LaFrance v. Lodmell
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Opinion
EVELEIGH, J.
This consolidated appeal arises from a marital dissolution action brought by the plaintiff, Joan LaFrance, against the defendant, Dean W. Lodmell. On appeal, the defendant asserts that the trial court improperly: (1) applied General Statutes § 46b-66 (c) to an agreement to arbitrate contained within a prenuptial agreement between the parties and limited arbitration to the sale of a jointly owned residential property (residence); (2) denied the defendant's request for leave to file an amended cross complaint to assert certain claims against the plaintiff in the dissolution action; and (3) confirmed the arbitration awards where the arbitrator exceeded the scope of her authority and the scope of the submission. We reject the defendant's claims and affirm the judgment of the trial court. 1
The following facts and procedural history are relevant to the resolution of the defendant's appeal. "In contemplation of marriage, the parties entered [a prenuptial agreement] on November 22, 2000. They were married on November 25, 2000. Neither party contests
the enforceability of the [prenuptial] agreement. On March 15, 2010 ... an action for dissolution of marriage [was commenced]. [The agreement to arbitrate in] the [prenuptial] agreement provides: 'In the event of any dispute hereunder, such dispute shall be resolved by first submitting the matter to mediation. If mediation fails, then the matter shall be submitted to binding arbitration in accordance with the rules of the American Arbitration Association.' ... [The trial court] ordered the parties to proceed to arbitration on the matter of 'the sale of the [residence] ... and what procedures are to be followed, and what proceeds each party is entitled to from a sale.' "
Lodmell v. LaFrance,
The defendant appealed to the Appellate Court from the trial court's order and the plaintiff filed a motion to dismiss the appeal for lack of a final judgment. Id., at 331,
On December 30, 2013, the trial court rendered judgment confirming the partial arbitration award and confirming in part, modifying in part, and vacating in part the final arbitration award, from which the defendant appealed. Thereafter, on April 3, 2014, the defendant filed a request for leave to file an amended answer and cross complaint in the present case, which was denied. On January 15, 2015, the trial court rendered judgment dissolving the marriage, allocating property, interpreting the prenuptial agreement and deciding all pending motions. The defendant then filed a second appeal. These two appeals were then consolidated and transferred to this court pursuant to General Statutes § 51-199 and Practice Book § 65-1. Additional facts will be set forth as necessary.
I
The defendant first claims that the trial court improperly applied § 46b-66 (c) to the agreement to arbitrate contained within the prenuptial agreement. Specifically, the defendant asserts that § 46b-66 (c) applies only to an agreement to arbitrate that has been entered into after an action for dissolution has been filed. The defendant further claims that, even if § 46b-66 (c) applies to agreements to arbitrate contained in prenuptial agreements, the trial court improperly contravened the terms of the prenuptial agreement in the present case by limiting the scope of the arbitration. In response, the plaintiff asserts that the trial court properly applied § 46b-66 (c) to the agreement to arbitrate in the prenuptial agreement. The plaintiff further asserts that the trial court properly found, pursuant to § 46b-66 (c), that it would not be " 'fair and equitable under the circumstances' " to require the parties to arbitrate claims for damages that were not allowed by the prenuptial agreement. We agree with the plaintiff.
A
The resolution of whether § 46b-66 (c) applies to an agreement to arbitrate in a prenuptial agreement presents an issue of statutory construction.
2
In conducting
this analysis, "we are guided by the well established principle that [i]ssues of statutory construction raise questions of law, over which we exercise plenary review.... We are also guided by the plain meaning rule for statutory construction. See General Statutes § 1-2z." (Citations
omitted; internal quotation marks omitted.)
Cales v. Office of Victim Services,
Section 46b-66(c) provides: "The provisions of chapter 909 shall be applicable to any agreement to arbitrate in an action for dissolution of marriage under this chapter, provided (1) an arbitration pursuant to such agreement may proceed only after the court has made a thorough inquiry and is satisfied that (A) each party entered into such agreement voluntarily and without coercion, and (B) such agreement is fair and equitable under the circumstances, and (2) such agreement and an arbitration pursuant to such agreement shall not include issues related to child support, visitation and custody. An arbitration award in such action shall be confirmed, modified or vacated in accordance with the provisions of chapter 909." 3
The statutory language provides no express guidance as to whether the legislature intended for it to apply to agreements to arbitrate that are entered into as part of a prenuptial agreement. The legislature's use of the term "
any
agreement" rather than the term "
an
agreement," however, strongly suggests an intent to include all agreements to arbitrate matters related to dissolutions of marriage. See, e.g.,
Dowling v. Slotnik,
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EVELEIGH, J.
