Benefiel v. Boulton

Plaintiff Alan Benefiel and Christa Benefiel were divorced by a consent decree entered in 2005. Consistent with the terms of the parties' divorce decree, Plaintiff executed a quit claim deed, transferring title in the former marital residence to Christa. In exchange for relinquishing his ownership interest in the property, the decree required Christa to pay Plaintiff $25,000.00 as alimony in lieu of property division. Payments were structured incrementally over a period of four years; $10,000 was due in 2005, and $5,000 was payable on January 31 for years 2006, 2007, and 2008. As security for the property division judgment, Plaintiff was awarded a lien encumbering the residence. The lien was to remain in effect until all payments were completed. Further, the decree contained a clause which vested Plaintiff with the right to immediate title and possession of the property should Christa fail to timely remit any of the annual installments Prior to paying the final installment, Christa sold the subject real property to a third-party, Jewel Boulton. Boulton paid $17,000.00 as a down payment and financed the remainder of the purchase price. Though the divorce decree had not been filed with the local county clerk, it was made a part of the abstract of title. Despite its inclusion in the abstract, a title opinion issued prior to closing failed to identify the divorce judgment as a potential cloud or defect. Christa failed to make the final property division installment due on January 31, 2008. Plaintiff filed suit against both Boulton and Christa, asserting several claims, including demands to quiet title and to allow foreclosure of the lien. In her Answer, Boulton maintained that Plaintiff had no right, title, or interest in the house and that his lien from the divorce decree was ineffective and void. Both Boulton and Plaintiff sought summary judgment. The trial court entered judgment in favor of Plaintiff, finding: (1) the divorce decree created a valid "mortgage lien" against the property; (2) Christa defaulted on the property division obligation; and (3) in accordance with the divorce decree, Christa's default resulted in the automatic reversion of title to Plaintiff. In a prior appeal, the Court of Civil Appeals invalidated the reversionary clause, but found the property was subject to a valid lien. On remand, Boulton invoked her statutory right of redemption, under 42 O.S. 20, by paying the underlying obligation plus interest; however, Boulton's discharge of the lien was not accomplished for more than three years after litigation was commenced. Thus, Plaintiff was the prevailing party on the lien foreclosure claim. After its review, the Supreme Court held that Boulton's redemption of the subject property occurred when she tendered both the underlying $5,000.00 obligation and the accumulated interest owed thereon. The Court of Appeals' opinion was thus vacated, and the case remanded for further proceedings. View "Benefiel v. Boulton" on Justia Law