Reed v. Reed

10 S.W.3d 173, 1999 Mo. App. LEXIS 2273, 1999 WL 1054114
CourtMissouri Court of Appeals
DecidedNovember 23, 1999
DocketNo. WD 56601
StatusPublished
Cited by14 cases

This text of 10 S.W.3d 173 (Reed v. Reed) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reed v. Reed, 10 S.W.3d 173, 1999 Mo. App. LEXIS 2273, 1999 WL 1054114 (Mo. Ct. App. 1999).

Opinion

LAURA DENVIR STITH, Judge.

Appellant Neysa L. Day appeals the lower court’s order in an action for contempt and petition for interpleader brought by Respondent Janice Reed. The court granted priority to Ms. Reed’s claim of set-off over Ms. Day’s attorney’s lien that arose out of the prior dissolution action between Mr. and Ms. Reed. Because the contempt action and the dissolution action arose out of the same or similar subject matter, we find that the claim of set-off has priority over Ms. Day’s lien, and affirm that part of the lower court’s decision. We also find, however, that the trial court abused its discretion in awarding Ms. Reed attorney’s fees incurred in defending against Mr. Reed’s contempt action and in filing an interpleader action, and remand for recalculation of those fees.

I. FACTUAL AND PROCEDURAL BACKGROUND

Seeking to dissolve his marriage with Ms. Janice Reed, and after discharging bis original counsel, Mr. Reed engaged Ms. Day as counsel. As part of their engagement agreement, Mr. Reed agreed to pay Ms. Day $140.00 per hour in addition to reimbursement for all expenses.

On January 27, 1998, a visiting judge dissolved the marriage and divided the marital property. In order to equalize the division of the marital property, the lower court ordered the following in relevant part:

The judgment ordered that Ms. Reed “proceed to endorse, sign, execute and complete all necessary documents and applications to receive” the educational reimbursement check due to her from the City of Kansas City, in the amount of $9,937.50, within 7 days of receiving her grades for each respective semester. According to the order, within 5 days of the receipt of each reimbursement check, Ms. Reed was required to negotiate it to Mr. Reed.
The court ordered Ms. Reed to execute a promissory note in favor of Mr. Reed for $6,022.00, bearing interest at the rate of 8% per annum, to be paid in four installments of $1,625.94 beginning on February 1,1998, and thereafter on May 1, August 1, and December 1,1998.
The court awarded the marital residence to Mr. Reed. As part of this award, on February 1, 1998, Ms. Reed was required to surrender possession of the residence to Mr. Reed and, at that same time, Mr. Reed would become responsible for all encumbrances on the property. Primarily, the court referred to two mortgages on the property, the monthly payments of which Mr. Reed was now required to pay. The two mortgagees were Chase Manhattan and Amerus Bank who were owed monthly payments of $856.58 and $243.42, respectively, totaling $1,100.00 per month. If Mr. Reed failed to make timely payments on these notes, the court ordered that any payments then made by Ms. Reed would result in a judgment in her favor. Finally, the court ordered Mr. Reed to take appropriate steps to remove Ms. Reed’s name as obligor on the mortgages securing the loans that encumbered the marital residence. [176]*176Otherwise, the residence would be sold.
The trial court awarded Ms. Reed certain personal property amounting to $1,445.00.

Mr. Reed failed, to make the mortgage payments to either Chase Manhattan or Amerus Bank on February 1 or March 1, 1998, as required by the dissolution decree. Ms. Reed undertook to make those payments. Mr. Reed argued that he would have made these payments had Ms. Reed met her obligations under the judgment of dissolution, but that he had no money to do so because she had failed to either make the required payments on the promissory note or to pay over the tuition reimbursement.

On March 4, 1998, in an attempt to compel Ms. Reed to pay over these monies, Mr. Reed filed a motion to show cause why Ms. Reed should not be held in contempt for failing to adhere to the judgment. He claimed, inter alia, that Ms. Reed failed to pay any of her tuition reimbursement over to him even though it had been nearly six weeks since she had received her grades.1 In addition, he argued that Ms. Reed had not only failed to execute a promissory note in the amount of $6,022.00 but, more importantly, had failed to make the first payment required thereunder.2 Mr. Reed asserted that, had Ms. Reed complied with these orders, he would have made the mortgage payments that he was otherwise unable to make with his salary.

Until Mr. Reed sold the marital residence on June 11, 1998, he made no mortgage payments and Ms. Reed continued to make the payments on both mortgages on April 1, May 1, and June 1, 1998, totaling $4,590.50. On July 31, 1998, Ms. Reed filed a counter-motion for contempt and a petition to interplead a check in the amount of $6,210.94, which was the balance of the educational reimbursement due Mr. Reed under the original decree of dissolution. Ms. Reed urged the court to hold Mr. Reed in contempt for his failure to make the mortgage payments on the marital residence and for his failure to return to Ms. Reed personal property in violation of the original dissolution decree. She noted that, out of the first check from the educational reimbursement, which she had endorsed over to him in early March 1998, Mr. Reed chose to pay part of his attorney’s fees instead of making the mortgage payment required under the judgment. Ms. Reed requested the court to award to her the value of the personal property not recovered from Mr. Reed ($1,445.00), the mortgage payments she made that were to have been made by Mr. Reed ($4,590.50), and the attorney’s fees she incurred in prosecuting her motion for contempt and interpleader and in defending against his motion for contempt ($4,237.50). She also requested that if the court were to award her such a judgment, she be allowed to set it off against the amounts she otherwise owed Mr. Reed under the dissolution decree.3

[177]*177Prior to the date set for hearing of the cross-motions for contempt, and the inter-pleader of the reimbursement check, Ms. Day withdrew as attorney for Mr. Reed. Nonetheless, Ms. Day appeared at the hearing, representing her own interest in her attorney’s fees. Ms. Reed and her attorney, Mr. Wells, appeared and Ms. Reed testified. Mr. Reed did not appear. Judge Atwell, a different judge than had heard the dissolution itself, heard the case. He expressed consternation at Mr. Reed’s failure to appear and held that, in the absence of evidence from him, his motion for contempt would be denied. The court granted Ms. Reed’s cross-motion for contempt and interpleader, ordering from the bench that the interpleaded check in the amount of $6,210.94, made payable to Ms. Reed, be returned to the maker, the City of Kansas City, to be reissued, made payable to the trust account of Ms. Reed’s attorney, David Lee Wells, and deposited therein. Finally, on November 9, 1998, after allowing both parties to brief the issue of the priority between Ms. Day’s attorney’s lien for the fees incurred by Mr. Reed prior to the judgment of dissolution and Ms. Reed’s right to set-off, the court granted Ms. Reed’s motion and gave priority to the set-off of the property and mortgage payments and of Ms. Reed’s attorney’s fees in prosecuting and defending the contempt and interpleader actions. It is from this decision that Ms. Day appeals.

II. ATTORNEY’S LIEN VERSUS SET-OFF

A. Recognition and Function of Attorney’s Liens Generally.

In this case, it is conceded that Ms.

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Bluebook (online)
10 S.W.3d 173, 1999 Mo. App. LEXIS 2273, 1999 WL 1054114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reed-v-reed-moctapp-1999.