Iffland v. Iffland

155 Misc. 2d 661, 589 N.Y.S.2d 249, 1992 N.Y. Misc. LEXIS 433
CourtNew York Supreme Court
DecidedSeptember 11, 1992
StatusPublished

This text of 155 Misc. 2d 661 (Iffland v. Iffland) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Iffland v. Iffland, 155 Misc. 2d 661, 589 N.Y.S.2d 249, 1992 N.Y. Misc. LEXIS 433 (N.Y. Super. Ct. 1992).

Opinion

OPINION OF THE COURT

Edmund A. Calvaruso, J.

Mr. Iffland comes to this court requesting a downward modification of maintenance. He willingly and knowingly entered into a contractual agreement on the 28th day of October 1982 to pay $1,000 per month. The agreement provided maintenance would only be reduced upon the wife reaching the age of 62 and then decreased by subtracting an amount equal to her Social Security benefits.

Plaintiff was an employee of Kodak earning $50,000 per year. He is now 53 years old and has taken early retirement from Kodak as of November 27, 1991. The lump-sum value of $198,738 for pension payment, plus lump sum of $68,069 for bridge payment, plus lump sum of $60,288 for special separation payment, plus lump sum of $33,265 for SIP payment, plus lump sum of $2,504 for KESOP payment — totals $362,864 of payment available.

Plaintiff claims "extreme hardship”.

A judgment of divorce followed on the 8th day of September 1983. The separation agreement was incorporated, but did not merge into the judgment of divorce pursuant to the agreement.

Subsequent to electing early retirement, the plaintiff moves this court for a downward modification. He asks the court to reduce the monthly amount of maintenance paid by the plaintiff to the defendant based on his premature retirement. To support his request, plaintiff points to Domestic Relations Law § 236 (B) (9) (b).

The applicable language of section 236 (B) (9) (b) reads as follows: "Where, after the effective date of this part, a separation agreement remains in force no modification of a prior order or judgment incorporating the terms of said agreement shall be made as to maintenance without a showing of ex[663]*663treme hardship on either party, in which event the judgment or order as modified shall supersede the terms of the prior agreement and judgment for such period of time and under such circumstances as the court determines.”

The focus of the motion by both parties centers on three contentions. First, whether plaintiff presents a showing of extreme hardship. Second, assuming the facts offered support a firiding of extreme hardship, whether the burden was the result of avoidable circumstances. Third, whether the statute itself runs afoul of constitutional limitations on the State’s limited power to tamper with contractual rights. The concentration of this decision will be on the last of these issues.

Both parties have argued the constitutionality of Domestic Relations Law § 236 (B) (9) (b) in their memoranda of law.

Constitutionality of Section 236 (B) (9) (b)

Background

The Equitable Distribution Law had an effective date of July 19, 1980. An important decision came down from the high court only one and a half months before the effective date of the new Equitable Distribution Law.

The Warnings of Kleila

The Court of Appeals in Kleila v Kleila (50 NY2d 277, 283-284 [1980]) stated "any attempt to confer upon a court of any jurisdiction within the United States broad powers to modify the terms of a separation agreement might well run afoul of constitutional limitations upon the State’s power to tamper with vested contractual rights.” The message of Kleila suggests constitutional rights cannot be intruded upon by the State under an expansive guise permitting modification of separation agreements. The decision is grounded upon the constitutional right to contract.

The Constitutional Right to Contract

The United States Constitution states: "No State shall * * * pass any * * * Law impairing the Obligation of Contracts”. (Art I, § 10, cl [1].)

As is apparent, the Constitution pursuant to the Contract Clause prohibits the States from legislating any law that would impair a contractual obligation of private parties. As [664]*664one constitutional expert explains: "The contract clause restricts the power of state or local governments to modify the obligations of parties to a private contract or to modify the obligations under a government contract with private parties * * * State and local governments are not absolutely prohibited from modifying the obligations in private or public contracts. In order to protect the health, safety, and welfare of its citizens, a state may enact legislation which impairs contracts under certain conditions.” (2 Rotunda, Nowak and Young, Constitutional Law, Substance and Procedure, § 15.8, at 102 [1986].)

Thus, since there have been recognized certain limitations upon this constitutional right, the court must evaluate the challenged legislation. The analysis of the Contract Clause issue is generally a three-step analytical process:

(1) Has the State law operated as a substantial impairment of a contractual relationship?

(2) Is the State law designated to promote a significant and legitimate public purpose?

(3) In adjusting the contractual obligations and rights to promote a significant and legitimate public purpose, has the law reasonably and narrowly tailored the means rather than unjustifiably attempting to change the obligations of parties to a private contract? (See, 2 Rotunda, Nowak and Young, op. cit.)

Without question, the statute at hand impairs the parties’ ability to contract. The terms and conditions, bargained for at great length, may be suspended with no more than a one-time application to the court and the scribble of Judge’s signature on an order. Whether the effect of such bold and invasive measures act to undermine the confidence the public or private party has in their guaranteed right to contract remains to be seen. The hand of police power under the guise of public good or legislation for the health, safety and well-being of citizens — poses the potential for considerable damage to individual’s right to negotiate a property settlement without the unsuspecting onslaught of State interference. A deal should be a deal. It should not be interfered with absent a strong public purpose.

The sanctity of contracts was deemed so vital to personal security that in the 55 years after the Supreme Court’s first Contract Clause decision, 22 States have put such provisions directly in their own Constitutions and all of the States have [665]*665taken measures to protect contracts generally. (2 Levy, Karst and Mahoney, Encyclopedia of American Constitution, at 493 [1986].)

No effort is made here to carve a rigid differentiation of remedies to contract versus substantive obligations of contract. Legal scholars, such as renowned Justice Cardozo, have delved into these topics at length. Nor is an expansive discussion of the development of the jurisprudence of the court in the construction of the Contract Clause necessary. Entire treatise articles have been devoted to this topic.

Assuming, as this court finds, the law does constitute a substantial impairment of rights and obligations in a private contract, the law must further a significant and legitimate social purpose. The law in this instance purports to protect an individual against "extreme hardship.” This court is hard pressed to come up with a legitimate purpose more significant than just saving someone from entering into a bad deal. Perhaps with great imagination and creativity one could argue its social purpose is to have wide scale effect to insure confidence in the judiciary and equitable resolution.

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Bluebook (online)
155 Misc. 2d 661, 589 N.Y.S.2d 249, 1992 N.Y. Misc. LEXIS 433, Counsel Stack Legal Research, https://law.counselstack.com/opinion/iffland-v-iffland-nysupct-1992.