This consolidated appeal arises from a marital dissolution action brought by the plaintiff, Joan LaFrance, against the defendant, Dean W. Lodmell. On appeal, the defendant asserts that the trial court improperly: (1) applied General Statutes § 46b-66 (c) to an agreement to arbitrate contained within a prenuptial agreement between the parties and limited arbitration to the sale of a jointly owned residential property (residence); (2) denied the defendant's request for leave to file an amended cross complaint to assert certain claims against the plaintiff in the dissolution action; and (3) confirmed the arbitration awards where the arbitrator exceeded the scope of her authority and the scope of the submission. We reject the defendant's claims and affirm the judgment of the trial court. 1
The following facts and procedural history are relevant to the resolution of the defendant's appeal. "In contemplation of marriage, the parties entered [a prenuptial agreement] on November 22, 2000. They were married on November 25, 2000. Neither party contests
the enforceability of the [prenuptial] agreement. On March 15, 2010 ... an action for dissolution of marriage [was commenced]. [The agreement to arbitrate in] the [prenuptial] agreement provides: 'In the event of any dispute hereunder, such dispute shall be resolved by first submitting the matter to mediation. If mediation fails, then the matter shall be submitted to binding arbitration in accordance with the rules of the American Arbitration Association.' ... [The trial court] ordered the parties to proceed to arbitration on the matter of 'the sale of the [residence] ... and what procedures are to be followed, and what proceeds each party is entitled to from a sale.' "
Lodmell v. LaFrance,
The defendant appealed to the Appellate Court from the trial court's order and the plaintiff filed a motion to dismiss the appeal for lack of a final judgment. Id., at 331,
On December 30, 2013, the trial court rendered judgment confirming the partial arbitration award and confirming in part, modifying in part, and vacating in part the final arbitration award, from which the defendant appealed. Thereafter, on April 3, 2014, the defendant filed a request for leave to file an amended answer and cross complaint in the present case, which was denied. On January 15, 2015, the trial court rendered judgment dissolving the marriage, allocating property, interpreting the prenuptial agreement and deciding all pending motions. The defendant then filed a second appeal. These two appeals were then consolidated and transferred to this court pursuant to General Statutes § 51-199 and Practice Book § 65-1. Additional facts will be set forth as necessary.
I
The defendant first claims that the trial court improperly applied § 46b-66 (c) to the agreement to arbitrate contained within the prenuptial agreement. Specifically, the defendant asserts that § 46b-66 (c) applies only to an agreement to arbitrate that has been entered into after an action for dissolution has been filed. The defendant further claims that, even if § 46b-66 (c) applies to agreements to arbitrate contained in prenuptial agreements, the trial court improperly contravened the terms of the prenuptial agreement in the present case by limiting the scope of the arbitration. In response, the plaintiff asserts that the trial court properly applied § 46b-66 (c) to the agreement to arbitrate in the prenuptial agreement. The plaintiff further asserts that the trial court properly found, pursuant to § 46b-66 (c), that it would not be " 'fair and equitable under the circumstances' " to require the parties to arbitrate claims for damages that were not allowed by the prenuptial agreement. We agree with the plaintiff.
A
The resolution of whether § 46b-66 (c) applies to an agreement to arbitrate in a prenuptial agreement presents an issue of statutory construction.
2
In conducting
this analysis, "we are guided by the well established principle that [i]ssues of statutory construction raise questions of law, over which we exercise plenary review.... We are also guided by the plain meaning rule for statutory construction. See General Statutes § 1-2z." (Citations
omitted; internal quotation marks omitted.)
Cales v. Office of Victim Services,
Section 46b-66(c) provides: "The provisions of chapter 909 shall be applicable to any agreement to arbitrate in an action for dissolution of marriage under this chapter, provided (1) an arbitration pursuant to such agreement may proceed only after the court has made a thorough inquiry and is satisfied that (A) each party entered into such agreement voluntarily and without coercion, and (B) such agreement is fair and equitable under the circumstances, and (2) such agreement and an arbitration pursuant to such agreement shall not include issues related to child support, visitation and custody. An arbitration award in such action shall be confirmed, modified or vacated in accordance with the provisions of chapter 909." 3
The statutory language provides no express guidance as to whether the legislature intended for it to apply to agreements to arbitrate that are entered into as part of a prenuptial agreement. The legislature's use of the term "
any
agreement" rather than the term "
an
agreement," however, strongly suggests an intent to include all agreements to arbitrate matters related to dissolutions of marriage. See, e.g.,
Dowling v. Slotnik,
The defendant asserts, however, that the use of the phrase "in an action for dissolution" limits the applicability of § 46b-66 (c) to only those agreements to arbitrate that are entered into after an action for dissolution has been filed and, therefore, excludes agreements to arbitrate that are entered into as part of prenuptial agreements. We disagree. There is nothing in the plain language of the statute that indicates that § 46b-66 (c) applies only to an agreement to arbitrate that is entered into after an action for dissolution has been filed. To the contrary, the broad language of § 46b-66 (c)
includes "any agreement to arbitrate in an action for dissolution...." Agreements to arbitrate contained in prenuptial agreements, like the agreement to arbitrate in the present case, are by definition agreements to arbitrate issues that would only arise once the parties are involved "in an action for dissolution...." General Statutes § 46b-66 (c).
If the legislature intended to exclude agreements to arbitrate that are contained within prenuptial agreements, it could have expressly done so. "[I]t is a well settled principle of statutory construction that the legislature knows how to convey its intent expressly ... or to use broader or limiting terms when it chooses to do so." (Citation omitted; internal quotation marks omitted.)
