FILED
!n19 OCT I 6 ~12: I I
SUPERIOft~OU"i OF GUAM IN THE SUPERIOR COURT OF GUAM
HECTOR GAGARIN, ELIZA CASUGAY, Superior Court Case No .. CV0033-13 '1 t'->
BETTY KLINE, and NENITA LATAXES,
Plaintiffs/Counter-Claim DECISION AND ORDER Defendants, REMOTION TO ENFORCE FAMILY SETTLEMENT AGREEMENT vs.
MARC A. GAGARIN and ROSALINA A. GAGARIN,
Defendants/Counter- Claim Plaintiffs.
The Court here considers whether an accounting is necessary to complete the parties'
settlement. After concluding that this Court may enforce the terms of the settlement agreement,
the Court finds the present accounting provided by Counterclaimant Marc Gargarin is not
adequate to finalize the parties' settlement. The Court also intends to appoint a Master to
complete the accounting. The Court thus GRANTS Plaintiffs' Motion to Enforce Family
Settlement Agreement.
I. PROCEDURAL BACKGROUND
There are two sets of siblings in this action: the Plaintiffs/Claimants consist of Hector
Gagarin, Eliza Casugay, Betty Kline and Nenita Lataxes; the Defendants/Counterclaimants
consist of Marc Gagarin and Rosalina Gagarin. This litigation concerns property owned by their
father, Edward L. Gagarin, who is deceased. See Compl. (Jan. 19, 2013).
ORIGINAL CV0033-13 DECISION AND ORDER REMOTION Page2 TO ENFORCE FAMILY SETTLEMENT AGREEMENT
To settle the family dispute, the parties signed a Settlement Agreement Release and
Waiver "which resolved all pending issues between the parties." Stip. J. ~ 2 (Oct. 7, 2014).
Under the settlement, the parties agreed to sell four properties. Stip. J., Ex. A at~ l(a). Upon
completion of the sale of three properties, Counterclairnants agreed to place into escrow all
monies received as rental income from the four properties since the date of Edward's passing,
"minus the cost of maintaining the properties, expenses related to maintaining the properties, and
the 25% administrative fees from the gross rental payments received since" Gargarin's death.
Stip. J., Ex. A at~ l(e). The parties defined "administrative" work to include, but not be limited
to, arranging for insurance, property maintenance, improvement and repairs, interviewing
prospective tenants and advertising for rent, collecting rent and evicting nonpaying tenants,
maintaining the business licenses, paying various taxes, and accounting. Stip. J., Ex. A at~ l(e).
Upon completion of all property sales, the proceeds were divided among the parties. Stip. J., Ex.
The settlement included a release: "All parties shall generally and fully release each
other from any and all liability arising from the relations and transactions between the parties as
herein provided." Stip. J., Ex. A at~ 4. They also released unknown claims: "Release of
Unknown Claims. The parties in making this settlement agreement, and particularly in reference
to the release and waiver included herein, hereby acknowledge and agree that there is a risk that
subsequent to the execution of this settlement agreement, the parties, each or any of them, may
or will incur or suffer monetary or other loss, injury, damage, or any of these, which is in some
way caused or effected by, related to, connected with the relations of the parties and their
business dealings, but which loss, injury, or damage is unknown at the time of the signing ofthis
agreement .... " Stip. J., Ex. A at~ 5. Acknowledging such unknown claims exist, the parties
ORIGINAL CV0033-13 DECISION AND ORDER REMOTION Page 3 TO ENFORCE FAMILY SETTLEMENT AGREEMENT
"intend[] by this settlement agreement, to waive the benefits of' 18 GCA § 82606, which states
that a general release does not extend to unknown claims. Stip. J., Ex. A at~ 5
The parties also agreed for the Court to hear any disputes over the subject matter of this
Settlement, and submitted a Stipulated Judgment which gave this Court continuing jurisdiction
until all settlement terms had been complied with. Stip. J., Ex. A at~ 11.
It is undisputed that all four properties are now sold. Following the final sale, Marc
produced an accounting. The Claimants challenge Marc's accounting as inadequate and also
challenge Marc's distribution of funds to a relative's wedding and for funerals, and payment of
taxes and attorney's fees.
II. LAW AND DISCUSSION
Guam courts apply traditional contract principles to the interpretation of settlement
agreements. Bias v. Cruz, 2009 Guam 12 ~ 11; Camacho v. Camacho, 1997 Guam 5 ~~ 30-35.
