PHILIP M. HESS, Judge.
In this declaratory judgment action, Debra Pauli and Steven Spicer (Plaintiffs) seek to set aside as null and void the St. Louis Circuit Court's January 22, 2008 judgment (2008 judgment), which effectively quieted title to certain real property in Gwen Spicer (Defendant).
Because the facts pertinent to this case have already been summarized in previous litigation, we quote the relevant portions of that background here:
After Donald's death, counsel for the Trust held a meeting where counsel informed Plaintiffs and Defendant that Donald had conveyed his one-half interest in the marital home to the Trust.
Thereafter,
Defendant appealed the trial court's June 24, 2009 judgment. The Supreme Court granted transfer and, in Spicer I, held that the 2008 judgment was the final judgment in the quiet title action and concluded that it must dismiss the appeal because that judgment was not timely appealed. Spicer I, 336 S.W.3d at 467. The Court explained that the trial court had no authority to set aside the 2008 judgment when it did so on February 25, 2008 because, at that point (more than thirty days after entry of the 2008 judgment), the trial court had lost jurisdiction over the case. Id. at 470 (citing Rule 75.01 and 81.05(a)(1)). The Court rejected the claim that Plaintiff Spicer's motion to dismiss constituted an authorized after-trial motion that operated to extend the trial court's jurisdiction in excess of thirty days because, under the court rules, such motions must be filed by a party. Spicer I, 336 S.W.3d at 470. Because Plaintiff Spicer was not a party to the quiet title action, the Court concluded that Plaintiff Spicer's motion had not triggered the extension of jurisdiction permitted by Rule 81.05(a)(2), and the trial court's 2008 judgment became final after thirty days of its entry, making all orders entered thereafter void. Spicer I, 336 S.W.3d at 470-71. The Court also dismissed the appeal for lack of jurisdiction because notice of appeal from the 2008 judgment was filed in excess of a year after the judgment became final. Id. at 471-72.
Approximately one month after the Supreme Court's decision in Spicer I, Plaintiffs filed the instant declaratory judgment action seeking an order and judgment that the 2008 judgment is void and without force and effect.
After a bench trial in January 2013, at which Plaintiffs and Defendant testified, the trial court denied Plaintiffs the requested relief. The trial court's judgment provided:
Plaintiffs appeal.
We review a trial court's decision in a declaratory judgment action under the standard established in Murphy v. Carron, 536 S.W.2d 30, 32 (Mo. banc 1976). Laclede County v. Douglass, 43 S.W.3d 826, 827 (Mo. banc 2001). "[T]he trial court's decision should be affirmed unless there is no substantial evidence to support it, unless it is against the weight of the evidence, unless it erroneously declares the law, or unless it erroneously applies the law." Guyer v. City of Kirkwood, 38 S.W.3d 412, 413 (Mo. banc 2001). "We view the evidence and all reasonable inferences drawn therefrom in the light most favorable to the judgment and disregard all evidence and inferences to the contrary." Inman v. Missouri Dept. of Corr., 139 S.W.3d 180, 183 (Mo.App. W.D.2004).
The central issue in this dispute is whether Plaintiffs are bound by the 2008 judgment, which a trial court entered in a prior litigation to which Plaintiffs were non-parties. To resolve this question, we must consider whether the 2008 judgment is void, or is merely erroneous such that a preclusion doctrine like res judicata or "virtual representation" would apply to bind Plaintiffs to the judgment. Indeed, Plaintiffs raise the same arguments they raised in Spicer I, which begs the question why the 2008 judgment would not act as a bar to preclude Plaintiffs from relitigating the exact same claims in the instant declaratory judgment action.
In denying Plaintiffs the requested declaratory relief, the trial court effectively held that the 2008 judgment was not void and that the 2008 judgment applied to Plaintiffs under the doctrine of virtual representation, a judge-made preclusion doctrine. See KCAF Investors, L.L.C. v. Kansas City Downtown Streetcar Transp. Dev. Dist., 414 S.W.3d 470, 487 (Mo.App. W.D.2013). Because preclusion doctrines do not generally apply to judgments that are void, the threshold question in this case is whether the trial court erroneously concluded that the 2008 judgment is not void. See Berry v. Chitwood, 362 S.W.2d 515, 517 (Mo.1962) (a void judgment is not res judicata); Worley v. Worley, 19 S.W.3d 127, 130 (Mo. banc 2000) ("[A] void [judgment]... may be attacked collaterally."). We need only consider Plaintiffs' first point relied on to answer this question.
In their first point relied, Plaintiffs assert that the January 2008 judgment is void and unenforceable as to Plaintiffs because Plaintiffs, who were "necessary and indispensable parties" to the quiet title action, were non-parties to that action and the 2008 judgment was entered against only the non-suable Trust.
