Delahaye v. Delahaye

936 So. 2d 822, 2004 La.App. 1 Cir. 0310, 2004 La. App. LEXIS 3211, 2004 WL 3017169
CourtLouisiana Court of Appeal
DecidedDecember 30, 2004
DocketNo. 2004 CA 0310
StatusPublished
Cited by6 cases

This text of 936 So. 2d 822 (Delahaye v. Delahaye) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Delahaye v. Delahaye, 936 So. 2d 822, 2004 La.App. 1 Cir. 0310, 2004 La. App. LEXIS 3211, 2004 WL 3017169 (La. Ct. App. 2004).

Opinion

|,GUIDRY, J.

This appeal is taken from a judgment partitioning community property. For the reasons that follow, we affirm in part, amend in part, and remand.

FACTUAL AND PROCEDURAL BACKGROUND

Michael Delahaye and Mary Jo May-field 1 were married on February 27, 1971. At that time, Mr. Delahaye was an agent for New York Life Insurance Company (New York Life), having entered into an agent’s contract with that company on September 16, 1968. He remained an agent of New York Life through the time of the proceedings below.

On April 26, 1999, Ms. Mayfield filed a petition for divorce. Mr. Delahaye filed a separate petition for divorce on August 26, 1999. A judgment of divorce was rendered on October 12, 1999, based on the parties having lived separate and apart for six months. The community of acquets and gains between the parties was terminated retroactively to April 26, 1999. [825]*825Thereafter, Ms. Mayfield filed a petition for judicial partition of the community property. Following extensive discovery and negotiations, the parties were able to agree on the distribution of some, but not all, disputed items of property. In particular, the parties disagreed as to whether the former matrimonial home and certain payments (referred to as “Senior Nylic”) received by Mr. Delahaye from New York Life after termination of the community were community or separate in nature.

Following a request for injunctive relief by Ms. Mayfield, a consent judgment was rendered in April 2001 ordering Mr. Dela-haye to deposit one-half of the monthly Senior Nylic payments into a joint, interest-bearing escrow account, pending classification of the payments.

Pursuant to agreement of counsel, the parties submitted the issues of the classification of the former matrimonial home and the Senior Nylic payments to |sthe trial court on memoranda. On March 7, 2003, the trial court issued a ruling characterizing the Senior Nylic payments as “renewal commissions” that were community in nature even though received after termination of the community, since they were paid based on policies written during the existence of the community. The court further ruled that Mr. Delahaye bore the burden of proving any claim that he was entitled to more than 50% of these payments because his separate labor and expenses were necessary to keep the policies in effect. Finally, the court ruled the former matrimonial domicile was the separate property of Ms. Mayfield, although subject to Mr. Delahaye’s reimbursement claim for one-half of any community funds used to enhance the property. Both parties filed motions for new trial. In her motion for partial new trial, Ms. Mayfield asserted that, while the court correctly classified the Senior Nylic payments as community property, the court erred in considering these payments to be “renewal commissions.”

Trial was held on March 24 and 27, 2003. At the conclusion, the trial court ruled that Ms. Mayfield was entitled to one-half of all future Senior Nylic payments attributable to policies written during the existence of the community,2 as well as one-half of all cost-of-living and incremental increases attributable to those policies. Additionally, the court held Ms. Mayfield was entitled to one-half of the Senior Nylic payments received by Mr. Delahaye during the period from May 15, 1999 to March 15, 2001, together with legal interest from the respective dates that each payment was received by Mr. Delahaye. Ms. Mayfield was awarded all of the escrowed Senior Nylic funds, as well as one-half of certain renewal commissions stipulated by the parties to be community (after deduction of expenses Mr. Delahaye proved he incurred to secure the renewals).

In oral reasons, the court held Mr. Dela-haye was not entitled to more than one-half of the Senior Nylic payments because it was not satisfied that any |4servicing of the policies written during the community was necessary to the continuation of the payments. The court believed that, to the extent that there was any servicing of these policies, it was for the purpose of generating new business, and had no effect on the Senior Nylic payments. Finally, pursuant to a joint stipulation, the court ruled Mr. Delahaye was entitled to reimbursement for one-half of the community [826]*826funds used to build the former family-home.

A written judgment was signed on August 4, 2003. In addition to allocating the various assets and debts of the community, the judgment ordered Mr. Delahaye to pay a total of $269,386.29 to Ms. Mayfield, which amount consisted of an equalizing payment, reimbursement claims, and an accounting between the parties. To facilitate partition of the community, several Qualified Domestic Relations Orders (QDROs) were attached to the judgment, including one dealing with retirement benefits. That QDRO recognized Ms. May-field’s 50% interest as of April 26, 1999, in the “New York Life Retirement Plan for Agents” and the “NYLIC Excess Plan” (hereafter “the retirement plan”), as well as her right to a pro rata share in any cost-of-living increases or other increases attributable to her community interest. Mr. Delahaye has appealed.

ASSIGNMENTS OF ERROR

1. The trial court erred in classifying the Senior Nylic payments as renewal commissions and awarding one-half of these post-divorce payments to Ms. Mayfield, since these payments are actually a salary or commission requiring his continued employment

2. Alternatively, even if the Senior Nylic were properly classified as community property, equity required that his separate labor and costs in keeping the insurance policies in effect be considered in determining the community’s share. The trial court committed manifest error in not proportionally reducing Ms. Mayfield’s share by these costs.

3. The trial court committed manifest error in awarding Ms. Mayfield legal interest from the date Mr. Delahaye received each Senior Nylic payment.

4.The trial court erred in awarding Ms. Mayfield one-half of any future increases in the retirement attributable to post-divorce increases in Senior Nylic payments.

| fi5. The trial court erred in excluding from evidence a summaries prepared by his Mr. Delahaye’s CPA, when the summaries were based on documents already provided to Ms. Mayfield’s attorneys.

Assignments Of Error Numbers One and Two

In these assignments of error, Mr. De-lahaye contends the trial court erred in classifying the Senior Nylic payments as renewal commissions and community property. He argues the payments are his separate property because they constitute current incentive income, rather than renewal commissions. He maintains he must earn these payments by remaining an active agent, servicing existing policies, maintaining records, and meeting certain other contractual requirements. He further complains the partition was inequitable because it granted greater rights to Ms. Mayfield than to him since it allowed her to simultaneously collect Senior Nylic payments and retirement benefits, while he is unable to do so. Alternatively, he contends that, if the payments are community property, Ms. Mayfield’s share should have been reduced in proportion to the post-termination efforts and expenses he incurred to maintain the policies in force.

In response, Ms. Mayfield contends the Senior Nylic payments are not salary for current services, but are based instead on the amount and persistency of policies sold during the marriage. She maintains Mr.

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

Related

Kelly O. Orgeron v. Edward J. Orgeron, Jr.
Louisiana Court of Appeal, 2024
Villarrubia v. Villarrubia
263 So. 3d 949 (Louisiana Court of Appeal, 2018)
Herrington v. State
102 So. 3d 1241 (Court of Appeals of Mississippi, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
936 So. 2d 822, 2004 La.App. 1 Cir. 0310, 2004 La. App. LEXIS 3211, 2004 WL 3017169, Counsel Stack Legal Research, https://law.counselstack.com/opinion/delahaye-v-delahaye-lactapp-2004.