McCullough v. McCullough

811 So. 2d 124, 1 La.App. 5 Cir. 1087, 2002 La. App. LEXIS 493, 2002 WL 272323
CourtLouisiana Court of Appeal
DecidedFebruary 26, 2002
DocketNo. 01-CA-1087
StatusPublished
Cited by1 cases

This text of 811 So. 2d 124 (McCullough v. McCullough) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCullough v. McCullough, 811 So. 2d 124, 1 La.App. 5 Cir. 1087, 2002 La. App. LEXIS 493, 2002 WL 272323 (La. Ct. App. 2002).

Opinion

.CANNELLA, Judge.

Defendant, Steven L. McCullough, appeals from the trial court judgment which partitions the community of acquets and gains formerly existing between him and Plaintiff, Cindy R. McCullough. For the reasons which follow, we affirm in part, amend in part and render judgment.

The parties were married on September 27, 1996 and physically separated on September 20, 1998. Plaintiff filed a Petition for Divorce on September 28, 1998. A final judgment of divorce was rendered on April 28, 1999, effectively terminating the community on the date which the petition [126]*126was filed, September 23, 1998. On June 26, 2000, Plaintiff filed a Petition for Partition. During the existence of their marriage, the parties acquired various assets and liabilities which comprised their community of acquets and gains and some of the values were in dispute. Additionally, Defendant had been involved in an automobile accident during the marriage wherein he sustained personal injuries. The matter was settled on April 1,1999 for the lump sum amount of $105,000. How much, | Bif any, of the settlement proceeds comprised part of the community was at issue. Finally, there was a dispute over several claims for reimbursement that Plaintiff had made regarding separate funds she allegedly had used on community obligations. On February 16, 2001, following trial, the trial court resolved the value disputes and reimbursement claims and rendered judgment. It is from this judgment that Defendant appeals and Plaintiff has answered the appeal.

On appeal, Defendant assigned four errors. First, he argues that the trial court erred in partitioning his personal injury settlement proceeds and finding that $87,729.88, the amount of his medical bills claimed in his personal injury suit, comprised a community asset, without taking into consideration which, if any, bills were actually paid by the community.

La C.C. art. 2344 provides:

Damages due to personal injuries sustained during the existence of the community by a spouse are separate property.
Nevertheless, the portion of the damages attributable to expenses incurred by the community as a result of the injury, or in compensation of the loss of community earnings, is community property. If the community regime is terminated otherwise than by the death of the injured spouse, the portion of the damages attributable to the loss of earnings that would have accrued after termination of the community property regime is the separate property of the injured spouse.

Defendant argues that for a portion of his personal injury settlement to be considered community, it must be proven that the community actually incurred the expenses, that is, that the community paid the bills. In other words, if, as he alleges here, his medical bills were paid from his separate estate, by his insurer or advanced by his attorney and deducted from his settlement proceeds, then he does not owe the community for the amount of those bills, because the 1 ¿community incurred no debt as relates to those bills. The article does not dictate that the part of the settlement equal to the amount of the medical bills is considered community property, but rather, it provides that the part of the settlement “attributable to expenses incurred by the community” shall be considered community property. We find merit in Defendant’s argument.

As noted in The Louisiana Civil Law Treatise on Matrimonial Regimes, Spaht & Hargrave, Vol 16, § 3.21, p. 98, the purpose of the second part of article 2344 is to prevent a spouse from increasing a separate estate at the expense of the community. In other words, if the community pays the expenses for the injury, like medical bills, then the community should be reimbursed from any damages obtained from the personal injuries which would otherwise be his separate property, so that the injured spouse’s separate estate is not increased by the corresponding loss to the community. The recovered amount, in repayment for these community expenditures, should not go to the injured spouse’s separate estate. We find that the reverse is also valid. If the community does not pay the expenses resulting from the injury, [127]*127like the medical bills, then the community is owed no reimbursement.

Applying the above herein, we find merit in Defendant’s argument that the trial court erred in awarding, as a community asset, the amount of the medical expenses related to his injury, without regard to whether the medical bills were actually paid by the community. In doing so, the trial court effectively increased the community at the expense of Defendant’s separate estate. Upon review of the record, we find that there was no evidence presented to show that the community paid any of Defendant’s medical bills. To the contrary, he testified that none of his medical bills were paid by the community. He testified, with supporting |Bexhibits, that some of his medical bills were paid by his insurer and some of his medical bills were paid by his attorney and/or guaranteed by his attorney and deducted from his settlement proceeds before he was given the remainder of the settlement funds. No community funds were used to pay his medical bills. Plaintiff testified that she thought some co-payments of $10 per visit might have been paid by the community and perhaps some prescriptions, but she could not state an amount and presented no proof to support these assertions. Further, no community debt representing any unpaid medical expenses was listed in Plaintiffs sworn descriptive list. Therefore, based on the record, we find that the trial court erred in finding that the amount of the medical bills resulting from Defendant’s accident ($37,729.88) was a community asset and in awarding Plaintiff an amount equal to & of that amount. Further, we set aside that award of $18,586.81 to Plaintiff.1

Next Defendant argues that the trial court erred in awarding Plaintiff $1,017 as reimbursement on her claim that $2,034 of her separate funds were used for community expenses. Defendant argues that she failed to meet her burden of proof on this expenditure. We disagree.

Plaintiff testified that she deposited a separate funds check of $2,034 into the community checking account, which was received for a damage claim to her separate property. She further testified that the funds were then spent on a $1,900 bill for tires and rims for the community vehicle and the remainder was used to pay a community debt for a trip which the parties took. This testimony was not contradicted. Thus, the record supports a finding that $2,034 of | ^Plaintiffs separate funds were used to pay community expenses. We find no error in the trial court order that Ms. McCullough be reimbursed one-half of this amount, which equals $1,017.

Next, Defendant argues that the trial court erred in awarding Plaintiff $1,425 reimbursement, on her claim that $2,850 of her separate funds were used for community expenses. He again argues that she failed to meet her burden of proof on this expenditure. We disagree.

Plaintiff testified that she deposited into the community checking account a check in the amount of $4,522, which was her separate funds, received in payment for the sale of her separate property. She further testified that a portion of the funds, $2,850, was then spent on the purchase of a community vehicle. This testimony was essentially uncontradicted. Thus, the record supports a finding that $2,850 of Plaintiffs separate funds were used on a community [128]*128expense.

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Bluebook (online)
811 So. 2d 124, 1 La.App. 5 Cir. 1087, 2002 La. App. LEXIS 493, 2002 WL 272323, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccullough-v-mccullough-lactapp-2002.