Baker v. Showalter

566 S.E.2d 172, 151 N.C. App. 546, 2002 N.C. App. LEXIS 776
CourtCourt of Appeals of North Carolina
DecidedJuly 16, 2002
DocketCOA01-920
StatusPublished
Cited by10 cases

This text of 566 S.E.2d 172 (Baker v. Showalter) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baker v. Showalter, 566 S.E.2d 172, 151 N.C. App. 546, 2002 N.C. App. LEXIS 776 (N.C. Ct. App. 2002).

Opinion

BIGGS, Judge.

Defendant appeals from an order requiring her to pay child support arrears in the amount of $11,350.00. For the reasons herein, we affirm the trial court.

Robert Scott Baker, Jr. (plaintiff) and Sheri Ussery Showalter (defendant) were married on 22 July 1978 and separated on 15 December 1990. On 5 April 1991, the parties executed a separation agreement which provided, in part, that plaintiff would have custody of their child, Robert Scott Baker, III, (the child), and that defendant would pay $500.00 per month in child support until the child reached the age of 18. This separation agreement was incorporated into the Judgment of Divorce entered on 19 March 1992.

In April 1992, the parties verbally agreed to reduce the amount of child support the defendant would pay from $500.00 to $300.00 per month. On 10 September 1993, plaintiff signed a letter acknowledging this verbal agreement. The letter stated that plaintiff planned to “continue to accept” $300 but that he did not “abdicate any rights as specified by the Separation Agreement.”

In 1995, defendant increased her child support payments from $300 to $350 per month, and in 1997 she again increased her payments to $450 per month. In January, 1999, the child turned 18 and defendant’s child custody obligations ended.

In December 1998, plaintiff wrote a letter to defendant demanding all of the unpaid amounts based on the separation agreement. On 13 October 1999, plaintiff applied to Child Support Enforcement in *548 Durham to establish child support arrears and a repayment schedule. The case was moved to Wake County on 21 January 2000. On 14 April 2000, Wake County filed a motion on plaintiff’s behalf seeking to establish arrears and a repayment schedule.

On 30 June 2000, the trial court conducted a hearing on the motion. The defendant raised the defense of equitable estoppel arguing that she had detrimentally relied upon the verbal agreement and the letter memorializing that agreement to reduce her child support payments from $500 to $300. The trial court entered an order on 21 February 2001, concluding that equitable estoppel did not apply and ordering defendant to pay the $11,350.00 in arrears. From that order, defendant appeals.

I.

Defendant first contends that the trial court erred by concluding “that equitable estoppel did not apply because there was no detrimental reliance by defendant.” We agree with the trial court.

“North Carolina courts have recognized the doctrine of equitable estoppel to preclude a party from denying the validity of a divorce decree or separation agreement.” Amick v. Amick, 80 N.C. App. 291, 294, 341 S.E.2d 613, 614 (1986). “Equitable estoppel arises when an individual by his acts, representations, admissions, or by his silence when he has a duty to speak, intentionally or through culpable negligence induces another to believe that certain facts exist, and such other person rightfully relies and acts upon that belief to his detriment.” Thompson v. Soles, 299 N.C. 484, 487, 263 S.E.2d 599, 602 (1980). “A party seeking to rely on equitable estoppel must show that, in good faith reliance on the conduct of another, he has changed his position for the worse.” Griffin v. Griffin, 96 N.C. App. 324, 328, 385 S.E.2d 526, 529 (1989). “Application of equitable estoppel in general is dependent upon the parties’ actions along with the facts and circumstances of each individual case.” Chance v. Henderson, 134 N.C. App. 657, 665, 518 S.E.2d 780, 785 (1999).

In the case, sub judice, the trial court made the following pertinent findings:

1. That a Separation Agreement requiring the payment of $500.00 per month by the Defendant to Robert Scott Baker, Jr. for the support of the parties’ child, was incorporated into a March 19, 1992, judgment of divorce between the parties *549 which judgment is recorded in Durham County Clerk of Superior Court File Number 92CVD574.
6. That at the request of the Defendant, the Plaintiff signed a document dated September 10, 1993, which stated the parties had agreed since April 1993, to the Defendant’s paying child support in the amount of $300.00 per month. The Plaintiff specifically stated in the document that he was not abdicating any of his rights under the parties’ separation agreement.
7. That the September 10, 1993, document was provided to Defendant’s mortgage lender because she was in the process of buying a townhome.
8. That in reliance upon the September 10, 1993 document, the Defendant decreased her monthly payments to $300.00; however, her reliance was not detrimental because she had use of funds that she would not have otherwise had.

The trial court’s findings of facts are conclusive on appeal when drawn on facts supported by competent evidence. Henderson, 134 N.C. App. at 661, 518 S.E.2d at 783. The trial court’s conclusions, however, are completely reviewable. Id. We conclude that the findings of the trial court are supported by competent evidence in the record. Moreover, we conclude that these findings support the trial court’s conclusion that equitable estoppel does not apply because there was no detrimental reliance by the defendant. Further, we hold that this conclusion is legally correct.

This Court in Griffin, 96 N.C. App. at 328, 385 S.E.2d at 529, considered a situation similar to the one before us. In Griffin, a divorce judgment required the plaintiff-father to pay $200.00 in child support per month. Subsequently, the plaintiff sent a letter to the defendant stating that he could not send $200.00 per month, and began sending reduced sums. The defendant never complained about this reduction. Eight months after the support payments ended, the defendant brought an action for approximately $18,000 in arrears. This Court held that the defendant was not equitably estopped from bringing the action because there was no detrimental reliance; the “only change made in [plaintiff’s] position was the retention to his benefit of money owed for the support of his children.” Id. at 328.

*550 Likewise, in the instant case, though defendant may have relied upon the oral agreement and letter to reduce her payment to $300, she is unable to demonstrate that such reliance was to her detriment. The only change made in her position inured to her benefit. She testified that the money she retained allowed her to “buy a town-home and to have some money to spend with [her] son.”

Further, defendant’s reliance upon several cases to support her claim of detrimental reliance is misplaced. First, Tepper v. Hoch, 140 N.C. App. 354, 536 S.E.2d 654

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Bluebook (online)
566 S.E.2d 172, 151 N.C. App. 546, 2002 N.C. App. LEXIS 776, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baker-v-showalter-ncctapp-2002.