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Full Opinion
¶1 â Robert E. Fletcher used a quitclaim deed to gift his Winthrop cabin to his nephews, John and Robert G. Fletcher.
FACTS
¶2 Neither party assigns error to the trial courtâs findings of fact and, thus, they are verities on appeal. Moreman v. Butcher, 126 Wn.2d 36, 40, 891 P.2d 725 (1995).
¶3 Bob Fletcher owned a parcel of real property including a cabin in Winthrop, Washington. John and Robert Fletcher were Bobâs nephews. Starting around 1960, Bob took his nephews to visit the cabin two or three times a year. John and Robertâs father (Bobâs brother) died in 1964 when the boys were young, so Bob âtook [them] under his wing.â Report of Proceedings (RP) (June 9,2011) at 508. Bob lived with John and Robert for two years and married their mother (Bobâs brotherâs widow) in 1968. That marriage lasted only two years. Until 1971, John continued visiting the cabin property two or three times a year.
¶4 Bob married Edna Fletcher in 1971. Denny and Allen Bale are Ednaâs adult sons from a previous marriage. When
¶5 Bob and Edna were married 28 years. During that time, the Bales made numerous improvements to the Winthrop property, including
building a woodshed; installing exterior lighting; building a storage shed; clearing a parking area near the cabin; clearing and seeding lawn areas near the cabin; cutting down trees and removing tree stumps; planting ornamental bushes, evergreen trees, and fruit trees; rebuilding, grading, and graveling the driveway; and building a horse coral; adding on a bedroom, a bathroom, and a porch to the cabin; installing a complete water system to the cabin property, including a well; adding complete interior plumbing and septic systems to the cabin property; remodeling the living room; extending and enlarging the kitchen space; installing countertops and cabinets to the kitchen; rewiring the entire electrical system; replacing the roof on the old section of the cabin and roofing the new additions to the cabin; insulating all of the original walls and ceiling portions, plus the new additions; replacing all the windows; installing new flooring and related structural supports; re-sheeting the exterior walls; installing a new water heater; making major repairs to the wood burning and cooking stoves; installing a propane fireplace; and replacing the two chimneys.
They also contributed furnishings and appliances to the cabin. They âprovided the time and labor, and materials and payments necessary for these extensive renovations, improvements, and maintenance in reliance on their understanding that they would own the Winthrop property after [Bob] died.â John and Robert stopped visiting the cabin during Bob and Ednaâs marriage because Edna did not âappreciateâ them.
¶6 Edna died in 1999, and Bob again invited John and Robert to visit the cabin. John visited the property a couple times a year. He did maintenance work each time: âI did as much as I had to do to maintain the property while I was
¶7 Bob executed a will in October 2003, in which he made three bequests: (1) to his stepsons, âDennis Bale and [Allen] Bale, I give my property in Winthrop, WA, share and share alikeâ; (2) $2,000 to his adopted daughter; and (3) the rest, residue, and remainder of his estate to Garry Allison. Respâtâs Reply Br. App. A. In devising the Winthrop property to the Bales, Bob indicated his desire that they allow Garry Allison, John, and Robert to use the property for their enjoyment â âat the discretion of Dennis Bale and [Allen] Bale.â â Respâtâs Reply Br. App. A.
¶8 Bob was diagnosed with terminal lung cancer in the fall of 2008. John testified that after the diagnosis, Bob invited him and Robert over for lunch. Garry Allison was also present at the lunch. John and Robert both testified that Bob told them at that time, âI want you boys to have the cabin.â RP (June 9, 2011) at 559, 587. John found a preprinted quitclaim deed online and filled it out. John and Robert then took Bob to Bank of America to get the deed notarized. Bob signed the deed, and the notary acknowledged his signature. John recorded the deed in Okanogan County on December 19, 2008.
¶9 The deed âconveys and quitclaimsâ the cabin property to John and Robert. The spaces after âin consideration ofâ and âquit claims toâ are blank. Ex. 2. Handwritten at the top of the deed after âGranteeâ are the names âRobert Gary Fletcherâ and âJohn Franklin Fletcherâ and âRobert Ernest Fletcherâ after the word âGrantor.â Ex. 2. In the preprinted real estate excise tax affidavit (REETA) and supplemental statement, under the heading âGifts without consideration,â Bob checked the box indicating, âThere is no debt on the property; Grantor (seller) has not received any consideration towards equity. No tax is due.â Ex. 4. Also handwritten after âReason for exemptionâ is âgift, w/no debt.â Ex. 4. The
¶10 Bob died in April 2009 and Garry Allison was named personal representative under the 2003 will. After Bobâs death, John amended the previously recorded quitclaim deed by adding âfor love and affectionâ and also wrote in his name and Robertâs name in the âquit claim toâ blank.
