Pursley v. Pursley

144 S.W.3d 820, 2004 Ky. LEXIS 225, 2004 WL 2127475
CourtKentucky Supreme Court
DecidedSeptember 23, 2004
Docket2001-SC-0936-DG
StatusPublished
Cited by26 cases

This text of 144 S.W.3d 820 (Pursley v. Pursley) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pursley v. Pursley, 144 S.W.3d 820, 2004 Ky. LEXIS 225, 2004 WL 2127475 (Ky. 2004).

Opinion

KELLER, Justice.

I. ISSUES

Under the parties’ Settlement Agreement (“Agreement”), William Hoyne Purs-ley (‘William Pursley”) agreed to pay child support greatly in excess of the Kentucky Child Support Guidelines and of his children’s reasonable needs. For that reason alone, the Court of Appeals held that the Agreement’s child support provisions were unconscionable. Are child support provisions in a settlement agreement unconscionable solely because they require support greatly in excess of the Guidelines or the children’s reasonable needs? Because we hold that parents may agree to provide child support beyond their legal obligations, we reverse the Court of Appeals and uphold the trial court’s finding that the Agreement’s child support provisions are not unconscionable and, thus, enforceable.

The trial court ruled that Sammye Sharen Walden Pursley (“Sharen Pursley”) is not entitled to prejudgment interest on child support and maintenance arrearages owed by William Pursley. The Court of Appeals agreed, ruling that the trial court acted within its discretion in denying prejudgment interest. Was the allowance of interest on the arrearages within the discretion of the trial court? Because we hold that prejudgment interest on child support and maintenance payments accrues from the day each payment becomes due under the Agreement or under the trial court’s temporary support and maintenance order-making the award of interest not discretionary-we reverse the Court of Appeals and remand to the trial court with directions to award interest on the arrearages.

II. BACKGROUND

In 1991, William Pursley filed a petition for dissolution of his marriage to Sharen Pursley. With the assistance of a lawyer, William and Sharen Pursley (“the Purs-leys”) negotiated an agreement settling the disposition of their property, maintenance, custody of their two children, support, and visitation. The trial court incorporated the Pursleys’ Agreement into a decree of dissolution entered later that year. Under the Agreement, Sharen Pursley was awarded custody of the parties’ children, and William Pursley agreed to pay “30% of all of his income from his salary and bonuses as evidenced by his federal income tax return ... as child support for the minor children of the parties.” The payments for the children would continue until such time as they turned eighteen (18) or graduated from college or graduate school, whichever was latest. He also agreed to pay the cost of undergraduate and graduate educations for the children at any school that they may choose in the United States. Addi- *822 tionaUy, he agreed to maintain the children’s medical and health insurance and to pay any medical and dental expenses not paid by insurance. The Agreement also provided that William Pursley would pay 10% of his income as maintenance to Sharen Pursley for life, unless she remarried. The Agreement stated that the total of William Pursley’s salary and bonus at that time was $135,000.00 and that child support would be “30% of the net proceeds.”

William Pursley made some payments in accordance with the Agreement. In 1992, however, Sharen Pursley sought relief from the trial court for William Pursley’s failure to pay child support and maintenance due under the Agreement. In 1993 and obviously in response to Sharen Purs-ley’s efforts to enforce the payment of child support and maintenance, William Pursley challenged the validity of the Agreement on the grounds that the trial court did not have jurisdiction when it entered the decree because neither of the parties had lived in the Commonwealth for 180 days prior to its entry. 1 This issue was not resolved until 1996 when the trial court, having decided it had lacked jurisdiction to enter the decree in 1991, 2 voided the decree 3 and entered a decree nunc pro tunc as of May 1992, reasoning that the jurisdiction requirement had been satisfied by that date. 4

In the interim, William Pursley sporadically complied with his support obligations under the Agreement and Sharen Pursley continued to pursue enforcement proceedings. In 1995, the trial court entered a temporary maintenance and support order directing him to pay $1,600.00 per month (support of $1,200.00 and maintenance of $400.00). William Pursley also failed to fully comply with the temporary order. The trial court dismissed the case in 1998 for inactivity the previous year, but reinstated it at Sharen Pursley’s request later in 1998.

The matter finally proceeded to trial in the summer of 1999, and the trial court found that the Agreement was not unconscionable and, therefore, enforceable. In later proceedings, the trial court found that William Pursley was in arrears in his child support and maintenance payments in the amount of $348,535.86 (a calculation based on his net income from his tax returns), but that the arrearages would bear postjudgment interest only.

*823 Although the Court of Appeals agreed with the trial court that the arrearages should only bear postjudgment interest, it found that the child support provisions of the Agreement were unconscionable. We disagree. We uphold the trial court’s finding that the Agreement is conscionable, but we also hold that the award of interest was not within the trial court’s discretion. Accordingly, we reverse the Court of Appeals.

III. ANALYSIS

A. Separation Agreement

In 1991, when the trial court first entered the decree dissolving the parties’ marriage, William Pursley did not contest the conscionability of the Agreement and the trial court made a perfunctory finding that the Agreement was “not unconscionable.” But the trial court set aside this finding when it later voided the 1991 decree. When William Pursley contested the conscionability of the Agreement, the trial court, after considering depositions and other evidence, including the testimony of the lawyer who prepared the Agreement, made extensive findings of fact and concluded that the Agreement was “not unconscionable.” The trial court’s findings show that it was familiar with the parties’ economic circumstances, and in support of its conclusion, the trial court noted (1) that William Pursley is “an educated and sophisticated businessman who had the strong desire to meet his moral and legal obligations to his wife and children”; (2) that the lawyer assisting the Pursleys “explained to [William Pursley] that ... child support ... [was] beyond what would be required by law”; (3) that the Agreement was the result of negotiations that “spanned some three weeks during which [William Pursley] insisted on deletion of some proposed provisions”; (4) that his decision was not the result of fraud, coercion, or overreaching; and (5) that the terms of the Agreement are not “manifestly unfair and unreasonable.” The trial court ruled that William Pursley had the burden “to show that [the Agreement] was unconscionable,” and “[a]bsent such proof the [A]greement must be upheld.” The trial court found that William Pursley’s proof was insufficient to support a finding that the Agreement was manifestly unreasonable and unfair and, therefore, unconscionable.

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Cite This Page — Counsel Stack

Bluebook (online)
144 S.W.3d 820, 2004 Ky. LEXIS 225, 2004 WL 2127475, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pursley-v-pursley-ky-2004.