Andrew James Clayton, Res. v. Mary Kay Wilson, App.
75010-1
| Wash. Ct. App. | Apr 17, 2017Background
- Andrew Clayton obtained a civil judgment (2006) against Douglas and Mary Kay Wilson for harms caused by Douglas; the judgment was held enforceable against former community property.
- A prior dissolution attempt had fraudulently transferred most community assets to Mary Kay; that transfer was voided and the parties ended up as tenants in common in several contiguous Kenmore parcels.
- Mary Kay resides on one of four contiguous parcels; three adjacent parcels (two with separate residences formerly occupied by others) were targeted by Clayton for levy and sale.
- In December 2015 Clayton obtained a writ of execution and the trial court authorized sheriff’s sale of the three nonresidence parcels; Mary Kay appealed and obtained a stay.
- Mary Kay argued (1) the three parcels are protected by the homestead exemption because they are contiguous to her residence parcel, (2) she is entitled to an equitable lien for her separate contributions and postdissolution appreciation, and (3) the writ of execution was defective. The trial court rejected the homestead claim and authorized sale but denied an equitable lien; this appeal followed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether contiguous parcels are protected by homestead exemption | Wilson: contiguous parcels around her residence are part of her homestead and exempt from execution | Clayton: only the parcel actually used as the residence (and parcels used in support of it) qualify; mere contiguity is insufficient | Court: Homestead does not extend to the three parcels; contiguity alone is not enough—use/benefit to the residence required |
| Whether Wilson is entitled to an equitable lien for separate contributions and postdissolution appreciation | Wilson: she made contributions, paid taxes, and the property appreciated postdissolution; she should have an equitable lien/offset against sale proceeds | Clayton: prior injunction and judgment barred encumbrances; creditor entitled to enforce judgment against community property | Court: Trial court abused discretion by denying equitable lien; Wilson may have an equitable lien against sale proceeds for separate contributions, tax payments that preserved value, and postdissolution appreciation; remand to quantify lien before sale |
| Whether the writ of execution was defective | Wilson (raised on appeal): supporting declaration did not meet RCW 6.17.100 and writ was improperly extended | Clayton: writ was properly issued; objections not raised below so forfeited | Court: Declined to reach this forfeited procedural argument; preserved issues are homestead and equitable lien |
Key Cases Cited
- In re Marriage of Baker, 149 Wn. App. 208 (Wash. Ct. App. 2009) (contiguous parcels may be homestead only when used to support the primary residence)
- Morse v. Morris, 57 Wash. 43 (Wash. 1910) (adjacent lots used for garden/orchard/outbuildings may form part of homestead)
- In re Murphy's Estate, 46 Wash. 574 (Wash. 1907) (multiple contiguous lots bought for a single home may be homestead when used as such)
- Watters v. Doud, 95 Wn.2d 835 (Wash. 1981) (postdivorce appreciation and separate contributions to property are beyond reach of community creditors)
- Farrow v. Ostrom, 16 Wn.2d 547 (Wash. 1943) (nonobligated spouse entitled to offsets for personal payments after dissolution)
- Sorenson v. Pyeatt, 158 Wn.2d 523 (Wash. 2006) (equitable liens enforceable in equity to prevent injustice)