¶11 When the Bales learned that Bob quitclaimed the Winthrop property to John and Robert, they filed a âcomplaint for specific performance, damages and further equitable reliefâ against John, Robert, and Garry Allison, requesting that the Winthrop property be transferred from John and Robert to them. (Capitalization omitted.) They alleged numerous claims, including breach of oral contract, breach of implied contract, promissory estoppel, undue influence, and tortious interference.
¶12 Garry Allison moved for summary judgment on all claims. The court granted summary judgment dismissal on the undue influence, tortious interference, and promissory estoppel claims
¶13 The court entered a judgment awarding clear title to the Bales and entered written findings and conclusions.
1. The quit claim deed executed by [Bob] in December 2008 lacks specific and necessary terms to effectively transfer title. The quit claim deed is incomplete and fails to state what consideration, if any, was given for the deed. There were blanks left as to whom the property was conveyed. Because of the fatal defects as to consideration, the quit claim deed is ineffective and did not transfer title to John and Robert G. Fletcher.
2. The quit claim deed executed by [Bob] in December 2008 does not meet the fundamental statutory requirements for a âgood and sufficient conveyance, release and quitclaim to the grantee[s]â pursuant to RCW 64.04.050, and therefore, is ineffective to transfer the Winthrop property to John and Robert G. Fletcher.
3. Because [Bob] is deceased and died testate, the December 2008 quit claim deed cannot be reformed by the personal representative, and the post-death alterations to the December 2008 deed are improper and of no legal effect.
(Third alteration in original.) The court concluded that given the deedâs invalidity, Bobâs October 2003 will controlled distribution of his estate and the property passed to the Bales.
¶14 The court rejected the Balesâ oral contract to devise and implied contract claims. The relevant conclusions state:
6. [The Bales] were unable to establish [by] clear, cogent and convincing evidence that there was an implied contract between themselves and [Bob] to transfer the Winthrop property in exchange for the work that the Bales performed.
7. [The Bales] were unable to establish that Defendant Ms. Garry Allison had knowledge of any contract, oral or implied, or that she took any actions that would have breached either agreement.
10. Although [the Bales] established that they performed significant work to improve the Winthrop property, they did not establish by clear, convincing and cogent evidence the existence of an oral contract to devise.
*444 11. [The Bales] did not establish that [John or Robert] had knowledge of any oral contract that might have existed between them and [Bob]. Therefore, [the Bales] did not establish that [John or Robert] took action that interfered with any alleged contract.
12. [The Bales] did not establish that [John or Robert] exerted undue influence on [Bob], nor was there sufficient evidence that [Bob] lacked testamentary capacity.
The court ordered John and Robert to transfer all rights and title to the Winthrop property to the Bales under a quitclaim deed.
¶15 John and Robert appeal the trial courtâs conclusion that the quitclaim deed was invalid for failure to recite consideration. The Bales cross appeal the courtâs conclusion that they failed to establish an oral contract to devise.
ANALYSIS
Quitclaim Deed Validity
¶16 John and Robert contend the trial court erred in ruling that âfatal defects as to considerationâ rendered the quitclaim deed ineffective. They argue that transfer of real property intended as a gift requires no recital of consideration under Washington law.
¶17 Construction of deeds is a matter of law. Niemann v. Vaughn Cmty. Church, 154 Wn.2d 365, 374, 113 P.3d 463 (2005). Whether the trial court properly determined the legal consequences of the deedâs failure to recite consideration is subject to de novo review. The goal of deed construction is to effectuate the partiesâ intent. Niemann, 154 Wn.2d at 374. âIn other words, âit is a factual question to determine the intent of the partiesâ with the court then âapplying] the rules of law to determine the legal consequences of that intent.â â Niemann, 154 Wn.2d at 374-75 (alteration in original) (quoting Veach v. Culp, 92 Wn.2d 570, 573, 599 P.2d 526 (1979)).