Marchesi v. Board of Selectmen,
Furthermore, reading § 46b-66 (c) in relationship to the entire statutory scheme of which it is a part lends additional support to our understanding that § 46b-66 (c) covers all agreements to arbitrate controversies between parties to a marriage, regardless of when the parties entered into that agreement. "In seeking to determine [the] meaning [of a statute, § 1-2z ] directs us first to consider the text of the statute itself and its relationship to other statutes." (Internal quotation marks omitted.)
People for Ethical Treatment of Animals, Inc. v. Freedom of Information Commission,
It is important to recognize that § 46b-66 (c) explains the conditions under which agreements to arbitrate between parties to a marriage are governed by the provisions of chapter 909 of the General Statutes; see General Statutes § 52-406 et seq. ; which contains the procedures governing arbitration. Therefore, before chapter 909 can apply to an agreement to arbitrate between parties to a marriage, it must meet the requirements set forth in § 46b-66 (c). In turn, chapter 909 also explains what agreements to arbitrate are governed by its provisions. Specifically, General Statutes § 52-408 provides in relevant part: "[A]n agreement in writing between two or more persons to submit to arbitration any controversy existing between them at the time of the agreement to submit, or an agreement in writing between the parties to a marriage to submit to arbitration any controversy between them with respect to the dissolution of their marriage, except issues related to child support, visitation and custody, shall be valid, irrevocable and enforceable, except when there exists sufficient cause at law or in equity for the avoidance of written contracts generally." In reading these two statutes together, "[w]e are ... guided by the principle that the legislature is always presumed to have created a harmonious and consistent body of law.... [T]his tenet of statutory
construction ... requires us to read statutes together when they relate to the same subject matter.... Accordingly, [i]n determining the meaning of a statute ... we look not only at the provision at issue, but also to the broader statutory scheme to ensure the coherency of our construction." (Internal quotation marks omitted.)
Styslinger v. Brewster
Park, LLC,
The reading of § 46b-66 (c) proposed by the defendant and the concurring and dissenting opinion would mean that any agreement to arbitrate that is entered into as part of a prenuptial agreement is not afforded the protections of § 46b-66 (c) and, accordingly, would make such prenuptial agreements less desirable. Such a result is contrary to the public policy of this state regarding prenuptial agreements, which has been previously recognized by this court. "[R]ecent statistics on divorce have forced people to deal with the reality that many marriages do not last a lifetime. As desirable as it may seem for couples to embark upon marriage in a state of optimism and hope, the reality is that many marriages end in divorce. There is a growing trend toward serial marriage; more people expect to have more than one spouse during their lifetime.... [B]oth the realities of our society and policy reasons favor judicial recognition of prenuptial agreements. Rather than inducing divorce, such agreements simply acknowledge its ordinariness. With divorce as likely an outcome of marriage as permanence, we see no logical or compelling reason why public policy should not allow two mature adults to handle their own financial affairs.... The reasoning that once found them contrary to public policy
has no place in today's matrimonial law." (Citation omitted; internal quotation marks omitted.)
Bedrick v. Bedrick,
Furthermore, the defendant's interpretation of § 46b-66 (c) is also inconsistent with prior judicial interpretations of the statute. In
Budrawich v. Budrawich,
Young v. Metropolitan Property
& Casualty Ins. Co.,
The defendant and the concurring and dissenting opinion urge this court to interpret § 46b-66 (c) as applying only to agreements to arbitrate issues related to dissolution proceedings that are entered into after an action for dissolution has been filed, and not those entered into within prenuptial agreements. That interpretation is inconsistent with the language of § 46b-66 (c) and prior judicial interpretations of the statute that recognize that the legislature intended to give the trial court the authority to oversee agreements to arbitrate matters related to dissolution proceedings.
Accordingly, we conclude that the trial court properly applied § 46b-66 (c) to the agreement to arbitrate contained in the prenuptial agreement in the present case.
B
The defendant next claims that, even if § 46b-66 (c) applies to agreements to arbitrate contained within prenuptial agreements, the trial court improperly applied that statute in the present case. Specifically, the defendant claims that § 46b-66 (c) requires the trial court to determine only whether the parties entered into an agreement to arbitrate voluntarily and without coercion and whether that agreement, as a whole, is fair and equitable under the circumstances. The defendant asserts that, in the present case, the trial court improperly applied § 46b-66 (c) so as to limit the scope of the issues that were submitted to arbitration pursuant to the prenuptial agreement. 6 In response, the plaintiff claims that the trial court properly applied § 46b-66 (c) in the present case. Specifically, the plaintiff claims that the trial court properly determined the scope of the parties' agreement to arbitrate and properly determined that it would be fair and equitable to arbitrate only those issues that were within the scope of the parties' agreement. We agree with the plaintiff.
We begin by setting forth the applicable standard of review. "The well settled standard of review in domestic relations cases is that this court will not disturb trial court orders unless the trial court has abused its legal discretion or its findings have no reasonable basis in the facts.... As has often been explained, the foundation for this standard is that the trial court is in a clearly advantageous position to assess the personal factors
significant to a domestic relations case....
