Pauline Ackermann, Respondent/cross App. V. Ronald Farrell, Appellant/cross Resp.
Opinion
IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON In the Matter of the Marriage of No. 86202-2-I PAULINE ACKERMANN DIVISION ONE
Respondent/Cross-Appellant, UNPUBLISHED OPINION
and
RONALD FARRELL, Appellant/Cross-Respondent.
SMITH, J. — Pauline Ackermann and Ronald Farrell divorced in December 2009. The separation contract required that Farrell pay off two shared lines of credit. When Farrell failed to do so, Ackermann had to pay.
In 2023, Ackermann moved in King County Superior Court to recover past payments and attorney fees and to require enforcement of Farrell’s payment obligations. A court commissioner denied Ackermann’s motion as time-barred. On revision, the trial court granted Ackermann’s motion but denied her request for attorney fees. Farrell appeals, asserting that Ackermann is time-barred from moving for enforcement. Ackermann cross-appeals, contending that the trial court erred in declining to award attorney fees.
We affirm and decline to award fees on appeal.
FACTS
Background
Pauline Ackermann and Ronald Farrell divorced in December 2009. They share one child. In September 2009, the parties entered into a CR 2A agreement addressing a parenting plan, a child-support award, spousal maintenance, and the allocation of assets and debts. The agreement provided that each party shall pay any and all obligations due on their received assets and hold the other party harmless with regard to those obligations.
Ackermann and Farrell also entered into a separation contract to be incorporated into the dissolution decree. Although the CR 2A agreement served to clarify the separation contract, the contract superseded the agreement in the event of any conflict.
The separation contract divided the parties’ property, granting Farrell the parties’ shared construction business, Cutter, Inc. The contract also obligated Farrell with responsibility for the parties’ two lines of credit. The first, their home equity loan, sat with Bank of America. The second, for the construction company, came through Key Bank. The contract noted that the debts were payable in installments, but that if Farrell failed to make the monthly payment, Ackermann could move to establish contempt. It also allowed for late fees, payable to Ackermann. Again, the contract included a hold-harmless provision. The dissolution court entered its decree in December 2009, incorporating the separation contract.
Enforcement Motion
In June 2023, Ackermann moved for enforcement of the separation contract, requesting reimbursement with interest and attorney fees, for payments she made on the debt obligations assigned to Farrell. Farrell had failed to make payments on either the Bank of America or Key Bank lines of credit, leaving Ackermann to either make the payments or jeopardize her own credit. Ackermann documented the $23,724.84 she paid Bank of America and the $49,461.89 she paid Key Bank. Despite providing the totals she paid, Ackermann requested reimbursement for only the prior six-year period, totaling $12,930.68 and $25,460.93 to Bank of America and Key Bank respectively. She also requested prejudgment interest and attorney fees based on Farrell’s intransigence. Farrell responded to Ackermann’s motion, asserting that Ackermann’s claim was time-barred.
Commissioner Determination A King County court commissioner reviewed Ackermann’s motion and, relying on RCW 4.16.020(2), determined that the motion was time-barred. The commissioner recognized the parties’ separation contract, as well as Ackermann’s evidence of Farrell’s failure to pay under that contract, but found that Ackermann had to have moved for enforcement within 10 years of the dissolution decree.
Motion for Revision
Ackermann moved for revision, asserting that “[t]he commissioner should have found that installment payments do not become judgments until they accrue
and are unpaid.” After reviewing both parties’ written submissions, the trial court ordered oral argument.
Following the hearing, the trial court granted Ackermann’s motion in part, treating Ackermann’s motion as a motion to enforce the dissolution decree rather than a claim for contempt or an independent breach-of-contract claim. Disagreeing that the motion was time-barred, the court determined that the 10- year limitation period under RCW 4.16.020(2) did not run until “a given installment in dispute has become due.” The court granted Ackermann $41,240.93, with an additional $14,263.62 in prejudgment interest. Finding that Farrell’s behavior had not reached the level of intransigence, the court did not award fees.
Appeal and Cross-Appeal
Farrell appeals. Ackermann cross-appeals. Both request fees.
ANALYSIS
Standard of Review
Following a trial court’s revision hearing on a commissioner’s ruling, we review the superior court’s determination. Faciszewski v. Brown, 187 Wn.2d 308, 313-14, 386 P.3d 711 (2016). We review a trial court’s interpretation of a statute de novo. Faciszewski, 187 Wn.2d at 313.
Timeliness of Enforcement Action Farrell asserts that Ackermann’s enforcement motion is time-barred because she did not bring the claim within 10 years of the specified, lump-sum payoff date. Ackermann contends that, because each installment payment has
its own limitation period that does not begin to run until the specific payment becomes due, she is still within that 10-year period. We agree with Ackermann.
RCW 4.16.020(2) provides that a party must bring an action upon a judgment or decree within 10 years unless the party extends the limitations period under RCW 6.17.020 or a similar provision from another jurisdiction. RCW 6.17.020 then establishes a 10-year nonclaim period for enforcement of a judgment, allowing a party to apply for a 10-year extension of that judgment within 90 days of the expiration of the original period. But when a contract or judgment “requires payment of debt by installments, ‘the [limitations periods] run[] against each installment from the time it becomes due.’ ” Merritt v. USAA Fed. Sav. Bank, 1 Wn.3d 692, 1030, 532 P.3d 1024 (2023) (quoting Herzog v. Herzog, 23 Wn.2d 382, 388, 161 P.2d 142 (1945)). A separate limitations period accrues and runs for each installment. Copper Creek Homeowners Ass’n v. Kurtz, 21 Wn. App. 2d 605, 616, 508 P.3d 179 (2022).
Farrell maintains that Ackermann’s claim is time-barred because the separation contract specified a full payout date of March 31, 2011. Accordingly, he maintains Ackermann needed to bring her claim by March 31, 2021, 10 years later. But Farrell mischaracterizes that contract language. The section of the separation contract that Farrell references provides that Ackermann may enforce a secured promissory note in case Farrell did not pay off the Bank of America debt by that date. But this is not an exclusive remedy, it is just an alternative enforcement mechanism.
Farrell also disregards that the separation contract specifies that he shall make monthly payments. Because a separate limitations period accrues and runs for each installment, Ackermann’s 10-year time frame existed on a rolling basis. And Ackermann only requests relief from the past six years – well within that 10-year period for enforcement. Because no preset total payoff date exists and each installment has its own limitations period, Ackermann is not time-barred from moving for any installment that became due less than 10 years from her enforcement action.
Fees at Trial
On cross-appeal, Ackermann alleges that the trial court erred in denying her request for attorney fees. Farrell does not address the issue. Because nothing in the record indicates Farrell was intransigent, the trial court did not abuse its discretion in denying Ackermann’s request for fees.
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Pauline Ackermann, Respondent/cross App. V. Ronald Farrell, Appellant/cross Resp. (Pauline Ackermann, Respondent/cross App. V. Ronald Farrell, Appellant/cross Resp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.