Rathborne v. Rathborne

999 So. 2d 816, 2008 WL 5192065
CourtLouisiana Court of Appeal
DecidedDecember 3, 2008
Docket2006-CA-1518, 2007-CA-0870
StatusPublished
Cited by6 cases

This text of 999 So. 2d 816 (Rathborne v. Rathborne) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rathborne v. Rathborne, 999 So. 2d 816, 2008 WL 5192065 (La. Ct. App. 2008).

Opinion

999 So.2d 816 (2008)

J. Cornelius RATHBORNE, III
v.
Carol Simmons RATHBORNE.
J. Cornelius Rathborne, III
v.
Carol Simmons Rathborne.

Nos. 2006-CA-1518, 2007-CA-0870.

Court of Appeal of Louisiana, Fourth Circuit.

December 3, 2008.

*818 Leslie A. Bonin, Kyle Schonekas, Patrick S. McGoey, Schonekas, Winsberg, Evans & McGoey, L.L.C., New Orleans, LA, for Plaintiff/Appellee (J. Cornelius Rathborne, III).

Daniel S. Mason, Zelle, Hofmann, Voelbel, Mason & Gette LLP, San Francisco, CA, Stephen B. Murray, Jr., Murray Law Firm, New Orleans, LA, for Defendant/Appellant (Carol Simmons Rathborne).

(Court composed of Judge MICHAEL E. KIRBY, Judge TERRI F. LOVE, Judge DAVID S. GORBATY, Judge EDWIN A. LOMBARD, Judge ROLAND L. BELSOME).

MICHAEL E. KIRBY, Judge.

Defendant/appellant, Carol Rathborne seeks review of two judgments, one dated June 27, 2006 and the other dated October 25, 2006.

STATEMENT OF THE FACTS

The parties were married on July 25, 1981 in East Hampton, New York. In 1989 they, moved to New Orleans. Two children were born of the marriage, John Campbell Rathborne ("Cam"), who reached the age of majority on November 25, 2001 and Alexis Simmons Rathborne ("Alexis"), who reached the age of majority on May 29, 2004.

On March 3, 1994, Mr. Rathborne filed for divorce in the matter entitled Rathborne v. Rathborne, No. 94-2523, Domestic Relations Section "1," Civil District Court for the Parish of Orleans, State of Louisiana. A Judgment of Divorce was entered on October 31, 1994. On May 3, 1995, the Civil District Court entered a Judgment ("1995 Child Support Judgment") reflecting the parties' agreements regarding alimony, custody, child support and community property.

After the divorce, Mrs. Rathborne became the domiciliary parent of the parties' children. Mrs. Rathborne remarried in 1998 and divorced again in 2002. Mrs. Rathborne alleges that her remarriage was an event that triggered a requirement that parties enter into subsequent negotiations. She further alleges that subsequent to her remarriage, there was yet another agreement involving alimony payments and additional expenses for the children. Mr. *819 Rathborne denies that any subsequent agreement exists.

The procedural history becomes convuluted at this point. In early March 2004, Mrs. Rathborne's counsel in California filed a Demand for Arbitration with the American Arbitration Association ("AAA"). On March 22, 2004, AAA responded noting that the Arbitration Clause contained in the 1995 Agreement did not designate AAA as the administering agency. While AAA was willing to perform this service, a waiver by both parties was required to circumvent the language of the 1995 Agreement. Mr. Rathborne declined to circumvent the 1995 Agreement and also argues that the alleged claims fell outside of the scope of the 1995 Agreement as Mrs. Rathborne was alleging arrears in activities and expenses and not the "reasonableness" of such expenses per the arbitration clause. Mrs. Rathborne dismissed the arbitration and did not seek to arbitrate again until after trial began.

Meanwhile, several times in various jurisdictions Mrs. Rathborne sued Mr. Rathborne regarding the May 3, 1995 Child Support Judgment alleging everything from breach of contract to contempt and seeking enforcement orders.