Simms v. Simms,
In the present case, the trial court determined as follows: "The prenuptial agreement between the parties dated November 22, 2000, addresses the disputed claims of the parties [regarding the sale of joint assets].... [The prenuptial agreement] ... specifically addresses arbitration. The only matter in dispute for arbitration is the sale of the [residence] ... and what procedures are to be followed, and what proceeds each party is entitled to from a sale." On the basis of this determination, the trial court submitted only that one issue to the arbitrator. Thereafter, the plaintiff filed a motion for articulation. In her motion for articulation, the plaintiff asked the following: "Having found in pertinent part that: 'the only issue in dispute for arbitration is the sale of the [residence]' ... did the [trial] court conclude based on its interpretation and construction of [the prenuptial] agreement ... that the relief 'fixed,' 'limited,' and agreed upon between these parties did not include damages?" (Citation omitted; emphasis omitted.) In framing this question, the plaintiff then quoted the following language from the prenuptial agreement: "Whereas, the parties, to promote marital tranquility, desire to fix, limit, and determine by this [a]greement the interest, rights, and claims that may accrue to each of them in the property and estate of the other by reason of their marriage or in the event of marital difficulties herein referred to, and to accept the provisions of this [a]greement in lieu and in full discharge, settlement, and satisfaction, of any and all interests, rights, and claims that otherwise each might or could have under the law, in and to the property and estate of the other, both before and after the other's death...." (Emphasis omitted; internal quotation marks omitted.) In response to the plaintiff's question, the trial court answered as follows: "Granted."
In doing so, the trial court followed the requirements of § 46b-66 (c). Specifically, the trial court engaged in a thorough inquiry into the agreement of the parties. Indeed, in its memorandum of decision, the trial court explained that "[t]he parties ... have agreed that the [prenuptial] agreement between them is in full force and effect." The trial court further explained that, on the basis of the prenuptial agreement, specifically the provision related to the sale of joint assets and the agreement to arbitrate, it was appropriate to submit the matter of the sale of the residence to the arbitrator. In reaching this conclusion, the trial court implicitly determined, in accordance with § 46b-66 (c), that applying the agreement to arbitrate to the sale of the residence was fair and equitable under the circumstances.
As the trial court explained in response to the plaintiff's motion for articulation, it had determined, after a thorough inquiry of the parties' agreement to arbitrate, that claims for damages arising out of the marriage were barred under the prenuptial agreement. We agree with the trial court's interpretation of the prenuptial agreement and, therefore, conclude that the trial court properly refused to submit any claims for damages to the arbitrator. Accordingly, we conclude that the trial court properly applied § 46b-66 (c) to the facts of present case.
II
The defendant next claims that the trial court abused its discretion by denying his request for leave to file an amended answer and cross complaint. Specifically, the defendant claims that the trial court improperly denied his request for leave to file an amended cross complaint in which he asserted eight claims that were not submitted to the arbitrator. In response, the plaintiff asserts that the trial court properly denied the defendant's motion for leave to file an amended answer and cross complaint. The plaintiff claims that the trial court properly precluded the defendant's request to raise claims for damages based on the law of the case because the trial court had previously determined that the prenuptial agreement barred claims for damages. The plaintiff further asserts that the trial court properly denied the defendant's request to amend because it was untimely and any amendment at that point would have been prejudicial to the plaintiff. We agree with the plaintiff.
On April 3, 2014, the defendant filed a request for leave to file an amended answer and cross complaint. The defendant asserted eight claims that he was not able to raise in the arbitration proceeding because they were not contained within the arbitration order entered by the trial court. In his proposed amended cross complaint, the defendant sought to assert the following claims: (1) breach of contract; (2) civil theft; (3) conversion; (4) violation of General Statutes § 53a-250 et seq., which governs computer crimes; (5) breach of the covenant of good faith and fair dealing; (6) unjust enrichment; (7) intentional infliction of emotional distress; and (8) negligent infliction of emotional distress. The defendant sought compensatory damages; treble damages under General Statutes § 52-564 ; double damages under General Statutes § 47a-46 ; treble damages under General Statutes § 52-570b (c) ; punitive damages; indemnification; and attorney's fees. The defendant also demanded a jury trial.
The plaintiff objected to the defendant's request, claiming that it was barred by the trial court's memorandum of decision dated September 2, 2011, and the arbitration submission contained therein. The plaintiff also asserted that the trial court's articulation, in which the trial court clarified that it had previously determined that the prenuptial agreement barred any claims for damages related to the dissolution proceeding, should be determinative of any inquiry.
The trial court agreed with the plaintiff and, accordingly, denied the defendant's request for leave to file an amended answer and complaint. In doing so, the trial court explained that the "ruling of September 2, 2011, as clarified [in the articulation of] November 16, 2011, is the law of the case." The trial court further explained that "[i]nterspousal tort and contract claims" are "more appropriately pursued in a separate civil action."
We begin by setting forth the standard of review applicable to the defendant's claim. "Our standard of review ... is well settled. While our courts have been liberal in permitting amendments ... this liberality has limitations. Amendments should be made seasonably.
