McMorris v. McMorris
654 So.2d 742, 1995 WL 225713 (1995)
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Rule of Law:
A cause of action for personal injuries sustained prior to marriage is separate property, and the resulting settlement funds or disability payments received during the marriage retain their character as separate property.
Facts:
- Before her marriage to Tommie Edward McMorris, Sr., Mary Ann Nini McMorris sustained a personal injury.
- As a result of this pre-marital injury, Mary Ann became disabled and was entitled to contractual disability payments from her employer.
- During the marriage, Mary Ann received a $55,000 tort settlement for her pre-marital injury.
- The settlement check was made payable to both Mary Ann and Tommie McMorris.
- Also during the marriage, Mary Ann received monthly disability payments under her pre-marital contract, totaling $39,684.93.
- Mary Ann used a portion of her separate funds ($31,861.30) to pay off two of Tommie's pre-marital mortgage debts on his home and truck.
- Mary Ann's separate funds were also used to make a significant contribution to the down payment on the community home.
- The separate funds were deposited into joint bank accounts and were not segregated from community funds.
Procedural Posture:
- Mary Ann Nini McMorris filed a community partition suit against her ex-husband, Tommie Edward McMorris, Sr., in a Louisiana trial court.
- The trial court rendered a judgment classifying Mary Ann's pre-marital injury settlement and disability payments received during the marriage as community property.
- The trial court also ruled that all debts were community obligations and denied Mary Ann's claims for reimbursement for her separate funds used to pay her husband's separate debts.
- Mary Ann Nini McMorris, as plaintiff-appellant, appealed the trial court's judgment to the Court of Appeal of Louisiana, First Circuit.
- Tommie Edward McMorris, Sr. is the defendant-appellee.
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Issue:
Are funds received during a marriage from a tort settlement and disability payments, which arise from a personal injury that occurred and a disability contract that was entered into before the marriage, considered separate property?
Opinions:
Majority - Judge Pro Tem Redmann
Yes. Funds received during marriage are separate property if they derive from a right that was acquired before the marriage. A cause of action for damages from a personal injury sustained before marriage is separate property under Louisiana Civil Code art. 2341. The character of this property is not converted to community property simply because a settlement is paid during the marriage. Similarly, the wife's right to contractual disability payments was acquired when she became disabled before the marriage, making those payments her separate property. The court rejected the husband's claim for loss of consortium because he was the wife's fiancé, not her husband, at the time of her injury and thus had no right of action. Furthermore, the court clarified that commingling separate funds with community funds in a joint account does not automatically extinguish their separate character if the separate funds can be traced. If separate funds are used to acquire community assets or pay community debts, the contributing spouse is entitled to reimbursement under C.C. art. 2367.
Analysis:
This case reinforces the 'inception of right' doctrine in Louisiana community property law, holding that the character of property is determined when the right to it is acquired, not when it is received. The decision significantly clarifies the modern view on commingling, moving away from a rigid rule that any mixing of funds makes them community property. Instead, it establishes that separate property status can be maintained through tracing, and even if untraceable, a spouse may be entitled to reimbursement, reflecting the post-1979 legal reforms that provide for more equitable treatment between spouses in managing their respective property.
