Johnson v. Johnson

575 N.E.2d 1077, 1991 Ind. App. LEXIS 1321, 1991 WL 155725
CourtIndiana Court of Appeals
DecidedAugust 14, 1991
Docket08A02-9003-CV-189
StatusPublished
Cited by11 cases

This text of 575 N.E.2d 1077 (Johnson v. Johnson) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. Johnson, 575 N.E.2d 1077, 1991 Ind. App. LEXIS 1321, 1991 WL 155725 (Ind. Ct. App. 1991).

Opinion

STATON, Judge.

Allen Johnson, Melissa Johnson and Jeremy Johnson appeal a judgment in favor of Ruth Johnson in her action to quiet title to real estate. The appellants present four issues for our review, which we consolidate and restate as three:

I. Did the Carroll Circuit Court err in exercising jurisdiction over a marital property issue subsequent to a grant of marital dissolution by the Grant Superior Court?
II. Was the trial court's determination as to the validity of the trust agreement concerning the subject farm unsupported by sufficient evidence and contrary to law?
III. Did the trial court err in refusing to grant the appellants' Motion for of Venue?

We affirm.

Allen and Ruth (Wise) Johnson were married on July 26, 1968. On January 11, 1971, Ruth's parents, Verne and Blanche Wise, conveyed the farm which is the subject of this appeal to Ruth, Allen, Mary Ann Frus and Gail Frus.

During their marriage, Ruth and Allen were active members of The Bethel Church in Marion, Indiana (the "Church"). In 1980, Ruth and Allen were asked to serve as chairmen of the Church's building fund. Ruth and Allen subsequently executed personal guaranties of the repayment by the Church of loans totalling $690,000.00.

During 1984, the Church suffered a substantial decrease in membership and was unable to meet its financial obligations to The First National Bank in Marion. On October 10, 1984, the Bank informed Ruth and Allen of their obligation as guarantors.

On July 10, 1985, Ruth and Allen met with Ruth's parents at the offices of George Obear, who had for many years served as the Wises' attorney. Obear presented and explained a "Trust Agree *1079 ment" providing that Ruth and Allen's undivided one-half interest in the farm would be placed in trust for the benefit of their two minor children, Melissa and Jeremy. Verne Wise was the named Trustee. 2

The parties conferred at length; however, Mr. Wise continued to express reservations about participation in the proposed transaction. Attorney Obear suggested that the parties sign the trust document, but notify him promptly if they decided that the trust should not be recorded. Consequently, the elderly Wises would not be required to make an additional several-hour journey to return to Obear's offices.

Later that evening, Obear received a telephone call from the Wises, requesting that no further action be taken with respect to the Trust Agreement. The original document was placed in Obear's safe, with a notation that it was not to be recorded.

On June 24, 1986, Grant Superior Court II granted Ruth and Allen a Decree of Dissolution of Marriage. The dissolution decree incorporated a property settlement agreement reached by Ruth and Allen. The property settlement itemized certain assets to be retained by Allen, and provided that "Ruth shall have as her sole and separate property all of the remaining assets of the parties."" Record, p. 24. Each party was ordered to promptly execute any title or assignment necessary to effect the property settlement.

The parties proceeded as if title to the farm was vested in Ruth. Verne Wise never actively assumed a role of trustee. Ruth collected rental income generated from the farm, and reported it as her sole income for income tax purposes. Allen, by counsel, suggested that the farm income was available to Ruth for purposes of computing her child support obligation to Jeremy. However, Allen refused to execute a quit-claim of his interest in the farm.

On July 17, 1987, Ruth filed in Grant Superior Court II a Verified Affidavit for Citation for Contempt against Allen requesting, inter alia, that Allen be ordered to tender to her a copy of the Trust Agreement that he had obtained from Attorney Obear's secretary. Record, p. 181. On August 3, 1987, an order was issued wherein the trial court stated: "The Court further finds the trust agreement executed by petitioner and respondent is a private matter between the parties and is not a matter for contempt proceedings." Record, p. 174.

On August 14, 1987, Allen recorded a copy of the Trust Agreement in the office of the Recorder of Carroll County. Ruth subsequently brought an action in Carroll County seeking to quiet her title to the subject farm. The appellants' Motion to Dismiss pursuant to T.R. 12 and Motion for Change of Venue were denied.

The trial court quieted title to the farm in Ruth, upon finding the purported trust a nullity:

"The Court concludes that the purpose of execution of the trust agreement on July 10, 1985, was to defraud and/or defeat the claim of the bank as a creditor under the Guaranty executed for the church previously by the Johnsons and, therefore, so far as the creditor was concerned, the same was a nullity in any event. The court further concludes that the trust agreement was never implemented in any event. The trustee never took any action, nor was any action taken by the beneficiaries or anyone on their behalf nor by any of the parties."

Record, p. 123.

This appeal ensued.

I.

Jurisdiction

The appellants contend that the dissolution court failed to determine whether the farm property was a marital asset. They argue that clarification and enforcement of a dissolution decree is within the exclusive jurisdiction of the issuing court, and that *1080 Ruth's quiet title action constitutes a collateral attack on the dissolution decree.

Ruth maintains that the dissolution court fully adjudicated the parties' property rights and awarded the farm to her. She argues that her quiet title action was properly initiated in the county where the subject land is located, and is not a collateral attack on the dissolution decree or property settlement.

The Indiana Dissolution of Marriage Act, IND.CODE 81-1-11.5-10, encourages agreement by the parties as to the disposition of the marital estate. 1.0. 81-1-11.5-10(b) provides that the terms of a property settlement, if approved by the dissolution court, shall be incorporated into the dissolution decree. A property settlement that is incorporated into a final dissolution de-eree and order may not be modified unless the agreement so provides or the parties subsequently consent. 1.0. 31-1-11.5 10(c).

A property settlement which is incorporated into a final divorce decree is a binding contract. The dissolution court may not modify or revoke the settlement absent fraud, duress or undue influence. Smith v. Smith (1989), Ind.App., 547 N.E.2d 297, 300.

The terms of the property agreement executed by Ruth and Allen on April 25, 1986 and incorporated into the June 24, 1986 Dissolution of Marriage Decree are unambiguous. Ruth was awarded all marital assets other than those specifically itemized as property of Allen.

Allen relies upon Anderson v. Anderson (1979), Ind.App., 399 N.E.2d 391

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Bluebook (online)
575 N.E.2d 1077, 1991 Ind. App. LEXIS 1321, 1991 WL 155725, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-johnson-indctapp-1991.