¶19 Washington courts have affirmed both real property gifts and gifts without consideration. See Kessler v. Kessler, 55 Wn.2d 598, 600, 349 P.2d 224 (1960) (âIt was not against public policy, under the facts of this case, for the competent and grateful mother to have executed a deed of gift to her son of her residence property.â); Stringfellow v. Stringfellow, 53 Wn.2d 639, 641, 335 P.2d 825 (1959) (father gifted stocks to son by âcausing] the issuance of the stock certificate in the sonâs name,â no consideration recited (emphasis omitted)); State v. Superior Court, 165 Wash. 648, 650, 5 P.2d 1037 (1931) (parents could have deeded their home to their daughter âwithout any consideration at allâ but never made that argument). The real estate tax regulation WAC 458-61A-201(l) treats a gift of real property as a nontaxable event. It provides:
Generally, a gift of real property is not a sale, and is not subject to the real estate excise tax. A gift of real property is a transfer for which there is no consideration given in return for granting an interest in the property. If consideration is given in return for the interest granted, then the transfer is not a gift, but a sale, and it is subject to the real estate excise tax to the extent of the consideration received.
(Emphasis added.)
¶20 Bob used a quitclaim deed to gift the Winthrop property to John and Robert without any recital of consid
Quitclaim deeds may be in substance in the following form:
The grantor (here insert the name or names and place of residence), for and in consideration of (here insert consideration) conveys and quitclaims to (here insert granteeâs name or names) all interest in the following described real estate (here insert description), situated in the county of......, state of Washington. Dated this .... day of......, 19 . . .
Every deed in substance in the above form, when otherwise duly executed, shall be deemed and held a good and sufficient conveyance, release and quitclaim to the grantee, his or her heirs and assigns in fee of all the then existing legal and equitable rights of the grantor in the premises therein described, but shall not extend to the after acquired title unless words are added expressing such intention.
(Emphasis added.) In Newport Yacht Basin Assân of Condominium Owners v. Supreme Northwest, Inc., 168 Wn. App. 56, 277 P.3d 18 (2012), we explained that âa quitclaim deed need not precisely match the form described in RCW 64.04.050 in order to convey fee title.â Newport Yacht, 168 Wn. App. at 67. We further explained that âthe operative words of a quitclaim deed are âconveys and quitclaims.â â Newport Yacht, 168 Wn. App. at 67 (quoting 18 William B. Stoebuck & John W. Weaver, Washington Practice: Real Estate: Transactions § 14.2, at 116 (2d ed. 2004)).
¶21 In Newport Yacht, we discussed consideration in the context of quitclaim deeds:
As our Supreme Court has long recognized, â[generally speaking, inadequacy of price is not sufficient, standing by itself, to authorize a court of equity to set aside a deed.â Downing v. State, 9 Wn.2d 685, 688, 115 P.2d 972 (1941). Only where the inadequacy of consideration for conveyance of realty is so great as to shock the conscience may a court invoke its equitable power to set aside the conveyance. Downing, 9 Wn.2d at 688, 115 P.2d 972; see also Binder v. Binder, 50 Wn.2d 142, 150, 309 P.2d 1050 (1957). However, quitclaim deeds are commonly used*447 in transactions that are not the result of a sale for value. 17 William B. Stoebuck & John W. Weaver, Washington Practice: Real Estate: Property Law § 7.2, at 472 (2d ed. 2004). Such instruments are âused in donative transactions, in which, despite the recital of consideration in the deed, no actual consideration passes except perhaps love and affection.â 17 Stoebuck & Weaver, supra, § 7.2, at 472. Similarly, quitclaim deeds are often used âto clear title, to correct errors in prior deeds, and to adjust disputed boundaries between adjoining landowners.â 17 Stoebuck & Weaver, supra, § 7.2, at 472. In such circumstances, âthe common practice in Washington ... to recite consideration ofâten dollars and other good and valuable considerationâ is sufficient to support a conveyance by deed.â 17 Stoebuck & Weaver, supra, § 7.7, at 483.
Newport Yacht, 168 Wn. App. at 82-83 (alterations in original) (emphasis added).
¶22 No Washington case addresses whether a quitclaim deed must recite consideration when the grantor intends to convey real property as a gift. Professors Stoebuck and Weaver address this question in their authoritative real property treatise:
The Washington statute that gives the general form of a deed, RCWA 64.04.020, does not say that the deed must recite consideration. However, the statutes that set out the three statutory forms all say, âfor and in consideration of (here insert consideration).â Two questions arise: Must consideration in fact be given? Must a Washington deed recite consideration?
