Newey v. Newey

421 P.2d 464, 161 Colo. 395
CourtSupreme Court of Colorado
DecidedJanuary 9, 1967
Docket20876
StatusPublished
Cited by11 cases

This text of 421 P.2d 464 (Newey v. Newey) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Newey v. Newey, 421 P.2d 464, 161 Colo. 395 (Colo. 1967).

Opinions

Opinion by

Mr. Justice Moore.

Myrtle L. Newey, to whom we refer herein as plaintiff, brought a divorce action against Lowéll D. Newey, to whom we refer as defendant. The plaintiff also sought division of property, alimony, attorney fees and restoration of her former married name of Myrtle L. Mahoney.

Defendant filed an answer and cross-complaint which was later withdrawn by him, and the action was disposed of on March 16, 1961, as a noncontested divorce matter. At that time a decree was entered. The other issues concerning division of property, alimony, and attorney fees were reserved for further hearing. At a much later date, after an extended hearing by one judge (who granted a new trial) and a further hearing by a second judge, plaintiff was granted a judgment for alimony in the sum of $300 per month and attorney fees. Defendant is here by writ of error to reverse the trial court’s decision, relying upon an alleged settlement agreement whereby plaintiff, for a consideration of $50,000 and other valuable consideration, released all claims against him.

To afford a proper understanding of this opinion we give the following resume of the facts leading up to the present controversy. Prior to the fall of 1957 the plaintiff had been married four times. Each of her [398]*398former matrimonial ventures terminated in the divorce courts. She was by trade a beautician, and by profession a pharmacist. Up to the fall of 1957 she had accumulated a considerable amount of assets. Defendant had been for several years engaged in the insurance business, and during this period of time had also participated in some speculative activity in oil, mining, and other business pursuits. He had become interested in, and had spent considerable time, money and effort in gathering information and data for the creation of a life insurance company, and finally had decided to launch such a venture in the State of Montana. A sales partnership was formed between himself and one John Mellor for the purpose of expediting the sale of stock in the proposed insurance company. This partnership did business as the Montana Securities Company. The defendant brought about the incorporation of the United Reserve Underwriters Corporation which was the underwriting company for the sale of the stock issue of the United Reserve Life Insurance Co., which latter company was also incorporated and organized by him with the assistance of his attorneys. Defendant and John Mellor, as partners of Montana Securities Co., organized a sales force to sell the stock. The stock promotion was a complete success. The United Reserve Life Insurance Co. was thereupon licensed and began selling life insurance in Montana.

In the meantime, and in the fall of 1957, plaintiff age 46 and defendant age 51 entered into a meretricious relationship. They went to Billings, Montana, where they lived together openly as husband and wife. On May 26, 1959, they formalized their relationship with a civil marriage ceremony.

By July of 1960, the promotion of the United Reserve Life Insurance Company was completed and defendant sold his interest therein for the sum of $375,000 to American Pacific Life Insurance Company. The purchase of this stock was negotiated by one Jack Turner [399]*399on behalf of the purchaser, and those negotiations were started in June of 1960. Plaintiff and defendant had come to a parting of the ways either some time during the negotiations for the sale of defendant’s stock or shortly thereafter. Plaintiff was living in Billings, Montana, and defendant had returned to Denver, Colorado, before the completion of the stock sale.

Jack Turner saw Mrs. Newey several times in Billings, after the aforementioned business purchase was made by the company which he represented. He acted as an intermediary in affecting a settlement between plaintiff and defendant, and testified, inter alia, as follows:

“A. I had several conversations with Mrs. Newey, some at her home, some in the Northern Hotel. The one I am referring to is a conversation I had with Mrs. Newey sitting in the Northern Hotel in Billings, Montana.

* * *

“Q. And what was that conversation as near as you can recall?

“A. Well, Mrs. Newey told me that she wanted some money from Mr. Newey, and I asked her what for and she said she wanted a property settlement from Mr. Newey because she felt that she deserved it, and I said, well, I didn’t know anything about their personal problems and I would rather not get into it. She said, well, she was either going to get it or she was going to tell all she knew about the company, something that went on, or some things that went on that were not the way it should have been handled. I didn’t want to get our company in trouble since we had just invested $375,000 in this venture, and until we had time to check out whether this was true or wasn’t true, I wanted to settle the whole affair.

“A. As near as I can recall, Mrs. Newey wanted $50,000 and a divorce.

[400]*400“Q. Did she make some such statement to you?

“A. She did, sitting in the Northern Hotel at a little cocktail table there.

* *

“THE COURT: Just a minute. Did you say she said she wanted $50,000 or a divorce?

“THE WITNESS: And a divorce.

The witness then went on to tell that he called Mr. Newey in Denver and had several conversations with him about Mrs. Newey’s demands. The following testimony is indicative of what further took place:

“A. At first he agreed to do nothing, until after several conversations and talking to Mrs. Newey, and he finally eventually agreed to give her the money if I would bring the release, the proper release down, or the settlement down with me to Denver, he would then give her the money. That was the arrangement that was arrived at.

“A. I went back to Mrs. Newey and told her that I had it pretty well worked out, and if she would draw up the property settlement I would present it to Mr. Newey, pick up the check or the cash and —

“Q. As a result of that, did she draw up any agreement or statement of any kind?

“A. Yes. Mr. John Mellor and myself went down to her house and met her at her home. She sat down with a pen and a piece of paper and wrote out a property settlement in her own handwriting.

“Q. I hand you Defendant’s Exhibit No. 2 and ask you to state what that is, if you know?

“A. That’s the very paper that Mrs. Newey wrote for us to have typed.

“Q. Now, you say for us to have typed. What was done about that paper which is marked Exhibit 2?

“A. We took it up to our office and handed it to the [401]*401girl and told her to type that word for word on a piece of paper, and she did.”

Exhibit 2 read as follows:

“July 27, 1960

“I Myrtle Newey hereby agree to receive from my husband L. D. Pat Newey $50,000.00 providing he L. D. Pat Newey relinquishes all claims of rights he might think he has to any or all property & things I Myrtle Newey solely own in any other state or states which was accumulated by me solely before marrying Mr. L. D. Newey.

“I further agree to forfeit any claims I have on anything Mr. Newey owns as of this date.

Mrs. L. D. Myrtle Newey”

Exhibit 1 was identified as the typewritten copy of Exhibit 2.

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Bluebook (online)
421 P.2d 464, 161 Colo. 395, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newey-v-newey-colo-1967.