Cruz v. Cruz

Superior Court of Guam·Decided May 3, 2023·No. DM0554-14·Unknown

Opinion

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Fl LE D SUPERIOR COURT GF GUAM 1 2023 HAY -3 PM 3: 03 2 CLERKOFCOURT 3

4 BY: Hr 5

6 IN THE SUPERIOR COURT OF GUAM

7 GERARD A. CRUZ, Domestic Case No. DM0554-14 8 Plaintiff. DECISION AND ORDER 9 v. GRANTING DEFENDANT'S MOTION FOR MONEY JUDGMENT AND 10 C A RM ELI TA c . C RU Z , AMENDED DECREE 11 Defendant. 12

13 INTRODUQTIQN

14 This matter came before the Honorable Alberto C. Lamorena, III on March 20, 2023 for

15 hearing on Carmelita C. Cruz's ("Defendant's") Motion for Money Judgment and Amended Decree

16 ("Motion"). Attorney Edward Han represents Gerard A. Cruz ("Plaintiff"), and Attorney William

17 Brennan represents Defendant. Having duly considered the parties' briefs, oral arguments, and the

18 applicable law, the Court now issues the following Decision and Order and G RA N TS Defendant's

19 Motion.

20 BACKGROUND

21 Plaintiff and Defendant divorced in November of 2015 alter 20 years of marriage. See

22 I Certificate of Divorce (Nov. 24, 2015). The parties entered into a Stipulated Interlocutory Decree

23 for Divorce ("Stipulated Decree") and were granted a final decree of divorce on grounds of adultery.

24 See Stipulated Decree at 1 (Nov. 24, 2015). .

25 Pursuant to their stipulation, Plaintiff agreed to provide medical and dental insurance coverage

26 through his employer to Defendant as a form of spousal support. at 4. However, Plaintiffs

27 employer later discontinued insurance coverage for former spouses, and Defendant has paid her

28 insurance premiums since April 1, 2017. SeeMotion at 2-3 (Jan. 23, 2023). In July2019, Defendant

Decision and Order Granting Defendant's Motion for Money Judgment and Amended Decree DM0554-14, GerardA.Cruz v. Carmelita C. Cruz Page1 of 4 i'

1 was diagnosed with Stage 3 Non-Hodgkin's Lymphoma, and started chemotherapy. See Cruz v.

2 Cruz, 2022 Guam 7 11 11. The Guam Supreme Court found both of these changed circumstance

3 material enough to warrant modifying the Stipulated Decree, requiring Plaintiff to pay for

4 Defendant's health insurance premiums, despite his employer no longer providing such coverage.

5 at~ll40. 6 Also pursuant to their stipulation, Defendant solely retained Lot No. 3245-NEW -REM-l-5 in

7 Chalan Pogo ("Separate Property"). See Stipulated Decree at 2 (Nov. 24, 2015). Plaintiff also

8 assumed various debts, including a Personal Finance Corporation ("PFC") loan, secured by

9 defendant's Separate Property. at 3. Plaintiff later used Defendant's Separate Property as

10 collateral for a new PFC loan under Plaintiffs name alone. See Cruz v. Cruz, 2022 Guam 7 114.

l l P l ai n t i f f endedup defaulting on the new PFC loan and PFC foreclosed on the Separate Property.

12 at1]8. 13 The Guam Supreme Court ordered Plaintiff to reimburse Defendant for the value of the

14 Separate Property, having determined that the Separate Property was solely in Defendant's

15 possession and that the new PFC loan was solely Plaintiffs obligation. at1[32. The value of the

16 Separate Property at the date of foreclosure (February 15, 2018) was $88,500. Q, at118.

17 On January23, 2023, Defendant filed her Motion for Money Judgment and AmendedDecree.

18 Defendant requests a Money Judgment in the amount of $88,500, covering the value of the Separate

19 Property at the date of foreclosure. SeeMotion at 2 (Jan. 23, 2023). Defendant requests this Money

20 Judgment be subject to an interest rate of 6% per annum, effective as of the date of foreclosure

21 (February 15, 2018). SeeMotion, Ex. 1 .- Proposed Money Judgment (Jan. 23, 2023). Defendant

22 also requests modifying the Stipulated Decree, pursuant to the Guam Supreme Court's decision, so

23 that Plaintiff pay her health insurance premiums, including past premiums which she herself covered.

