Binette v. Binette (In re Binette)

235 Cal. Rptr. 3d 354, 24 Cal. App. 5th 1119
CourtCalifornia Court of Appeal, 5th District
DecidedJune 29, 2018
DocketE068010
StatusPublished
Cited by30 cases

This text of 235 Cal. Rptr. 3d 354 (Binette v. Binette (In re Binette)) is published on Counsel Stack Legal Research, covering California Court of Appeal, 5th District primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Binette v. Binette (In re Binette), 235 Cal. Rptr. 3d 354, 24 Cal. App. 5th 1119 (Cal. Ct. App. 2018).

Opinion

RAMIREZ, P.J.

*1122In this family law matter between William Binette (husband) and Diane Binette (wife), husband appeals from an order setting aside a default judgment that incorporated a marital settlement agreement (MSA). He contends the trial court erred by considering evidence not presented, submitted, or admitted at the hearing, in violation of Family Code 1 section 217. He further asserts that the court erroneously relied upon an incorrect legal standard when it found the failure to complete preliminary and final disclosures provided sufficient *357grounds to vacate the judgment. We affirm.

I. FACTUAL AND PROCEDURAL BACKGROUND

Husband and wife were married on February 14, 2002, and they separated on January 1, 2015. On July 21, 2015, husband petitioned the court for legal separation and filed a preliminary declaration of disclosure, which included (1) his separate property declaration (Form FL-160); (2) his community and quasi-community property declaration (Forms FL-160 & FL-161); and (3) his income and expense declaration (Form FL-150). Nine days later, a notice and *1123acknowledgment of receipt of the petition and husband's preliminary disclosures was filed; however, wife did not respond to the petition.

On August 24, 2015, the parties filed a stipulation and waiver of final declaration of disclosure (stipulation). According to the stipulation, the parties agreed that they had complied with Family Code sections 2102 and 2104 ; that they completed and exchanged a current income and expense declaration; that they entered into the stipulation knowingly, intelligently, and voluntarily; and that if they failed to comply with the legal disclosure obligations, "the court will set aside the judgment." Husband's attorney also caused to be filed a declaration stating that service of wife's preliminary declaration of disclosure was being filed simultaneously.

On September 25, 2015, husband requested entry of default. He did not attach either a completed income and expense declaration or financial statement because, according to him, there were no changes since the previous filing and any issues were resolved by the MSA. On November 10, 2015, a judgment of legal separation was entered and the property was divided as set forth in the MSA, attached to the judgment.

On July 12, 2016, wife filed a request for order to set aside the default judgment and MSA ( Fam. Code, § 2122, subds. (d) & (e) ), and to file a response and request for dissolution of marriage (RFO). In a supporting declaration, wife stated as follows: She received husband's documents the same day he "personally drove [her] to a notary," where he demanded that she sign them "in his presence." Husband also demanded that wife sign the MSA on July 23, 2015, "the same day that he handed [her] his Declaration of Disclosure ...." Wife pointed out that neither husband's property declaration nor his income and expense declaration contained any documents to support them, "so [she] had to rely on [his] representations of the value of the assets." Wife opined that "husband was directing [her] to sign documents that were lies." She declared that "[a]ll documents that [she] signed in the Legal Separation case were prepared by [her] husband and/or his attorney." She denied having any opportunity to consult with an attorney "outside of [her] husband's presence about whether [she] should agree to [his] demands that [she] waive spousal support after [their] long-term marriage, or any of the other terms of the MSA." Wife was also denied the opportunity to consult with a tax professional. When she filed taxes in April 2016, she "learned that the terms of the MSA converted the equalization payments from a tax-free equalization payment into a payment that is taxable to me and tax-deductible to [husband]." Because she suffers from depression, her ability to act in her own best interest was impaired. Wife also filed a memorandum of points and authorities and an income and expense declaration. And, she lodged the declaration of her primary care physician who confirmed that she suffers from depression *358that is "associated with significant cognitive impairment." *1124In February 2017, husband opposed wife's RFO, filing an income and expense declaration with a copy of his 2016 tax returns, a memorandum of points and authorities, and a responsive declaration. In his declaration, husband asserted that "90% of the terms" of their settlement were made by wife. Husband challenged wife's need for spousal support. He declared that "[a]ll appropriate disclosure documents were exchanged; she had more than enough time to review the disclosure documents; our spousal support order was fully negotiated; she had the ability to get her own attorney and/or tax expert; she did not suffer from a cognitive impairment"; and "she insisted on driving us to the notary." According to husband, wife did not want spousal support because she "was actually in fear of having to pay [husband] ...."

On February 9, 2017, wife replied to husband's opposition, reiterating her request to vacate the judgment due to husband's failure to disclose relevant information, mistake of fact as to both parties, and the complication of wife's depression. In support of her reply, wife lodged husband's responses to her discovery requests. According to the documents lodged, husband objected to most of wife's discovery requests, agreeing to respond to specified discovery only if the judgment is set aside.

The matter was heard on February 16, 2017, and on March 9, 2017, the trial court granted wife's RFO on the grounds of mistake of fact.

II. DISCUSSION

A. Applicable Legal Principles.

"Marriage creates a fiduciary relationship between spouses. [Citations.] The confidential relationship between spouses 'imposes a duty of the highest good faith and fair dealing on each spouse ....' [Citation.] As part of these obligations, each spouse is required to provide the other spouse with access to all books regarding transactions for purposes of inspection and copying [citation], and rendering upon request 'true and full information of all things affecting any transaction which concerns the community property.' [Citation.] Additionally, spouses must make full and accurate disclosure and account for separate and community property. [Citations.] The duty of disclosure 'includes the obligation to make full disclosure to the other spouse of all material facts and information regarding the existence, characterization, and valuation of all assets in which the community has or may have an interest ....' [Citation.]

"The parties also have 'a continuing duty to update and augment that disclosure to the extent there have been any material changes so that at the time the parties enter into an agreement for the resolution of any of these *1125issues ... each party will have as full and complete knowledge of the relevant underlying facts as is reasonably possible ....' [Citation.] The final declarations of disclosure must include, among other items, '[a]ll material facts and information regarding the

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Cite This Page — Counsel Stack

Bluebook (online)
235 Cal. Rptr. 3d 354, 24 Cal. App. 5th 1119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/binette-v-binette-in-re-binette-calctapp5d-2018.