When a "necessary and indispensable" party is not joined to an action, any subsequent judgment of the trial court in that action is void. See Jones v. Jones, 285 S.W.3d 356, 362 (Mo.App. S.D.2009); Bauer v. Bd. of Election Com'rs, 198 S.W.3d 161, 164 (Mo.App. E.D.2006). This is because "the presence of an indispensable party is a jurisdictional requirement" and the failure to join that party deprives the trial court of jurisdiction and renders the judgment a nullity. Bauer, 198 S.W.3d at 164. Contrary to Defendant's assertion that the Supreme Court rejected this category of jurisdictional competence in J.C.W. ex rel. Webb v. Wyciskalla, 275 S.W.3d 249 (Mo. banc 2009), this rule is grounded in the "general principle of jurisprudence that one is not bound by a judgment in personam entered in litigation to which he was not designated as a party or made a party by service of process or entry of appearance." Epstein v. Villa Dorado Condo. Ass'n, 316 S.W.3d 457, 460 (Mo.
Turning to the crux of this matter, whether Plaintiffs were "necessary and indispensable" parties in the prior quiet title suit, involves an examination whether Plaintiffs were necessary and indispensable parties to that suit under Rule 52.04.
Under Rule 52.04(a)(2)(i), "a necessary party is a person who claims an interest in the subject of the action such that the disposition of the action in his absence may impair or impede his ability to protect that interest." Peasel v. Dunakey, 279 S.W.3d 543, 545 (Mo.App. E.D.2009). An "interest" that compels joinder is "not one which is merely consequential, remote or a conjectural possibility of being somehow affected by the result of an action." Moschenross v. St. Louis County, 188 S.W.3d 13, 25 (Mo.App. E.D.2006). "The interest at issue must be a direct claim upon the subject of the action such that the joined party will either gain or lose by direct operation of the judgment rendered." Id.
Only if a party is deemed necessary, does a court reach the second inquiry, i.e., whether the party is also indispensable. "An indispensable party is a necessary party who cannot feasibly be joined at the time but whose absence is so critical that equity and good conscience will not permit the matter to proceed without him." Peasel, 279 S.W.3d at 545 (emphasis in original). This analysis, whether "equity and good conscience" would permit the action to proceed without the necessary party, requires consideration of the four factors listed in Rule 52.04(b):
With respect to the first inquiry, whether Plaintiffs were necessary parties to the prior quiet title action, this Court has recognized a general rule that "in suits involving trust property, both the trustee and beneficiaries are necessary parties." Rosenfeld v. Thoele, 28 S.W.3d 446, 451 n. 8 (Mo.App. E.D.2000). Here, the prior quiet title action involved property that disputably vested in the Trust upon Donald's death. It follows, that under this general rule, Plaintiffs, as trustee and beneficiary of the Trust, were necessary parties to the quiet title action.
Defendant, however, contends that Plaintiffs do not qualify as necessary parties in the prior quiet title suit because Plaintiffs' interests in the subject property are conjectural and remote. Specifically, Defendant explains that Plaintiffs have no cognizable interest in the subject property under Missouri law because Donald and Defendant held the property as tenants by the entirety. We have no quarrel with Defendant's contention that property that is held as a tenancy by the entirety passes to a surviving spouse and, therefore, Plaintiffs' claim to a one-half interest in the title to the property seems dubious. See Clements v. Kolie, 882 S.W.2d 299, 300 (Mo. App. S.D.1994) ("[T]enants by the entireties are seized per tout et non per my[;] [d]uring their joint lifetime, neither tenant may make a valid conveyance which affects the rights of the other[;] [and on] the death of one tenant by the entireties, the entire estate passes to the survivor....").
Here, Plaintiffs had a claimed interest related to the alleged Trust property in the quiet title action because the General Warranty Deed purported to grant the Trust a one-half interest in the property. Disposition of the quiet title action did, as a practical matter, determine Plaintiffs' legal rights, if any, to the property. Thus, it cannot be said that Plaintiffs' interests are remote or conjectural, as the outcome of the quiet title suit impaired their direct claim to the property by operation of the 2008 judgment. See Moschenross 188 S.W.3d at 25. Accordingly, Plaintiffs were necessary parties to the prior quiet title action.
Because we have concluded that Plaintiffs were necessary parties to the
Notwithstanding our conclusion, Defendant argues that Plaintiffs were not indispensable parties because, under Rule 52.04(b), they could have been joined in the prior suit and "equity and good conscience" did not require Plaintiffs' joinder. While Plaintiffs could have intervened in the quiet title action before the 2008 judgment entered, there is no question that the trial court lost jurisdiction before it acted on Plaintiff Spicer's motion to dismiss. See Spicer I, 336 S.W.3d at 470-71. It follows that Plaintiffs cannot be added as parties to the prior suit. Certainly, if the trial court had acted sooner on Plaintiff Spicer's motion, Plaintiffs may have been made parties, but the trial court's failure to do so before it lost jurisdiction was no fault of Plaintiffs. Under these unique circumstances, Plaintiffs cannot be made parties to the prior quiet title action.
