Connell v. Francisco

898 P.2d 831 (Wash. 1995)

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Nature of the Case

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Facts

[This is a community property distribution case, and as such you have to recite the facts almost verbatim.] Francisco and Connell met in Toronto, Canada, in June 1983. Connell was a dancer in a stage show produced by Francisco. She resided in New York, New York. She owned clothing and a leasehold interest in a New York apartment. Francisco resided in Las Vegas, Nevada. He owned personal property, real property, and several companies, including Prince Productions, Inc. and Las Vegas Talent, Ltd., which produced stage shows for hotels. Francisco's net worth was approximately $1,300,000 in February 1984. Connell, at Francisco's invitation, moved to Las Vegas in, November 1983. They cohabited in Francisco's Las Vegas home from November 1983 to June 1986. Connell worked as a paid dancer in several stage shows. She also assisted Francisco as needed with his various business enterprises. Francisco managed his companies and produced several profitable stage shows. In November 1985, Prince Productions, Inc. purchased a bed and breakfast, the Whidbey Inn, on Whidbey Island, Washington. Connell moved to Whidbey Island in June 1986 to manage the Inn. Shortly thereafter Francisco moved to Whidbey Island to join her. Connell and Francisco resided and cohabited on Whidbey Island until the relationship ended in March 1990. While living on Whidbey Island, Connell and Francisco were viewed by many in the community as being married. Francisco acquiesced in Connell's use of his surname for business purposes. A last will and testament, dated December 11, 1987, left the corpus of Francisco's estate to Connell. Both Connell and Francisco had surgery to enhance their fertility. In the summer of 1986, Francisco gave Connell an engagement ring. From June 1986 to September 1990 Connell continuously managed and worked at the Inn. She prepared breakfast, cleaned rooms, took reservations, laundered linens, paid bills, and maintained and repaired the Inn. Connell received no compensation for her services at the Inn from 1986 to 1988. From January 1989 to September 1990 she received $400 per week in salary. Francisco produced another profitable stage show and acquired several pieces of real property during the period from June 1986 to September 1990. Property acquired by Francisco included: a condominium in Langley, Washington, for $65,000; a waterfront lot next to the Inn for $35,000; property identified as the Alan May property for $225,000; real property identified as the restaurant property for $320,000; a house in Langley, Washington, for $105,000; and a condominium in Las Vegas, Nevada, for $110,000. In addition to the real property acquired by Francisco, Prince Productions, Inc. acquired two pieces of real property next to the Inn. Connell did not contribute financially toward the purchase of any of the properties, and title to the properties was held in Francisco's name individually or in the name of Prince Productions, Inc. They separated in March 1990. When the relationship ended, Connell had $10,000 in savings, $10,000 in jewelry, her clothes, an automobile, and her leasehold interest in the New York apartment. She continued to receive her $400 per week salary from the Inn until September 1990. In contrast, Francisco's net worth was over $2,700,000, a net increase since February 1984 of almost $1,400,000. In March 1990, he was receiving $5,000 per week in salary from Prince Productions, Inc. Connell filed a lawsuit against Francisco in December 1990 seeking a just and equitable distribution of the property acquired during the relationship. The Island County Superior Court determined Connell and Francisco's relationship was sufficiently long-term and stable to require a just and equitable distribution. The Superior Court limited the property subject to distribution to the property that would have been community in character had they been married. The trial court held property owned by each party prior to the relationship could not be distributed. In addition, the Superior Court required Connell to prove by a preponderance of the evidence that the property acquired during their relationship would have been community property had they been married. The only property characterized by the Superior Court as being property that would have been community in character had Connell and Francisco been married was the increased value of Francisco's pension plan. The increased value of the pension plan, $169,000, was divided equally, with $84,500 distributed to Connell. The Superior Court, concluding Connell did not satisfy her burden of proof with respect to the remaining property, distributed to Francisco the remainder of the pension plan and all real property. The Court of Appeals reversed. Both property owned by each prior to the relationship and property that would have been community in character had the parties been married may be distributed following a meretricious relationship. The court also ruled that the community property presumption attached to all property acquired during the relationship. Francisco contends property owned by each party prior to the relationship may not be distributed following a meretricious relationship, and a community-property-like presumption is inapplicable when a trial court distributes property following a meretricious relationship.