Cadwell-Faso v. Faso

191 Cal. App. 4th 945, 119 Cal. Rptr. 3d 818
CourtCalifornia Court of Appeal
DecidedJanuary 11, 2011
DocketNo. A126524
StatusPublished
Cited by42 cases

This text of 191 Cal. App. 4th 945 (Cadwell-Faso v. Faso) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cadwell-Faso v. Faso, 191 Cal. App. 4th 945, 119 Cal. Rptr. 3d 818 (Cal. Ct. App. 2011).

Opinion

Opinion

REARDON, J.

Family Code1 section 1615, subdivision (c) (section 1615(c)), as amended effective January 1, 2002, creates a presumption “that a premarital agreement was not executed voluntarily” unless the court makes five designated findings. (See Stats. 2001, ch. 286, § 2, p. 2317; In re Marriage of Friedman (2002) 100 Cal.App.4th 65, 72 [122 Cal.Rptr.2d 412].) These include the finding that the party against whom enforcement is sought had at least seven calendar days between the date he or she was “first presented” with the agreement and advised to seek independent counsel, and the time he or she signed the agreement. (§ 1615(c)(2).) The trial court ruled that because seven days did not elapse between the time respondent Joseph R Faso (Faso) was presented with the final draft addenda (the Addendum) to the premarital agreement and the time he signed it, his execution was deemed involuntary [950]*950and the Addendum was unenforceable. Appellant Cari Lynn Cadwell-Faso (Cadwell-Faso) urges that where, as here, multiple drafts of a document are exchanged, the Legislature did not intend to erect an absolute seven-day waiting period between presentation of the last draft, and its execution. Alternatively, she charges that Faso should be estopped from relying on the seven-day rule.

We conclude, after receiving supplemental briefing and applying the rules of statutory interpretation, that section 1615(c)(2) simply does not pertain in the current situation where the party against whom enforcement is sought was represented by counsel from the outset of the transaction. Accordingly, we reverse the judgment.

I. FACTUAL BACKGROUND

A. The Parties

Faso and Cadwell-Faso met in 2003 or 2004. He was 21 years her senior. Cadwell-Faso owned and operated her own business in Alameda. Faso was a wealthy, retired businessperson residing in Stockton.

The parties married on May 27, 2006, and separated less than 18 months later, on November 2, 2007.

B. The Premarital Agreement and Addenda

Prior to their marriage, the couple discussed having a premarital agreement; both parties wanted such an agreement. In December 2005, Faso’s attorney, James Dyke, drafted a premarital agreement. Faso presented it to Cadwell-Faso and advised her to seek independent counsel. Cadwell-Faso hired Attorney Dan Godeke. She was not satisfied with the agreement and asked Godeke to prepare an addendum. Between March and May 2006, Godeke drafted five addenda. Faso did not agree to the terms of the first four drafts.2

[951]*951Substantively, the Addendum provided that within 10 years following the marriage, Faso would pay off the mortgage of approximately $400,000 on [952]*952Cadwell-Faso’s Sea Ranch property, an obligation that was binding even if the marriage terminated. As well, the Addendum restricted Faso’s ability to alienate certain real property holdings, and gave Cadwell-Faso certain rights in those holdings should he sell them during the marriage, or predecease her while still married. Further, Faso undertook to provide for Cadwell-Faso’s reasonable health care needs, for life, even if the marriage terminated or he predeceased her. In the event of a dissolution, Faso agreed to pay Cadwell-Faso spousal support in the amount of $1,000 per month for each year of the marriage, up to a maximum of $5,000 per month, for a period equal to one-half the length of the marriage.

[951]*951On May 17, 2006, Cadwell-Faso faxed Faso a “goodbye” letter along with the four unsigned draft addenda, saying she loved him but was calling off the wedding in light of their inability to reach an agreement. Thereafter the parties spoke by phone. Faso said, “Let’s get married, let’s get this thing done.” At that time they discussed their disagreements, and, on the basis of those discussions, Cadwell-Faso directed Godeke to prepare a fifth draft addenda.

