Marriage of Karon v. Karon

435 N.W.2d 501, 1989 Minn. LEXIS 23, 1989 WL 6601
CourtSupreme Court of Minnesota
DecidedJanuary 30, 1989
DocketC2-87-976
StatusPublished
Cited by61 cases

This text of 435 N.W.2d 501 (Marriage of Karon v. Karon) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marriage of Karon v. Karon, 435 N.W.2d 501, 1989 Minn. LEXIS 23, 1989 WL 6601 (Mich. 1989).

Opinions

YETKA, Justice.

This case is before the court on the appeal by the petitioner of a decision of the Hennepin County District Court, affirmed by the court of appeals, which modified an award of maintenance originally made pursuant to a stipulation of the parties in which the parties waived any right to future modification of maintenance. We reverse the trial court and reinstate the original terms of the decree of dissolution.

Frima and Howard Karon executed a stipulation in this dissolution action on June 27, 1981, and the trial court incorporated the terms of the stipulation into its judgment and decree entered August 81, 1981, nunc pro tunc to August 28, 1981. The decree awarded temporary maintenance to Frima for a 10-year period. The stipulation, as well as the judgment and decree, states that the parties waived any right to maintenance except as provided therein and that the court was divested of jurisdiction to alter the agreement or maintenance.

On February 7, 1986, the referee recommended and the court held, pursuant to Frima’s motion, that it had jurisdiction to modify the dissolution decree pursuant to Minn.Stat. § 518.64 (Supp.1985). On March 11, the court affirmed the referee’s recommendation. After a discovery period, [502]*502the referee recommended and the court ordered that the judgment and decree be modified to increase the amount of maintenance to Frima and made the maintenance award permanent rather than temporary. On April 19, 1987, the court affirmed the referee’s order. The court made the increase in maintenance retroactive to October 1, 1986, and an amended judgment and decree was entered on May 14, 1987.

Howard appealed the issue of whether the court had authority to modify the decree while Frima appealed the amount of the modification and the amount of attorney fees awarded. The court of appeals affirmed the trial court. Karon v. Karon, 417 N.W.2d 717 (Minn.App.1988). Howard appealed to this court.

Howard F. and Frima M. Karon married on December 21, 1952. Howard commenced a dissolution proceeding in 1979, and the parties executed a stipulation on June 27, 1981. The court entered its judgment and decree on August 28, 1981, incorporating the terms of the stipulation. Both documents provided that Howard would pay Frima $1,200 per month for 6 years and $600 per month for 4 years thereafter. Both documents also stated:

Except for the aforesaid maintenance, each party waives and is forever barred from receiving any spousal maintenance whatsoever from one another, and this court is divested from having any jurisdiction whatsoever to award temporary or permanent spousal maintenance to either of the parties.

Moreover, the stipulation states that the parties “hereby mutually release each other from all rights, claims and other obligations arising out of or during the course of their marriage relationship, except as specifically set forth elsewhere in this Stipulation.”

Howard worked as the vice president of sales at Ed Phillips & Sons Co. before the dissolution. In January 1980, he became senior vice president of sales with a gross annual income of $79,337. In 1985, he earned $111,440 taxable income. In 1986, Howard estimated his 1986 gross salary at $126,000. In addition, Howard has been accruing interest in a deferred payment plan since 1981. The plan will be worth approximately $625,000 in 1995 if he stays with his company until that time.

Frima worked as a sales representative for women’s sportswear. Beginning in the mid-1960’s, she worked at various companies. In 1981, she earned $16,924; in 1984, she earned $13,956; and she estimated her 1985 income as “negligible” because her job had been eliminated. Conditions in the industry precluded her from finding similar employment, and in November 1985, she worked part time in a bakery for $5 per hour. In 1986, Frima took a real estate course and began selling real estate at Edina Realty. She earned no money during her first year of work. In September 1986, she had an IRA valued at $26,500.

In late 1985, Frima moved the court for a modification of the maintenance award, requesting permanent maintenance of $3,500 per month. Howard challenged the court’s authority to modify the maintenance provision, arguing that the parties had waived any alteration of maintenance in the stipulation and that the court had divested itself of jurisdiction to alter the decree. A referee held that Minn.Stat. § 518.64 (Supp. 1985) granted it such authority and ordered that it would hear the modification motion on the merits after a discovery period. The district court affirmed this order.

After the completion of discovery, a referee heard the merits of the motion and ruled that a substantial change in circumstances had occurred, warranting a maintenance modification pursuant to section 518.64. The referee determined, however, that Frima had the capacity to earn $1,000 per month and thus increased maintenance to $1,500 per month rather than the $3,500 requested. The referee also made the award permanent because Frima had an uncertain future earning capacity. Finally, the referee awarded Frima $1,000 in attorney fees. The district court affirmed the referee’s order.

Howard appealed the jurisdictional decision and the decision on the merits. Frima appealed the decision on the merits and the decision on attorney fees. She claimed [503]*503that the court had abused its discretion by not awarding the requested amounts.

The court of appeals affirmed the trial court. Karon, 417 N.W.2d at 720. This court granted Howard’s petition for further review which, like the arguments before the court of appeals, presented only jurisdictional issues. Frima never filed a petition for further review.

The parties have confused and compounded numerous issues, but we believe the question before us is whether one of the adult parties to a stipulation in a dissolution matter made in 1981, which was approved by the trial court and which settled all issues, including maintenance, and which further provided that the parties expressly waived any right to maintenance except as provided in the original agreement, may now re-open the issue of maintenance to seek an increase therein. The trial court allowed reconsideration of the maintenance issue and the court of appeals affirmed. We reverse.

Howard argues that the terms of the original judgment and decree denied the court any further jurisdiction over the issue of maintenance. We agree. The language of the judgment and decree purports to divest jurisdiction. Section 518.64, however, states that the court may modify a maintenance award upon petition of a party. Minn.Stat. § 518.64, subd. 1 (1984). The court must decide, therefore, whether the maintenance issue was res judicata or whether the court correctly modified the maintenance award under section 518.64 regardless of the original order’s language.

Initially, the legal doctrines at issue need clarification. .Howard, in essence, argues that the form of res judicata known as direct estoppel precludes relitigation of the maintenance issue. Direct estoppel is issue preclusion in a second action on the same claim. Restatement (Second) of Judgment § 27 comment b (1982). The seminal issue, therefore, becomes whether the original decree constituted a final judgment in the dissolution on the maintenance issue.

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Cite This Page — Counsel Stack

Bluebook (online)
435 N.W.2d 501, 1989 Minn. LEXIS 23, 1989 WL 6601, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marriage-of-karon-v-karon-minn-1989.