one10 half] interest [in the Ranch and that t]he condition of later negotiations has never 11 arisen. In addition to the foregoing, the district court found that Gerald was unaware 12 of Russell s handwritten addition to the quitclaim deed because he did not open the 13 envelope to verify the deed s content since he loved and had no reason to distrust 14 Russell. 15 {7} The district court thus quieted title to a one-half interest in the Ranch in favor 16 of Defendants, ordered a partition of Defendants one-half interest, awarded judgment 17 in favor of Defendants as to each counter-claim asserted, and awarded fees to 18 Defendants. Plaintiffs present appeal followed. 19 II. DISCUSSION 4 1 {8} Plaintiffs maintain that the quitclaim deed signed by Plaintiffs transferring a 2 one-half interest in the land back to Gerald was not validly delivered as a matter of 3 law because at the time of transfer, Russell lacked the present intent to irrevocably 4 and irretrievably divest himself of title to the land. In making these arguments, 5 Plaintiffs challenge the district court s findings and conclusions with regard to its 6 construction of the deed in ascertaining Plaintiffs intent and concluding there was 7 valid delivery. 8 {9} Because the question of whether [the grantor] intended to deliver the deed is 9 an issue of fact, we disturb the [district] court s relevant findings and conclusions only 10 if they are unsupported by substantial evidence. Blancett v. Blancett, 11 2004-NMSC-038, ¶ 20, 136 N.M. 573, 102 P.3d 640. Substantial evidence is such 12 relevant evidence that a reasonable mind would find adequate to support a 13 conclusion. Landavazo v. Sanchez, 111 N.M. 137, 138, 802 P.2d 1283, 1284 (1990). 14 In reviewing a substantial evidence claim, [t]he question is not whether substantial 15 evidence exists to support the opposite result, but rather whether such evidence 16 supports the result reached. Las Cruces Prof l Fire Fighters v. City of Las Cruces, 17 1997-NMCA-044, ¶ 12, 123 N.M. 329, 940 P.2d 177. Additionally[,] we will not 18 reweigh the evidence nor substitute our judgment for that of the fact finder, id., 19 except [w]here an issue to be determined rests upon the interpretation of 5 1 documentary evidence, an appellate court is in as good a position as the trial court to 2 determine the facts and draw its own conclusions. Maestas v. Martinez, 107 N.M. 3 91, 93, 752 P.2d 1107, 1109 (Ct. App. 1988). Thus, we review documentary evidence 4 de novo. Id. 5 {10} An effective legal delivery of a deed requires (1) intent by the grantor to make 6 a present transfer and (2) a transfer of dominion and control. Blancett, 7 2004-NMSC-038, ¶ 7. There is no legal delivery, even where a deed has been 8 physically transferred, when the evidence shows that there was no present intent on 9 the part of the grantor to divest himself of title to the land. Den-Gar Enters. v. 10 Romero, 94 N.M. 425, 428, 611 P.2d 1119, 1122 (Ct. App. 1980). [T]he grantor s 11 present intent must be to pass his complete title to the grantee and divest himself of 12 all title; otherwise the purported deed is not valid or effective. Id. The general rule 13 in deed construction is that the grantor s intent is to be ascertained from the language 14 employed in the deed or deeds, viewed in light of the surrounding circumstances. 15 Valencia v. Lundgren, 2000-NMCA-045, ¶ 13, 129 N.M. 57, 1 P.3d 975; Blancett, 16 2004-NMSC-038, ¶ 7 (stating that the grantor s intent may also be determined from 17 words, actions or surrounding circumstances during, preceding or following the 18 execution of a deed ). Courts will construe a deed in such a manner that will uphold 19 the validity of the conveyance, if possible. Vigil v. Sandoval, 106 N.M. 233, 235, 6 1 741 P.2d 836, 838 (Ct. App. 1987). 2 {11} Plaintiffs argue that the district court erred in concluding that the deed was 3 valid, asserting that the language Russell added in his handwritten note on the deed 4 rendered the transaction an invalid or incomplete conveyance, and maintaining that 5 the deed had no immediate effect in 1995. We disagree and conclude that the 6 district court s findings and conclusions are supported by substantial evidence within 7 the record. 8 {12} First and foremost, the handwritten language of the deed, which Plaintiffs argue 9 renders the deed invalid, does not contradict the deed s immediate quitclaim intent. 