Factors to be considered in passing on a motion to amend are the length of the delay, fairness to the opposing parties and the negligence, if any, of the party offering the amendment.... The motion to amend is addressed to the trial court's discretion which may be exercised to restrain the amendment of pleadings so far as necessary to prevent unreasonable delay of the trial.... Whether to allow an amendment is a matter left to the sound discretion of the trial court. This court will not disturb a trial court's ruling on a proposed amendment unless there has been a clear abuse of that discretion.... It is [the] burden [of the party proposing the amendment] to demonstrate that the trial court clearly abused its discretion.... That an amendment would confuse the issues in the case
also supports a trial court's decision to deny permission to amend a complaint or special defense." (Citations omitted; internal quotation marks omitted.)
Travelers Casualty & Surety Co. of America v. Netherlands Ins. Co.,
We conclude that the trial court did not abuse its discretion in denying the defendant's motion for permission to amend his pleadings to assert additional claims against the plaintiff. First, the defendant's motion was filed approximately two and one-half years after the trial court had determined the issue to submit to the arbitrator, and more than one and one-half years after the parties' arbitration hearing. Second, the defendant's motion was filed approximately three months before the parties' dissolution trial. The defendant's cross complaint and the related defenses would have raised many complex issues, which would have required motions and discovery. Therefore, granting the defendant's request to amend at such a late stage would have significantly delayed the trial and prejudiced the plaintiff. Accordingly, we cannot conclude that the trial court abused its discretion by denying the defendant's request
to amend. See
Rizzuto v. Davidson Ladders, Inc.,
Furthermore, as the trial court explained, the defendant could have filed a separate civil action to raise his claims against the plaintiff. Even if claims were not released in the prenuptial agreement, this court has recognized that, "a final decree of divorce is res judicata with respect to all issues which were, or could have been, litigated in the proceeding." (Internal quotation marks omitted.)
Loughlin v. Loughlin,
III
The defendant next claims that the trial court improperly confirmed the partial award of the arbitrator and improperly confirmed in part and modified in part the final award of the arbitrator. 8 Specifically, the defendant asserts that the arbitrator exceeded her authority and the scope of the submission by issuing orders in contravention of the express terms of the prenuptial agreement. 9 In response, the plaintiff asserts that the trial court properly confirmed the partial award of the arbitrator and properly confirmed in part and vacated in part the final award of the arbitrator because the arbitrator did not exceed the scope of her authority under this unrestricted submission. We agree with the plaintiff.
Our analysis of the defendant's claim is guided by the well established principles of law governing arbitration. "Arbitration is a creature of contract and the parties themselves, by the terms of their submission, define the powers of the
arbitrators."
Waterbury v. Waterbury Police Union,
"Because we favor arbitration as a means of settling private disputes, we undertake judicial review of arbitration awards in a manner designed to minimize interference with an efficient and economical system of alternative dispute resolution.
Saturn Construction Co. v. Premier Roofing Co.,
In the present case, the defendant asserts that the submission to the arbitrator was restricted, and that, therefore, the appropriate standard of review is de novo. In support of his claim that the submission is restricted, the defendant relies on the fact that the trial court determined that "[t]he only matter in dispute for arbitration is the sale of the [residence] ... and what procedures are to be followed, and what proceeds each party is entitled to from a sale." We disagree.
This court has previously considered whether a submission is unrestricted because it requires an arbitrator to address only one issue. In
Industrial Risk Insurers v. Hartford Steam Boiler Inspection & Ins. Co.,
supra, 258 Conn. at 112-13,
Like the submissions in Industrial Risk Insurers, the submission in the present case did not contain any conditional language. The submission here required the arbitrator to determine the procedures for the sale of the residence and the proceeds to be paid by and to each party. The fact that the trial court limited the issue to be decided by the arbitrator to one issue did not render the submission a restricted one. Accordingly, we conclude that the submission to the arbitrator in the present case was unrestricted.
"The well established general rule is that [w]hen the parties agree to arbitration and establish the authority of the arbitrator through the terms of their submission, the extent of our judicial review of the award is delineated by the scope of the parties' agreement.
American Universal Ins. Co. v. DelGreco,
[supra,
When the scope of the submission is unrestricted, the resulting award is not subject to de novo review even for errors of law so long as the award conforms to the submission.
Hartford v. Board of Mediation & Arbitration,
"When the parties have agreed to a procedure and have delineated the authority of the arbitrator, they must be bound by those limits.
Waterbury Board of Education v. Waterbury Teachers Assn.,
[
"A challenge of the arbitrator's authority is limited to a comparison of the award to the submission....
Where the submission does not otherwise state, the arbitrators are empowered to decide factual and legal questions and an award cannot be vacated on the grounds that the construction placed upon the facts or the interpretation of the agreement by the arbitrators was erroneous. Courts will not review the evidence nor, where the submission is unrestricted, will they review the [arbitrator's] decision of the legal questions involved.
Meyers v. Lakeridge Development Co.,
With these legal principles in mind, we examine whether the award conformed to the submission in the present case. As this court has previously explained, the submission consists "of a composite of the authorizing clause in the separation agreement and the ... demand for arbitration, including ... claim[s] for relief...." (Footnote omitted.)
