Muse v. Muse

2009 NMCA 003, 200 P.3d 104, 145 N.M. 451
CourtNew Mexico Court of Appeals
DecidedNovember 13, 2008
Docket27,177; 27,281; 27,509; 27,944
StatusPublished
Cited by267 cases

This text of 2009 NMCA 003 (Muse v. Muse) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Muse v. Muse, 2009 NMCA 003, 200 P.3d 104, 145 N.M. 451 (N.M. Ct. App. 2008).

Opinion

OPINION

SUTIN, Chief Judge.

{1} Husband Jack Leroy Muse appeals from adverse rulings in an over-seven-year, bitterly fought marital dissolution. We remand on issues relating to Husband’s right to receive accountings and relating to his right to review documents and information underlying the special master reports. We also remand on an issue relating to attorney fees. We affirm on all other issues.

BACKGROUND

{2} Just half way through this case, the district court judge presiding at the time stated:

[Tjhis case is unparalleled in my experience as a trial lawyer and district judge. I have never had a ease with such a serious level of discord between the parties. Occasionally child custody cases reach significant levels of discord, but they pale in comparison to the protracted problems that Mr. and Ms. Muse have presented!.]

Over the course of the case, the court found Husband in contempt on five occasions and castigated Husband for his motives and conduct, apart from his contemptuous conduct. To say that the parties engaged in extensive motion practice would be an understatement.

{3} The parties were married in 1964. Wife Lana Carol Muse sought dissolution in December 2000. The court appointed a Rule 11-706 NMRA expert, Bruce Ritter, in May 2001 to report on asset values, debts, tax consequences, and liabilities. The dissolution and property issues were tried in February and March 2004. Important in this appeal are Mr. Ritter’s valuation report and his revised summary of entitlements and proposed distributions (revised summary), which placed values on the community estate’s net assets and contained a summary of the parties’ entitlements and proposed distributions.

{4} Notably, Mr. Ritter’s valuation report contained a summary of entitlements and proposed monetary distributions with three possible scenarios including a range of lowest possible, recommended, and highest possible net asset allocations to each party. Mr. Ritter recommended the amount of $357,000, which fell between the lowest, $175,000, and the highest, $425,000, possible scenarios. Anticipating disagreement between Husband and Wife, the valuation report concluded with a recommendation to the court that if the parties did not agree with the settlement proposed by Mr. Ritter, the court should appoint a receiver to oversee a court-ordered liquidation of the community estate. Mr. Ritter suggested that should the community estate be liquidated for a lower amount than the total-value estimate, the net proceeds from the liquidation should be allocated so that Wife had priority to receive her share of the community estate based on the $357,000 value and that Husband would then receive the remaining proceeds. A revised summary presented at trial showed $340,620 instead of $357,000 as Mr. Ritter’s recommended net asset allocation for each party.

{5} Following trial, Wife filed requested findings of fact indicating that Mr. Ritter had recommended approximately $340,000 as her share of the community estate, although she offered alternative requested findings that closely conformed to the net asset range of Mr. Ritter’s community share values set out in his revised summary. The court entered a March 2004 order dissolving the marriage and a separate March 2004 decision in which the court for the most part adopted Mr. Ritter’s findings and recommendations in regard to property valuations and distributions as contained in the valuation report and in the revised summary.

{6} The court also made several findings in regard to Husband’s conduct that clearly influenced the March 2004 decision and that appear to have influenced later determinations of the court. The court noted that it had previously found that Husband “exerted undue influence and placed [Wife] under duress when he had her sign an Agreement ... in which she conveyed her interest in [a business] to [Husband].” The court found that Husband “both before and during the pendency of this action ... made threats to [Wife] and conveyed threats to [Wife] through their children that she would get nothing if she hired an attorney, and that he would not work full time at the family businesses to ensure that she got nothing at the conclusion of the divorce.” The court found that Husband “made good on his threats to drive down the value of the family businesses and to increase the costs of litigation so that [Wife] would get nothing at the conclusion of their marriage.” The court also found that Husband used his control of family businesses to the detriment of Wife.

{7} In further findings, the court indicated that the value of one of the businesses that was community property “plunged precipitously” due in most part to Husband’s “unreasonable refusal to shut down” the business. The court also found that Husband made improper payments from one of the business accounts, incurred unreasonable expenses, and that other actions with respect to that business were “inconsistent with his fidueiary duty to manage [the business] during the pendency of the divorce.” In addition, the court found that in defending foreclosure actions “[Husband] hired counsel to defend only his interests,” paid the attorney fees through one of the businesses, “refused to have his counsel defend [Wife]” and, in addition, refused to settle the foreclosure actions “to keep the pressure on [Wife] to extract a settlement in the divorce proceedings to his benefit.” Also in regard to the foreclosures, the court found that Husband’s bad faith and breach of fiduciary duties in managing the businesses and in refusing to settle resulted in the loss of substantial savings that would have occurred had settlements been reached. The court further found that Husband had not attempted in good faith to settle the case before the court, thereby dramatically increasing Wife’s and his own attorney fees. Finally, the court found that Husband had “failed to comply with multiple [c]ourt orders in this case” and had taken other actions that also increased Wife’s attorney fees.

{8} Thus, we believe it is obviously based on Husband’s misconduct that the court in the March 2004 decision ordered that if Husband did not accept the proposed distribution of assets and debts set out in the decision, the court would appoint a receiver to take over management of and to liquidate all of the family businesses. The proceeds of liquidation would first be paid to satisfy Wife’s share of the community estate, and if that share were not satisfied, Husband’s separate estate was to be used to make her whole. The court did not state the specific amount of Wife’s share of the community estate. The court reserved jurisdiction to reconsider its awards of spousal support and attorney fees.

{9} Husband chose not to accept the court’s proposed distribution and stated that he believed there was no alternative available at that point except the forced liquidation of the parties’ assets. Whereupon, in May 2004, the court ordered that the assets to be received by Husband be passed to Wife to manage, oversee, and liquidate. The assets included family businesses, airplanes, and real estate.

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Cite This Page — Counsel Stack

Bluebook (online)
2009 NMCA 003, 200 P.3d 104, 145 N.M. 451, Counsel Stack Legal Research, https://law.counselstack.com/opinion/muse-v-muse-nmctapp-2008.