20250212_C369056_22_369056.Opn.Pdf

CourtMichigan Court of Appeals
DecidedFebruary 12, 2025
Docket20250212
StatusUnpublished

This text of 20250212_C369056_22_369056.Opn.Pdf (20250212_C369056_22_369056.Opn.Pdf) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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20250212_C369056_22_369056.Opn.Pdf, (Mich. Ct. App. 2025).

Opinion

If this opinion indicates that it is “FOR PUBLICATION,” it is subject to revision until final publication in the Michigan Appeals Reports.

STATE OF MICHIGAN

COURT OF APPEALS

RAMSEY JUSTIN HENGARTNER, UNPUBLISHED February 12, 2025 Plaintiff-Appellee, 10:16 AM

v No. 369056 Grand Traverse Circuit Court JESSICA ROSE HENGARTNER, LC No. 22-017147-DM

Defendant-Appellant.

Before: BORRELLO, P.J., and REDFORD and PATEL, JJ.

PER CURIAM.

In this divorce proceeding, defendant, Jessica Hengartner, appeals as of right the trial court’s entry of a judgment of divorce on the basis of two settlement agreements entered into by the parties following mediation. On appeal, defendant argues the settlement agreements were ambiguous and incomplete, unconscionable, and the result of coercion, such that the trial court should not have followed them. Defendant also challenges the judgment of divorce as inconsistent with the settlement agreements. Finding no errors warranting reversal, we affirm.

I. FACTS AND PROCEDURAL BACKGROUND

The parties married in 2012 and have two children, both of whom are still minors. Plaintiff, Ramsey Hengartner, filed for divorce in 2022. Subsequently, two mediation sessions were conducted and culminated in two agreements, one addressing child custody and one addressing property. These agreements were memorialized in documents entitled “Memorandum of Understanding,”1 which detailed in writing the settlements reached by the parties regarding both topics. Both parties signed both MOUs. The first paragraph of both MOUs state: “We, the undersigned, having participated in a mediation session and being satisfied that the provisions of the resolution of our dispute are fair and reasonable, hereby agree to abide by and fulfill the following . . . .” The Custody MOU was dated April 11, 2023, and the Property MOU was dated

1 Hereinafter the “Custody MOU” and “Property MOU.”

-1- June 13, 2023. Neither party was represented by counsel during the mediation sessions; however, both parties retained counsel before entry of the judgment of divorce.

Following the second mediation session, plaintiff moved for entry of the judgment of divorce, asserting that the parties agreed on all material provisions of the MOUs during mediation and came to a final, binding resolution. Defendant objected to entry of the judgment of divorce, arguing it was unclear whether the MOUs represented final agreements between the parties, the MOUs were the product of coercion and manipulation, and the Property MOU was unconscionable. Defendant alleged that plaintiff exerted financial control over her throughout the marriage, told her that she was not entitled to anything coming out of the marriage, and told her the marital house was “his” house. She further alleged that, as a result of the MOUs, plaintiff would receive approximately $340,000 in assets and defendant would receive only $3,500 and be left in debt. She also alleged that the Custody MOU was a radical change from the established custodial environment during the marriage and stripped her of meaningful contact with her children. Defendant did not request an evidentiary hearing or provide evidence of these allegations.

In response, plaintiff argued that defendant’s motion should be denied. Plaintiff argued that the MOUs constituted settlement agreements that were full, final, and binding as plainly expressed on the face of the documents. Plaintiff further argued that defendant’s counsel presented no evidence of coercion, fraud, or duress. Both parties agreed to participate in mediation, defendant did not request counsel or a different mediator, and the mediation sessions resulted in settlement agreements signed by both parties. Plaintiff asserted defendant simply had a change of heart.

On November 27, 2023, following oral arguments, the trial court rejected defendant’s challenges to the MOUs, noting that the parties engaged in mediation through a neutral third-party that resulted in MOUs that resolved all pending issues. The trial court further explained that it saw no evidence, other than defendant’s disappointment, of a manipulated mediation process by plaintiff. Thereafter, the trial court entered the judgment of divorce. This appeal followed.

II. STANDARD OF REVIEW

This Court reviews a trial court’s findings related to the validity of a settlement agreement at divorce for an abuse of discretion. Vittiglio v Vittiglio, 297 Mich App 391, 400; 824 NW2d 591 (2012). “An abuse of discretion occurs when the trial court’s decision falls outside the range of reasonable and principled outcomes.” Smith v Smith, 278 Mich App 198, 207; 748 NW2d 258 (2008). We review a trial court’s factual findings for clear error. Vittiglio, 297 Mich App at 400. A factual finding is clearly erroneous when this Court is left with a “definite and firm conviction that a mistake has been made, giving due regard to the trial court’s special opportunity to observe the witnesses.” Smith, 278 Mich at 204. Because a settlement agreement is construed as a contract, the same legal principles that govern the construction and interpretation of a contract also governs agreements in a domestic matter. Myland v Myland, 290 Mich App 691, 700; 804 NW2d 124 (2010). The interpretation of a contract is reviewed de novo as a question of law. Id.

-2- III. THE PROPERTY MOU

Defendant contests the trial court’s entry of the judgment of divorce on the basis of the Property MOU entered between the parties. She argues (1) the Property MOU was ambiguous and incomplete; (2) the judgment of divorce did not conform to the Property MOU; (3) the Property MOU was the product of coercion and manipulation; and (4) the Property MOU resulted in an unconscionable division of assets. We conclude none of these arguments have merit.

A. LEGAL FRAMEWORK

In this case, the parties reached a property settlement as a result of mediation and, as required by MCR 3.216(H)(8), the terms of that settlement were reduced to a writing that was signed by both parties. As previously stated, the Property MOU is construed as a contract and is subject to general contract principles. See Myland, 290 Mich App at 700. “Generally, contracts between consenting adults are enforced according to the terms to which the parties themselves agreed.” Lentz v Lentz, 271 Mich App 465, 471; 721 NW2d 861 (2006).

A party cannot disavow a property settlement agreement because she had a “change of heart.” Vittiglio, 297 Mich App at 399 (quotation marks and citation omitted). Rather:

It is a well-settled principle of law that courts are bound by property settlements reached through negotiations and agreement by parties to a divorce action, in the absence of fraud, duress, mutual mistake, or severe stress which prevented a party from understanding in a reasonable manner the nature and effect of the act in which she was engaged.” [Id. at 400 (quotation marks and citation omitted).]

“Courts must uphold divorce property settlements reached through negotiation and agreement of the parties because modifications of property settlements in divorce judgments are disfavored.” Id. at 399. Courts will not rewrite an unambiguous settlement agreement to “rebalance the contractual inequities.” Holmes v Holmes, 281 Mich App 575, 594-595; 760 NW2d 300 (2008) (quotation marks and citation omitted). If a settlement agreement is ambiguous, a court may interpret and clarify its terms, provided that the court does not change the parties’ substantive rights as reflected in the agreement. Neville v Neville, 295 Mich App 460, 469; 812 NW2d 816 (2012). A party seeking to avoid a contract on the basis of a contract defense bears the burden of proving that defense. Morris v Metriyakool, 418 Mich 423, 439-440; 344 NW2d 736 (1984).

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