Masters v. Masters,
The defendant first claims that the arbitrator exceeded the scope of her authority by awarding the plaintiff certain maintenance expenses and other costs associated with the residence from July, 2012 through November, 2012, plus interest.
The following additional facts are necessary for the resolution of this claim. The parties were initially scheduled to proceed to arbitration on August 27, 2012. On June 25, 2012, the defendant filed a motion to suspend deadlines in the arbitration proceeding so that he could obtain new counsel. On June 29, 2012, the defendant's counsel filed a motion to withdraw as counsel and requested a four week continuance of all deadlines. On July 2, 2012, the arbitrator granted the defendant's request for counsel to withdraw and for a continuance pursuant to the following interim order: "By granting the [defendant's] continuance, the [plaintiff] is further burdened by having to continue to incur [the] costs of maintaining the [residence]. Pursuant to the [prenuptial] [a]greement ... the parties agreed that they would act in good faith and would deal ' fairly toward the other pursuant to this agreement.' ... In order to ensure fairness to both parties with regard to the present dispute, which deals primarily with the sale of the [residence], the [defendant] shall take over the costs of maintaining the [residence] by paying the mortgage, [homeowners] insurance, real estate taxes, and external grounds maintenance.... [T]he [defendant] shall bear the costs of the maintenance of the [residence] as stated ... until either [residence] is sold or the arbitration hearing is completed, whichever occurs first." (Citation omitted; emphasis in original; footnote omitted.)
In August, 2012, the plaintiff filed a motion to compel, which the arbitrator granted. Specifically, the arbitrator ordered the defendant to provide "full reimbursement" to the plaintiff for the costs incurred in maintaining the residence since July 2, 2012. At the time of the arbitration hearing in October, 2012, the residence had not yet been sold. In November, 2012, the arbitrator issued the partial arbitration award, which confirmed her interim order and required the defendant to pay the expenses for the residence from July, 2012 through October, 2012. In addition, the partial arbitration award ordered the defendant to pay $9649.02 in maintenance and costs for November, 2012. The partial arbitration award also ordered the defendant to pay statutory interest of 10 percent per annum on these sums beginning on the date of its issuance.
In her motion to compel, the plaintiff also sought attorney's fees pursuant to the prenuptial agreement. As grounds for the attorney's fees, the plaintiff asserted that the defendant had failed to comply with the partial arbitration award, requiring the plaintiff to file the motion to confirm. The arbitrator granted the plaintiff's motion for attorney's fees in the final arbitration award, requiring the defendant to pay $8403.75 plus interest of 10 percent per annum from the date of its issuance.
The defendant asserts that the arbitrator acted beyond the scope of her authority in requiring the defendant to contribute to the maintenance of the residence from June, 2012 through November, 2012, and by awarding the plaintiff interest and attorney's fees. We disagree. As the arbitrator recognized, the prenuptial agreement provided that the parties would act in good faith and would deal "
fairly
toward the other pursuant to this agreement." (Emphasis added.) The arbitrator interpreted this provision in the submission to authorize payment of expenses incurred by the plaintiff related to the residence caused by the delay of the arbitration hearing, which was requested by the defendant. As we have explained previously herein, "[w]here the submission does not otherwise state, the [arbitrator is] empowered to decide factual and legal questions and an award cannot be vacated on the grounds that the construction placed upon the facts or the interpretation of the agreement by the [arbitrator] was erroneous." (Internal quotation marks omitted.)
Masters v. Masters,
supra,
The defendant also claims that the arbitrator exceeded the scope of her authority by awarding the plaintiff $45,000, which represents $3000 per month for the common household expenses for the fifteen months prior to the notice of separation, in the final arbitration award because "the [defendant] had not contributed to the common household expenses pursuant to the [prenuptial] [a]greement." The prenuptial agreement provided that the parties were "to contribute in mutually agreeable amounts" to inter alia, the mortgage, property taxes, insurance and maintenance expenses of the residence. Although the defendant asserts that there was no such mutual agreement and that the plaintiff was solely responsible for all expenses associated with the residence, the defendant has not pointed to any evidence to call the arbitrator's conclusion to the contrary into question. The defendant also claims that the arbitrator exceeded the scope of her authority in the final arbitration award because she required the defendant to pay the plaintiff $66,000 plus interest, representing $5500 per month for the twelve month period following the notice of separation. The defendant asserts that this portion of the final arbitration award is clearly erroneous, because he "had already paid his [post separation] notice obligations," and falls outside the scope of the submission, because it does not concern
either the sale of, or proceeds from, the residence. We disagree with these claims of the defendant. First, as we have explained previously in this opinion, "the [arbitrator is] empowered to decide factual and legal questions and an award cannot be vacated on the grounds that the construction placed upon the facts or the interpretation of the agreement by the arbitrators was erroneous." (Internal quotation marks omitted.)
