Keller v. Keller

2003 SD 36, 660 N.W.2d 619, 2003 S.D. LEXIS 37
CourtSouth Dakota Supreme Court
DecidedApril 9, 2003
DocketNone
StatusPublished
Cited by17 cases

This text of 2003 SD 36 (Keller v. Keller) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Keller v. Keller, 2003 SD 36, 660 N.W.2d 619, 2003 S.D. LEXIS 37 (S.D. 2003).

Opinion

PER CURIAM.

[¶ 1.] Jane Keller (wife) appeals the trial court’s finding of contempt and a money judgment against her for failing to comply with court orders concerning a qualified domestic relations order (QDRO). By notice of review, Mark Keller (husband) asserts the trial court erred in not awarding him attorney fees.

*621 FACTS AND PROCEDURE

[¶ 2.] On September 13, 2000, husband and wife entered into a stipulation and agreement relating to the dissolution of their marriage, which provided in relevant part:

[Wife] shall within the next 30 days take whatever steps are necessary to effectuate the transfer of $23,000.00 from her SBC Savings Plan retirement fund into a separate account for the [husband] in accordance with a Qualified Domestic Relations Order to be entered by the Court.

Wife did not make the necessary arrangements within 30 days after the signing of the agreement and the transfer was not effectuated within that period. On October 3, 2000, husband’s attorney inquired why the transfer had not yet been completed and requested information concerning the transfer.

[¶ 3.] On that same day, the judgment and decree of divorce was entered by the trial court. The decree specified that:

[Wife] shall take whatever steps are necessary within 30 days of the date of said Stipulation and Agreement to cooperate with her retirement plan to effectuate the transfer of $23,000.00 into a separate account for the [husband] and in accordance with a QDRO which the Court will be entering.

The transfer was not timely completed and husband filed a motion seeking an order to show cause. Following a hearing on November 20, 2000, the trial court entered an order providing:

[Wife] shall on or before December 1, 2000, submit a QDRO to the administrator of her retirement plan to effectuate the transfer of $23,000.00 from [wife’s] retirement fund into a separate account for the [husband] pursuant to the Stipulation and Agreement previously entered into by the parties and which was incorporated into the Judgment and Decree of Divorce entered on the 3rd day of October, 2000, and that such QDRO shall require the [wife’s] retirement plan to give to [husband] the benefit of any increases on the $23,000.00 in that fund accruing on or after October 13, 2000.

Wife failed to provide the administrator of her retirement plan with a QDRO by December 1, 2000. On December 29, 2000, the QDRO was presented to and signed by the trial court. It was then incorrectly sent to SBC Savings by wife’s broker. At the most recent contempt hearing, wife testified that she knew when she signed the agreement that the retirement fund was no longer with SBC Savings but was actually held by MFS Investment Management. Because she did not have the stipulation corrected, her own representative sent it to the wrong place. Eventually, the QDRO was correctly forwarded to MFS for processing. Yet, wife still did not fulfill the remaining requirements for completing the QDRO transfer.

[¶ 4.] The trial court held another hearing on January 24, 2001, to address the delay in getting the retirement funds transferred. Wife was ordered to “sign and mail to the managing party of the retirement funds the transfer of the authorization with the signature guaranteed by 5:00 pm Wednesday, January 31, 2001.” Despite this order, wife did not sign the necessary authorizations until May 25, 2001. However, even after this occurred the transfer was not completed. As a result, on September 19, 2001, husband filed a motion to hold wife in contempt for repeatedly failing to take the necessary steps to transfer the funds.

[¶ 5.] Following notice of that motion, wife took additional steps towards completion of the transfer but still did not complete all the necessary requirements. On December 11, 2001, a contempt hearing was held and wife was ordered to have the *622 funds transferred by December 21, 2001. In addition, the trial court ordered:

That [wife] shall supply to the Court, no later than December 31, 2001, a copy of all documentation evidencing the efforts [wife] has taken to transfer the funds in question. This documentation will be considered by the Court in determining whether husband is entitled to the payment of additional funds due to the delay in transferring the funds.

Wife did not provide any documentation. Finally, on February 20, 2002, the funds were transferred to husband. However, due to market conditions following the tragedy of September 11, 2001, the value of the retirement funds received by husband was significantly reduced to a total of $9,249.57.

[¶ 6.] Another contempt motion was heard April 30, 2002. At that hearing, wife asserted that she was diligent at all times, attempted to do whatever was necessary to comply with the orders and acted in good faith when seeking to transfer the funds. She attributed part of the delay to errant advice she received from the financial entity and her broker. The trial court determined that wife was in contempt of court for her failure to transfer the funds in a timely manner. As a result, wife was ordered to pay husband the difference between the $23,000 she was supposed to transfer and the amount he actually received, minus 10%. The 10% penalty would be incurred because husband intended to withdraw the money. Therefore, a judgment was entered against wife in the amount of $11,451.00. Wife appeals contending the contempt award was not justified on these facts.

ANALYSIS

ISSUE ONE

[¶ 7.] Whether the trial court abused its discretion in finding wife in contempt.

[¶ 8.] ‘We will not set aside a trial court’s findings of fact unless they are clearly erroneous.” Harksen v. Peska, 2001 SD 75, ¶ 9, 630 N.W.2d 98, 101. The appropriate remedy or punishment for contempt of court lies within the sound discretion of the trial court. Id. ¶ 10. “Abuse of discretion is discretion not justified by, and clearly against, reason and evidence. The test is whether a judicial mind, in view of the law and circumstances, could reasonably have reached the conclusion.” Id.

[¶ 9.] “The required elements for a finding of civil contempt are (1) the existence of an order; (2) knowledge of the order; (3) ability to comply with the order; and (4) willful or contumacious disobedience of the order.” Id. ¶ 12. Wife concedes that requirements 1 and 2 are met on these facts. However, concerning requirements 3 and 4 wife maintains that the above facts, as found by the trial court, do not justify a finding of contempt. She asserts that these facts do not demonstrate a willful disregard for the court’s orders or that she acted in bad faith. She also maintains that the actions of third parties contributed to her inability to complete the transfer on time and that she cannot be held responsible for those actions.

[¶ 10.] “To form the basis for a subsequent finding of contempt, an order must state the details of compliance in such clear, specific and unambiguous terms that the person to whom it is directed will know exactly what duties or obligations are imposed upon [her].” Id. ¶ 17. It is undisputed that wife knew what was required of her.

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Cite This Page — Counsel Stack

Bluebook (online)
2003 SD 36, 660 N.W.2d 619, 2003 S.D. LEXIS 37, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keller-v-keller-sd-2003.