Hence, "effect must be given to the mutual intention of the parties as it existed at the time of
entering into the settlement agreement." Lujan v. Lujan, 2012 Guam 7 ~ 30 (citing Leon
Guerrero v. Moylan, 2000 Guam 28 ~ 8. Where the settlement agreement is committed to a
writing, this mutual intention of the parties should be ascertained from the writing alone. I d. To
analyze a writing, Guam courts "begin by looking at the plain meaning ... in order to determine
whether ambiguity exists." Hart v. Hart, 2008 Guam 11 ~ 20.
Counterclaimants rely heavily on the general releases, and particularly the releases of
unknown claims to estop Claimants from seeking an accounting. However, the parties also
agreed that there may exist disputes over the subject matter of the settlement, in which case the
Court has jurisdiction to resolve such disputes. The release therefore did not apply to disputes
concerning the parties' obligations under the settlement agreement.
ORIGINAL CV0033-13 DECISION AND ORDER REMOTION Page 4 TO ENFORCE FAMILY SETTLEMENT AGREEMENT
This follows a body of caselaw which recognizes that courts have jurisdiction to consider
and address breaches of settlement agreements. See, e.g., Wagner v. Spurlock, 803 N.E.2d 1174,
1180 (Ind. App. 2004); Aro Corp v. Allied Witan Co., 531 F.2d 1368, 1371 (6th Cir. 1976) ("It is
well established that courts retain the inherent power to enforce agreements entered into in
settlement of litigation pending before them"); Brewer v. National R.R. Passenger Corp., 649
N.E. 2d 1331, 1333 (Ill. 1995) ("A trial court has the power to enforce a settlement agreement
entered into by the parties while the suit is pending before the court."); Mantas v. Fifth Court of
Appeals, 925 S.W.2d 656, 658-59 (Tex. 1996) ("Where the settlement dispute arises while the
trial court has jurisdiction over the underlying action, a claim to enforce the settlement
agreement should, if possible, be asserted in that court under the original cause number.").
Some expenses in Counterclaimants' accounting do not fall under the category of
"administrative" work. When examined in its plain language, administrative work encompassed
work concerning the properties: maintaining and improving the properties, recruiting tenants,
and paying taxes. While this is not an exclusive list, the plain and reasonable interpretation of
this provision excludes non-administrative work. Non-administrative work would include, for
example, a payment for a wedding gift to "lsa" in 2018, and funeral expenses for relatives in
201 7.
Free access — add to your briefcase to read the full text and ask questions with AI
FILED
!n19 OCT I 6 ~12: I I
SUPERIOft~OU"i OF GUAM IN THE SUPERIOR COURT OF GUAM
HECTOR GAGARIN, ELIZA CASUGAY, Superior Court Case No .. CV0033-13 '1 t'->
BETTY KLINE, and NENITA LATAXES,
Plaintiffs/Counter-Claim DECISION AND ORDER Defendants, REMOTION TO ENFORCE FAMILY SETTLEMENT AGREEMENT vs.
MARC A. GAGARIN and ROSALINA A. GAGARIN,
Defendants/Counter- Claim Plaintiffs.
The Court here considers whether an accounting is necessary to complete the parties'
settlement. After concluding that this Court may enforce the terms of the settlement agreement,
the Court finds the present accounting provided by Counterclaimant Marc Gargarin is not
adequate to finalize the parties' settlement. The Court also intends to appoint a Master to
complete the accounting. The Court thus GRANTS Plaintiffs' Motion to Enforce Family
Settlement Agreement.
I. PROCEDURAL BACKGROUND
There are two sets of siblings in this action: the Plaintiffs/Claimants consist of Hector
Gagarin, Eliza Casugay, Betty Kline and Nenita Lataxes; the Defendants/Counterclaimants
consist of Marc Gagarin and Rosalina Gagarin. This litigation concerns property owned by their
father, Edward L. Gagarin, who is deceased. See Compl. (Jan. 19, 2013).
ORIGINAL CV0033-13 DECISION AND ORDER REMOTION Page2 TO ENFORCE FAMILY SETTLEMENT AGREEMENT
To settle the family dispute, the parties signed a Settlement Agreement Release and
Waiver "which resolved all pending issues between the parties." Stip. J. ~ 2 (Oct. 7, 2014).