24 SeeMotion at 3 (Jan. 23, 2023).

25 On February 17, 2023, Plaintiff filed his Opposition to Defendant's Motion ("Opposition").

26 Plaintiff claims he isn't liable to pay retroactive interest on the $88,500 money judgment, nor is he

27 liable to pay past health insurance premiums because the Guam Supreme Court ordered neither. See

28 Opposition at 2 (Feb. 17, 2023).

Decision and Order Granting Defendant's Motion for Money Judgment and Amended Decree DM0554-14, Gerard A. Cruz v. Carmelita C. Cruz Page 2 of 4 I

1 On March 3, 2023, Defendant filed her Reply to Plaintiffs Opposition ("Reply"). Defendant

2 claims interest should be included in the money judgment to account for the several years she was

3 deprived of the Separate Property or its equivalent monetary value. SeeReply at 2-3 (Mar. 3, 2023).

4 Defendant also claims Plaintiff should pay for past premiums she covered because the material

5 change in circumstances (Plaintiffs employer's insurance no longer providing coverage for former

6 spouses) happened before she started paying. at 3-4.

7 The Court held a hearing on March 20, 2023. Shortly before that hearing the parties reached

8 I an agreement as to the health insurance premiums and agreed to submit a stipulated judgment. See

9 Court Minutes at ll:l2:00-l l :l2:20 (Mar. 20, 2023). The Court then heard the arguments concerning

10 the money judgment, and took that matter under advisement.

11 DISCUSSION

12 "Every person who is entitled to recover damages... and the right to recover which is vested

13 in him, upon a particular day, is entitled also to recover interest thereon from that day." See20

14 G.C.A. §2110. "Prejudgment interest is allowable where the amount due under the claim for

15 damages is... readily ascertainable by reference to well-established market values." See Guam Top

16 Builders, Inc. v. Tanota Partners, 2012 Guam 12 1168. I 17 The Guam Supreme Court gave instructions "to issue a money judgment against Gerard for

18 the value of Carmelita's Separate Property lost in the foreclosure." See Cruz v. Cruz, 2022 Guam 7

19 1132. It is undisputed that the value of the Separate Property at foreclosure was $88,500.

20 Since foreclosure, Defendant has been deprived of any benefits that come with owning the

21 Separate Property or its equivalent monetary value. Furthermore, a basic understanding of the time

22 value of money reveals dirt $88,500 in 2018 is not the same as $88,500 in 2023. Therefore, it

23 would be unconscionable if the Court limited Defendant's recovery to the value of the property in

24 2018, without accounting for Defendant's lost beneficial use of the Separate Property since then.

25 The $88,500 money judgment instructed by the Guam Supreme is therefore subject to an interest at

26 the rate of 6% per annum effective as of the date of foreclosure (February 15, 2018).

Decision and Order Granting Defendant's Motion for Money Judgment and Amended Decree DM0554-14, GerardA. Cruz v. Carmelita C. Cruz Page 3 of 4 1

1 CONCLUSION 2 For the reasons stated above, the Court GRANTS Defendant's Motion. IT IS HEREBY 3 ORDERED THAT- 4 Plaintiff shall pay Defendant the sum of eighty-eight thousand five hundred

5 dollars ($88,500.00), with interest at the rate of 6% per annum effective as of

6 February 15, 2018. Said judgment shall accrue interest at the rate of 6% per

7 annum, E'om February 15, 2018, until such judgment is paid in full.

8 • The parties shall submit a stipulated judgment for the Coult's signature,

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