Heiple v. Heiple

38 Pa. D. & C.3d 661, 1985 Pa. Dist. & Cnty. Dec. LEXIS 225
CourtPennsylvania Court of Common Pleas, Somerset County
DecidedJune 28, 1985
Docketno. 495 Civil 1981
StatusPublished

This text of 38 Pa. D. & C.3d 661 (Heiple v. Heiple) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Somerset County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Heiple v. Heiple, 38 Pa. D. & C.3d 661, 1985 Pa. Dist. & Cnty. Dec. LEXIS 225 (Pa. Super. Ct. 1985).

Opinion

COFFROTH, P.J.,

This is an action for specific performance of child support provisions of a predivorce marital-settlement contract, to obtain judgment for (1) arrearages presently due, and (2) amounts of child support to become due in the future. The only defenses asserted by defendant are that: (1) when he made the contract he was able to make the payment agreed upon, but now because of unexpected financial reverses he is insolvent, out of business, unemployed and unable to pay, and (2) he should be entitled to credits of at least $10,000 for money paid out directly to James, the son of the parties, for a car given him, wages paid for his work for defendant (when he was in business) and moneys paid direct to the son. Defendant testified that he signed the contract in order to get the divorce (which was later granted) and that he is sorry now he agreed to the contract, although he still'wants the divorce.

The foregoing defenses are somewhat the same as previously presented when this case came before us on plaintiff’s preliminary objections to defendant’s counterclaim for reduction of the amount of [663]*663child support provided for in the contract on account of changed economic circumstances; the objections were sustained and the counterclaim dismissed with leave to amend, and no amendment was made. The dismissal of the counterclaim was based on the Pennsylvania Supreme Court’s decision in Brown v. Hall, 495 Pa. 635, 435 A.2d 859 (1981), in which the court held that a child support, provision of a spousal separation contract will be specifically enforced, notwithstanding a prior order of the support court reducing the amount payable according to traditional criteria of need of the child and parental ability to pay, where the contract was intended as a continuing contractual obligation and was not merged in the divorce decree.1

We note a significant difference between defendant’s dismissed counterclaim and the defense now raised in his testimony at the last hearing in the nonjury trial. The counterclaim alleges only that . . as a result of the general economic decline and a concurrent reduction in his earnings, there has been a sufficient change of circumstances to warrant a reduction of the amount agreed upon for the support and maintenance of his minor son, James. ...” Brown clearly prohibits such a reduction in this case. But the thrust of defendant’s testimony is that he is now unemployed and broke, mak[664]*664ing it impossible and a harsh imposition upon him to comply with the contract.2 Although defendant did not plead impossibility or harshness as a defense to plaintiff’s claim for equitable relief, we nevertheless allowed him to present his testimony at the hearing.

It is true that an equity court has discretion to deny specific performance of contract on the ground that such a decree would be unconscionable, unreasonably harsh, or unfair. Payne v. Clark, 409 Pa. 557, 187 A.2d 769 (1963); PLE, Specific Performance §2; CJS, Specific Performance §§18 and 20; Restatement (Second) of Contracts §364; Summary of Pennsylvania Jurisprudence, Equity §71; compare Steuart v. McChesney, 284 Pa. Super. 29, 424 A.2d 1375(1981). It is also a general principle as stated in CJS, supra, §20b:

“Subsequent events or changes in conditions which the party did not contemplate when the contract was made may furnish sufficient reason for refusing specific performance; but events which should have been contemplated as possible contingencies will not preclude specific performance.” Hence, hardship is no defense if it results merely from the fact that defendant made a bad bargain. Summary of Pennsylvania Jurisprudence, supra.

Where the impossibility or hardship results from changes in financial circumstances of the obligor [665]*665from those existing when the contract was made, it is generally stated that: “Mere change in defendant’s financial circumstances is not such a circumstance as justifies denial of specific performance.” CJS, supra, §20 at note 46. Accordingly, it is a general rule that supervening'insolvency or other inability to pay a money obligation will not of itself excuse performance of such obligation, but is a factor considerable by the court in deciding whether under all the circumstances its discretion should be exercised in favor of or against equitable relief. See Fisher v. Wilde et al. (No. 1), 44 Somerset L.J. 32, 36 (1984). It can be safely generalized that any time granting or withholding equitable relief significantly disturbs the judicial conscience or sense of fairness, the court will refrain from doing so.

In Brown, supra, there was no indication of financial impossibility of the obligor to comply with the contract, nor any finding of hársh inequity in enforcing the contrae!, and no authority has been furnished us to support defendant’s claim that he should be excused from performance by reason of impossibility or harsh unfairness. But our own research has found Fiske v. Fiske, 114 Montgomery 234 (1984), which holds that equity will deny specific enforcement of a marital agreement which required defendant to pay one-half of his net income for child support, where because of financial impossibility of performance an unreasonable financial burden exists after his income dropped by one-half; and. the court then proceeded to make a reduced child-support order in accordance with criteria traditionally applied in the support court according to need and ability to pay. The report of Fiske indicates that the case is on appeal to the Superior Court.

In the instant case, the contract was openly and fairly entered into by both parties, each of whom [666]*666had separate counsel. The contract specifically states the circumstances under which the support obligation changes. It is was a comprehensive settlement extracted from defendant by plaintiff as the price of a consent divorce decree which defendant husband wanted very much. It is clear from the contract itself that the parties intended it as a complete expression of their agreement, see Field v. Golden Triangle Broadcasting Inc., 451 Pa. 410, 305 A.2d 689 (1973), and as a binding continuing obligation changeable only as it provided, as in Brown, supra. The contract itself recites that the parties “ . . . now desire to settle all financial and property rights between them”; and paragraph 23 of the contract provides as follows:

“This agreement constitutes the entire understanding between the parties and there are no covenants, conditions, representations or agreements, oral or written, of any nature whatsoever, other than those herein contained.”

There is nothing in the contract which provides or even suggests that its obligations are judicially modifiable as in the support court. At the time the contract was made; defendant was financially able to perform the contract, and his business prospects for the future were favorable, but business reverses have left him unemployed, insolvent and unable to pay, although he is not disabled and is able to maintain himself. But the details of that aspect of his circumstances remain obscure. Under the general equitable principles above outlined, we should take those circumstances into consideration in this equitable proceeding.

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Related

Madnick v. Madnick
488 A.2d 344 (Supreme Court of Pennsylvania, 1985)
Brown v. Hall
435 A.2d 859 (Supreme Court of Pennsylvania, 1981)
Steuart v. McChesney
424 A.2d 1375 (Superior Court of Pennsylvania, 1981)
Commonwealth Ex Rel. Tokach v. Tokach
474 A.2d 41 (Supreme Court of Pennsylvania, 1984)
Payne v. Clark
187 A.2d 769 (Supreme Court of Pennsylvania, 1963)
Field v. Golden Triangle Broadcasting, Inc.
305 A.2d 689 (Supreme Court of Pennsylvania, 1973)

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Bluebook (online)
38 Pa. D. & C.3d 661, 1985 Pa. Dist. & Cnty. Dec. LEXIS 225, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heiple-v-heiple-pactcomplsomers-1985.