Ouellette v. Ouellette

2020 Ohio 705, 152 N.E.3d 528
Ohio Court of Appeals·Decided February 28, 2020·No. E-19-017·Published·Cited by 10 cases

Opinion

IN THE COURT OF APPEALS OF OHIO SIXTH APPELLATE DISTRICT

ERIE COUNTY

Darlene R. Ouellette Court of Appeals No. E-19-017 Appellant Trial Court No. 2016-DR-077 v. Johnnie E. Ouellette DECISION AND JUDGMENT Appellee Decided: February 28, 2020

*****

Danielle C. Kulik, for appellant.

Kyle R. Wright and Zachary E. Dusza, for appellee.

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ZMUDA, P.J.

{¶ 1} This matter is before the court on appeal from the judgment of the Erie County Court of Common Pleas, Domestic Relations Division, granting defendant-

appellee’s motion for relief from judgment and entering a new order concerning property distribution, based on a finding of mutual mistake. For the reasons that follow, we reverse and remand for further proceedings.

I. Facts and Procedural Background

{¶ 2} Appellant, Darlene Ouellette and appellee, Johnnie Ouellette were married in 1994, and have three children, born August 19, 1995, September 21, 1996, and September 10, 1999. On June 24, 2016, appellant filed a complaint for divorce. Appellee filed a counterclaim for divorce with his answer. The matter proceeded through discovery, with the trial court addressing various discovery disputes. Two months before the scheduled trial date, the parties engaged in a settlement conference at the offices of appellant’s attorney.

{¶ 3} After a successful settlement conference, the parties entered into a stipulated judgment entry and divorce decree, resolving all matters in controversy. The trial court placed the agreement on the record, at hearing on April 18, 2017, with the divorce decree journalized April 20, 2017. As agreed, appellant received the marital home, and appellee received $110,000 from appellant’s OPERS account, ordered as follows:

4.06(N). One Hundred and Ten Thousand Dollars ($110,000.00)

from [appellant’s] O.P.E.R.S. account, which [appellant] shall cooperate with [appellee], and [appellee] shall cause to be transferred to a drop account in his name by a Division of Property Order (D.O.P.O.), within ninety (90) days or be forever barred, with costs, expenses, and taxes allocated to [appellee].

Appellant’s attorney explained the language stricken from the entry to the trial court, at hearing, as follows:

There was a provision in here, which has been crossed out, and the parties understand that and are in agreement to that, that it was going to be within 90 days, but we understand this is not a quick process –

{¶ 4} After entry of the divorce decree, the parties learned that appellee could not receive any distribution from appellant’s OPERS account until she actually retired. The disbursement to appellee, moreover, would be in periodic payments after appellant retired.1

{¶ 5} Upon learning that a lump sum from appellant’s OPERS account was impossible, counsel for appellee suggested payment of the lump sum from appellant’s deferred compensation account, which he believed contained sufficient funds, but appellant refused. When appellant indicated no present intention to transfer any funds to appellee, he filed a motion for relief from judgment, pursuant to Civ.R. 60(B)(1), arguing mutual mistake.

{¶ 6} Appellee requested either an award against appellant’s deferred compensation account in the amount of $110,000 in order to remedy the mistake, or an

1 Appellant is in her mid-40s with 23 years of service, and the earliest she will be eligible for retirement is at 55 years old. Appellee is much older, by more than a decade, and would be around 70 years old by the time appellant reached her retirement eligibility. At hearing on appellee’s motion for relief from judgment, appellee argued this age difference as supporting the lump sum agreement, as appellee contemplated not surviving until appellant’s retirement.

order vacating the entire property settlement so the parties might negotiate a new settlement, arguing the lump sum payment was a material term of the settlement agreement. Appellant opposed the motion, arguing any award against her deferred compensation account would be a modification to the property division without proper reservation of jurisdiction. She also argued lack of mutual mistake, and that immediate payment of the $110,000 was never a term of the parties’ agreement.

{¶ 7} The trial court held an evidentiary hearing on the motion, and counsel for appellee and the parties testified regarding their understanding of the terms of the property settlement. Appellant and appellee each testified that they understood appellee would receive a present lump sum payment of $110,000, mistakenly believing that OPERS would distribute the funds from appellant’s OPERS account. Appellant testified regarding a lump sum payment, stating:

Well, I guess I’m learning today that he can’t have a lump sum award. Prior to that, I was under the impression that it was going to go into a drop account and that he would get it out of there and that was - - that was my understanding is that the 110,000 would go into a drop account and then he would draw money from there. If he drew it all or he drew it monthly, you know, I wasn’t privy to that. I just knew that he was going to get 110,000 out of my retirement account.

She also acknowledged that the purpose of consulting with an expert was “to see if he could get a lump sum of my retirement.”

{¶ 8} After considering the testimony and existing authority, the trial court found either mutual mistake or unilateral mistake, preventing formation of a valid agreement between the parties regarding property division. The trial court granted the motion for relief, but rather than vacate the entire property award or order payment from appellant’s deferred compensation fund, as requested, the trial court vacated only the portion of the decree that ordered distribution from appellant’s OPERS account. Additionally, the trial court entered an order that appellant pay appellee the lump sum of $110,000, within six months, without specifying the source of the funds. Appellant now appeals that judgment, asserting the following assignments of error:

1. THE COURT ERRED IN FINDING IT HAD JURISDICTION TO MODIFY THE PROPERTY DIVISION 2. THE COURT ERRED GRANTING THE MOTION FOR CIV.R.

60(B) RELIEF.

3. THE REMEDY THE COURT ORDERED WAS CONTRARY TO LAW AND THE TIMING OF DISBURSEMENT WAS AN ABUSE OF DISCRETION.

II. Analysis

{¶ 9} The trial court granted appellee relief from judgment, as provided under Civ.R. 60(B)(1), based on mutual mistake. In appealing the judgment, appellant argues the trial court was without jurisdiction to modify the property division, erred in granting

Civ.R. 60(B) relief, and ordered a remedy that was both contrary to law and an abuse of discretion.2 We address each assignment of error in turn.

A. Jurisdiction to Modify

{¶ 10} In her first assignment of error, appellant challenges the trial court’s jurisdiction in modifying the agreement pursuant to Civ.R. 60(B). “Civ.R. 60(B) is a mechanism whereby a party or parties may obtain relief by motion from a judgment or order.” In re Whitman, 81 Ohio St.3d 239, 242, 690 N.E.2d 535 (1998). The Rule strikes a balance between the finality of judgments and a perfect result “by vesting the courts with broad, but not unlimited authority to set aside judgments.” Knapp v. Knapp, 24 Ohio St.3d 141, 145, 493 N.E.2d 1343 (1986).

{¶ 11} Appellant first argues that the trial court failed to retain jurisdiction to modify the property distribution, and Civ.R. 60(B) does not apply where the trial court does not specifically reserve jurisdiction in its judgment. Appellant’s argument frames the issue as statute supplanting application of Civ.R. 60(B) in its entirety. In support, appellant references the change of circumstances and reservation of jurisdiction requirements under R.C. 3105.18, as addressed in Morris v. Morris, 148 Ohio St.3d 138, 2016-Ohio-5002, 69 N.E.3d 664.

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Ouellette v. Ouellette, 2020 Ohio 705, 152 N.E.3d 528 (Ohio Ct. App. 2020).

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