Nor do concerns of "equity and good conscience" indicate that the quiet title suit should have proceeded in Plaintiffs' absence. This inquiry involves a consideration of the four factors under Rule 52.04(b). Here, any judgment entered in Plaintiffs absence would be prejudicial to Plaintiffs, as the relief Defendant requested in the quiet title action — that title be vested solely in Defendant — directly impacted Plaintiffs' claim to the subject property. This prejudice could not reasonably be lessened or avoided through any type of protective provision in the judgment. Further, a judgment entered in Plaintiffs' absence was inadequate, it being a general rule that a court's judgment does not bind a person not before the court, see, e.g., Epstein, 316 S.W.3d at 460, and any such judgment would fail to establish a clear right to title, see Polette v. Williams, 456 S.W.2d 328, 333 (Mo.1970) (in litigation involving title to real estate, "all interested parties must be bound by any judgment in order to establish a clear title"). Finally, Defendant has an adequate remedy at law, which is to initiate another quiet title suit naming the correct parties as defendants.
We are aware of the unfairness to Defendant that will stem from a declaration that the 2008 judgment is void for failure to join Plaintiffs as parties. Primarily, Defendant points out that she was not aware of the Trust's beneficiaries' identities despite making oral requests to Plaintiffs for that information, that Plaintiffs' allegedly knew about the lawsuit but did
Accordingly, we conclude that Plaintiffs were necessary and indispensable parties to the prior quiet title action. Because Plaintiffs were never joined as parties to that action, the 2008 judgment is void. See Jones, 285 S.W.3d at 362; Bauer, 198 S.W.3d at 164.
The remaining question, which both parties address, albeit in relation to Plaintiffs' other points relied on, is whether res judicata or virtual representation applies to make the 2008 judgment applicable to Plaintiffs.
As noted, it is the general rule in Missouri that res judicata, while applicable to a judgment that is merely erroneous, does not apply to a judgment that is void. See Berry, 362 S.W.2d at 517 ("A void judgment may not be used as the basis for the application of [the] doctrine [of res judicata]."); St. Bethel Missionary Baptist Church, Inc. v. St. Louis Builders, Inc., 388 S.W.2d 776, 780 (Mo.1965) ("[A]n erroneous judgment has the same effect as to res judicata as a correct one.") (emphasis in original). This is because a void judgment "is a nullity, without any force and effect whatever," and cannot, by definition, have res judicata effect. McIntosh v. Wiggins, 356 Mo. 926, 204 S.W.2d 770, 772 (1947). It follows that void judgments are generally subject to collateral attack. See Worley, 19 S.W.3d at 130.
Here, the necessary and indispensable parties in the prior quiet title action, i.e., Plaintiffs, were never joined in that suit and, consequently, the trial court lacked jurisdiction to enter the 2008 judgment and the judgment is void. See Jones, 285 S.W.3d at 362; Bauer, 198 S.W.3d at 164. Because the judgment is void, res judicata is inapplicable regardless of whether the four identities are met and that doctrine cannot be applied to bind Plaintiffs to the judgment. See Berry, 362 S.W.2d at 517. Defendant's contention that res judicata applies lacks merit.
While this doctrine has been applied to probate disputes, Missouri courts have recognized that application of the doctrine in this context is premised on convenience and necessity and, accordingly, have limited its application to bind unborn and minor contingent beneficiaries to a prior judgment. See Brown v. Bibb, 356 Mo. 148, 201 S.W.2d 370 (1947); Noyes v. Stewart, 361 Mo. 475, 235 S.W.2d 333 (1950); Bolin v. Anders, 559 S.W.2d 235 (Mo.App.1977); In re Estate of Remmele, 853 S.W.2d 476 (Mo.App. W.D.1993). No binding Missouri case, to our knowledge, has applied the doctrine to bind a primary beneficiary or trustee to a prior judgment of which they were not parties. Under the present circumstances, the rationale for application of the doctrine is lacking. Because the doctrine of virtual representation in the context of probate disputes applies to nonparties that hold contingent future interests, the trial court erred by applying the doctrine to Plaintiffs, the trustee and primary beneficiaries of the Trust.
Because the 2008 judgment is void and the doctrine of virtual representation is otherwise inapplicable, the 2008 judgment has no preclusive effect and must be set aside. The trial court erred when it extended the 2008 judgment to apply to Plaintiffs who were necessary and indispensable parties, but were non-parties, to the prior quiet title action. Because Point I is dispositive, we need not consider Plaintiffs' other points. Point I granted.
The judgment of the trial court is reversed and remanded for the trial court to enter judgment in Plaintiffs' favor.
SHERRI B. SULLIVAN, P.J. and MARY K. HOFF, J. concur.