Washington authority on the question is not as clear as might be wished, but the Supreme Court of Washington does seem to have adopted the rule that a deed is valid without valuable consideration. In other words, land may be conveyed by deed as a gift. The gift cases involve gifts between close relatives, such as spouses or parent to child, but gifts should be possible between non-relatives, though perhaps more subject to being set aside on grounds of fraud or some related equitable ground than are gifts to close relatives. Gift deeds have been upheld between wife and husband and between parent and child. Dictum in two other gift cases that a gift may be*448 supported by âconsiderationâ in the form of love and affection or of past consideration is confusing, since a true gift need not be supported by any form of consideration. When some consideration is given, it need not be in an âadequateâ amount; i.e., mere inadequacy of consideration is not ground to set aside a deed. Thus, the common practice in Washington, as in other states, to recite consideration of âten dollars and other good and valuable considerationâ is sufficient to support a conveyance by deed. However, the lack of consideration or inadequacy of consideration, along with other suspicious circumstances, may give grounds to set a deed aside for fraud or upon some related equitable theory. That subject will be discussed later in this chapter.
A deceptively simple question in Washington is, what is the correct form of deed to make a gift? In the gift cases reported in the preceding paragraph, or in any Washington appellate decision that can be found, the courts either did not quote the language of a gift deed or described a deed that recited nominal consideration. The problem is that Washington lawyers habitually use one of the three special statutory deed forms, and, as previously noted, those forms all call for at least a recital of consideration. A common practice is to use one of the statutory forms, usually the quitclaim deed form, so that the grantor will not âdonateâ warranties as well as title, and to recite as consideration the rote phrase, âten dollars and other good and valuable consideration,â or the phrase, âten dollars, love and affection, and other good and valuable consideration.â Aside from the fact that the deed contains a false recital, this works, but on its face, the deed is subject to a small amount of the excise tax imposed on real estate sales by RCWA Chapter 82.45. To get around that slight embarrassment, some Washington lawyers insert a recital, a sort of âP.S.,â in some convenient blank space in the deed, reciting that the deed is one of gift, and no consideration of money value actually passed. Since no excise tax is due on gifts, this moves the county treasurer to stamp the deed âNo Tax Due,â but it compounds the falsity of the previous recital of consideration. Cautious draftsmen, who tend to be fussy about such details, may wonder if there is a better, truer way to draft a gift deed.
It should be possible to rely upon the general deed statute, RCWA 64.04.020, and to draft a deed that meets the three*449 essentials, in writing, signed by the grantor, and acknowledged, without any recital of consideration, since the statute does not require it. In fact, such deeds are used to grant easements in Washington, and easements, being âinterestsâ in land, are just as much within the deed statutes as are conveyances in fee simple. Of course the deed needs to name the grantor and grantee, describe the land, and contain appropriate words of conveyance. The general deed statute does not give words of conveyance, and the draftsman wants to avoid using the words of any of the three special deed forms; so, the word âconveysâ or the phrase âgrants and conveysâ might be used. Assuming the donor does not want to make warranties, it would be well to add a disclaimer of warranties, to avoid any argument that the grantor intended one of the special statutory forms. The following is a form of deed that should be sufficient to make a gift of a fee simple estate in Washington:
Grantors, John Doe and Jane Doe, husband and wife, hereby grant and convey as a gift, without warranties, to Richard Roe and Mary Roe, husband and wife, the following described real estate in fee simple absolute: (legal description), situated in the County of_, State of Washington.
Dated this_day of_, 20_.
17 Stoebuck & Weaver, supra, § 7.7, at 482-84 (footnotes omitted).
¶23 The Bales rely exclusively on RCW 64.04.050, quoted above, to argue that the December 2008 quitclaim deed was ineffective because it was âdevoid of any statement of consideration.â Respâtâs Reply Br. at 9. The Bales do not dispute that Bob intended to gift the real property to John and Robert.
Timeliness of Cross Appeal
¶25 John and Robert contend the Balesâ cross appeal was untimely under RAP 5.2.
Oral Contract To Devise
¶26 The Bales contend that the trial court incorrectly applied the âclear, cogent, and convincingâ standard of proof in determining that they failed to prove the existence of an oral contract to devise. They argue that a lower standard of proof applies in cases where a will consistent with the alleged contract exists.