Under the settlement, the parties agreed to sell four properties. Stip. J., Ex. A at~ l(a). Upon
completion of the sale of three properties, Counterclairnants agreed to place into escrow all
monies received as rental income from the four properties since the date of Edward's passing,
"minus the cost of maintaining the properties, expenses related to maintaining the properties, and
the 25% administrative fees from the gross rental payments received since" Gargarin's death.
Stip. J., Ex. A at~ l(e). The parties defined "administrative" work to include, but not be limited
to, arranging for insurance, property maintenance, improvement and repairs, interviewing
prospective tenants and advertising for rent, collecting rent and evicting nonpaying tenants,
maintaining the business licenses, paying various taxes, and accounting. Stip. J., Ex. A at~ l(e).
Upon completion of all property sales, the proceeds were divided among the parties. Stip. J., Ex.
The settlement included a release: "All parties shall generally and fully release each
other from any and all liability arising from the relations and transactions between the parties as
herein provided." Stip. J., Ex. A at~ 4. They also released unknown claims: "Release of
Unknown Claims. The parties in making this settlement agreement, and particularly in reference
to the release and waiver included herein, hereby acknowledge and agree that there is a risk that
subsequent to the execution of this settlement agreement, the parties, each or any of them, may
or will incur or suffer monetary or other loss, injury, damage, or any of these, which is in some
way caused or effected by, related to, connected with the relations of the parties and their
business dealings, but which loss, injury, or damage is unknown at the time of the signing ofthis
agreement .... " Stip. J., Ex. A at~ 5. Acknowledging such unknown claims exist, the parties
ORIGINAL CV0033-13 DECISION AND ORDER REMOTION Page 3 TO ENFORCE FAMILY SETTLEMENT AGREEMENT
"intend[] by this settlement agreement, to waive the benefits of' 18 GCA § 82606, which states
that a general release does not extend to unknown claims. Stip. J., Ex. A at~ 5
The parties also agreed for the Court to hear any disputes over the subject matter of this
Settlement, and submitted a Stipulated Judgment which gave this Court continuing jurisdiction
until all settlement terms had been complied with. Stip. J., Ex. A at~ 11.
It is undisputed that all four properties are now sold. Following the final sale, Marc
produced an accounting. The Claimants challenge Marc's accounting as inadequate and also
challenge Marc's distribution of funds to a relative's wedding and for funerals, and payment of
taxes and attorney's fees.
II. LAW AND DISCUSSION
Guam courts apply traditional contract principles to the interpretation of settlement
agreements. Bias v. Cruz, 2009 Guam 12 ~ 11; Camacho v. Camacho, 1997 Guam 5 ~~ 30-35.
Hence, "effect must be given to the mutual intention of the parties as it existed at the time of
entering into the settlement agreement." Lujan v. Lujan, 2012 Guam 7 ~ 30 (citing Leon
Guerrero v. Moylan, 2000 Guam 28 ~ 8. Where the settlement agreement is committed to a
writing, this mutual intention of the parties should be ascertained from the writing alone. I d. To
analyze a writing, Guam courts "begin by looking at the plain meaning ... in order to determine
whether ambiguity exists." Hart v. Hart, 2008 Guam 11 ~ 20.
Counterclaimants rely heavily on the general releases, and particularly the releases of
unknown claims to estop Claimants from seeking an accounting. However, the parties also
agreed that there may exist disputes over the subject matter of the settlement, in which case the
Court has jurisdiction to resolve such disputes. The release therefore did not apply to disputes
concerning the parties' obligations under the settlement agreement.
ORIGINAL CV0033-13 DECISION AND ORDER REMOTION Page 4 TO ENFORCE FAMILY SETTLEMENT AGREEMENT
This follows a body of caselaw which recognizes that courts have jurisdiction to consider
and address breaches of settlement agreements. See, e.g., Wagner v. Spurlock, 803 N.E.2d 1174,
1180 (Ind. App. 2004); Aro Corp v. Allied Witan Co., 531 F.2d 1368, 1371 (6th Cir. 1976) ("It is
well established that courts retain the inherent power to enforce agreements entered into in
settlement of litigation pending before them"); Brewer v. National R.R. Passenger Corp., 649
N.E. 2d 1331, 1333 (Ill. 1995) ("A trial court has the power to enforce a settlement agreement
entered into by the parties while the suit is pending before the court."); Mantas v. Fifth Court of
Appeals, 925 S.W.2d 656, 658-59 (Tex. 1996) ("Where the settlement dispute arises while the
trial court has jurisdiction over the underlying action, a claim to enforce the settlement
agreement should, if possible, be asserted in that court under the original cause number.").