Masters v. Masters,
supra,
C
The defendant further claims that the arbitrator exceeded the scope of her authority by entering orders in the final arbitration award pertaining to the return of certain items of personal property to the defendant that were located at the residence and in the possession of the plaintiff. Specifically, the arbitrator proscribed certain times and terms for the return of the defendant's property. The defendant asserts that these limitations exceeded the scope of the arbitrator's authority because the prenuptial agreement provides that the parties have " 'the sole and exclusive right at all times to manage and control [their] [s]eparate [p]roperty' " and no provision of the submission gave the arbitrator the authority to place restrictions on the defendant's personal property. We disagree with the defendant's claim. The submission to the arbitrator clearly authorized the arbitrator to decide "what procedures are to be followed" for the sale of the residence. It is reasonable that removal and return of the defendant's personal property from the residence is an important aspect of the procedures by which the sale will occur because the defendant's personal property would need to be removed prior to any sale. Accordingly, we cannot conclude that the arbitrator exceeded the scope of her authority by addressing the return of the defendant's personal property.
On the basis of the foregoing, we conclude that the trial court properly concluded that the arbitrator did not exceed the scope of her authority. 10
The judgment is affirmed.
In this opinion ROGERS, C.J., and PALMER, McDONALD and VERTEFEUILLE, Js., concurred.
ZARELLA, J., with whom ROBINSON, J., joins, concurring in part and dissenting in part.
I join parts II and III of the majority opinion. I do not agree, however, that the trial court applied General Statutes § 46b-66 (c) in the present case, nor do I agree that § 46b-66 (c) applies to an agreement to arbitrate contained in a premarital agreement. Therefore, I do not join part I of the majority opinion.
Preliminarily, I note that a careful reading of the record does not support the assertion of the defendant, Dean W. Lodmell, that the trial court applied § 46b-66 (c) in the present case. 1 Instead, the record reveals that the court, Malone, J., undertook to interpret the premarital agreement, including the arbitration clause. In response to the defendant's motions to stay judicial proceedings and to compel arbitration, and the motion in limine, pendente lite, for a " 'thorough inquiry' " of the arbitration agreement under § 46b-66 (c) filed by the plaintiff, Joan LaFrance, the trial court issued a memorandum of decision on September 2, 2011. In that memorandum of decision, the court observed that the dispute between the plaintiff and the defendant concerned what should be submitted to arbitration. The court stated: "The contract law applies to agreements to arbitrate. In the event the parties cannot agree as to the issues to be submitted to the arbitrator, then the court is to make that determination." (Emphasis added.) Nowhere in this one page memorandum of decision does the court cite to § 46b-66 (c), conduct a "thorough inquiry" of the agreement, mention the words "fair and equitable," or explain why it would be unfair or inequitable to arbitrate certain issues. Instead, applying contract law, the court concluded that, pursuant to the premarital agreement, only one matter was in dispute for arbitration, namely, the sale of the marital home.
Further evidence that the trial court's memorandum of decision was based on its interpretation of the premarital agreement, rather than the application of
§ 46b-66 (c), is the court's affirmative response to the plaintiff's motion for articulation, which asked: "Having found in [relevant] part that ... the only issue in dispute for arbitration is the sale of the joint asset ... did the court conclude,
based on its interpretation and construction of this premarital agreement
... that the relief fixed, limited, and agreed [on] between these parties did not include damages?" (Citation omitted; emphasis altered; internal quotation marks omitted.) Then, in June, 2012, the defendant filed a motion for an order regarding arbitrability, which, in essence, sought to revisit the trial court's September 2, 2011 determination regarding arbitrability. Counsel for the defendant specifically argued, in light of a then recent decision from this court,
New Britain v. AFSCME, Council 4, Local 1186,
Although I need not consider whether § 46b-66 (c) applies to arbitration clauses contained in premarital agreements, I do so in response to the majority opinion. The applicability of § 46b-66 (c) raises a question of statutory interpretation over which this court's review
is plenary. See, e.g.,
State v. Smith,
The text of § 46b-66 (c) does not support the plaintiff's or the majority's interpretation. The language in § 46b-66 (c)(1), "an arbitration pursuant to [an] agreement [to arbitrate] may proceed only after the court has made a thorough inquiry"; (emphasis added); supports a temporal limitation to the application of the statute. If the parties agree to arbitrate after they institute a dissolution action, it makes sense that they would need the court's permission before proceeding to arbitration; after all, the court's jurisdiction has been invoked. On the other hand, if, as part of the premarital agreement, the parties agreed to arbitrate and, upon deciding to divorce, wish to go directly to arbitration, it makes little sense that they would first need to file an action with the Superior Court and seek that court's permission to arbitrate.
Moreover, when the relationship of § 46b-66 (c) to other statutes is considered, only the defendant's reading is probable. Under the circumstances of the present case, there are two statutory schemes that relate to § 46b-66 (c), namely, chapter 909 of the General Statutes, comprising General Statutes §§ 52-408 through 52-424, and relating to arbitration proceedings, and the Connecticut Premarital Agreement Act, General Statutes §§ 46b-36a through 46b-36j.
Section 52-408 provides in relevant part that "an agreement in writing between the parties to a marriage to submit to arbitration any controversy between them with respect to the dissolution of their marriage, except issues related to child support, visitation and custody, shall be valid, irrevocable and enforceable, except when there exists sufficient cause at law or in equity for the avoidance of written contracts generally. " (Emphasis added.)
