In re the Marriage of Truax

659 P.2d 983, 62 Or. App. 130, 1983 Ore. App. LEXIS 2400
CourtCourt of Appeals of Oregon
DecidedMarch 2, 1983
Docket20922; CA A24136
StatusPublished
Cited by11 cases

This text of 659 P.2d 983 (In re the Marriage of Truax) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon 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 Truax, 659 P.2d 983, 62 Or. App. 130, 1983 Ore. App. LEXIS 2400 (Or. Ct. App. 1983).

Opinion

YOUNG, J.

Husband has filed notices of appeal from two orders. The first order denied his motion to modify a decree of dissolution on the basis of changed circumstances. ORS 107.135. He assigns as error the admission of evidence concerning the intention of the parties with regard to a provision for monthly payments in a property settlement agreement and the trial court’s determination that the monthly payments constituted a division of property and not spousal support. He also claims that the trial court lacked jurisdiction to enter the second order, which awarded wife attorney fees, costs and expenses, because husband had filed the notice of appeal from the first order before the second order was entered. He also claims that the trial court abused its discretion when it awarded an expert witness fee. Wife cross-appeals from the second order and assigns as error the trial court’s denial of certain costs and expenses. We affirm the first order, which denied the motion to modify, and vacate the second order.

Over husband’s objection that the property settlement agreement was unambiguous and not the subject of parol evidence, the trial court admitted evidence of the intention of the parties concerning the monthly payments provided for in the property settlement agreement. The trial court then determined that the monthly payments were intended by the parties to be a division of property and not spousal support. As a result, the motion to modify the decree was denied, because a division of property is not subject to modification. ORS 107.135(1)(a); Garnett v. Garnett, 270 Or 102, 105, 526 P2d 549 (1974); Horesky and Horesky, 30 Or App 941, 943, 569 P2d 34, rev den 281 Or 1 (1978); Stein v. Stein, 21 Or App 195, 534 P2d 222 (1975).

Wife does not claim that the property settlement agreement or the decree are ambiguous or the result of mistake. She argues that a court may receive evidence of the circumstances under which an agreement was made “for the purpose of determining to what the agreement relates or what it was intended to accomplish.”

ORS 41.740 (the Parole Evidence Rule) provides:

“When the terms of an agreement have been reduced to writing by the parties, it is to be considered as containing [133]*133all those terms, and therefore there can be, between the parties and their representatives or successors in interest, no evidence of the terms of the agreement, other than the contents of the writing, except where a mistake or imperfection of the writing is put in issue by the pleadings or where the validity of the agreement is the fact in dispute. However this section does not exclude other evidence of the circumstances under which the agreement was made, or to which it relates, as defined in ORS 42.220, or to explain an ambiguity, intrinsic or extrinsic, or to establish illegality or fraud, the term ‘agreement’ includes deeds and wills as well as contracts between parties.” (Emphasis supplied.)

ORS 42.220 provides:

“In construing an instrument, the circumstances under which it was made, including the situation of the subject and of the parties, may be shown so that the judge is placed in the position of those whose language he is interpreting.”

Evidence to explain an ambiguity is admissible under ORS 41.740. See Desler and Desler, 56 Or App 812, 817, 643 P2d 655 (1982) (dealing with a patent ambiguity and declaring a provision to terminate spousal support inherently ambiguous and approving the admission of testimony to show the intent of the parties). However, an agreement need not be ambiguous to admit evidence of the surrounding circumstances to aid in its interpretation and meaning. In Welch v. U. S. Bancorp, 286 Or 673, 690, 596 P2d 947 (1979), the court said:

“Even if it were to be held that this contract was not, on its face, ambiguous, evidence could be received as an aid to determination of the meaning to be given the contract. Card v. Stirnweis, 232 Or 123, 127, 374 P2d 472 (1962).”

In Taylor’s Coffee Shop v. Taylor, 56 Or App 419, 422, 643 P2d 347, rev den 293 Or 235 (1982), which involved the interpretation of an escalation clause in a lease, we held that whether or not the clause was ambiguous

“* * * parole evidence is admissible to explain the circumstances under which the lease was made. This evidence cannot vary the terms of the written agreement, but it can place the judge ‘in the position of those whose language he is interpreting.’ ORS 42.220.”

3 Corbin, Contracts § 579 at 412 (1960), quoted with approval in Welch v. U.S. Bancorp, supra, and Card v. Stirnweis, supra, states:

[134]*134“It is true that the language of some agreements has been believed to be so plain and clear that the court needs no assistance in interpreting. Even in these cases, however, it will be found that the court has had the aid of parol evidence of surrounding circumstances. The meaning to be discovered and applied is that which each party had reason to know would be given to the words by the other party. Antecedent and surrounding factors that throw light upon this question may be proved by any kind of relevant evidence.”

It was not error to admit evidence of the surrounding circumstances to aid the trial judge in determining the intended purpose of the monthly payment provision. That is to say, the trial judge was entitled to know where the parties stood when they negotiated the agreement.

The parties were married in 1970 and were divorced in 1977. They had no children. The wife was 30 years old, husband was 29 years old, and both were college graduates. Husband’s net worth was $462,616. Wife’s negotiated share of the assets was insignificant when compared to husband’s net worth. Wife received a business, which she sold for $600, a 1976 automobile and her personal affects. Husband agreed to pay spousal support of $15,000 in cash and “monthly periodic payments” for 12 years that totaled $199,940. The monthly payments were to terminate on wife’s death but would survive husband’s death and be binding on his estate. The payments were to be made to the county clerk, and husband agreed to pay the clerk’s charges as provided by ORS 205.320(15). He also agreed to pay wife’s income taxes on the monthly payments.

With that background, we deem it to be more than coincidental that the total spousal support ($15,000 plus $199,940) is close to one half of husband’s net worth. That circumstance, coupled with the fact that wife, for all practical purposes, did not share in the assets, creates a latent ambiguity.

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659 P.2d 983, 62 Or. App. 130, 1983 Ore. App. LEXIS 2400, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-marriage-of-truax-orctapp-1983.