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Griffin v. Sprouse8/30/1994
OPINION BY JUDGE LARRY G. ELDER
Kathy S. Griffin ("Griffin")--administratrix of the estate of her father, Thomas Sprouse ("Thomas")--contests the divorce court's resolution of a dispute over the entitlement of her mother, Lorraine Sprouse ("Sprouse"), to certain funds being held in escrow. After Sprouse filed for divorce, she and Thomas agreed to sell the marital residence but could not agree on the distribution of the proceeds from the sale. The divorce court ordered the funds to be held in escrow pending equitable distribution proceedings, but Thomas died before the divorce proceedings could be completed. Sprouse then moved the court to order the funds disbursed to her. As administratrix of Thomas's estate, Griffin intervened and objected to the disbursement. The trial court held that "title" to the funds passed to Sprouse because the property had been held by the parties as tenants by the entireties.
On appeal, Griffin claims that the trial court erred in holding (1) that it had jurisdiction to determine entitlement to the escrowed funds in the divorce proceeding following Thomas's death, and (2) that the funds were property held by the parties as tenants by the entireties. Sprouse asserts that Griffin failed properly to preserve for appeal her challenge to the jurisdiction of the court. For the reasons that follow, we vacate the trial court's order and remand for further proceedings.
On May 1, 1991, Sprouse filed for divorce from Thomas Sprouse. Thomas filed an answer and cross-bill. On October 6, 1992, the court referred the matter to a commissioner in chancery
to report on all issues related to the equitable distribution. During the pendency of divorce proceedings, Thomas and Sprouse agreed to sell the marital residence, which they owned as tenants by the entireties. Following the sale, however, they were unable to agree on how to distribute the proceeds. By order of November 19, 1992, the court directed that the proceeds be held in escrow by the parties' attorneys. Thomas died intestate in Highland County, Virginia, on December 1, 1992, before a hearing could be held.
On December 22, 1992, Sprouse moved the court for summary judgment contending that the escrowed funds were property owned by the parties as tenants by the entireties with right of survivorship when Thomas died, or, alternatively, on the theory that when he died, the funds passed to her under the laws of intestate succession. On February 4, 1993, Griffin qualified as administratrix of Thomas's estate in Highland County. She was granted leave by the Circuit Court of Augusta County to intervene in her capacity as administratrix in the pending divorce proceedings concerning Disposition of the funds in the escrow account. Griffin argued that the court lacked jurisdiction to determine entitlement to the escrowed funds because the divorce proceeding had abated with the death of Thomas. She contends that the Highland County Circuit Court, the jurisdiction in which Thomas died and where letters of administration had issued for his estate, had jurisdiction to determine his estate's interest in the property. After receiving evidence, the court held that it had jurisdiction over the funds which it had ordered placed in escrow. It also concluded that the proceeds were presumed to be held by the parties as tenants by the entireties because they were generated from the sale of property so held and because Griffin presented no evidence to counter the presumption that they continued to be so held. The court ordered that the funds in the escrow account and accumulated interest be disbursed to Sprouse. It did,
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