Denise Deborah Lancaster v. David Russell Lancaster

CourtMichigan Court of Appeals
DecidedJanuary 28, 2020
Docket343388
StatusUnpublished

This text of Denise Deborah Lancaster v. David Russell Lancaster (Denise Deborah Lancaster v. David Russell Lancaster) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Denise Deborah Lancaster v. David Russell Lancaster, (Mich. Ct. App. 2020).

Opinion

If this opinion indicates that it is “FOR PUBLICATION,” it is subject to revision until final publication in the Michigan Appeals Reports.

STATE OF MICHIGAN

COURT OF APPEALS

DENISE DEBORAH LANCASTER, UNPUBLISHED January 28, 2020 Plaintiff-Appellee,

v No. 343388 Oakland Circuit Court DAVID RUSSELL LANCASTER, LC No. 2013-812361-DO

Defendant-Appellant.

Before: BECKERING, P.J., and SAWYER and CAMERON, JJ.

PER CURIAM.

Defendant appeals the order determining the amount of attorney fees and costs that were awarded to plaintiff in the trial court’s earlier order. We affirm.

I. FACTUAL BACKGROUND

The parties were married on July 6, 1996. Throughout most of the marriage, defendant worked as an engineer and an attorney for General Motors, and he earned approximately $200,000 annually. He retired from General Motors on August 31, 2013, when he was almost 65 years old, took a lump sum buyout, and planned to continue to work elsewhere until he was approximately 70 years old. He soon began a new position with FEV North America, earning an annual salary of $153,000.

At the time of her marriage to defendant, plaintiff was a nurse manager at Beaumont Hospital. She earned a master’s degree in clinical psychology in May 2004. After obtaining this degree, plaintiff worked exclusively as a therapist, except for a brief stint in 2008 when she taught and in 2009 when she worked as a nurse. After this, she never worked as a nurse again and focused on building her psychology practice, but her income was slow to grow. In 2013, her gross income from her psychology practice was $11,515, and in 2014 it was $15,650.

Plaintiff filed for divorce from defendant on September 9, 2013. The parties entered into a stipulated order for binding arbitration on September 3, 2014, agreeing that “[t]his cause and all issues raised by pleadings are placed in binding arbitration.” On October 29, 2014, one day after arbitration concluded, defendant informed the arbitrator and plaintiff that his employer was

-1- cutting his hours to “half-time,” with his salary being reduced to $76,500 per year. On the basis of defendant’s reduced salary and the arbitrator’s decision to impute $35,000 in annual income to plaintiff, the arbitrator concluded that plaintiff’s spousal support would be $2,375 per month for 60 months. Plaintiff requested an automatic increase in support upon defendant securing full- time employment or his income otherwise increasing. The arbitrator denied the request but stated that support should increase by some amount upon defendant returning to full-time employment/compensation and ordered the parties to exchange annual income and earning information each year by March 1 during the initial five-year period.

The Judgment of Divorce was entered by the circuit court on May 15, 2015, and included the arbitrator’s opinions and orders. The Judgment provided in paragraph 35 that “[i]f either party fails to comply with any provisions within this Judgment and litigation is commenced to enforce any provisions herein, then the prevailing party shall be entitled to his or her reasonable costs and attorney fees from the other party.”

On December 30, 2015, plaintiff moved to (1) enforce the Judgment of Divorce; (2) compel arbitration on the issue of modification of spousal support, or, in the alternative, for modification of spousal support; and (3) for attorney fees pursuant to both the Judgment and MCR 3.206. Plaintiff asserted that defendant accepted a job offer from Borg Warner on May 20, 2015, just five days after the Judgment was entered, and his income increased to include a $157,000 per year base salary, $7,500 hiring bonus, an additional annual bonus of between $19,400 and $77,500, and eligibility for participation in various employee benefit programs (medical insurance, life insurance, flexible spending accounts, vacation, etc.). Moreover, plaintiff asserted that defendant failed to pay plaintiff’s medical expenses, to provide proof of life insurance, to cooperate with the division of the marital furniture and furnishings, and to make timely spousal support payments, as required by the Judgment. Defendant answered plaintiff’s motion, essentially denying all of her allegations.

On April 5, 2016, the trial court heard plaintiff’s motion. Plaintiff testified that she was to receive a pension from Beaumont of $1,342 per month beginning in June 2017. However, according to plaintiff, on the basis of her income and spousal support payment, she would not be able to meet her regular monthly expenses of approximately $5,850. Plaintiff claimed that she was not enjoying the same standard of living that she enjoyed for the duration of the marriage, and that she had to take money from her savings and retirement in order to meet her regular monthly expenses. Defendant asserted that his new job did not increase his salary (that it remained approximately the same); that he did not have the duty to inform plaintiff of his new employment until the following year when the time came for the court-ordered exchange of tax returns between the parties; and further that the arbitrator’s calculation of spousal support was already based on his full-time salary, not his reduced salary.

On January 13, 2016, the trial court granted plaintiff’s motion in part as to the medical bills, ordering defendant to pay plaintiff’s medical bills in the amount of $5,144.22, and reserved the issue of attorney fees. In an order entered July 5, 2016, regarding the modification of spousal support, the trial court found that it was no longer an issue for arbitration and that the court would decide the matter. The trial court determined that plaintiff met her burden of demonstrating a change in defendant’s circumstances since the entry of Judgment, warranting an increase in spousal support. The trial court found that defendant’s annual salary had increased

-2- from $76,500 to approximately $200,000, and this increase in salary provided defendant the ability to pay additional support. The trial court increased spousal support to $70,000 per year. Regarding attorney fees, the court found:

In the instant case there is clearly a disparity in income available to the parties. The court finds that Defendant Husband’s conduct was unreasonable during the course of this litigation. The Arbitrator clearly informed the parties that a change in Defendant Husband’s income would constitute a change in circumstances. This is why the Arbitrator ordered the parties to exchange income information annually. Defendant Husband not only failed to notify Plaintiff Wife when his income more than doubled only five days after the entry of the Judgment of Divorce, but also refused to provide income information at the request of Plaintiff Wife’s counsel when she learned of his new employment. Finally, when Defendant Husband eventually did provide his income information he then refused to negotiate any modification of spousal support, despite his income more than doubling, resulting in an even greater disparity in income than existed at the time of the Judgment of Divorce. The court finds that there is a causal connection between the unreasonable conduct and the fees and expense incurred and that an award of attorney fees is appropriate in this matter.

The court instructed the parties to set a hearing to determine the amount of attorney fees.

Defendant moved for reconsideration on July 22, 2016, requesting that the trial court set aside its order modifying spousal support. On September 12, 2016, the trial court denied defendant’s motion finding that it simply presented the same issues already ruled upon in its previous July 5, 2016 opinion and order.

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Bluebook (online)
Denise Deborah Lancaster v. David Russell Lancaster, Counsel Stack Legal Research, https://law.counselstack.com/opinion/denise-deborah-lancaster-v-david-russell-lancaster-michctapp-2020.