Hartley v. Hartley

91 Va. Cir. 277, 2015 Va. Cir. LEXIS 141
CourtNorfolk County Circuit Court
DecidedOctober 9, 2015
DocketCase No. (Civil) CL08-2443-03
StatusPublished

This text of 91 Va. Cir. 277 (Hartley v. Hartley) is published on Counsel Stack Legal Research, covering Norfolk County Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hartley v. Hartley, 91 Va. Cir. 277, 2015 Va. Cir. LEXIS 141 (Va. Super. Ct. 2015).

Opinion

By Judge David W. Lannetti

Today the Court rules on the Order To Show Cause entered by the Court pursuant to the petition filed by the Plaintiff, Jennifer Hartley. The specific issue before the Court is whether the Defendant, Mark Hartley, willfully failed to comply with the Court’s Order to make payments, representing proceeds from the sale of real property, to Jennifer Hartley as required by the stipulation agreement executed by the parties and incorporated into their final decree of divorce.

The Court finds Mark Hartley in contempt of court for willfully failing to comply with the final decree of divorce and orders him to pay Jennifer Hartley $190,900 plus interest, as well as the costs and reasonable attorney’s fees associated with this show cause proceeding. The Court further orders Mark Hartley to show cause why he should not be held in contempt of court for failing to comply with the Court’s Order to appear in court on August 25, 2015.

[278]*278 Background

Mark Hartley (“Husband”) and Jennifer Hartley (“Wife”) were divorced on June 9, 2008. On November 21, 2007, prior to the Court entering the final decree of divorce (“Final Divorce Decree”), the parties entered into an agreement entitled “Stipulation and Agreement Pursuant to Title 20, §§109 and 109.1 of the Code of Virginia of 1950, as Amended” (the “Stipulation Agreement”). The Stipulation Agreement addressed, among other things, disposition of marital assets, including real property located at 3912 Shady Oaks Drive, Virginia Beach, Virginia (“Shady Oaks”) and real property “within Dey Street Associates” (the “Dey Street Properties”). The Stipulation Agreement was incorporated into the Final Divorce Decree, which ordered the parties to comply with the terms of the Stipulation Agreement.

The Stipulation Agreement addresses the parties’ rights and obligations regarding Shady Oaks and the Dey Street Properties. Paragraph 13(b) provides as follows:

The parties shall apply any and all remaining proceeds from the sale of the Dey Street [Properties toward the principal balance of the mortgage obligations on Shady Oaks.... If the mortgages are satisfied prior to the sale of Shady Oaks, the parties will divide equally any and all proceeds from the sale of Dey Street [P]roperties.

(Pl.’s Ex. 1, at 5-6.) Paragraph 33(a) of the Stipulation Agreement, which addresses “Costs of Enforcement,” provides that “[a]ny costs, including, but not limited to counsel fees, Court costs, investigation fees, and travel expenses, incurred by a party in the successful enforcement of any of the . .. provisions of this Agreement... shall be borne by the defaulting party.” (Pl.’s Ex. 1, at 12.)

At the August 25, 2015, hearing on the Order To Show Cause, Wife presented statements of Schedule K-l distributions made to Husband in 2007, 2008, 2009, and 2011, which collectively represent the marital portion of the proceeds from the sale of the Dey Street Properties. (Pl.’s Exs. 5-7, 9.) The parties stipulated to the related exhibits. Husband never produced a copy of the Schedule K-l for 2010. Wife has accepted Husband’s representations that there were no distributions received in 2010 and, therefore, makes no related claim. (Tr. 16, 21.) Wife argued that, pursuant to Paragraph 13(b) of the Stipulation Agreement, she is entitled to half of these distributions. She testified that, although she received two payments from Husband related to the Dey Street Properties, a check dated October 1, 2009, in the amount of $25,000 and an additional payment of $13,600, she has not received any other payments. During Wife’s cross-examination, Husband’s attorney introduced an email (the “Email”) that [279]*279Husband allegedly sent to Wife on February 23, 2010, with the subject line “Dey Street Disbursements to Jenny 07 thru Jan. 2010.” (Def.’s Ex. 1.) The Email purports to outline payments Husband made to Wife, including the two Wife testified about, totaling $154,224.

Despite the Email title, at least one payment on its face does not appear to relate to the Dey Street Properties. It references “patriot [sic] $$$$ to jenny,” which apparently relates to the parties’ interest in Patriot Computers and is addressed by another paragraph of the Stipulation Agreement. (See Pl.’s Ex. 1, at 3-4; see also Pl.’s Ex. 4 (outlining Wife’s arguments why other listed payments are not related to the Dey Street Properties).)

The August 25, 2015, hearing was scheduled by the Court on July 22, 2015. Husband appeared by counsel on July 22, and the Court’s Order entered that day expressly states that Husband “need not be served with additional process.” Husband did not appear at the August 25 hearing. There, Husband’s counsel stated to the Court that he had notified Husband of the hearing on June 22 when it was set and that he had spoken to Husband the previous day, when Husband told him that he would not be present at the hearing. (Tr. 4, 7.)

Positions of the Parties

A. Wife’s Position

Wife argues that the Court should find Husband in contempt of court because he willfully violated the Court’s Order to pay her, in accordance with the Stipulation Agreement, 50% of the distributions received from the sale of the Dey Street Properties, which totaled $229,500. Wife contends that Husband paid her only $38,600 and that she, therefore, is entitled to the difference of $190,900, plus costs, interest, and attorney’s fees. In response to Husband’s assertion that satisfaction of the Shady Oaks mortgages was a condition precedent to his incurring an obligation to pay her any Dey Street Properties distributions, Wife contends that Husband’s admission that he made several such payments to her demonstrates that either there was no condition precedent or Husband waived the condition.

Wife also requests that the Court issue a capias on Husband based on his failure to appear at the August 25, 2015, hearing to respond to the Court’s Order To Show Cause.

B. Husband’s Position

Husband contends that, pursuant to the express language ofthe Stipulation Agreement, he is not required to pay Wife half of the Dey Street Properties distributions and that he, therefore, cannot be found in contempt of court for failing to comply with the Final Divorce Decree. Husband maintains that the Stipulation Agreement only requires equal division of the Dey Street [280]*280Properties distributions if “the [Shady Oaks] mortgages are satisfied prior to the [sale] of Shady Oaks.” Husband asserts that, because the Shady Oaks mortgages were not satisfied when the Dey Street Properties were sold, the necessary condition precedent was not met, and his obligation to pay any portion of the distributions to Wife never arose.

Husband alternatively argues that, if the Stipulation Agreement requires him to pay half of the Dey Street Properties distributions to Wife, she failed to prove that he did not satisfy that obligation. In support of his argument, Husband notes in his brief that Wife “is a very poor historian” with a conflicting memory of what occurred. Husband further argues that, even had Wife proven he was obligated to pay half of the distributions to her, she failed to meet her burden of proving the amount he owes her.

Analysis

A. Legal Standard

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Cite This Page — Counsel Stack

Bluebook (online)
91 Va. Cir. 277, 2015 Va. Cir. LEXIS 141, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hartley-v-hartley-vaccnorfolk-2015.