Sisters Splitting Spruced-up Shelter

This is what that title will get you from AI 

By Andy Delaney

Sometimes I go a little too hard for the alliteration in the title. These sisters, Ms. Martin and Ms. Lyon, had never actually lived in what SCOV calls the family home. But their mom passed and left it to them. They decided to fix it up before they sold it. They also agreed that Ms. Lyon would do most of the work to save money. 

But then they started disagreeing. Ms. Martin sued for partition. Partition—without getting into the weeds because that turns into a jungle—is a way to split up property when two or more people are on the deed and can't come to an agreement on what to do with the property. Ms. Lyon filed an answer and counterclaim for, among other things, prejudgment interest on her contributions to the property.  

The sisters actually agreed on a lot in the partition action: the value of the property; that Ms. Lyon should buy Ms. Martin out and be assigned the property; and that commissioners (one of the aforementioned weeds) were unnecessary. 

After a one-day bench trial, the trial court issued findings of fact and conclusions of law. The trial court essentially split the equity with roughly two thirds going to Ms. Lyon but it denied her request for prejudgment interest because it was not "reasonably ascertainable" from the evidence presented (a footnote clarifies that there were other co-owned inherited properties involved tangentially).   

Ms. Lyon appeals.

SCOV first notes that it has not previously considered whether prejudgment interest is available for a partition award. In a bit of foreshadowing, SCOV also notes that it can affirm the trial court on different grounds if the result—not awarding prejudgment interest—is correct. And just in case you're still having trouble reading the tea leaves, SCOV drops footnote 3, which explains: "As discussed below, we conclude that prejudgment interest is not available in a partition award." 

SCOV first looks at the nature of partition which is a mixture of legal and equitable remedies. Because the amounts awarded are more in the nature of an equitable distribution than an award for damages or loss, SCOV concludes that prejudgment interest is not a factor in a partition award. Prejudgment interest is appropriate for compensatory damages, not the equitable distribution in a partition action. 

Because the trial court's result was correct, SCOV affirms on alternative grounds. Martin v. Lyon, 2024 VT 68.