Anzalone v. Anzalone

25 So. 3d 836, 2007 La.App. 1 Cir. 1905, 2008 La. App. LEXIS 1523, 2008 WL 4922791
CourtLouisiana Court of Appeal
DecidedNovember 18, 2008
Docket2007 CA 1905
StatusPublished
Cited by4 cases

This text of 25 So. 3d 836 (Anzalone v. Anzalone) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anzalone v. Anzalone, 25 So. 3d 836, 2007 La.App. 1 Cir. 1905, 2008 La. App. LEXIS 1523, 2008 WL 4922791 (La. Ct. App. 2008).

Opinions

[837]*837WELCH, J.

12Loleta H. Anzalone (“plaintiff’) appeals the trial court’s judgment holding that she is not entitled to a reimbursement of disability retirement income received by her former husband, Joseph E. Anzalone, Jr. (“defendant”), from January 2005 through July 2005, on the basis that the disability retirement income was not community property and, further, that she is not entitled to surviving spouse benefits should the defendant predecease her. Defendant has cross-appealed asserting that the trial court erred in ruling that his “regular retirement” benefits are community property to which plaintiff is entitled to one-half from defendant’s seventieth birthday on August 18, 2005, forward. For the following reasons, we affirm in part and reverse in part and remand.

FACTS AND PROCEDURAL HISTORY1

Loleta H. Anzalone and Joseph E. Anza-lone were married in Tangipahoa Parish on February 27, 1981, and resided there until defendant left the matrimonial domicile. No children were born of the marriage.

Defendant was elected to the position of district court judge for the 21st Judicial District Court for the Parish of Tangipa-hoa and was sworn in as judge on January 1, 1985. In October 1990, defendant was declared totally disabled from Guillain Barre Syndrome and retired as district court judge at age fifty-five with six years of service. Thereafter, on October 24, 1990, defendant began receiving disability retirement.

Defendant shared these benefits with plaintiff until January 2005. Defendant [ .¡filed a Petition for Divorce on April 12, 2005.2 The parties were divorced by judgment dated July 18, 2005. The judgment decreed that “classification of the Judicial Retirement and/or Disability Income of Joseph E. Anzalone, Jr. be reserved pursuant to further litigation.”

On defendant’s seventieth birthday, August 18, 2005, or the earliest date that defendant was eligible to retire with only six years service, the Louisiana State Employees’ Retirement System (“LASERS”) converted his retirement benefits from disability to regular retirement. Plaintiff brought these proceedings seeking a determination of her entitlement to pre-con-version and post-conversion benefits, alleging the community nature of the benefits. Plaintiff also sought a declaration concerning her entitlement to surviving spouse benefits should defendant predecease her. Defendant answered the petition, asserting that the disability payments were his separate property and that his disability income was improperly converted by LASERS to retirement income. Moreover, defendant contends that an ex-spouse cannot be a surviving spouse and, in any event, he wed again on July 31, 2005, to [838]*838Nedra Posey Anzalone, and he continues to be married to her. Thereafter, defendant filed a third-party demand against LASERS alleging that the unilateral conversion of the classification of his benefits from disability to regular retirement was contrary to statutory law and was arbitrary and capricious. Defendant also alleged that to the extent he has incurred any additional obligation to his former spouse due to the improper reclassification by LASERS, LASERS owes him reimbursement.3

J4DISCUSSION

Overview of the Law Pertaining to Disability Retirement

It is well-settled in Louisiana that a former spouse is entitled to a pro rata share of the retirement benefits of a member spouse to the extent the retirement benefits were attributable to the former community. Frazier v. Harper, 600 So.2d 59, 61 (La.1992); Sims v. Sims, 358 So.2d 919, 922 (La.1978). The issue presented by this case is whether the disability retirement benefits constitute replacement for lost earning capacity, deferred compensation in the nature of retirement or pension income so as to be classified as community property, or both.

The courts have addressed the classification of disability benefits on numerous occasions. In Johnson v. Johnson, 532 So.2d 503, 505-506 (La.App. 1st Cir.1988),4 this court held that disability payments received by an employee-spouse pursuant to La. R.S. 33:2113.1 were community assets. We determined that the right to receive compensation for the disability was based entirely on plaintiffs contribution from community earnings to the New Orleans Firefighters’ Pension and Relief Fund and on his years of service as a firefighter. Moreover, the benefits were part of the compensation provided to a firefighter in return for his employment-related service.

Thereafter, the trend was to adopt a “real subrogation analogy” approach to determining the nature of disability benefits.5 In Hyde v. Hyde, 96-1725 (La.App. 1st Cir.6/26/97), 697 So.2d 1061, writ denied, 97-1987 (La.11/7/97), 703 So.2d 1274,6 we concluded that disability benefits received by an employee-spouse until he reached age sixty-five were not deferred compensation and were not in the nature of retirement benefits.7 The employee-spouse did [839]*839not make any contribution to the disability plan whatsoever. The disability plan was funded exclusively from contributions by the employer. If the employee-spouse had continued to work for Exxon without suffering a disabling condition, he would not have been entitled to receive any disability benefits. Moreover, had the employee-spouse been able to return to work, his monthly disability benefits would have been discontinued. However, this court held that once the employee-spouse reached retirement age (sixty-five years old), the non-employee-spouse would receive her proportionate share of the retirement benefits.8

In Lachney v. Lachney, 529 So.2d 59, 68 (La.App. 3rd Cir.), writ denied, 532 So.2d 764 (La.1988), the third circuit considered a disability insurance policy available through the employee-spouse’s employer and held that the payments received under the policy after dissolution of the community were the separate property of the employee-spouse. At issue, however, were monthly disability payments received after the dissolution of the community, which was stipulated to be on July 23, 1982. In Mercer v. Mercer, 95-1257 (La.App. 3rd Cir.4/3/96), 671 So.2d 937, 939-940, the third circuit again held that disability payments under a policy purchased with community funds were the separate property of the | ficlaimant-spouse. The court reasoned that the payments made pursuant to the policy were substitutions for lost wages and did not constitute deferred compensation in the nature of retirement or pension income to which a spouse had a legally cognizable claim.

The second circuit followed the same reasoning in another case entitled Johnson v. Johnson, 582 So.2d 926, 928-929 (La. App. 2nd Cir.1991). In that case, the husband collected disability retirement benefits from 1978 until the termination of the community in 1985. The court held that those payments were community, as they substituted for community income. In 1985, the husband would be eligible to retire and would be receiving retirement benefits, as opposed to disability payments. His retirement pension would be based on service time and average salary. Therefore, the court held that the payments received after 1985 were partly community income under the Sims formula. This rationale was also followed in Brant v. Brant, 26,508 (La.App.

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Related

Hardy v. Hardy
273 So. 3d 448 (Louisiana Court of Appeal, 2019)
Morgan v. Morgan
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Anzalone v. Anzalone
25 So. 3d 836 (Louisiana Court of Appeal, 2008)

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Bluebook (online)
25 So. 3d 836, 2007 La.App. 1 Cir. 1905, 2008 La. App. LEXIS 1523, 2008 WL 4922791, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anzalone-v-anzalone-lactapp-2008.