204 A.3d 402
Pa. Super. Ct.2019Background
- Timothy Stephens purchased 174 Carey Lane in 2001 with his own funds; deed listed only him due to his then-wife Kim Schwab's credit issues. Stephens later believed his Jamaican marriage to Schwab was invalid.
- Stephens and Gina Jacobs married in 2009; on September 19, 2009 they executed a deed conveying Carey Lane to themselves as "tenants by the entireties."
- The couple separated in 2013; in 2014 the trial court annulled their marriage after finding Stephens’ Jamaican marriage was valid, so Stephens and Jacobs were not legally married.
- Jacobs filed for partition in 2015; after a non-jury trial the court (a) found the parties held the property as tenants in common and ordered partition (Part 1), and (b) made Part 2 determinations (value, credits to Stephens, and a net award to Jacobs).
- On appeal the Superior Court held it had jurisdiction only over Part 1 issues (whether property is partitionable and parties’ fractional interests). The court affirmed the Part 1 holding that the deed, although ineffective to create tenancy by entireties, conveyed a co-ownership interest (tenancy in common), vacated the Part 2 dispositions, and remanded for a new Part 2 proceeding after entry/recording of a narrow Part 1 order.
Issues
| Issue | Plaintiff's Argument (Jacobs) | Defendant's Argument (Stephens) | Held |
|---|---|---|---|
| Whether the deed creating tenancy by entireties is void because parties were not legally married | Jacobs argued the deed should be honored and she obtained an ownership interest despite annulment | Stephens argued the transfer was void because the parties were not legally married and the deed should be set aside (restitution/unjust enrichment/conditional gift) | Court held deed was not void; where parties intended to convey property as spouses but were not married, the deed still vests appropriate dual ownership (here tenancy in common) — Part 1 ruling affirmed |
| Whether the trial court had jurisdiction to decide credits, rents, and offsets (Part 2 issues) | Jacobs challenged tax/insurance credits to Stephens and sought rental value; she also challenged denial of post-trial relief on those issues | Stephens sought credits for purchase price and labor; both parties urged resolution of these equitable offsets | Court held it lacked jurisdiction to resolve Part 2 equitable divisions until a proper Part 1 order is entered and recorded; vacated Part 2 rulings and quashed appeals as to those issues |
| Whether exceptions/post-trial motions were permitted to challenge the Part 1 partition order | Jacobs asserted her post-trial motions could be considered | Stephens argued exceptions to a Rule 1557 order directing partition are barred under the Rules | Court held Rule 1557 bars exceptions to an order directing partition; parties must appeal rather than file exceptions — Stephens did not waive his Part 1 challenge by not filing exceptions |
| Proper characterization of ownership where deed used "tenants by entireties" but parties not married | Jacobs relied on the deed and parties’ intent to create survivorship/entireties interests | Stephens argued lack of valid marriage changes the legal effect of the deed — different form of dual ownership should apply | Court applied Thornton and related precedent: deed ineffective to create tenancy by entireties but can effect joint tenancy or tenancy in common depending on intent; here court found tenancy in common and affirmed that Part 1 determination |
Key Cases Cited
- Kapcsos v. Benshoff, 194 A.3d 139 (Pa. Super. 2018) (partition procedure is two-step; Part 1 order directing partition must precede and is jurisdictional before Part 2 equitable division)
- Thornton v. Pierce, 194 A. 897 (Pa. 1937) (deed to persons described as husband and wife, where no lawful marriage exists, does not create tenancy by entireties but conveys an appropriate form of dual ownership)
- Estate of Sacchetti v. Sacchetti, 128 A.3d 273 (Pa. Super. 2015) (deed procured by fraud in marriage context may be set aside; distinguishable where parties acted without fraud)
- Lombardo v. DeMarco, 504 A.2d 1256 (Pa. Super. 1985) (partition is an absolute right incident to tenancy in common)