Marriage of Merickel v. Merickel

414 N.W.2d 208, 1987 Minn. App. LEXIS 4929
Court of Appeals of Minnesota·Decided October 20, 1987·No. C2-86-1857·Published·Cited by 1 cases

Opinion

OPINION

WOZNIAK, Judge.

This is an appeal from the trial court’s denial of appellant Diana Merickel’s motion to vacate a dissolution judgment and decree. We affirm.

FACTS

In June 1983, pursuant to a stipulation, the marriage of appellant Diana Merickel and respondent Theodore (Ted) Merickel was dissolved by judgment and decree. The parties married in 1960, have no minor children, and have accumulated a sizable estate during their marriage.

The parties derived their income from the development and sale of residential and commercial real estate through corporations held in Ted’s name. The parties’ significant property holdings included commercial, residential, and apartment rental properties, as well as 60 to 70 undeveloped lots. Ted maintained primary responsibility for managing the parties’ real estate interests, while Diana acted as homemaker. However, she also held substantial *210 management responsibility for an apartment complex named “Chateau Joy” and held a management interest in a small card and gift shop known as “The Poppyseed.” For 18-19 years, Diana’s insulin-dependent diabetes condition remained stable, but the stress of the marital difficulties resulted in insulin shock episodes which required hospitalization.

In March 1983, following marital problems, the parties began discussing property division. Ted’s accountant aided in the property division, compiling a list of marital assets and assessing potential tax liabilities. He presented his analysis to the parties and proposed a distribution to minimize tax liabilities. The parties also met with an attorney, and it was agreed he would represent only Diana. Ted did not obtain an attorney. Diana’s attorney subsequently met with Ted a number of times to list and assess the marital property. The attorney also met with the parties’ accountant to review financial statements, tax schedules, and the proposed distribution.

Diana’s attorney found the initial distribution proposal unsatisfactory and the parties eventually negotiated the stipulated property division. The stipulation drafted by the attorney awarded Ted the majority of the large real estate holdings and some personal property. Diana was awarded the parties’ homestead, “The Poppyseed” business, certain property owned by Merickel Construction, Inc., a property settlement of $35,000, and additional personal property items. The division of certain personal property items and the denial of interest on the property settlement award were the subject of a prior appeal. Merickel v. Merickel, 401 N.W.2d 90 (Minn.Ct.App.1987).

In addition, Diana was awarded monthly payments of $6,000 for 20 years ($1,440,-000). Although the stipulation characterized these payments as maintenance, they remained payable notwithstanding her remarriage or death. The trial court noted that the payments could be characterized as part maintenance and part property settlement, but declined to change the characterization of the monthly award as listed in the stipulation. The attorney reviewed the stipulation with Diana prior to its execution. In addition, she stipulated to the terms in court, testifying that she believed the stipulation was a fair division of marital property.

In June 1983, the parties entered a contract for deed wherein Diana purchased for $622,000 the “Chateau Joy” apartment complex originally awarded to Ted. The contract was to be repaid by monthly payments of approximately $5,000 for 18 years. This transaction apparently was contemplated by the parties prior to the dissolution, with Ted desiring the tax advantages and Diana desiring the rental income and insured receipt of maintenance payments.

Following the purchase of the apartment complex, Diana wrote Ted a letter discussing the distribution of property which was not included in the dissolution judgment and decree. These “side agreements,” as termed by the trial court, were never revealed to Diana’s attorney.

In December 1983, Diana initiated this action requesting a vacation of the judgment and a new trial based upon fraud, and later amended to include duress and mistake. The trial court held there was no subject matter jurisdiction to vacate or modify the judgment under Rule 60.02 pursuant to Lindsey v. Lindsey, 388 N.W.2d 713 (Minn.1986), which was decided shortly after the hearing. However, after a 17-day hearing, the court concluded there was no fraud on the court and the administration of justice. Further, the court found the marital estate was equitably divided and that Ted made no misrepresentations of material fact or nondisclosures which constituted fraud or prejudice to Diana. The court concluded that Diana was competent during the pendency of the dissolution and represented by competent counsel. Finally, the court denied both parties' motions for attorney fees.

ISSUES

1. Did the trial court abuse its discretion in failing to vacate the dissolution judgment and decree or the stipulation?

*211 2. Did the trial court err in failing to award attorney fees?

ANALYSIS

1. Diana initiated her motion to vacate under Minn.R.Civ.P. 60.02. The rule permits relief from final judgment in certain circumstances, but specifically excludes “divorce decree[s]” from its purview. The trial court correctly noted that the supreme court has ruled that the exception regarding dissolution judgments is not solely confined to the part of the judgment severing the marriage, but affects the dissolution judgment in its entirety. Lindsey v. Lindsey, 388 N.W.2d 713, 716 (Minn.1986); Bredemann v. Bredemann, 253 Minn. 21, 24, 91 N.W.2d 84, 87 (1958). Undsey held that a dissolution judgment may be vacated only by showing fraud on the court and the administration of justice. Lindsey, 388 N.W.2d at 716 n. 1; see also Bredemann, 253 Minn. at 24, 91 N.W.2d at 87.

Diana claims the trial court improperly applied the Lindsey standard in a retroactive fashion because the hearing was completed prior to the decision. However, Lindsey merely interpreted the clear language of Rule 60.02. Further, this court has applied Lindsey to a number of cases in which the trial occurred prior to the supreme court’s decision. See Adams v. Adams, 393 N.W.2d 508 (Minn.Ct.App. 1986); Saturnini v. Saturnini, 390 N.W.2d 425 (Minn.Ct.App.1986).

The dissolution decree in this matter was based upon the stipulation between the parties. When a decree is based on an underlying stipulation, the issue of vacation is examined in light of the law on stipulations. Yeager v. Yeager,

Marriage of Merickel v. Merickel, 414 N.W.2d 208, 1987 Minn. App. LEXIS 4929 (Mich. Ct. App. 1987).

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