Opinion ID: 403699
Heading Depth: 2
Heading Rank: 4

Heading: Ruth Goldberg's Interest

Text: 51 Although we affirm the district court's determination on the two issues framed by National's motion for summary judgment, we cannot affirm the judgment entirely. On the record now before the court, we affirm the district court's judgment quieting title in National as to Philip Goldberg's interest in the subject property. However, we find the record insufficient to support the relief granted as it pertains to Ruth Goldberg's interest in the ranch. 52 It must be remembered that in the prior appeal, this court held that National had established a prima facie case for relief by introducing the deeds from FSLIC to the Goldbergs and then to others, the Arizona money judgment against Philip Goldberg, the sheriff's deed to National of Philip Goldberg's interest in the property, and the judgment quieting National's title as against the Goldbergs and their grantees. Therefore, the only evidence affecting Ruth Goldberg's interest was the Arizona quiet title judgment. However, the admission of that judgment in evidence was sufficient merely to raise a presumption that as between National on the one hand, and the Goldbergs and their grantees on the other, National has title to the property. It was specifically held that the judgment is not evidence that Ruth Goldberg's interest is void as a fraud on Philip Goldberg's creditors. In remanding the case to the district court for further trial, this court set forth two examples of how Republic might rebut National's prima facie case and the presumption raised by National's state court judgment. The alternatives mentioned were examples only and were not intended to foreclose other possibilities. 53 Republic has argued that because National's prima facie case could have been rebutted by showing that Ruth Goldberg had a valid community property interest in the ranch, for similar reasons it may also be rebutted in part by proof that Ruth Goldberg had a valid joint tenancy interest in the property. We think the argument is well taken. 54 As a general rule, a creditor of an individual joint tenant may reach that tenant's interest in the property held in joint tenancy, and the lien of a judgment against a joint tenant attaches to the interest of only the debtor joint tenant. 48A C.J.S. Joint Tenancy § 32 (1981). A review of the case law convinces us that Arizona follows this general rule. See, e.g., Smith v. Tang, 100 Ariz. 196, 412 P.2d 697 (1966); Collier v. Collier, 73 Ariz. 405, 242 P.2d 537 (1952); Cooley v. Veling, 19 Ariz.App. 208, 505 P.2d 1381 (1973); Musker v. Gil Haskins Auto Leasing, Inc., 18 Ariz.App. 104, 500 P.2d 635 (1972); Graham v. Allen, 11 Ariz.App. 207, 463 P.2d 102 (1970). 55 Above, we held the record evidence sufficient to establish that FSLIC conveyed the ranch to Philip and Ruth Goldberg as joint tenants. At best, the presumption arising from National's state court quiet title judgment presents a fact question, but it is wholly inadequate to support a summary judgment as to Ruth Goldberg's apparent interest in the property. Consequently, the case must be remanded for further proceedings on this limited issue. 56 We note an apparent anomaly in our decision. The obvious question is how can Republic claim any title to the property if the conveyance from FSLIC to the Goldbergs was not fraudulent as to Republic? The answer to the inquiry lies in the procedural posture of this case and the precise nature of our holding on the fraudulent conveyance issue. We have held merely that on the record before us in this action between these two parties, National was entitled to a summary judgment on the fraudulent conveyance issue. This holding does not negate the fact that Republic had earlier obtained a judgment setting aside the FSLIC-to-Goldbergs conveyance as a fraud on it, and quieting its title to the property against the Goldbergs and their grantees. Republic was put to the task of again establishing the fraudulent nature of that conveyance in this case because National was not bound by Republic's prior judgment and because National had established a prima facie case demonstrating a superior claim of title to the ranch. National's prima facie case of superior title has now ripened into a judgment as to Philip Goldberg's interest in the property. However, it will not be incumbent upon Republic to prove the fraudulent conveyance against National unless and until National can establish a superior claim to that portion of the title to the property represented by Ruth Goldberg's joint tenancy interest.