Melanie Leigh Wallace v. Gregory Angus McFarlane

Court of Appeals of Texas·Decided August 22, 2013·No. 01-10-00368-CV·Published

Opinion

Opinion issued August 22, 2013

In The

Court of Appeals

For The

First District of Texas

by signing over her objections, a final divorce decree which contradicted and exceeded the scope of the mediated settlement agreement (MSA); (3) erred and abused its discretion by failing to order a stay of the judicial proceedings when it signed the order granting her motion to compel arbitration; and (4) erred by denying her motion to vacate or modify the final divorce decree and her motion for new trial on the basis that both motions were too general and unclear. For the reasons stated herein, we affirm as modified.

Background

McFarlane filed for divorce on April 27, 2005, and Wallace counter-filed on May 12, 2005. After over four years of acrimonious divorce proceedings, Wallace and McFarlane eventually entered into a binding, mediated settlement agreement (MSA) on November 4, 2009. At a hearing on November 25, 2009, the trial court approved the MSA and asked McFarlane’s counsel to prepare a draft of the decree based its terms. McFarlane and Wallace’s respective counsels exchanged at least five drafts of the proposed decree over the course of the next month. Although the parties disagreed about some of the terms included in the initially-circulated drafts of the decree, no attempt was made to arbitrate any of these disputes prior to the entry hearing.

The trial court held an entry hearing on December 29, 2009. At that hearing, the parties informed the trial court that they were generally in agreement with

respect to the terms of the proposed decree, with three or four exceptions that they wanted to discuss. According to Wallace, the latest draft decree circulated by McFarlane contained numerous unauthorized changes to the parties’ MSA. Attorneys for both parties and the amicus attorney representing the children discussed the challenged portions of the decree with the trial court and made hand- written changes to McFarlane’s latest draft.

During one such discussion, Wallace informed the trial court that the parties had agreed to arbitrate any disputes regarding the drafting and execution of the MSA and that she was reserving her right to arbitrate these disputes. Wallace did not, however, ask for a continuance or ask the trial court to refrain from signing a final divorce decree pending such arbitration. On the contrary, Wallace’s counsel advised the court that a final decree could still be signed that day and that if the arbitrator later determined that the decree differed from the terms agreed to in the MSA, he would simply file a motion for judgment nunc pro tunc to correct the error.1 At the end of the hearing, counsel for Wallace, McFarlane, and the children initialed each page of the decree with the hand-written interlineations, and signed that version of the decree “approved as to form.” The trial court signed the decree that same day (December decree).

1 We note that a judgment nunc pro tunc is one rendered to correct non-substantive clerical errors after the court loses its plenary power. See TEX. R. CIV. P. 316 (allowing correction of clerical errors in the judgment).

On January 21, 2010, Wallace filed a “Motion to Vacate and Alternative Motion for Additional Orders” in which she argued that the December decree contained a misstatement of the MSA and included injunctions that had not been agreed to at mediation. Wallace asked the trial court to either modify the existing decree or vacate the decree and enter a new decree correcting certain errors. One week later, on January 28, 2010, Wallace filed a motion for new trial asking the trial court to set the December decree aside and order a new trial because the evidence was legally and factually insufficient to support the trial court’s finding that the decree conformed to the terms of the MSA.

On March 2, 2010, Wallace filed a Motion to Compel Arbitration over whether the MSA required the children to attend therapy or counseling. Her motion did not challenge the validity of the December decree, nor did it raise any issues concerning any other provisions of the December decree—only the absence of an express provision requiring the children to attend therapy or counseling. After a hearing on March 9, 2010—for which there is no reporter’s record—the trial court granted the motion and ordered the parties to “mediate and/or arbitrate” before Maryellen W. Hicks, the mediator responsible for the drafting of the MSA. The trial court signed the order granting Wallace’s motion to compel on March 15, 2010—the same day Wallace’s motion for new trial and motion to vacate were overruled by operation of law. TEX. R. CIV. P. 329b(c) (stating motions for new

trial and motions to modify, correct, or reform judgment that have not been ruled on are overruled by operation of law 75 days after judgment signed). The arbitration, which was held on March 29, 2010, was unsuccessful. Notably, March 29, 2010 was also Wallace’s deadline to file her notice of appeal. TEX. R. APP. P. 26.1(a)(1) (stating that notice of appeal is due by 90th day from date final judgment signed if any party timely files motion for new trial, motion to modify judgment, or motion to reinstate).

On April 13, 2010, the trial court held a final hearing in this case. This was also the last day the trial court had plenary power and the 15th day after the deadline to file a notice of appeal in the case. At that hearing the trial court reconsidered and then denied Wallace’s motion for new trial. The trial court further stated that it was also denying Wallace’s motion to modify or vacate the judgment because, having denied Wallace’s motion for new trial, her only remedy was a motion to modify the judgment. See TEX. FAM. CODE ANN. § 156.001 (West 2008) (providing that court with continuing exclusive jurisdiction may modify order providing for conservatorship of, support of, possession of, or access to child), 156.101 (West Supp. 2012) (providing grounds for modifying order establishing conservatorship or possession and access).

Wallace filed her notice of appeal later that same day. Wallace later filed a motion to extend time to file her notice of appeal in which she offered some

explanation for her tardy filing. See Jones v. City of Hous., 976 S.W.2d 676, 677 (Tex. 1998) (stating that, under Verburgt rule, appellants must reasonably explain their need for an extension); Verburgt v. Dorner, 959 S.W.2d 615, 617 (Tex. 1997) (holding that motion to extend time is “necessarily implied” if appellant files notice of appeal within fifteen-day extension period). 2 Discussion

A. Effect of Order Granting Post-Judgment Motion to Compel Arbitration In her first issue, Wallace argues that the trial court intended to vacate or set aside its December decree when it ordered the parties to arbitration in March 2010, and thus, it effectively granted her motion for new trial and motion to vacate the December decree at that time. Wallace is also asking this Court to hold that, because the trial court effectively granted her motion for new trial and vacated the December decree, there is no final judgment in this case, and we should order “that the arbitration process should continue until it reaches a binding, final result.” 3

2 This Court previously dismissed Wallace’s appeal for want of jurisdiction based upon her failure to offer a reasonable explanation for her untimely appeal.

Unbeknownst to the Court, Wallace had filed a motion for extension of time in which she explained her need for an extension, but the Court had not been made aware of it before it dismissed the appeal. The Court granted Wallace’s motion for rehearing, withdrew our previous opinion and we set aside our previous judgment. TEX. R. APP. P. 49.3.

3 If, as Wallace argues, there is no final judgment in this case, we would have no choice but to dismiss her interlocutory appeal for want of jurisdiction.

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