Krueger v. Rodenberg

SUNDBY, J.

(dissenting). It is the rule in Wisconsin that "a murderer will not be permitted to profit by his crime." Will of Wilson, 5 Wis. 2d 178, 180, 92 N.W.2d 282, 283-84 (1958). I consider that rule immutable. I therefore dissent.

After twenty-seven years of marriage, Merlin Rodenberg murdered his wife, Janice. Her heirs seek to *382impose a constructive trust upon property acquired during the marriage with marital funds but titled in Merlin's name. In Wisconsin,

marriage is a partnership or a shared enterprise in which each of the spouses makes a different but equally important contribution to the family and its welfare and to the acquisition of its property. Because each spouse contributes equally to the prosperity of the marriage by his or her efforts, each spouse has an equal right to the ownership of the property upon a divorce.

Wierman v. Wierman, 130 Wis. 2d 425, 439, 387 N.W.2d 744, 750 (1986). I conclude that a court exercising equitable powers may enforce that equal right when the marriage is terminated by one spouse's murder of the other, as well as upon divorce.

The facts were stipulated. Merlin and Janice were married in 1963. At that time, Merlin had cash funds not exceeding $1,000 and limited assets. They purchased the Four Corners Restaurant and Tavern in 1966 or 1967. Both parties devoted their full-time efforts to the business after 1968. Three parcels of real estate were purchased during the marriage, one in 1970, one in 1974 and the last in 1982. Although title to the properties purchased in 1970 and 1982 was taken in Merlin's name, the funds used to purchase those properties came from business accounts or accounts funded from the business. All business and personal accounts were maintained in Merlin's name until he became ill in 1985, when they were changed to joint accounts. All real estate taxes on the property in question were paid from accounts maintained in Merlin's name prior to August 1985. Plainly, in this marriage the husband and wife were one, and the husband was the one.

*383The authorities relied on by the majority are inap-posite. The majority relies on RESTATEMENT OF Restitution § 187 cmts. a and c (1937). However, § 187 applies only to the acquisition of property by murder. More in point is § 188 which states: "Where two persons have an interest in property and the interest of one of them is enlarged by his murder of the other, to the extent to which it is enlarged he holds it upon a constructive trust for the estate of the other." Comment (a) states: "The rule stated in this Section is based upon the principle that although the murderer will not be deprived of property to which he would otherwise be entitled, he will not be entitled to profit by the murder It

While Janice may not have had a legal interest in the properties, she had an interest which equity would protect. In view of her contribution to the purchase of these properties, equity would have prevented Merlin from disposing of the property during the marriage to the exclusion of Janice's interest. He cannot accomplish that result by murdering her.

The majority constrains a court's exercise of its equitable powers with inelastic chains. However, "[tjhough no precedent may be at hand in a given situation, since principles of equity are so broad that the wrong involved [or the right to be enforced] need not go without a remedy, its doors will swing open for the asking, and a new precedent be made." Meyer v. Reif, 217 Wis. 11, 20, 258 N.W. 391, 394 (1935) (alteration in original) (quoting Harrigan v. Gilchrist, 121 Wis. 127, 236, 99 N.W. 909, 936 (1904)).

The Wisconsin Supreme Court has held that an unmarried cohabitant may assert contract and property claims against the other party to the cohabitation on a number of equitable grounds: breach of an implied *384contract, constructive trust, quantum meruit, and unjust enrichment. Watts v. Watts, 137 Wis. 2d 506, 511-12, 405 N.W.2d 303, 306 (1987). The court said: "Many courts have held, and we now so hold, that unmarried cohabitants may raise claims based upon unjust enrichment following the termination of their relationships where one of the parties attempts to retain an unreasonable amount of the property acquired through the efforts of both." Id. at 532-33, 405 N.W.2d at 314. By our decision today we give more rights to an unmarried cohabitant than to a married cohabitant. Of course, a married cohabitant's right to fifty percent of the marital estate is protected by our divorce laws. However, a spouse should not have to divorce in order to enforce the spouse's interest in the property acquired during the marriage through the joint efforts of the husband and wife. Further, a married cohabitant should not be able to frustrate our property division laws by murdering his or her spouse.

The estate asks that a constructive trust be imposed on assets acquired during the marriage. "A constructive trust is an equitable device created by law to prevent unjust enrichment." Id. at 533, 405 N.W.2d at 315 (citing Wilharms v. Wilharms, 93 Wis. 2d 671, 678, 287 N.W.2d 779, 783 (1980)). "To state a claim on the theory of constructive trust the complaint must state facts sufficient to show (1) unjust enrichment and (2) abuse of a confidential relationship or some other form of unconscionable conduct." Id. at 533-34, 405 N.W.2d at 315. Plainly, the elements of unjust enrichment are present in this case: (1) Janice conferred a benefit on Merlin, (2) he knew of that benefit, and (3) it is inequitable for him to retain that benefit. See id. at 531, 405 N.W.2d at 313.

*385Merlin will be enriched in this case because he has eliminated by murder a person who held more than the mere expectation of a property interest; Janice had an interest which equity would recognize during her life. The trial court correctly caused the gates of equity to swing open. Janice and her heirs have a place within those gates.