The emphasized language conflicts with the reading of § 46b-66 (c) that the plaintiff advocates and the majority adopts. If, as the plaintiff and the majority contend, § 46b-66 (c) applies to all agreements to arbitrate dissolution matters, despite when such agreements are entered into, then the test for enforceability prescribed in § 52-408 -general contract defenses-would be completely supplanted by the test set forth in § 46b-66 (c)(1)(B) -fair and equitable. This construction of § 46b-66 (c) would, therefore, render § 52-408 void in part. Stated differently, an agreement to arbitrate that is enforceable under § 52-408 because the party challenging enforcement cannot establish a general contract defense, such as unconscionability, fraud, or duress, nonetheless may be unenforceable under § 46b-66 (c) if a trial court determines that the agreement is not fair and equitable. Conversely, any agreement enforceable under § 46b-66 (c) would also be enforceable under § 52-408 because, I presume, it would not be fair and equitable to enforce an agreement that is unconscionable or a product of fraud or duress. Thus, the majority's construction renders a portion of § 52-408 meaningless. 4
Well established principles of statutory interpretation, however, do not permit such a construction. First, this court is guided by the presumption that the legislature has enacted a harmonious and consistent body of law, and, accordingly, I must construe § 46b-66 (c) in a manner that ensures coherence within the broader statutory scheme. See, e.g.,
Thomas v. Dept. of Developmental Services,
Reading § 46b-66 (c) to apply to agreements to arbitrate entered into after a dissolution proceeding has commenced complies with both principles of statutory construction in that it harmonizes §§ 46b-66 (c) and 52-408, and ensures that neither provision is superfluous or meaningless. Under such a construction, the standard for the enforceability of arbitration agreements set forth in § 52-408 would apply to, at the very least, agreements to arbitrate contained in premarital agreements, thereby retaining the validity of § 52-408. At the same time, § 46b-66 (c) will continue to have meaning as it will apply to agreements entered into after a dissolution proceeding has begun. 5 This construction also avoids the apparent conflict between the statutes regarding the standard for determining the enforceability of arbitration agreements in that it applies each to factually distinct circumstances, which results in a coherent statutory scheme.
Furthermore, construing § 46b-66 (c) to apply to those arbitration agreements entered into after the commencement of a marital dissolution proceeding achieves harmony between § 46b-66 (c) and the Connecticut Premarital Agreement Act, specifically, General Statutes § 46b-36g (a)(2). Section 46b-36g (a) provides in relevant part: "A premarital agreement or amendment shall not be enforceable if the party against whom enforcement is sought proves that ... (2) [t]he agreement was unconscionable when it was executed or when enforcement is sought...." Construing § 46b-66 (c) to apply to arbitration clauses in premarital agreements creates a conflict in the standard for determining enforceability by supplanting the unconscionability standard prescribed in § 46b-36g (a)(2) with the "fair and equitable" standard of § 46b-66 (c)(1)(B).
6
As I stated
previously, the legislature is presumed to have enacted harmonious statutory schemes, and this court must strive to construe statutes to avoid conflict. See, e.g.,
Thomas v. Dept. of Developmental Services,
supra, 297 Conn. at 404,
Instead of attempting to read §§ 46b-66 (c) and 46b-36g (a) to be consistent, the majority relies on the canon of interpretation that directs courts to apply the more specific, rather than general, statutory provisions relating to a subject matter. See footnote 3 of the majority opinion. Generally, I agree with this principle of statutory construction, but only after it becomes clear that the statutes in question do not each have an exclusive area of operation or cannot be read in harmony. It is elementary that, when two or more statutory provisions are involved, this court will "construe the [provisions], if possible, to avoid conflict between them." (Internal quotation marks omitted.)
Efstathiadis v. Holder,
Interpreting § 46b-66 (c) to apply to agreements to arbitrate that are entered into after a dissolution proceeding
has commenced is consistent with the public policy of this state. First, allowing parties to enter into premarital agreements containing arbitration clauses encourages the private resolution of family matters and settlement of financial affairs.
7
See, e.g.,
Bedrick v. Bedrick,
Second, arbitration is an efficient and economical method for resolving disputes and, therefore, is a favored tool for dispute resolution. See, e.g.,
AFSCME, Council 4, Local 2663 v. Dept. of Children & Families,
Third, applying a different standard to determine the enforceability of an arbitration agreement, depending on when the agreement was entered into, is consistent with our practice, and the policy set forth by the legislature, of affording greater deference to agreements reached before prospective spouses marry. In
Bedrick v. Bedrick,
supra,
Such a possibility persuaded this court that postnuptial agreements must be more closely scrutinized than premarital agreements. Id., at 703,
For the foregoing reasons, I conclude that § 46b-66 (c) does not apply to agreements to arbitrate that are contained in premarital agreements. Because the trial court did not apply § 46b-66 (c) in the present case, however, I find no error in that regard. Accordingly, I concur in the judgment of this court and dissent in part. 12
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Cite This Page — Counsel Stack
144 A.3d 373, 322 Conn. 828, 2016 Conn. LEXIS 247, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lafrance-v-lodmell-conn-2016.