Bayley v. Bayley

216 P.3d 127
Hawaii Intermediate Court of Appeals·Decided August 31, 2009·No. 27884·Published

Opinion

CORINNA KEHAULANI BAYLEY, Plaintiff-Appellee,
v.
THOMAS McDOWELL BAYLEY, Defendant-Appellant.

No. 27884

Intermediate Court of Appeals of Hawaii.

August 31, 2009.

On the briefs:

Charles H. Brower, for Defendant-Appellant.

Robert M. Harris, Judith A. Schevtchuk, for Plaintiff-Appellee.

MEMORANDUM OPINION

WATANABE, Acting Chief Judge, NAKAMURA, and FUJISE, JJ.

This appeal arises out of motions for post-decree relief filed by Plaintiff-Appellee Corinna K. Bayley (Corinna) and Defendant-Appellant Thomas M. Bayley (Thomas) in a divorce action. Thomas appeals from the following orders and judgments issued by the Family Court of the First Circuit (family court): 1) "Decision and Order on Post-Decree Motion to Modify Divorce Decree" (Post-Decree Decision and Order), filed on March 13, 2006; 2) order denying Thomas's motion to reopen trial testimony and for new trial, filed on April 12, 2006; 3) order awarding Corinna legal fees and costs, filed on June 26, 2006; 4) order modifying divorce decree, filed on October 26, 2006; 5) order denying Thomas's motion for relief from order awarding legal fees and costs, filed on December 7, 2006; 6) Judgment in the principal sum of $45,000 for legal fees and costs, filed on December 11, 2006; 7) Judgment in the principal sum of $18,292.64 for arrearages on child support, Corinna's share of Thomas's military retirement, and sanctions for failure to comply with discovery, filed on December 11, 2006; and 8) order granting Corinna's motion for an advance of appellate attorney's fees and costs, filed on January 24, 2007.[1] The Post-Decree Decision and Order resolved six motions for post-decree relief filed by Corinna and Thomas.

On appeal, Thomas claims that the family court[2] erred by: 1) requiring Thomas to pay all of his children's private education expenses in addition to the full amount of child support calculated under the Amended Child Support Guidelines (ACSG); 2) ordering that Thomas's Merrill Lynch and Prudential Financial accounts be liquidated and placed in trust to ensure his payment of his children's private education expenses and uninsured health care expenses; 3) denying Thomas's motion for reimbursement of certain spousal support paid to Corinna; 4) granting Corinna's request to add the children to her medical insurance plan and to factor Corinna's premium payments into calculating Thomas's child support obligations; 5) denying Thomas's post-trial motion that Judge William K. Wallace III, the per diem judge who presided over the trial of the parties' motions for post-decree relief, recuse himself and order a new trial; and 6) awarding attorney's fees to Corinna.

For the reasons discussed below, we vacate in part, affirm in part, and remand the case for further proceedings consistent with this opinion.

BACKGROUND

I. Facts

Thomas was a career officer in the United States Navy and eventually became the commanding officer of a nuclear submarine before he retired from the Navy in 2005. Thomas and Corinna were married in 1991. Their first child (Child 1) was born in 1992, and their second child (Child 2) was born in 1993.

In 1997, Thomas was reassigned to Pearl Harbor, where he and Corinna had originally met, and Thomas, Corinna, and their children relocated to Hawai`i. Thomas and Corinna separated in 1998. At the time of their separation, the children were enrolled in private schools. Child 1 in kindergarten and Child 2 in pre-school.

In March 1999, Corinna filed a complaint for divorce. On October 20, 1999, Corinna filed a series of documents with the family court, including an ACSG Worksheet and an Agreement Incident to Divorce (AITD) . The ACSG Worksheet, which was prepared by Corinna's attorney and signed by Corinna, calculated Thomas's child support obligation as $1,830 per month. Attached to the ACSG Worksheet was an Exceptional Circumstance Form which stated that the parties had agreed to a monthly child support amount of $1,430, instead of the $1,830 ACSG Worksheet amount, because "[Thomas] is paying for all of the children's . . . private school education expenses" and "uninsured medical and dental insurance [sic][3]." The Exceptional Circumstance Form was not signed.

The contemporaneously filed AITD provided, among other things, that Thomas shall pay $1,430 in monthly child support, that Thomas shall be solely responsible for the children's private education expenses through high school, and that Thomas shall maintain medical and dental insurance for the children and pay for any uninsured expenses. These provisions were "subject to further order of the Court." The parties' children were enrolled in the same private school, which offered grade levels through high school, when the AITD was signed.

The AITD also provided that Thomas would pay Corinna $700 per month in alimony until July 2005. The issue of alimony was subject to review based on a material and significant change of circumstances, and Corinna had an affirmative duty to advise Thomas of "any cohabitation undertaken as a conscious decision to live together in lieu of marriage which (the parties agree) may constitute a material and significant change of circumstances."

The family court approved the AITD and incorporated it into the parties' divorce decree, which was filed on November 8, 1999. The divorce decree awarded the parties joint legal custody of the children, with sole physical custody awarded to Corinna, which was consistent with the desires expressed by the parties in the AITD.

In 2000, Corinna began dating a man, who began living full-time with Corinna and the children in or about January 2003. Corinna did not advise Thomas that she was living with another man. In May 2005, Thomas purchased a home in Connecticut, which he later occupied with his civil-union partner.

II. Procedural History

Corinna filed three motions for post-decree relief on May 13, 2005, July 15, 2005, and November 10, 2005, requesting, among other things, that: 1) Thomas's child support payments be recalculated based on the updated 2004 ACSG and the parties' current incomes; 2) Thomas be required to establish an educational and medical trust fund to secure payment of the children's private education expenses and uninsured medical expenses; 3) Corinna be allowed to add the children to her employer's medical plan at a cost of $489.05 per month, with the cost of that coverage included in the computation of child support under the ACSG; 4) Corinna be granted sole legal custody of the children; 5) the family court freeze two of Thomas's investment accounts and issue restraining orders prohibiting Thomas from wasting or disposing of assets pending the resolution of Corinna's post-decree motions; and 6) Thomas be required to pay Corinna's attorney's fees and costs.

Thomas also filed three motions for post-decree relief on June 9, 2005, June 29, 2005, and July 21, 2005, requesting, among other things, that: 1) Thomas's obligation to pay the children's education expenses be modified by requiring Corinna to pay a portion of the private school expenses or by having the children move to a less expensive school; 2) a downward deviation be granted from the amount calculated under the ACSG for Thomas's child support obligation; 3) Corinna be required to reimburse Thomas for the amount of alimony he paid during the time that she cohabited with her boyfriend; and 4) Corinna be required to pay Thomas's legal fees and costs.

The family court held a one-day trial on January 3, 2006. On March 13, 2006, the family court issued its Post-Decree Decision and Order, which resolved the parties' motions for post-decree relief.

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