10 Russell s handwritten note states, To later negotiate to an extended agreement to pay 11 Gerald Leonard [$]15,000 a year untill [sic] said amount is paid and quitclaim deed 12 is distroyed [sic]. This language fails to indicate that the transfer was conditioned 13 on the happening of a future condition, viz., some calamity befalling Russell[,] as 14 Plaintiffs contend. At most, it indicates Russell s hope to negotiate a future sale 15 pursuant to which he can acquire full interest in the Ranch. Nonetheless, we conclude 16 that such a later purchase, even had it occurred, would not constitute a recall of the 17 deed. Instead, were it ever completed, it would simply be a separate and independent 18 transfer of the property. The fact that a party effects a completed transfer of property 19 with the hope that he might one day be in a position to repurchase the property does 7 1 not in any way render invalid the original delivery of the deed. Moreover, had Russell 2 not intended for the quitclaim deed to be effective and valid, there would have been 3 no need for him to purchase Gerald s half interest that day or any day in the future. 4 {13} Viewed in light of the surrounding circumstances, the deed s language 5 demonstrated Russell s present intent, as the grantor, to divest himself of title to the 6 land. Gerald testified that he was insistent that the quitclaim deed be returned to him 7 on the same day he signed and provided the warranty deed to Russell. On the day of 8 the sale of Barbara s one-half interest to Plaintiffs, Gerald reiterated that I ve had 9 experience with family affairs before . . . I m going to give you a deed for my half of 10 the [R]anch and you re going to give it back to me today. Furthermore, Russell 11 admitted to signing and writing upon the quitclaim deed, neglecting to include the 12 alleged price ($175,000) which he testified he agreed upon with Gerald for the sale 13 of Gerald s portion of the Ranch, and never having paid Gerald any of the amount of 14 the money supposedly agreed to in order for Russell to acquire the entire Ranch. 15 {14} Although the note Russell wrote on the deed indicated that he would have liked, 16 at some future point, to negotiate a purchase of Gerald s one-half interest in the 17 property, the evidence of the parties conduct before and after the delivery of the deed 18 supports the district court s determination that no such negotiations were ever 19 undertaken, which could be interpreted by the fact finder to explain why Russell never 8 1 attempted to make, or otherwise made payments to, Gerald. The language of the 2 deed both the quitclaim conveyance and the handwritten addition by Russell fails 3 to establish any present or future sale, terms of such a sale, or agreement of the parties 4 for there to definitively be any sale to Russell of Gerald s one-half undivided interest 5 in the Ranch. 6 {15} Finally, even if Plaintiffs argument could be read in such a manner as to 7 maintain a conditional delivery that was unsatisfied by Gerald, it appears that Russell 8 did not present such a theory at trial, and we decline to permit him to put forth such 9 a theory on appeal, since Defendants did not have the opportunity to make any 10 arguments in law or equity regarding why such a provision should not be enforced in 11 the context of a quitclaim deed. Gerke v. Romero, 2010-NMCA-060, ¶ 18, 148 N.M. 12 367, 237 P.3d 111 (stating that one of the primary purposes of preservation is to 13 allow the opposing party a fair opportunity to respond to the claim of error and to 14 show why the district court should rule against that claim (internal quotation marks 15 and citation omitted)). 16 {16} Although we recognize that Russell presented evidence that would support a 17 different version of events and therefore another interpretation of the terms of the 18 deed, [t]he question is not whether substantial evidence exists to support the opposite 19 result, but rather whether such evidence supports the result reached. Las Cruces 9 1 Prof l Fire Fighters, 1997-NMCA-044, ¶ 12. Here, based on the language of the deed 2 and the extrinsic evidence before it, the district court was well within its fact finding 3 authority to determine that the deed was intended to constitute a present conveyance 4 to Gerald that was not dependent on future negotiations regarding the possibility of 5 any sale of the property conveyed by the deed. Abundant evidence, including the text 6 of the deed, Gerald s testimony, and the circumstances surrounding the sale of 7 Barbara s property to Russell support the district court s conclusion that such was in 8 fact precisely what the parties bargained for a successful sale of Barbara s interest 9 to Russell and an ensuing tenancy in common shared by the parties. Under the 10 express language of the deed and the district court s resolution in favor of Defendants 11 of the testimony at trial (which we do not reweigh on appeal), we conclude that the 12 district court s findings and conclusions were supported by substantial evidence. 13 III. CONCLUSION 14 For the reasons set forth above, we will not disturb the factual findings or legal {17} 15 conclusions of the district court. We affirm. 10 1 {18} IT IS SO ORDERED. 2 3 ___________________________________ J. MILES HANISEE, Judge 4 WE CONCUR: 5 6 MICHAEL D. BUSTAMANTE, Judge 7 8 LINDA M. VANZI, Judge 11
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