Some expenses in Counterclaimants' accounting do not fall under the category of
"administrative" work. When examined in its plain language, administrative work encompassed
work concerning the properties: maintaining and improving the properties, recruiting tenants,
and paying taxes. While this is not an exclusive list, the plain and reasonable interpretation of
this provision excludes non-administrative work. Non-administrative work would include, for
example, a payment for a wedding gift to "lsa" in 2018, and funeral expenses for relatives in
201 7. The settlement agreement also contains no provision that permitted Counterclaimants to
deduct wedding and funeral donations under any other category of permitted deduction. Thus,
Counterclaimants' accounting which deducts these expenses was in breach of the settlement
agreement.
Claimants also seek documents supporting the payment of taxes and question whether the
expended attorney's fees relate to the property maintenance, as opposed to attorney's fees for
litigation-related reasons. The Court concludes that these are reasonable inquiries related to the
ORIGINAL CV0033-13 DECISION AND ORDER REMOTION Page 5 TO ENFORCE FAMILY SETTLEMENT AGREEMENT
settlement and the appropriate amounts to be disbursed among the parties. The Court finds it
appropriate to appoint a Master to conduct an accounting in line with the Court's findings here,
i.e., to receive evidence if necessary and to make recommended findings as to the appropriate
calculations of the amounts owed to each party.
III. CONCLUSION AND ORDER
The Court has jurisdiction to enforce the terms of the settlement agreement and ensure
that a proper accounting supports the distribution of settlement proceeds. The Court therefore
GRANTS the Motion to Enforce Family Settlement Agreement.
To enforce the Settlement Agreement, the Court finds two alternatives may be
appropriate. First, the parties may submit this dispute to mediation or to a settlement conference
judge. If the parties wish to avail of this route, within 14 days of this Decision and Order, they
may file a joint request either for mediation or a settlement conference.
Second, if the parties do not wish to mediate or attempt to settle the present dispute, the
Court intends to appoint a Master to receive evidence and make findings as to an appropriate
distribution, as explained below.
IV. INTENTION TO APPOINT A MASTER
Pursuant to Guam Rule of Civil Procedure 53, the Court gives notice of its intent to
appoint a Master to perform an accounting consistent with the terms of the Settlement
Agreement and the Court's decision herein. The Court notifies the parties that Magistrate Judge
Benjamin Sison is available act as Master, and the Court intends to appoint him absent the
parties' agreement on a separate candidate. GRCP 53(i).
Unless the parties have otherwise agreed to mediation or a settlement conference, within
14 days ofthis Decision and Order the parties may: (1) file objections to the Court's intention to
ORIGINAL CV0033-13 DECISION AND ORDER REMOTION Page 6 TO ENFORCE FAMILY SETTLEMENT AGREEMENT
appoint Magistrate Judge Sison; (2) nominate other persons to serve as Master (along with their
contact information and professional or educational background) for the Court's consideration;
and (3) advise the Court as to a recommended budget for a private Master. Seven days
thereafter, the parties may file objections to the Master candidates nominated by the other party.
Upon review of the parties' submissions, the Court will consider nominees and determine
which nominee is best suited to serve as Master based on availability, qualifications, ability to
complete the task without undue delay, cost and potential conflicts. GRCP 53(a)(2). Once a
Master is selected, the Court will issue an Order Appointing Master.
SO ORDERED this 16th day of October 2019.
~~Ue HO . ELYZE M. IRIARTE Judge, Superior Court of Guam
Appearing Parties: Michael J. Berman, Esq., Berman O'Connor & Mann, for the Plaintiffs/Counter-Claim Defendants Hector Gagarin, Eliza Casugay, Betty Kline, and Nenita Lataxes Gary W.F. Gumataotao, Esq., Law Offices ofGumataotao & Pole, P.C., for the Defendants/Counter-Claim Plaintiffs Marc A. Gagarin and Rosalina A. Gagarin
ORIGINAL