DeMatteo v. DeMatteo

575 A.2d 243, 21 Conn. App. 582, 1990 Conn. App. LEXIS 180
CourtConnecticut Appellate Court
DecidedMay 29, 1990
Docket7671
StatusPublished
Cited by18 cases

This text of 575 A.2d 243 (DeMatteo v. DeMatteo) is published on Counsel Stack Legal Research, covering Connecticut Appellate Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DeMatteo v. DeMatteo, 575 A.2d 243, 21 Conn. App. 582, 1990 Conn. App. LEXIS 180 (Colo. Ct. App. 1990).

Opinion

Norcott, J.

The defendant appeals and the plaintiff cross appeals from the trial court’s postjudgment dissolution order granting the plaintiffs motion to compel the defendant to endorse two Internal Revenue Service (IRS) checks for the tax years 1971 and 1972. The defendant claims that the trial court erred (1) in finding that its order compelling the defendant to endorse the two IRS checks fell within the scope of the parties’ separation agreement and of the court’s dissolution judgment, (2) in hearing the motion to compel without taking into account the plaintiff’s response to the defendant’s request for disclosure and production, (3) in denying the defendant’s motion for recusal and motion for mistrial based on the trial court’s misconduct, and (4) in failing to grant the defendant’s request for an evidentiary hearing on her motion for recusal.

The plaintiff cross appeals from the trial court’s denial of his oral request for interest on the money that was the subject of his motion to compel.

I

The Appeal

A

On July 2, 1981, the parties entered into a separation agreement, which the trial court adopted and incorporated in its judgment and order. Pursuant to the [584]*584agreement, the plaintiff was to indemnify and hold the defendant harmless “from any liabilities for taxes, assessment, penalties or interest which may result from any joint federal or state income tax returns . . . .” Further, the plaintiff agreed to assume sole responsibility to pay any amount, together with any interest and penalties, in the event of a deficiency assessment by the IRS. The agreement was silent as to tax refunds or overassessments and, accordingly, does not address the parties’ respective property rights in such funds. The parties filed joint tax returns for the tax years that are the subject of this appeal.

Prior to signing the separation agreement, the parties owed a substantial tax deficiency to the IRS. The plaintiff’s financial affidavit dated April 28, 1981, revealed contingent liabilities to the IRS of over one million dollars and noted that the plaintiff was under IRS examination. The plaintiff had satisfied this liability by virtue of a promissory note, payable to the IRS, executed by both parties and by additional tax deficiency payments that he made to the IRS during 1985 and 1986.

In August, 1987, the plaintiff received the first of the two disputed IRS checks, which are the subject of this appeal. One check was made payable to both parties, in the amount of $7688.53 for the 1972 tax year. The second check in the amount of $89,414.07 for the 1971 tax year was received in July, 1988, also made payable to both. The defendant refused to endorse the checks over to the plaintiff. After an unsuccessful attempt to have the IRS reissue the first check in his name only, the plaintiff moved the trial court to compel the defendant’s endorsement of both checks to him. After an evidentiary hearing, the trial court granted the plaintiff’s motion to compel.

[585]*585As a part of its decision on this motion, the trial court found that the checks represented a “return of [IRS] overpayments for the tax years of 1971 and 1972” and that “none of the money was contributed by the defendant but solely by the plaintiff. ... He paid [the tax deficiency] without prejudice and he is entitled to the returned funds.” These findings were in response to the two principal issues that faced the court: (1) what the two IRS checks represented; and (2) what the intention of the parties was with respect to any money returned by the IRS. The first determination was clearly a factual one, which the court made upon hearing testimony and reviewing the evidence before it. Because the separation agreement did not specifically address the matter of any rebates from the IRS, the trial court, in interpreting the agreement, had to determine the intent of the parties. First Hartford Realty Corporation v. Ellis, 181 Conn. 25, 33, 434 A.2d 314 (1980); Albert Mendel & Son, Inc. v. Krogh, 4 Conn. App. 117, 123, 492 A.2d 536 (1985). The trial court’s construction of an agreement is an issue of fact that we review, as with the other findings of fact, under the very limited “clearly erroneous” standard. Albrecht v. Albrecht, 19 Conn. App. 146, 152, 562 A.2d 528, cert. denied, 212 Conn. 813, 565 A.2d 534 (1989); Buchetto v. Haggquist, 17 Conn. App. 544, 548, 554 A.2d 763, cert. denied, 211 Conn. 808, 559 A.2d 1141 (1989); Lavigne v. Lavigne, 3 Conn. App. 423, 427, 488 A.2d 1290 (1985).

From our review of the record, we conclude that the trial court’s findings were not clearly erroneous. As the court noted in its memorandum of decision on the plaintiff’s motion to compel, the separation agreement clearly provides that the plaintiff alone satisfy any tax liabilities.1 Indeed, tax deficiencies for the joint tax [586]*586years 1971 through 1980 were paid, subsequent to the divorce, in an amount over $1,800,000, and we find that the trial court did not err in concluding that the plaintiff alone satisfied those debts.

The record reveals that the tax situation of the parties was, at best, complicated, and that the plaintiffs financial affidavit filed prior to the July 2, 1981 judgment showed a detailed contingent tax liability, while the defendant’s affidavit revealed none. This fact strongly suggests that, as of the date of the dissolution, while the parties as joint tax filers knew of the tax deficiency situation, the defendant wanted no part of the payments of the tax liability. This position is consistent with the clear language of the separation agreement. Further, aside from the fact that the IRS had determined that there was an overpayment for 1971, neither party referred to any joint “refund,” in the classical sense, in their subsequent financial affidavits. This also is not surprising since the overall tax situation at the time of the divorce suggested only a very substantial tax liability that was to be, by agreement, the plaintiff’s sole responsibility.

From this evidence, the trial court concluded (1) that it was the intent of the parties that the plaintiff be solely responsible for the tax deficiencies for 1971 and 1972, (2) that the plaintiff maintained that obligation by paying, subsequent to the divorce, over $1,800,000 to the IRS from his own funds, (3) that the two IRS checks constituted, not a refund, but a return of an overpayment of tax deficiencies, and (4) that, thus, the checks belonged to the plaintiff. We cannot conclude under the applicable standard of review that these findings were clearly erroneous.

[587]*587Nor do we find persuasive the defendant’s argument that the evidence before the trial court was insufficient for it to conclude as it did. The essence of this argument is that because the court received no evidence as to whether the defendant contributed to the payment of the tax deficiencies for the tax years 1971 and 1972, it erred in concluding that she, in fact, had not done so.

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Bluebook (online)
575 A.2d 243, 21 Conn. App. 582, 1990 Conn. App. LEXIS 180, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dematteo-v-dematteo-connappct-1990.