¶27 A party asserting the existence of an express or implied contract bears the burden of proving the essential elements of a contract, including mutual intent. Bogle & Gates, PLLC v. Holly Mountain Res., 108 Wn. App. 557, 560, 32 P.3d 1002 (2001). While equity will recognize oral contracts to devise, they are not favored and will be enforced only upon very strong evidence that the promise was made in exchange for valuable consideration and deliberately entered into by the decedent. Bentzen v. Demmons, 68 Wn. App. 339, 347, 842 P.2d 1015 (1993). To establish the agreement, the claimant must prove that (1) the decedent agreed to will or leave the claimant certain property, (2) the services contemplated as consideration for the agreement were actually performed, and (3) the services were performed in reliance on the agreement. Cook v. Cook, 80 Wn.2d 642, 645-46, 497 P.2d 584 (1972); Bentzen, 68 Wn. App. at 347. The claimant must establish each of these elements to a â âhigh probability.â â Bentzen, 68 Wn. App. at 347 (quoting Cook, 80 Wn.2d at 647). âStatements of intention alone do not necessarily support the existence of an express contract to devise.â Bentzen, 68 Wn. App. at 347.
¶28 Washington courts equate the âhighly probableâ standard of proof to the âclear, cogent, and convincingâ standard. See In re Welfare of Sego, 82 Wn.2d 736, 739, 513 P.2d 831 (1973); Thompson v. Henderson, 22 Wn. App. 373, 376 n.2, 591 P.2d 784 (1979). When findings subjected to this burden of proof are appealed, âthe question to be resolved is not merely whether there is âsubstantial evidenceâ to support the trial courtâs ultimate determination of
¶29 Cook originally set forth the âhigh probabilityâ standard for establishing an oral contract to devise. Before Cook, âthe burden of proof in these cases [was] expressed in the terms âconclusive, definite, certain, and beyond all legitimate controversy.â â Cook, 80 Wn.2d at 645 (quoting Arnold v. Beckman, 74 Wn.2d 836, 841, 447 P.2d 184 (1968)). Cook responded to these varying terms used in cases to express the standard of proof: âWe think the expressed burden of proof . . . bears fresh explanation.â Cook, 80 Wn.2d at 645. The court then clarified the standard of proof in cases involving oral contracts to devise:
As thus viewed, the burden of proof in these cases requires that the party asserting an oral contract to devise must produce substantial evidence tending to establish the three elements of agreement, performance by claimant and claimantâs reliance, as noted in Jennings v. DâHooghe, [25 Wn.2d 702, 172 P.2d 189 (1946)]. Further, the evidence of the first element (decedentâs agreement) must include the specific factor of evidence which objectively manifests the decedentâs recognition of an existing agreement during his lifetime. From this evidence, the trier of fact must be convinced to a high probability that all required elements are truly fact.
Cook, 80 Wn.2d at 647 (emphasis added). Cook also discussed the role of the trial court in evaluating the evidence under this standard of proof:
It is for the trier of fact to assess the credibility and weight to be attached to the evidence, to measure that evidence in the light of applicable legal requirements and presumptions, and to determine whether the evidence on the point establishes to a high probability that the alleged contract in fact existed.
Cook, 80 Wn.2d at 646.
¶30 In In re Thorntonâs Estate, 81 Wn.2d 72, 76, 499 P.2d 864 (1972), our Supreme Court reiterated that Cook modi
¶31 The Bales cite Worden v. Worden, 96 Wash. 592, 165 P. 501 (1917), Ellis v. Wadleigh, 27 Wn.2d 941, 182 P.2d 49 (1947), and Jansen v. Campbell, 37 Wn.2d 879, 227 P.2d 175 (1951)âall of which predate Cook â for the proposition that because Bobâs October 2003 will left the Winthrop property to the Bales consistent with the alleged oral contract, âthe appropriate standard of proof is less than clear, cogent, and convincing: sometimes stated as âreasonable certainty.â â Respâtâs Br. at 4.
¶32 In Worden, the court upheld an oral contract to devise where unrebutted testimony from eight disinterested witnesses established two nephewsâ agreement to take care of their uncle and his farm in exchange for owning the land when the uncle died. Worden, 96 Wash. at 601-05. The uncleâs will documented the agreement but was unenforceable for failure to comply with statutory requirements. Worden, 96 Wash. at 594-95, 609. No evidence contradicted the alleged agreement. Worden, 96 Wash. at 604-05. The court explained:
The will itself is strong confirmatory proof that such an agreement was entered into. A case of this kind would not require the same degree of convincing evidence as those cases where no will had been made in conformity with an alleged oral contract. Here the will as actually made fully corroborates the other evidence.
Worden, 96 Wash. at 605. The court neither discussed the applicable standard of proof for oral contracts nor mentioned âreasonable certainty.â