In Re MacGibbon

161 P.3d 441, 139 Wash. App. 496
CourtCourt of Appeals of Washington
DecidedJuly 2, 2007
Docket57223-7-I, 57770-1-I
StatusPublished
Cited by2 cases

This text of 161 P.3d 441 (In Re MacGibbon) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re MacGibbon, 161 P.3d 441, 139 Wash. App. 496 (Wash. Ct. App. 2007).

Opinion

161 P.3d 441 (2007)

In re the Marriage of Richard D. MacGIBBON, Appellant, and
Deborah J. MacGibbon; and Department of Social and Health Services, Respondents.

Nos. 57223-7-I, 57770-1-I.

Court of Appeals of Washington, Division 1.

July 2, 2007.

Dennis John Mcglothin, Olympic Law Group PLLP, Seattle, WA, for Appellant.

*442 Camden Michael Hall, Camden Hall, PLLC, Jonathan William Milstein, Atty. Generals Office, SHS, Seattle, WA, for Respondent.

PUBLISHED IN PART

COX, J.

¶ 1 Court review of a decision of an administrative law judge under Chapter 74.20A RCW is a judicial review proceeding under the Administrative Procedure Act (APA).[1] Such review is not a proceeding under either Chapter 26.09 RCW or Chapter 26.18 RCW. Accordingly, neither RCW 26.09.140 nor 26.18.160 authorizes the award of attorney fees either for the administrative proceedings under Chapter 74.20A or the judicial review of those proceedings.

¶ 2 A party's intransigence provides a separate basis for award of fees in marital dissolution actions. But our supreme court has rejected such an equitable basis for fees in administrative proceedings. Thus, there is no basis for award of fees for instransigence in administrative proceedings under Chapter 74.20A.

¶ 3 CR 11 sanctions may be imposed, as appropriate, during the course of judicial review of administrative proceedings. To the extent the superior court imposed sanctions in one of the consolidated cases before us here for actions during the course of judicial review, the court did not abuse its discretion. We accordingly affirm the award of CR 11 sanctions to the extent they were imposed for actions during the judicial review of the administrative proceedings. But we vacate the award of CR 11 sanctions to the extent they are for actions before judicial review of the administrative proceedings. We remand to the superior court for reconsideration of the amount of sanctions in view of our resolution of this issue. We reverse the award of attorney fees by the superior court in both consolidated cases to the extent they are based on RCW 26.09.140, RCW 26.18.160, RCW 4.84.185 or intransigence on the part of Richard MacGibbon.

¶ 4 Richard and Deborah MacGibbon were married for approximately 20 years and have six children. The dissolution of their marriage in 2000 followed a 12-day trial.

¶ 5 The decree of dissolution orders maintenance based on a formula rather than a fixed sum. Until Richard's 60th birthday in 2009, he must pay Deborah one half of his "gross income from all sources," after deducting child support and income taxes.[2] The maintenance provision specifies a "base rate" below which maintenance payments may not fall: $4,000 per month until 2003, $5,500 per month until 2006, and $7,000 per month until 2009.[3] For the five years after Richard's 60th birthday, he must pay one-half of his gross income "generated by his work in the airlines industry."[4]

¶ 6 Richard appealed the decree and later appealed several administrative and judicial determinations interpreting and enforcing the decree. Two of those appeals are relevant here.

¶ 7 The first was Richard's appeal to this court of the decree of dissolution. In that appeal, he raised numerous issues including the trial court's division of property, its award of escalating maintenance to Deborah, the order of child support, and the award of substantial attorney fees to Deborah. In December 2001, this court filed an unpublished opinion, affirming the trial court in all respects except for a remand for minor modifications regarding child support.[5] The supreme court denied his petition for review.

¶ 8 While that appeal was pending, Deborah requested assistance from the Division of Child Support (DCS) of the Department of Social and Health Services in collecting maintenance *443 and child support from Richard.[6] DCS commenced administrative proceedings to determine the amount Richard owed as maintenance for tax year 2000. Following a hearing, an ALJ issued an order assessing $90,777.55 in additional maintenance to be paid to Deborah. In calculating the maintenance, the ALJ included $140,647 in proceeds of Richard's sale in 2000 of California real property that had been awarded to him in the decree of dissolution. Richard petitioned for judicial review in King County Superior Court. After a hearing, the superior court affirmed the administrative decision in all respects. Richard then appealed to this court.

¶ 9 In that second appeal to this court, Richard argued that the superior court erroneously interpreted "gross income from all sources" to include income generated from the sale of his previously awarded separate property (the California real property). According to him, this caused an improper "double recovery" of marital assets for Deborah that was inconsistent with the decree's stated purpose.[7] This court affirmed in a July 2005 unpublished opinion, rejecting Richard's contentions on res judicata grounds. Our court decided that the failure to challenge in the first appeal the dissolution decree's maintenance formula based on "gross income from all sources" precluded raising the issue in the second appeal.[8]

¶ 10 Meanwhile, Deborah requested further assistance from DCS in recovering past due maintenance for tax years 2001 and 2002. In the administrative proceedings that followed, the ALJ addressing tax year 2001 determined that Richard owed $55,948.74 for past due maintenance for that year. Another ALJ determined in a later hearing that Richard owed $39,944.60 for tax year 2002. Both ALJs rejected Richard's claim that income he reported on his tax returns for those years for IRA distributions should be excluded from the maintenance calculation. His claim was based, in part, on the argument that the IRA was a fund awarded to him as part of the property division of the dissolution decree. He essentially argues that those proceeds cannot be used to calculate maintenance for Deborah because they were awarded to him.

¶ 11 Importantly, the ALJs also rejected Deborah's request for attorney fees. They also rejected her claim for interest on the delinquent maintenance obligations from the times they were due.

¶ 12 Richard sought review of the administrative decisions when he petitioned for judicial review in King County Superior Court. Deborah did not cross-petition for review of any part of either ALJ ruling. However, several months after the final order by the ALJ regarding tax year 2001, Deborah made "counterclaims" for attorney fees and interest for the delinquent maintenance obligations in her response to the petition for review.[9]

¶ 13 In September 2005, a superior court judge affirmed the administrative determination regarding tax year 2001. That judge also granted Deborah's request for awards of attorney fees at both the administrative and judicial review levels, imposed CR 11 sanctions against Richard and his counsel, and awarded interest for the past due maintenance.

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161 P.3d 441, 139 Wash. App. 496, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-macgibbon-washctapp-2007.