Ouellette v. Ouellette

2020 Ohio 705, 152 N.E.3d 528
CourtOhio Court of Appeals
DecidedFebruary 28, 2020
DocketE-19-017
StatusPublished
Cited by10 cases

This text of 2020 Ohio 705 (Ouellette v. Ouellette) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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

Opinion

[Cite as Ouellette v. Ouellette, 2020-Ohio-705.]

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.

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].

2. 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. 3. 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.”

4. {¶ 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

5. 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

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Cite This Page — Counsel Stack

Bluebook (online)
2020 Ohio 705, 152 N.E.3d 528, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ouellette-v-ouellette-ohioctapp-2020.