In Re the Marriage of Butterfield

500 N.W.2d 95, 1993 Iowa App. LEXIS 34, 1993 WL 168480
CourtCourt of Appeals of Iowa
DecidedMarch 30, 1993
Docket92-506
StatusPublished
Cited by14 cases

This text of 500 N.W.2d 95 (In Re the Marriage of Butterfield) is published on Counsel Stack Legal Research, covering Court of Appeals of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re the Marriage of Butterfield, 500 N.W.2d 95, 1993 Iowa App. LEXIS 34, 1993 WL 168480 (iowactapp 1993).

Opinion

DONIELSON, Judge.

Nancy Butterfield appeals from a judgment of the district court denying her motion to set aside the dissolution decree pursuant to Iowa Rule of Civil Procedure 252.

Jay and Nancy Butterfield were married in February 1986. Nancy was the custodial parent of two minor children by a previous marriage. Since 1972, Jay had been involved in the silk screening business. In 1985, a partnership in which Jay had previously been involved split and Jay started his own business, known as Silk Screen Ink. Jay did not earn any significant income due to the large amount of debt he incurred in setting up his businesses. Nancy worked full-time at Siefer Consultants, Inc., earning about $15,000 per year. At the time of the parties’ marriage, Jay owed about $60,000 in business debt resulting from start-up costs. Nancy generally paid for the family expenses for Jay, herself, and her two children. Jay made payments on the mortgage, insurance, and taxes for the family home. He borrowed $10,000 to remodel the home. Jay also paid for Nancy’s health insurance.

Jay’s business, Silk Screen Ink, was incorporated in 1988. Over the next few years, sales for the company grew rapidly and Jay borrowed additional money to meet the expenses of this growth. In 1989, an additional debt of $20,000 was incurred for leasehold improvements.

In 1988, Jay also started another business, Plaques Unlimited. He incurred over $70,000 in additional debt, including a loan from his mother, and purchased a building on contract for about $40,000. The venture turned out to be a total loss and Jay was left owing money on the debts. In 1989, Jay purchased a sign business, Commercial Sign and Design, for $17,000 on contract in order to stimulate the business of Plaques Unlimited. However, this business did not fare well either and it generated little income. Jay subsequently contracted with another company, Dungeon Graphics. He borrowed about $65,000 to purchase an automatic printing machine for that business. Three months later, the company with which Jay had contracted closed and Jay was again left with substantial debt. In July 1990, a local bank took possession of $44,000 in certificates of deposits owned by Jay’s mother to pay off some of Jay’s debts. By August 1990, Jay’s businesses had debts of approximately $330,000.

*97 Throughout the marriage, Nancy had been listed as a corporate officer for the four businesses (Silk Screen Ink, Plaques Unlimited, Dungeon Graphics, and Commercial Sign and Design). In her capacity as officer, Nancy signed various financial documents and papers. However, she testified she never understood what she was signing and she never attended any officers’ meetings.

During the summer of 1990, Nancy indicated to Jay her intent to dissolve the marriage. Nancy prepared a handwritten list of household goods indicating the personal property to which she believed she was entitled. In their discussions regarding the impending dissolution, Jay told Nancy he believed the large amounts of debt they had incurred would either equal or exceed the value of their assets.

Jay contacted an attorney, Hugh Perry, who had previously done work for Jay’s business ventures. Jay wanted Perry to file the petition on behalf of Nancy since she had wanted the dissolution. Perry stated he could not represent Nancy because of his prior dealings with Jay. However, Perry offered to represent Jay and file the petition on his behalf. The petition was subsequently filed in August 1990. At that time, Nancy met with Perry in his office to sign the acceptance of service. During the meeting, Nancy alleges Perry confirmed Jay’s statements regarding the parties’ financial condition. Perry denies he ever made any such statements to Nancy.

The other contact Nancy had with Perry occurred in late October 1990. At that time, Nancy signed a motion waiving the ninety-day waiting period and a stipulation incorporating the division of property between Nancy and Jay. Pursuant to the stipulation, Nancy was awarded health insurance until August 1991 and residency in the family home until June 1991. She would receive the personal property in accordance with the parties’ earlier agreement. Jay received all the parties’ interest and indebtedness from the various businesses, including Silk Screen Ink, Plaques Unlimited, and Commercial Sign and Design. Perry had drafted both documents. On October 29, 1990, the district court entered its decree dissolving the parties’ marriage and approving the stipulation.

On October 10, 1991, Nancy filed an application to set aside the decree and motion for new trial pursuant to Iowa Rule of Civil Procedure 252. In February 1992, following a two-day hearing, the district court denied Nancy’s application and motion in their entirety. Nancy now appeals.

Nancy argues the district court erred in denying her application to vacate the decree and her motion for a new trial. She specifically contends the original district court was deprived of jurisdiction to enter the October 29, 1990, decree due to the parties’ noncompliance with Iowa Code section 598.13 (1989). Nancy argues the district court erred in not ordering sanctions against Jay pursuant to Iowa Rule of Civil Procedure 134. She also claims the court erred in failing to set aside the decree because attorney Perry practiced dual representation. Finally, she contends the decree should be set aside pursuant to rule 252 on the basis of Jay’s fraudulent representations.

Nancy made her application to vacate the decree and her motion for a new trial pursuant to rule 252 on the grounds of irregularity and fraud which was practiced by Jay in obtaining the decree, and on the grounds of newly discovered material evidence. See Iowa R.Civ.P. 252(b), (f). In reviewing a proceeding to vacate a judgment under rule 252, we recognize the proceeding is an action at law. In re Marriage of Heneman, 396 N.W.2d 797, 799 (Iowa App.1986) (citing Kreft v. Fisher Aviation, Inc., 264 N.W.2d 297, 303 (Iowa 1978)). Therefore, our review is not de novo. Id. The appropriate standard is that the district court’s findings of fact have the effect of a jury verdict, and those findings are binding upon us if there is substantial evidence to support them. Id. at 800 (citing Mishler v. Stouwie, 301 N.W.2d 744, 747 (Iowa 1981)).

I. Whether the District Court was Deprived of Jurisdiction Due to its Noncompliance with Section 598.13. Nancy first *98 contends the original district court lacked jurisdiction in entering the October 29, 1990, decree because the parties failed to comply with Iowa Code section 598.13 (1989).

Iowa Code section 598.13 (1989) provides, in relevant part:

Both parties shall disclose their financial status. A showing of special circumstances shall not be required before the disclosure is ordered. A statement of net worth set forth by affidavit on a form prescribed by the supreme court and furnished without charge by the clerk of the district court shall be filed by each party prior to the dissolution hearing.

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Bluebook (online)
500 N.W.2d 95, 1993 Iowa App. LEXIS 34, 1993 WL 168480, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-marriage-of-butterfield-iowactapp-1993.