Flood v. Hardt CA5

CourtCalifornia Court of Appeal
DecidedNovember 13, 2015
DocketF069665
StatusUnpublished

This text of Flood v. Hardt CA5 (Flood v. Hardt CA5) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Flood v. Hardt CA5, (Cal. Ct. App. 2015).

Opinion

Filed 11/13/15 Flood v. Hardt CA5

NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIFTH APPELLATE DISTRICT

BARBARA FLOOD, F069665 Plaintiff and Appellant, (Super. Ct. No. FL-611058) v.

THOMAS M. HARDT, OPINION Defendant and Respondent.

APPEAL from judgments of the Superior Court of Kern County. Stephen D. Schuett, Judge. Matt Bogosian for Plaintiff and Appellant. Law Offices of Ralph B. Wegis, Ralph B. Wegis, Barry E. Rosenberg and Edward Gordon for Defendant and Respondent. -ooOoo- Barbara Flood (Barbara) appeals from judgments filed in the dissolution of her marriage to Thomas Hardt (Thomas).1 She contends that, throughout the dissolution proceedings, the trial court made numerous errors. In bifurcated trials, it:

We refer to the parties by their first names to ease the reader’s task. No 1 disrespect is intended. (1) mischaracterized funds deposited into a joint bank account during the marriage, which she argues are community property, and erred in failing to vacate its bifurcated judgment and grant her a new trial; (2) committed reversible error when it found Thomas did not breach his fiduciary duty and when it did not require Thomas to reimburse the community estate; (3) abused its discretion by ordering her to pay Thomas’ attorney fees and by denying her request for fees; and (4) denied her due process of law and a fair trial by denying her motion to compel production of documents, refusing to issue a full statement of decision, denying her request to compel Thomas to issue an adequate declaration of disclosure, and not requiring Thomas to verify his response to her petition for dissolution. Finding no reversible error, we affirm the judgments. FACTUAL AND PROCEDURAL BACKGROUND Barbara and Thomas married on March 23, 2006, and separated on August 26, 2009; they did not have children together. On September 11, 2009, Barbara filed a petition for dissolution of the marriage. Judgment of dissolution was granted on July 26, 2011, with the trial court reserving jurisdiction over all other issues. Before their marriage, the parties entered into a Prenuptial Agreement (Agreement). The Agreement lists the real and personal property each party owned, as well as their debts and liabilities, in attached exhibits. Thomas’ premarital assets totaling about $50 million are listed on Exhibit A, while Barbara’s premarital assets totaling about $1.5 million are listed on Exhibit B. The Agreement states it was the parties’ “intention, desire and agreement” that “their respective rights in each other’s property, whether it be real, personal, mixed, contingent, or otherwise shall be determined and fixed by this Agreement, . . . ” The Agreement contains a “Joint Accounts” provision, which states: “The parties shall maintain one or more joint bank, brokerage, or other accounts for the payment of community expenses and the accumulation of community assets. Any contributions to or deposits into any such accounts by Thomas or Barbara shall be deemed to be gifts to the

2. community. Neither Thomas nor Barbara shall be under any obligation to make any deposit into, or contribution to, any such joint account. Any property acquired during Thomas and Barbara’s marriage, the entire purchase price of which is paid from funds from these joint accounts, shall be community property. If either party expends or contributes monies for the benefit of the parties without first contributing or depositing the same to or in such joint account or accounts, such expenditure or contribution shall not be a gift to the community and the characterization of any property acquired as a result thereof shall be determined in accordance with Sections 3 or 4 of this Agreement, as the case may be.”2 A provision entitled “Tri Counties Bank Accounts” states that Thomas maintained two bank accounts at Tri Counties Bank with “present balances” of approximately $31,000 and $200,000, the parties intended “the funds in these accounts” to be community property once they were married, and by entering into the Agreement, Thomas intended to transmute these funds into community property. This provision further states that in “transmuting these funds to community property, Thomas specifically waives any reimbursement rights he may have under California Family Code §2640 to the entirety of these funds in any dissolution of marriage or legal separation action filed by either party.” The Agreement also contains an attorney fees provision which states that if either party institutes any action or proceeding to enforce or interpret the Agreement, the prevailing party “shall be entitled to recover, from the other party, all costs and expenses actually incurred in such action or proceeding, including reasonable attorneys’ fees, regardless of need.”

2Unnecessary capitalization in all our quotations of the Prenuptial Agreement will be omitted.

3. In 2010, a bifurcated trial was held on the issue of the validity and enforceability of the Agreement before the Honorable John D. Oglesby. In December 2010, Judge Oglesby found the Agreement to be valid and enforceable. The written “Findings and Orders After Hearing” filed on January 10, 2011, states that Judge Oglesby found the Agreement was “not unconscionable[,]” that Barbara voluntarily and expressly waived any right to disclosure of the property or financial obligations of the other party beyond the provided disclosure, and that Barbara had, or reasonably could have had, adequate knowledge of Thomas’ property or financial obligations. The order does not contain any ruling on the Agreement’s attorney fee provision. In February 2012, Barbara filed a request for a bifurcated trial on the characterization of $9.5 million that was deposited into a joint Bank of America account during the marriage; she contended these funds became community property pursuant to the Agreement’s Joint Accounts provision. The parties agreed to try the issue on stipulated facts. In June 2012, the trial court issued a statement of decision in which it found that the property deposited into the joint bank account had not been transmuted to community property. Thereafter, Barbara filed a motion to set aside the trial court’s order and stipulated judgment, which the trial court denied. After the trial court’s bifurcated judgment was entered, she filed a motion for a new trial or to vacate the judgment, which the trial court also denied. In March 2013, a court trial proceeded on “final trial issues.” The parties each submitted exhibits that were admitted at trial. They also stipulated to certain undisputed facts. The trial court took judicial notice of prior court orders that showed a $150,000 distribution from Thomas to Barbara had been ordered, and that Thomas previously had paid Barbara $67,000 for her attorney fees. The parties also stipulated that there were at a minimum three joint assets at the date of separation, which included the joint Tri Counties accounts and the joint Bank of America account. Both Barbara and Thomas testified at the trial. Following submission of the evidence, the parties waived oral

4. argument and agreed to a briefing schedule, with the parties simultaneously submitting opening and responsive briefs, after which the matter would stand submitted. After the parties submitted their briefs, the trial court vacated the submission to allow for additional briefing on an issue that came to its attention. After the parties submitted additional briefs, the matter stood submitted.

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