In re the Conservatorship of Chapman

144 P.3d 771, 36 Kan. App. 2d 730, 2006 Kan. App. LEXIS 1061
CourtCourt of Appeals of Kansas
DecidedOctober 20, 2006
DocketNo. 94,765
StatusPublished
Cited by1 cases

This text of 144 P.3d 771 (In re the Conservatorship of Chapman) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Conservatorship of Chapman, 144 P.3d 771, 36 Kan. App. 2d 730, 2006 Kan. App. LEXIS 1061 (kanctapp 2006).

Opinion

Johnson, J.:

This is a consolidated appeal from orders entered in the probate proceedings involving three conservatorships, one for each of the children of Thomas Chapman and Deborah Chapman. The overarching question presented is whether Thomas could withdraw funds from the children’s conservatorship estates to pay his child support obligations which were court-ordered in a separate divorce proceeding. Finding that Thomas, as conservator of his children’s estates, misused conservatorship funds, we reverse and remand.

Our issues arise because of the interface of two scenarios: Thomas’ injury and retirement from the Derby Police Department and the marital discord between Thomas and Deborah. Thomas’ injury eventually led to the establishment of conservatorships to receive the children’s separate share of Thomas’ disability/retirement benefits. Thomas’ child support obligations were established in two divorce proceedings.

Deborah and Thomas first married in December 1984; their first child, Ethan, was bom in April 1989. Effective July 15,1989, Thomas retired from his job as a police officer with the City of Derby Police Department after an injury left him disabled. Thomas’ retirement due to disability entitled him to receive benefits from the Kansas Police and Firemen’s Retirement System (KP&F), which is administered by the Kansas Public Employees Retirement System (KPERS). See K.S.A. 74-4953(1) (creating KP&F as a division of KPERS).

Thomas’ benefits as a member of KP&F were computed at 50% of his final average salary. KP&F provided a separate benefit to Ethan initially equal to 10% of Thomas’ final average salary. The benefits payable to a member’s child or children is in addition to and does not diminish die member’s disability/retirement amount. Further, the total benefits paid to a member and his or her children cannot exceed 75% of the predisability salary. See K.S.A. 74-[732]*7324960(l)(c). Thus, under the statute where a member has three or more children, each child will receive a pro rata share of 25%, rather than 10% each.

Deborah filed for divorce on August 20, 1991, and the decree was filed February 12, 1992. Thomas was ordered to pay monthly child support of $441.

In 1992, the legislature amended K.S.A. 74-4960 to require that KP&F benefits which are payable to a minor must be made to a conservator. L. 1992, ch. 321, sec. 14. Accordingly, on November 13, 1992, Thomas filed a petition to be appointed as Ethan’s conservator, and the petition was heard forthwith. Thomas did not give, and the district court did not require, legal notice to any other person, including Deborah. The court did not appoint a guardian ad litem to represent Ethan’s interests. Thomas was appointed as Ethan’s conservator but was not required to file a surety bond.

Thereafter, Thomas used Ethan’s conservatorship funds to pay his $441 monthly child support obligation. Additionally, Thomas reimbursed himself from the conservatorship estate for the child’s medical insurance costs.

Thomas and Deborah subsequently reconciled, and Thomas discontinued paying child support from Ethan’s conservatorship. On June 21, 1995, the couple had a second child, Matthew. On September 11, 1995, Thomas filed a petition and obtained an order forthwith appointing himself as conservator for Matthew without bond. Thomas reimbursed himself from Matthew’s conservator-ship for his one-half of the medical bills associated with Matthew’s birth. Thereafter, he took the monthly cost of Matthew’s health insurance from the child’s conservatorship funds.

On March 3, 1997, Thomas and Deborah remarried. A third child, Jared, was born on May 2, 1997. A second divorce action was filed on August 22, 1997. In October 1997, Thomas began withdrawing $200 per month from each of the existing conservatorship estates to apply toward his child support obligation. Thomas’ child support obligation the second time around was ultimately set at $775 per month.

On November 20,1998, Thomas effected a summary, same-day appointment as Jared’s conservator, without bond. Thereafter, [733]*733Thomas took $200 per month from Jared’s conservatorship also. The $600 withdrawn from the three conservatorship estates was deposited into Thomas’ personal checking account, from which he then paid his child support obligation.

During the period of December 1992 through December 2003, Thomas made disbursements from Ethan’s conservatorship for child support and health insurance purposes totaling $36,088.42. During the period of January 1995 through December 2003, Thomas made disbursements from Matthew’s conservatorship for child support, health insurance, medical bills, and conservatorship charges totaling $19,560.02. During the period of April 1999 through December 2003, Thomas made disbursements from Jared’s conservatorship for child support purposes totaling $11,800.

In January 2004, Deborah filed petitions in each of the conservatorship proceedings, seeking to remove Thomas as conservator for fading to fulfill his conservatorship duties, including wrongfully using the conservatees’ assets to pay his personal court-ordered child support obligation. Deborah also requested that Thomas be ordered to reimburse any funds found to have been innocently misused or, in the alternative, to charge Thomas double the value of any funds which were found to have been embezzled or converted for Thomas’ personal use. The petition included an additional prayer for lost earnings and the costs to recover the funds or assets, including attorney fees.

Deborah also sought relief in the divorce proceeding. In July 2004, Deborah obtained an income withholding order to effect the payment of all of the child support from Thomas’ own share of the KP&F benefits. The following month, a hearing officer ruled the money deposited in the children’s conservatorships as a result of Thomas’ disability should “be credited/paid/authorized for child support.” Deborah appealed to the district court, which reversed the hearing officer’s decision in a letter ruling dated September 28, 2004. Specifically, the district court found: “Monies from [Thomas’] disability designated for children cannot and shall not be credited towards [Thomas’] child support obligation prospectively.”

[734]*734For simplicity, we will refer to the district court as the divorce court when referring to actions taken in the divorce proceedings and as the probate court when referring to actions taken in the conservatorship proceedings.

On September 27 and November 2, 2004, the probate court conducted a hearing on Deborah’s petition, during which the parties proffered the basic underlying facts. Importantly, Thomas testified and conceded that he never sought or obtained the probate court’s approval to use money from the children’s conservatorships to satisfy his child support obligations.

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Related

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387 B.R. 833 (D. Kansas, 2008)

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Bluebook (online)
144 P.3d 771, 36 Kan. App. 2d 730, 2006 Kan. App. LEXIS 1061, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-conservatorship-of-chapman-kanctapp-2006.