Bidwell v. Baker

91 P.3d 793, 193 Or. App. 657, 2004 Ore. App. LEXIS 693
CourtCourt of Appeals of Oregon
DecidedJune 9, 2004
Docket0110-10985; A119334
StatusPublished
Cited by4 cases

This text of 91 P.3d 793 (Bidwell v. Baker) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bidwell v. Baker, 91 P.3d 793, 193 Or. App. 657, 2004 Ore. App. LEXIS 693 (Or. Ct. App. 2004).

Opinion

*659 BREWER, J.

Plaintiff appeals from a trial court judgment dismissing this action for the enforcement of an alleged oral settlement agreement concerning a property award in a judgment dissolving the parties’ marriage. The trial court dismissed the action on defendant’s motion for summary judgment after determining that, as a matter of law, plaintiff could not enforce the alleged agreement because he previously had pursued an inconsistent substantive right. We affirm.

This is our third occasion to write on the parties’ protracted disputes arising out of their marital dissolution. In 1999, the circuit court dissolved the parties’ 11-year marriage, awarding to defendant as part of the property division a money judgment of $17,817,297 for her share of plaintiffs business. Plaintiff appealed the property division, contending that, rather than awarding defendant a compensating judgment, the trial court should have ordered a sale of the business and a proportionate distribution of the net proceeds.

According to plaintiff, on October 3,2000, the parties reached an oral agreement settling the disputed issues in that appeal. Plaintiff asserts that defendant agreed, in consideration of plaintiffs promise to dismiss his appeal, to accept a discount of approximately $4.5 million on the money judgment. On October 4, 2000, before the alleged settlement agreement had been memorialized in writing, this court affirmed the judgment of the circuit court. Bidwell and Bidwell, 170 Or App 239, 12 P3d 76 (2000), adh’d to on recons, 172 Or App 292, 18 P3d 465, rev den, 332 Or 305 (2001). Plaintiff sought defendant’s assurance that she intended to be bound by the alleged oral settlement. On October 5, 2000, defendant’s attorney informed plaintiffs attorney that defendant did not agree that there had been a settlement, and defendant rebuffed plaintiffs attempts to tender performance.

On November 3, 2000, plaintiff filed a motion for reconsideration of our opinion on appeal from the dissolution judgment. We allowed reconsideration and entertained plaintiffs argument that, in affirming the trial court, we had *660 departed from previous case law holding that the sale of a nondivisible asset is the remedy of choice in dissolution cases. Pending our reconsideration, plaintiff filed an action in the United States District Court for Oregon on January 10,2001, seeking to enforce defendant’s performance of the alleged oral settlement agreement. On January 31,2001, we adhered to our original opinion, holding that, under the circumstances of the case, a forced sale of the business was not preferable to the trial court’s disposition. On defendant’s petition, in yet another written opinion, we awarded defendant attorney fees. Bidwell and Bidwell, 173 Or App 288, 21 P3d 161 (2001). Plaintiff sought review of our decision on the merits in the Supreme Court, which denied review on June 26, 2001. Bidwell and Bidwell, 332 Or 305, 27 P3d 1045 (2001). At no time after our original opinion of October 4, 2000, did plaintiff notify this court of the existence or terms of the alleged settlement agreement.

On July 27,2001, the federal district court dismissed the federal action for lack of subject matter jurisdiction. On October 25, 2001, after the appellate judgment in the dissolution action had become final, plaintiff filed this action in Multnomah County Circuit Court to enforce the alleged settlement agreement. Defendant filed a motion to dismiss the action under ORCP 21 A(8), and she also filed a motion to consolidate the action with the dissolution case. The court denied both motions. Citing Spady v. Graves, 307 Or 483, 488-89, 770 P2d 53 (1989), the court agreed with plaintiffs position that his claim in this action was independent from the dissolution case and reasoned that, after the dissolution judgment was entered, the parties were free to agree to modify the property award under that judgment.

Defendant then filed a motion for summary judgment, asserting on various theories that the alleged settlement agreement is not enforceable. Defendant’s primary contention was that, in pursuing the appeal of the dissolution judgment, plaintiff abandoned any right to enforce the alleged settlement agreement. The court granted defendant’s motion for summary judgment, explaining that

“had there been a settlement, [plaintiff] took actions that are inconsistent with it, and I don’t believe that’s a waiver. *661 I believe that is an acknowledgment that there was not, in fact, a settlement.
“It would be, by analogy, an agreement much like [the agreement at issue in Bafico v. Southern Pac. Co., 244 Or 341, 417 P2d 392 (1966)], that says, ‘I won’t sue you,’ then to go ahead and sue you is inconsistent with the claim of settlement.”

On appeal, plaintiff assigns error to the granting of defendant’s motion for summary judgment. Defendant asserts multiple alternative grounds for affirmance. As a cross-assignment of error, defendant contends that the trial court should have granted her motion to dismiss the action.

We first consider defendant’s cross-assignment of error. Defendant contends that the trial court erred in denying her motion to dismiss because the enforcement of the alleged settlement agreement required the approval of the dissolution court. We review the trial court’s ruling on the motion to dismiss for errors of law, giving plaintiff the benefit of all well-pleaded facts and all reasonable inferences that may be drawn from them. Granewich v. Harding, 329 Or 47, 51, 985 P2d 788 (1999).

If the alleged agreement had effected either a settlement of the dissolution action itself or a modification of the dissolution judgment under ORS 107.135 (2001), then defendant would be correct in asserting that the trial court had to approve the settlement in the dissolution case. 1 Plaintiff *662 asserts, however, that the property award in the dissolution judgment was, upon entry, effective for all purposes and that the parties could negotiate and settle their ongoing disputes without court approval. He argues that his claim for breach of contract could be asserted in an independent action.

We agree with plaintiff. A predissolution property division settlement requires the approval of the dissolution court. Wrona and Wrona, 66 Or App 690, 674 P2d 1213 (1984). However, except as provided in ORS 107.135(l)(e) (2001), after the entry of a dissolution judgment, a court lacks authority to modify a property award in a dissolution action. Spady, 307 Or at 488-89. The parties, though, are not similarly constrained. After the entry of a dissolution judgment, and even pending appeal, the parties are free to negotiate and agree to a modification or settlement of the property division between themselves. Id. at 488.

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Cite This Page — Counsel Stack

Bluebook (online)
91 P.3d 793, 193 Or. App. 657, 2004 Ore. App. LEXIS 693, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bidwell-v-baker-orctapp-2004.