On May 18, 2006, Godeke faxed his client the fifth draft, which draft became the Addendum; on May 19 she faxed it to Faso, and he had it forwarded to his attorney on May 22. The parties met in Dyke’s office on May 25, 2006. Dyke inserted the word “reasonable” in front of the phrase “actual health care needs” of Cadwell-Faso, which the Addendum obligated Faso to pay during her lifetime. With that, the parties executed the premarital agreement and the Addendum. They married two days later.

The premarital agreement recited the parties’ intention to waive California community property laws. Therein Cadwell-Faso estimated that the net fair market value of her estate exceeded $1 million without taking into account the liabilities detailed on an attached exhibit.* *3 Faso estimated that the net fair market value of his estate exceeded $30 million. In the event the marriage terminated, the parties generally agreed to waive community property and spousal support claims against each other.

The Addendum begins with these recitals: “During her adult life until now, CARI has attended to her own financial affairs. She owns and operates her own business, she owns a residence with a mortgage of meaningful proportions, and she has made investments toward a retirement which she has anticipated would be a quarter century away. [][] An aspect of the plan for this marriage is that CARI will dispose of her business, and, substantially, withdraw from her life of independent earning and support, at age 43 years. She will move to Stockton with JOE, they expect to travel widely, and generally they expect to lead lives associated with at least semi-retirement. CARI is not in a financial position to retire, nor will she become so, independent of JOE, in the life style anticipated for this marriage. JOE has acquired and developed a very substantial asset base during his working life.”

[952]*952C. Legal Proceedings

Cadwell-Faso petitioned for legal separation on November 13, 2007. The next month Faso sought dissolution of marriage. Thereafter Cadwell-Faso moved for temporary spousal support and attorney fees. Among other responses, Faso moved to set aside the Addendum, arguing that the document was invalid because he did not have seven days between the time of presentation and execution, as required by section 1615(c)(2). The matter proceeded to trial in two phases, the first phase concerning enforceability of the premarital agreement and the Addendum, the second addressing the matter of spousal support.

1. Phase One

a. Hearing. Cadwell-Faso testified that she had no knowledge or communication with Joe “about the validity of the agreement based on when it was being signed.” The issue “never came up.” She believed that as long as “it was signed . . . prior to the time” they exchanged vows, “that was appropriate.” Cadwell-Faso did, however, concede that the terms varied in each draft addendum.

Additionally, Cadwell-Faso stated that prior to the marriage, she earned between $10,000 and $20,000 per month and lived a very comfortable life. Although the tax returns presented at trial reflected that the business “actually had a loss,” she explained: “[W]hen you’re a sole proprietorship, you run everything through your business.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Marriage of Toossi and McKinnies CA4/3
California Court of Appeal, 2025
Marriage of Andary CA6
California Court of Appeal, 2025
Marriage of Kandah and Diaz CA4/1
California Court of Appeal, 2024
Thompson v. Thompson CA1/1
California Court of Appeal, 2023
Last v. Super. Ct.
California Court of Appeal, 2023
Estate of Eskra
California Court of Appeal, 2022
Knapp v. Ginsberg
California Court of Appeal, 2021
People v. Martinez CA4/2
California Court of Appeal, 2021
Marriage of Cunningham CA2/6
California Court of Appeal, 2020
Clarke v. Akel (In re Clarke)
228 Cal. Rptr. 3d 483 (California Court of Appeals, 5th District, 2018)
Marriage of Clarke & Akel
California Court of Appeal, 2018
In re Estate of Psota
297 Neb. 570 (Nebraska Supreme Court, 2017)
Marriage of Csupo CA2/1
California Court of Appeal, 2016
Marriage of Clair CA2/8
California Court of Appeal, 2016
Marriage of Aitchison CA1/2
California Court of Appeal, 2014
Hill v. Dittmer
202 Cal. App. 4th 1046 (California Court of Appeal, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
191 Cal. App. 4th 945, 119 Cal. Rptr. 3d 818, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cadwell-faso-v-faso-calctapp-2011.