Russ v. Russ

2020 NMCA 008, 456 P.3d 1100
CourtNew Mexico Court of Appeals
DecidedSeptember 24, 2019
StatusPublished
Cited by2 cases

This text of 2020 NMCA 008 (Russ v. Russ) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Russ v. Russ, 2020 NMCA 008, 456 P.3d 1100 (N.M. Ct. App. 2019).

Opinion

Office of Director New Mexico 2020.02.04 Compilation Commission '00'07- 14:05:35 IN THE COURT OF APPEALS OF THE STATE OF NEW MEXICO

Opinion Number: 2020-NMCA-008

Filing Date: September 24, 2019

No. A-1-CA-36190

ANGELA RUSS,

Plaintiff-Appellee/Cross-Appellant,

v.

JEFFREY L. RUSS,

Defendant-Appellant/Cross-Appellee,

and

NEW MEXICO HUMAN SERVICES DEPARTMENT,

Intervenor.

APPEAL FROM THE DISTRICT COURT OF BERNALILLO COUNTY Debra Ramirez, District Judge

Certiorari Granted, December 4, 2019, No. S-1-SC-37962. Released for Publication February 11, 2020.

New Mexico Family Law, PC Amanda A. Aragon Albuquerque, NM

for Appellee

Michelle Cortez Albuquerque, NM

L. Helen Bennett Albuquerque, NM

for Appellant

OPINION HANISEE, Judge.

{1} Jeffrey Russ (Husband) appeals a district court order requiring reimbursement to Angela Russ (Wife), along with continued payments to her, of half of Husband’s military retirement pay (Retirement Pay), pursuant to their Marital Settlement Agreement (MSA). At issue is what remains owed to Wife after Husband waived his Retirement Pay in exchange for receiving disability-based Combat Related Special Compensation (CRSC). Husband argues the United States Supreme Court’s recent decision in Howell v. Howell, 137 S. Ct. 1400 (2017) preempts New Mexico case law and prohibits the district court from ordering Husband to reimburse Wife for waived Retirement Pay. Although we agree with Husband that our contrary decision in Hadrych v. Hadrych, 2007-NMCA-001, 140 N.M. 829, 149 P.3d 593, is no longer controlling precedent after Howell, we nonetheless conclude there to be sufficient reason under still-applicable New Mexico precedent to deny retroactive application of Howell. We therefore affirm on grounds different than those relied on by the district court.

BACKGROUND

{2} Husband and Wife married in 1993. Husband served in the military for the duration of the thirteen-year marriage. Upon their divorce in 2006 the parties entered into the MSA. Incorporated into the district court’s final decree, the MSA stated that “as a compromise division of community assets,” Husband and Wife agreed that Wife “receive 50 [percent] of [Husband’s] disposable [R]etirement] [P]ay which was earned during the term of [their] marriage.” Husband retired from the military and began receiving Retirement Pay effective January 1, 2011. On April 6, 2011, Wife filed a motion to amend the MSA to state instead that Wife would receive “50 [percent] of [Husband’s] disposable [R]etirement [P]ay from date of retirement” so that the Defense Finance and Accounting Service would disperse her portion of the Retirement Pay. Without a response from Husband, the district court entered an order approving the change less than a week later.

{3} From January 2011 until May 2014, Husband received monthly Retirement Pay varying in amount from $1,578 to $1,638. Wife received her portion of Husband’s Retirement Pay from August 2011 until April 2014. On May 1, 2014, Husband began receiving CRSC, as a consequence of his conversion of 100 percent of his Retirement Pay to CRSC, eliminating altogether Wife’s monthly percentage of Husband’s Retirement Pay under the MSA. On April 11, 2014, Wife filed an emergency motion to enforce the MSA requesting that the district court compel Husband to pay Wife the amount “she would be getting from her portion of [Husband’s] [R]etirement [P]ay and to award her back pay from the time the retirement benefits ceased.” On May 23, 2014, Husband also filed a motion to enforce the MSA, arguing that the language of the MSA should not have been modified, and that Wife is only entitled to half of Husband’s Retirement Pay during the marriage, equaling 32.2 percent of Husband’s monthly Retirement Pay, and that disbursements under Husband’s CRSC benefits are his “separate property.” {4} After a hearing on January 4, 2016, the district court determined that the issue of whether, under the MSA, Husband’s CRSC benefits “converted from Retirement [Pay] to CRSC post-retirement[, remain] a community asset and [are] divisible” would be resolved following a trial on the merits. A bench trial took place on November 21, 2016, after which the district court entered its findings of fact, conclusions of law, and order of judgment (Order) on December 19, 2016. The district court found: (1) “[Wife] began receiving her vested portion of the [R]etirement [Pay]” in August 2011, Husband “cannot escape the responsibility of paying [Wife] what the parties agreed she earned during the time that he served in the military, no matter what name is attributed to that compensation or the source from which [Husband] pays [Wife]”; (3) principles of equity required that Wife receive 32.3 percent of the Retirement Pay in accordance with the amount she “earned for the term of the marriage”; (4) Husband owes Wife $22,243.09 in military retirement arrears, 1 and; (5) Wife owes Husband $8,738 in overpaid child support, which was used by the district court to offset the overall judgment against Husband. The district court then ordered Husband to pay Wife $529.07 a month—the sum of 32.3 percent of Husband’s Retirement Pay—for as long as allowed by the Department of Defenses’ Military Retirement Regulations, and an additional $500 a month to be paid toward the overall $13,505.09 judgment owed to Wife. Husband timely appealed the district court’s order.

DISCUSSION

{5} On appeal, Husband argues that the United States Supreme Court decision in Howell abrogates this Court’s past decisions in Hadrych, 2007-NMCA-001, and Scheidel v. Scheidel, 2000-NMCA-059, 129 N.M. 223, 4 P.3d 670. Both opinions held, in differing circumstances, that a court can order a military spouse to indemnify a non- military spouse for post-divorce decree military waivers of military retirement pay. Husband also argues that Howell should be applied retroactively in this case in accordance with the factors in Beavers v. Johnson Controls World Services, Inc., 1994- NMSC-094, ¶ 23, 118 N.M. 391, 881 P.2d 1376, because (1) Howell did not create a new principle of law as federal statute and the United States Supreme Court’s decision in Mansell v. Mansell, 490 U.S. 581 (1989) prohibited waived military retirement pay from categorization as community property by family courts; (2) limiting application of Howell would frustrate congressional intent as manifested within the Uniformed Services Former Spouses’ Protection Act (USFSPA) 10 U.S.C. § 1408 (2018); and (3) equity favors retroactive application since hardship endured by non-military spouses is outweighed by hardship endured by military veterans receiving disability due to their own inability to support themselves.

{6} Wife answers that Howell does not abrogate Scheidel because Scheidel addressed a contractual provision of indemnification; and the MSA contains a release clause analogous to an indemnity provision which protects Wife’s contractual interest in

1The total amount of arrears includes $5,841.92 for Retirement Pay not paid to Wife before conversion from January 2011 to March 2014, along with $16,401.17 for April 2014 until December 2016 for amounts of Retirement Pay Wife would have received if Husband had not converted his Retirement Pay. Only the portion of the arrears involving payment not received after the conversion is at issue on appeal.

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Related

Russ v. Russ
485 P.3d 223 (New Mexico Supreme Court, 2021)

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Bluebook (online)
2020 NMCA 008, 456 P.3d 1100, Counsel Stack Legal Research, https://law.counselstack.com/opinion/russ-v-russ-nmctapp-2019.