Thorough discovery was conducted, which produced records that Mr. Rathborne had made payments of his children's expenses for those years in excess of $857,771. After discovery, trial was conducted on January 25 and 27, and April 3, 4, and 5, 2006.

At trial Mrs. Rathborne offered an expert on social psychology and linguistics, Mr. Koenig, concerning a codicil to Mr. Rathborne's will.[1] After voir dire, the trial court ruled that it could interpret the codicil without his services.

Mrs. Rathborne testified at trial. She stated that she resides in Palm Beach, Florida, but also maintains an apartment in New York and a place in East Hampton, New York, Mrs. Rathborne is a graduate of Columbia University and also taught there. She was one of the first women in the corporate finance department at Solomon Brothers in New York and also worked at Citibank.

In 1980, while in California, she formed her own investment company, the Simmons Company, which specialized in investment banking and particularly asset-based transactions. In 1981, after her marriage to Mr. Rathborne, the family lived in Hillsborough, California. In 1988 they moved to New York until finally moving to New Orleans in 1989.

Mrs. Rathborne testified that she understood the 1995 Agreement to make a distinction between "expenses" and "activities." As regards the third paragraph of the 1995 Agreement's Section IV, concerning remarriage, she understood that the cash payments were structured as alimony payments so that Mr. Rathborne could get a tax deduction for them. Moreover, she stated that the corollary was that when she remarried:

... the cash component expenses for the children's expense would go away and there would be no cash. There would be no way to pay me their expenses.

Prior to remarriage, Mr. Rathborne paid alimony to Mrs. Rathborne in the amount of $21,000 per month, in addition to the tuition and medical expenses. In February of 1998, Mr. and Mrs. Rathborne met to discuss her possible marriage to Mr. *820 Ted Hamm. Mrs. Rathborne testified that those discussions led to a new agreement. Specifically she alleged that Mr. Rathborne agreed to pay for the children's summer "activities," such as culturally broadening trips to France, regattas in England, etc. Mrs. Rathborne testified that this alleged new agreement was reduced to writing and sent to her. She stated she signed it, but Mr. Rathborne never sent her a copy.

Mrs. Rathborne also testified that Mr. Rathborne failed to maintain a life insurance policy and did not notify her of its lapse. She also testified that Mr. Rathborne forgave a $150,000 note she owed him.

On cross examination, Mrs. Rathborne's high level of financial sophistication was evident and contrasted with the fact that she lost a contract worth $250,000 a year to her benefit. Also noted was the fact that Mrs. Rathborne kept a copy of the codicil document, but not the alleged new 1998 Agreement.

Mr. J. Cornelius Rathborne, III, testified that he was married to Mrs. Rathborne from approximately 1981 to 1995. Prior to marrying the appellant, he shad been married once before. Mr. Rathborne is engaged in commercial and some residential real estate development and he owns a substantial portion of the Rathborne Land Company.

Mr. Rathborne testified that he had forgotten to notify Mrs. Rathborne that the life insurance premiums had not been paid and that the insurance had lapsed in contravention of the 1995 Agreement. Nevertheless, he also stated he had directed the insurer to notify his former wife. On recross examination, Mr. Rathborne also denied that he ever told one of Mrs. Rathborne's attorneys that he forgave the $150,000 note.

After Mr. Rathborne's personal secretary testified, the trial court ruled orally that there was no agreement between the parties subsequent to the 1995 Consent Judgment. The trial court stated:

Mrs. Rathborne by her own testimony is a very well-educated woman. She has throughout these proceedings had the benefit of counsel in Louisiana, New York, Florida and California. There is no reason if there was a February/March, 1998 written agreement, Mrs. Rathborne or one of her attorneys would not have a copy.
Mrs.

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Cite This Page — Counsel Stack

Bluebook (online)
999 So. 2d 816, 2008 WL 5192065, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rathborne-v-rathborne-lactapp-2008.