Clark v. Clark

535 A.2d 872, 1987 D.C. App. LEXIS 511, 1987 WL 31233
CourtDistrict of Columbia Court of Appeals
DecidedDecember 31, 1987
Docket86-1065, 86-1109
StatusPublished
Cited by22 cases

This text of 535 A.2d 872 (Clark v. Clark) is published on Counsel Stack Legal Research, covering District of Columbia Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clark v. Clark, 535 A.2d 872, 1987 D.C. App. LEXIS 511, 1987 WL 31233 (D.C. 1987).

Opinion

ROGERS, Associate Judge:

These appeals involve a separation agreement executed by the parties in 1976, three years before their divorce. Appellant/cross-appellee Mrs. Clark filed a complaint in 1985 seeking specific performance of the agreement and damages on the grounds that appellee/cross-appellant Mr. Clark had failed to pay alimony in accordance with paragraph 8 from 1978 to 1985. Mr. Clark denied liability, claiming that the parties had mutually rescinded and abandoned the agreement or, alternatively, had modified it, that its terms were unconscionable, and that the complaint was barred by laches; he also counterclaimed for one-half of the proceeds from the sale of stock to which he was entitled under the agreement *874 and for $28,186 plus interest on a loan he had made for the purchase of Mrs. Clark’s home which he was not required to do under the agreement. The trial judge found that through June, 1985, Mr. Clark had fully performed his alimony obligations under the agreement in accordance with oral modifications of the parties but owed $26,000 in alimony from July, 1985, to April, 1986, when he had retired. The judge also found that Mrs. Clark was entitled to retain all of the proceeds from the sale of stock, but that Mr. Clark was entitled to be repaid for the house loan.

On appeal, Mrs. Clark contends that a written contract which contains an express bar against oral modifications may not be orally modified, that the modifications were void for lack of adequate consideration and were barred by the statute of frauds, and that there was no evidence the parties intended Mr. Clark’s alimony obligations would terminate upon his retirement from the practice of law. Mr. Clark contends on appeal that the suit was barred by laches and that the agreement was mutually abandoned and rescinded by the parties. Upon review of the record, we affirm.

I

After approximately twenty-nine years of marriage, Mr. and Mrs. Clark separated in November, 1975, and were divorced on February 27,1979. Shortly after their separation, on March 1, 1976, the parties executed a Property Settlement and Separation Agreement (“Agreement”). The Agreement was drafted by an attorney retained by Mrs. Clark following negotiations at which Mr. Clark, an attorney, represented himself. It purported to resolve all of the property issues involving the parties. It was neither ratified, approved by the court, nor merged into the divorce decree as the Agreement required.

The provision of the Agreement principally in dispute is paragraph 8. Under paragraph 8, Mr. Clark is obligated to pay Mrs. Clark alimony on the first day of each month in an amount equal to fifty percent of his “gross drawings ... in the preceding month.” “Gross drawings” are defined as “monies drawn in [Mr. Clark’s] discretion from earnings of the business in the preceding month” less certain enumerated deductions. 1 Paragraph 8 also provides that Mr. Clark’s alimony obligations “shall continue until [Mrs. Clark] dies or (if the Parties are divorced) until [she] remarries, whichever event first occurs.”

Undisputed evidence at trial showed that the parties failed to abide by many of the terms of the Agreement. They did not have the Agreement merged into the divorce decree as required by paragraph 15. More significantly for purposes of this appeal, the formula for determining alimony was never followed exactly. For example, shortly after executing the Agreement, the parties signed an amendment eliminating Mr. Clark’s “discretion” to draw earnings and substituting a requirement that he “withdraw earnings commensurate with gross receipts”; the amendment was not notarized or executed with the formality required by paragraph 20. Accountings prepared by Mr. Clark for Mrs. Clark indicate, moreover, that Mr. Clark failed to make certain deductions from his gross drawings to which he was entitled under paragraph 8. Mr. Clark also made adjustments for numerous items not contemplated in paragraph 8. In addition, Mr. Clark failed to provide, and Mrs. Clark failed to take steps, beyond requesting Mr. Clark, to obtain financial statements and an accounting of deductions as required by paragraph 8(e)(ii). Mrs. Clark failed to review the accountings Mr. Clark provided with any financial advisor, and in writing she admitted, contrary to her testimony at trial, that she never requested Mr. Clark’s tax returns pursuant to paragraph 8(f).

*875 Early in February, 1980, the parties met to discuss alternate arrangements to paragraph 8’s alimony formula. They agreed that Mr. Clark would pay Mrs. Clark a fixed monthly amount. Mr. Clark testified that the fixed monthly payment (part of which was prepaid at the start of the year) was to be in discharge of his obligations to pay alimony under paragraph 8 without regard to his income or draws. Mrs. Clark disputed this, testifying that only the method of payment, “not the amount or the formula,” was to be changed, and that she was still to receive a payment at the end of each year based on the formula in paragraph 8. Mr. Clark paid Mrs. Clark an average of approximately $4,500 per month from April, 1980, through 1983. Mrs. Clark also received $1,000 in March, 1980.

The parties met again on December 15, 1983, and thereafter to discuss the level of alimony. Mr. Clark testified that they agreed to reduce the fixed monthly alimony payment to $4,000 per month, and, at Mrs. Clark’s request, he prepaid the initial five months of alimony in one check. Near the end of 1984 they reduced the fixed monthly payment to $3,500, and Mr. Clark again prepaid the initial six months of alimony in one check.

In February, 1985, in anticipation of his retirement, Mr. Clark initiated discussions with Mrs. Clark seeking further modification of the alimony payments. Mr. Clark’s law practice before the Interstate Commerce Commission was drawing to a close as the result of congressional deregulation; he was also having trouble reading as the result of poor eyesight notwithstanding two operations for cataracts. The parties exchanged at least five letters and had numerous conversations in an attempt to arrive at a final settlement. In a letter dated June 26, 1985, Mr. Clark presented a comprehensive proposal. Mrs. Clark noted her approval to the proposals calling for alimony of $2,500 per month for the last half of 1985 and $1,500 per month as long as Mr. Clark was practicing law full time, but not to the remainder of the proposal, including a proposal to reduce alimony to $500 per month when he ceased full-time practice; instead Mrs. Clark wrote that she intended to make a comprehensive counter-proposal. Before this happened, however, Mr. Clark withdrew the unaccepted portions of the June proposal. Mr. Clark admitted he was aware that the parties never entered into a complete and final settlement. Mr. Clark paid Mrs. Clark $2,500 per month in July and August, 1985, and $500 per month thereafter until his retirement in April, 1986.

With respect to Mr. Clark’s counterclaim, the undisputed evidence showed that in 1976 Mr. Clark loaned Mrs. Clark over $40,-000 at eight percent interest to acquire a residence which was to be repaid out of the proceeds from the sale of a beach house belonging to Mrs. Clark under the Agreement. After selling the beach house, Mrs. Clark repaid $20,000 in 1978 and thereafter, from October, 1978, to March, 1980, paid only $3,600. The evidence also showed that in 1980 Mrs.

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Cite This Page — Counsel Stack

Bluebook (online)
535 A.2d 872, 1987 D.C. App. LEXIS 511, 1987 WL 31233, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clark-v-clark-dc-1987.