Marriage of O'Connell CA4/3

CourtCalifornia Court of Appeal
DecidedApril 22, 2014
DocketG047362
StatusUnpublished

This text of Marriage of O'Connell CA4/3 (Marriage of O'Connell CA4/3) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marriage of O'Connell CA4/3, (Cal. Ct. App. 2014).

Opinion

Filed 4/22/14 Marriage of O’Connell CA4/3

NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FOURTH APPELLATE DISTRICT

DIVISION THREE

In re the Marriage of LUZ M. and JAMES J. O’CONNELL.

LUZ M. O’CONNELL, G047362 Respondent, (Super. Ct. No. 05D001049) v. OPINION JAMES J. O’CONNELL,

Appellant.

Appeal from a judgment of the Superior Court of Orange County, Richard Vogl, Temporary Judge. (Pursuant to Cal. Const., art. VI, § 21.) Affirmed in part and reversed in part. Law Offices of William J. Kopeny and William J. Kopeny for Appellant. Law Offices of Kersten & Associates, William C. Kersten and Brandon R. Creel for Respondent. This is a divorce proceeding. Appellant James O’Connell (James) appeals from a judgment that divided certain property, determined spousal support, and awarded attorney fees and sanctions. On appeal, James challenges the trial court’s division of the family residence, its determination of the date of separation, and its imposition of sanctions. We reverse the trial court’s division of the family residence, and affirm in all other respects.

FACTS

James is an experienced electrician. Respondent Luz O’Connell (Luz) is a house cleaner and crossing guard. The parties married in January of 1994. During the marriage, James handled all of the parties’ finances. That spring they purchased a home (the Salcedo property) for $187,900. James made a down payment of $37,580 using separate property funds and took title as his sole and separate property. Shortly thereafter, Luz signed a document entitled “Interspousal Transfer Grand Deed” purporting to grant the residence to James as his sole and separate property. Luz signed it, but testified that James misrepresented the nature of the document, claiming it was just a form the bank needed and that the Salcedo property was in fact community property. Luz signed it on April 11, 1994, but the document was not notarized until May 11, 1994. In 2000, James commenced a partnership with his brother in Lake Forest Electric, a company performing electrician services. There were no other employees, and the business operated largely in cash. In August of 2002 the parties purchased another residence (the Boltana property), taking title as husband and wife, joint tenants. At trial James claimed the $98,000 down payment was financed by a loan from his brother. However, the money

2 came from a certain Mark Tage and James repaid Tage directly. The alleged loan was not documented. The court found the loan was based on the credit of the community. Three months later, the Salcedo property (the old residence) was sold for $400,000 for a net gain of $173,300. These funds were used to repay the $98,000 loan for the down payment on the Boltana property. In 2003 the Boltana property was refinanced and a new debt of $252,000 was created. The court found this loan was extended in reliance on community credit. In February of 2005, Luz filed this divorce action, listing the date of separation as February 3, 2005. James was served four days later. The court found that the parties reconciled later that year (which James disputed at trial). Although no further action was taken on the petition until shortly before Luz filed an amended petition in 2010, the original petition was never dismissed. Between 2005 and 2010, the time during which James claims the parties had separated, the parties lived together, slept in the same room, filed joint tax returns, went on family cruises together, took Christmas photos, and had “normal marital relations.” They also remodeled their home, installing a new driveway, installing slate in the backyard, and remodeling two bathrooms. In 2006 James sought a California Law Enforcement Telecommunications System Restraining Order against a woman, seeking protection for both him and Luz. Between 2005 and 2010 the parties filed tax returns reporting income ranging from $12,230 to $26,956, primarily in rental income. James reported virtually no income from his electrician business. The court found no credibility in any of these tax returns, stating: “The expense of the lifestyle of the parties was well in excess” of the reported income.

3 During the same period, James purchased real estate, sold stocks, and bought and sold collector vehicles, including a Ferrari and Mercedes. In one instance, he sold a car for $22,000 but agreed with the buyer to lie on the bill of sale by stating the sale price was $15,000. He also withdrew $30,000 (in three separate $10,000 withdrawals) from community accounts for his own personal expenses without telling Luz. In April of 2010, James moved out of the family home and began to live in a mobile home. “Although [James] testified that this mobile home was owned by his 1 brother, when his brother testified, the brother testified he never owned a mobile home!” “During 2010, [James] sold his Ford truck for $11,000, and purchased another truck (GMC) for $22,000. [James] first testified that the additional $11,000 to make the purchase was a gift of cash from his brother, but later he indicated a withdrawal from the investment accounts.” During 2010 James also bought a 2003 Mercedes and took money out of community accounts without Luz’s knowledge or permission, never providing an accounting of the funds. James continued to make house, car, and insurance payments for Luz. In September of 2010 Luz filed an amended petition for dissolution of the marriage, listing the date of separation as April 23, 2010. James, in his response, continued to list the date of separation as February 3, 2005. Shortly thereafter James “signed under penalty of perjury an income and expense declaration wherein he stated that he was a ‘50%’ partner in the business known as Lake Forest Electric. He asserted that his income was $1,677 per month, but that his estimated personal monthly living expenses added to $3,832. [James] stated he had paid his attorney $7,500. No explanation has been given to the court of the source of the

1 Unattributed quotes throughout this statement of facts are to the court’s statement of decision.

4 attorney fees paid. Without any evidence, [James] estimated the income of [Luz] in the ‘housecleaning business and as a crossing guard’ at $3,700 monthly!” The court entered a dissolution status judgment in July of 2011. Shortly thereafter, James married his girlfriend. James’s new wife encountered some legal difficulties and James agreed to hold $40,000 cash to help her evade creditors. In similar fashion, James’s father agreed to hold title to James’s Mercedes to help him evade his obligations in this proceeding. When asked why he was holding title, James’s father awkwardly explained, “I think he was having difficulties at home.” In 2011 James purchased a Mercedes Benz C 230 for the parties’ daughter. In May of 2012 the underlying trial commenced and continued over three nonconsecutive days. The parties presented direct testimony by declaration, with live cross-examination. After trial, the court issued a detailed statement of decision. The court first found that James was not a credible witness. “In this case, the court found the testimony of [James] to be without much truth. . . . [T]he court has extremely serious doubts about the integrity of his evidence. . . .

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