Marrita Murphy v. Daniel Jude Leveille

Court of Appeals of Texas·Decided May 5, 2020·No. 01-19-00790-CV·Published

Opinion

Opinion issued May 5, 2020

In The

Court of Appeals

For The

First District of Texas

relations order. She asserts that her former spouse, appellee Daniel Jude Leveille, failed to name her as the survivor beneficiary of his military retirement plan. In three issues, Murphy contends that the trial court erred in denying her motion and erred in concluding that she failed to invoke a deemed election for survivor benefit coverage.

We affirm.

Background

Leveille and Murphy were married in 1987. In 2000, Leveille completed 20 years of creditable military service. On April 22, 2001, Leveille, a colonel in the United States Air Force (Reserve) (“USAF”), submitted a Reserve Component Survivor Benefit Plan (“SBP”) election to the Defense Finance and Accounting Service (“DFAS”).2 Leveille’s SBP election named Murphy as spouse beneficiary. In 2005, Leveille filed a petition for divorce. On August 30, 2007, the parties entered into a Mediated Settlement Agreement (“MSA”). On August 31, 2007, the trial court took judicial notice of the MSA and rendered a divorce, to be reduced to a writing at a later date. On November 10, 2007, Leveille married Rhonda Leveille.

On January 18, 2008, the trial court signed a Final Decree of Divorce and a Domestic Relations Order, effectuating a property division between Leveille and

2 The Survivor Benefit Plan is a Department of Defense sponsored program that allows an eligible servicemember to elect to provide an annuity, payable upon the servicemember’s death, to a spouse, former spouse, or child. See 10 U.S.C.

§§ 1447–1455.

Murphy. Murphy moved to modify the decree, asserting that it did not comport with the terms of the MSA.3 The MSA provided that Murphy was to receive “1/2 of Respondent’s [Murphy’s] [sic] interest in [Leveille’s Federal Employees Retirement System (“FERS”)4 benefits] and [h]er 1/2 of the community portion of his USAF retirement with right of survivorship.”5 Murphy argued that the survivorship provision applied to both Leveille’s FERS benefits and to his USAF retirement, and thus the trial court erred in its decree and order in granting her a right of survivorship only in Leveille’s USAF retirement.6 An arbitrator ruled that Murphy was entitled to “survivor benefits” with respect to both the FERS and USAF plans and that if Murphy “were able to obtain a survivor’s benefit plan payable to her[], it would be necessary for her to do so at her own expense.”7 On March 24, 2008, the trial court rendered an Amended Final Decree of Divorce (“Amended Final Decree”). In the Amended Final Decree, the trial court awarded Leveille, as his sole and separate property, as pertinent here:

3 Murphy v. Leveille, No. 2-08-130-CV, 2009 WL 2619857, at *1 (Tex. App.—Fort Worth Aug. 26, 2009, no pet.) (mem. op.).

4 FERS is a civil service retirement plan that provides benefits from three different sources: Basic Benefit Plan, Social Security, and Thrift Savings Plan.

https://www.opm.gov/retirement-services/fers-information/.

5 Id. at *2.

6 Id.

7 Id.

5. All sums, whether matured or unmatured, accrued or unaccrued, vested or otherwise, together with all increases thereof, the proceeds therefrom, and any other rights related to or as a result of [Leveille’s]

service in the [USAF] . . . , including any accrued unpaid bonuses, disability plan or benefits, Thrift Savings Plan or other benefits existing by reason of or as a result of [Leveille’s] past employment prior to April 9, 1987, present, or future employment after August 31, 2007, except that portion of [Leveille’s] U.S. military retirement and Thrift Savings Plan that have been awarded in this decree to [Murphy] as more particularly specified in the domestic relations order signed coincident with this decree and incorporated verbatim in it by reference. Petitioner will not make any election under the [FERS] or the [USAF] Retirement Plan that would reduce the amounts awarded to [Murphy].

In addition, the trial court awarded Murphy, as her sole and separate property, as applicable here:

5. All sums, whether matured or unmatured, accrued or unaccrued, vested or otherwise, together with all increases thereof, the proceeds therefrom, and any other rights related to or as a result of [Leveille’s]

service in the [USAF] from date of marriage, that being April 9, 1987 up to date of divorce, that being August 31, 2007, and specifically excluding that portion of [Leveille’s] U.S. military retirement that has been awarded in this decree to [Leveille] as more particularly specified in the domestic relations order signed coincident with this decree and incorporated verbatim in it by reference.

The trial court further ordered that “each party shall [timely] complete any forms necessary to effectuate the terms” of the Amended Final Decree.

On July 1, 2008, the trial court signed an Amended Domestic Relations Order (“Amended DRO”),8 ordering that, although Leveille had not yet retired from the USAF, the following would apply to his future retirement benefits:

Award to Nonmember Spouse IT IS ORDERED that [Murphy] is awarded fifty percent of [Leveille’s] disposable military retired pay[9] the member would have received had the member become eligible to receive retired pay on August 31, 2007. . . . The parties stipulate that the date of marriage is April 9, 1987 and the date of divorce is August 31, 2007 . . . . IT IS FURTHER ORDERED that DFAS pay [Murphy] each month, to the extent allowed by law, the calculated percentage of [Leveille’s]

disposable retired pay at retirement, together with all cost-of-living adjustments applicable thereto, payable, IF, AS, and WHEN received by [Leveille].

....

Constructive Trust IT IS FURTHER ORDERED that [Leveille] be and is hereby designated a constructive trustee for the benefit of [Murphy] for the purpose of receiving the retired pay awarded herein to [Murphy] as [Murphy’s] sole and separate property, and [Leveille] be and is hereby ORDERED, on receipt thereof, to deliver by first-class mail to [Murphy] at her last known address by negotiable instrument that portion of each monthly retired pay payments awarded to [Murphy]

herein not paid directly (or by allotment) by DFAS within three days of the receipt of any such payments by [Leveille]. All payments made directly to [Murphy] by DFAS shall be a credit against this obligation.

8 A DRO “is a species of post-divorce enforcement order.” In re N.T.P., 402 S.W.3d 13, 23 (Tex. App.—San Antonio 2012, no pet.). Its purpose is to create or recognize an alternate payee’s right, or to assign an alternate payee the right, to receive benefits payable to a participant under a retirement plan. Id.

9 “Disposable retired pay” is the total monthly amount of retirement pay to which a member is entitled, less applicable exclusions. 10 U.S.C. § 1408(a)(4).

For purposes of this order, [Leveille] is specifically directed, on penalty of contempt, to pay [Murphy’s] interest in the disposable retired pay as ordered in this order, AND IT IS SO ORDERED. . . .

Death IT IS ORDERED that the payment of the disposable retirement pay awarded in this order to Murphy shall continue until the death of [Leveille] or [Murphy]. [Murphy] has the option of exercising her right of survivorship.

....

Retirement IT IS ORDERED that [Leveille] shall notify [Murphy] of his application for retired pay, and provide [Murphy] with a true copy of his Application for Retired Pay Benefits, on the date he applies for those benefits. . . .

Continued Jurisdiction and Clarification Without affecting the finality of the [Amended Final Decree] or [Amended DRO], this Court expressly reserves the right pursuant to section 9.101 et seq. of the Texas Family Code to make orders necessary to clarify, amend, and enforce this order, and IT IS SO ORDERED.

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Marrita Murphy v. Daniel Jude Leveille, (Tex. Ct. App. 2020).

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