Socha v. Socha

555 N.W.2d 152, 204 Wis. 2d 474, 1996 Wisc. App. LEXIS 1154
CourtCourt of Appeals of Wisconsin
DecidedSeptember 18, 1996
Docket95-1641
StatusPublished
Cited by3 cases

This text of 555 N.W.2d 152 (Socha v. Socha) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Socha v. Socha, 555 N.W.2d 152, 204 Wis. 2d 474, 1996 Wisc. App. LEXIS 1154 (Wis. Ct. App. 1996).

Opinion

SNYDER, J.

James Socha appeals from a summary judgment which imposed a constructive trust requiring him to transfer to his mother, Elaine C. Socha, the proceeds from his father's death benefits. The imposition of the trust was based on a finding that Joseph Socha, James' father, was restrained by court order from changing the beneficiary of his retirement and life insurance policies to James during Joseph and Elaine Socha's pending divorce proceedings.

James claims that the trial court erred when it: (1) imposed a constructive trust on the proceeds of the policies, (2) failed to apply the Marital Property Act (MPA) in determining the disposition of the proceeds, and (3) determined that ch. 40, Stats., was not applicable. We agree with the trial court's determination that ch. 40 does not affect the issues presented. However, because we conclude that the MPA governs the disposition of the disputed proceeds, we reverse.

In January 1992, Elaine initiated a divorce action against her husband, Joseph. At that time, Joseph and Elaine had been married for approximately thirty-five years and had two adult children. Both Joseph and Elaine had been employed by the University of Wisconsin-Whitewater since 1970. This employment *477 provided each of them with separate life insurance policies and retirement benefits.

On January 13,1992, a family court commissioner entered a standard order which restrained both parties from disposing of or damaging marital property assets and required the parties to act in good faith regarding these matters. On February 10, 1992, the parties stipulated to another order which stated in relevant part:

Each party shall maintain and keep in force whatever insurance the parties presently have, including, health, automobile, home, major medical, life, disability, and any other insurance in effect as of the commencement of this action.

In March 1992, Joseph changed the designated beneficiary from Elaine to James on both his State of Wisconsin Group Life Insurance (SWGL) policy and Wisconsin Retirement System (WRS) death benefit. On June 3, 1992, while the divorce action was still pending, Joseph died in an automobile accident.

At the time of Joseph's death, the accidental death benefit under the SWGL policy was $96,000 and the WRS death benefit was $40,211, for a total of $136,211. It was not until after the accident that Elaine became aware that James was the designated beneficiary of these policies. Subsequently, she commenced an action against James to recover the death benefits.

Both parties moved for summary judgment. The trial court granted summary judgment in favor of Elaine and denied James' motion. The trial court determined that Joseph's action, changing the named beneficiary on the two policies, was in direct contravention of the family court's orders. The trial court concluded that Joseph’s actions violated his duty *478 under § 766.15, Stats., to act in good faith and reasoned that because of Joseph's actions, "[M]arital assets left the marital estate contrary to statute and contrary to court orders."

After considering the statutory remedies available to Elaine, the trial court placed a constructive trust on the total amount of the benefits under the policies, less $1000. 1 It is from this judgment that James appeals.

This case involves a two-tiered standard of review. This court reviews the grant of summary judgment de novo and employs the same methodology as the trial court. Envirologix Corp. v. City of Waukesha, 192 Wis. 2d 277, 287, 531 N.W.2d 357, 362 (Ct. App. 1995). That methodology, set forth in § 802.08(2), STATS., is well known and we need not repeat it here. See Armstrong v. Milwaukee Mut. Ins. Co., 191 Wis. 2d 562, 568, 530 N.W.2d 12, 15 (Ct. App. 1995), aff'd, 202 Wis. 2d 258, 549 N.W.2d 723 (1996).

Also presented for review is the issue of whether the trial court's imposition of a constructive trust was proper. The question of whether to impose a constructive trust sounds in equity. Singer v. Jones, 173 Wis. 2d 191, 194, 496 N.W.2d 156, 158 (Ct. App. 1992). Thus, if the trial court has determined that summary judgment is appropriate, it must then make a further discretionary determination as to whether equitable relief should follow. Id. at 194-95, 496 N.W.2d at 158. However, a discretionary act will be reversed if the decision was based upon an erroneous view of the law. Molstad v. Molstad, 193 Wis. 2d 602, 606, 535 N.W.2d 63, 64 (Ct. App. 1995). Furthermore, *479 this court will not give deference to a trial court decision if the law, as applied to the facts, gives but one correct answer. See Singer, 173 Wis. 2d at 196, 496 N.W.2d at 158.

It is undisputed that Joseph's death occurred during the pendency of divorce proceedings. In Wisconsin, a cause of action for divorce terminates upon the death of either party. Pettygrove v. Pettygrove, 132 Wis. 2d 456, 458, 393 N.W.2d 116, 118 (Ct. App. 1986); see also Davis v. Rahkonen, 112 Wis. 2d 385, 387, 332 N.W.2d 855, 856 (Ct. App. 1983). Thus, Elaine's action for divorce terminated and Joseph and Elaine were legally married at the time of Joseph's death.

Upon the death of a spouse, division of marital property is governed by ch. 766, Stats. See § 766.03(2), Stats. This court has previously concluded that § 766.70, Stats., "provides the exclusive cause of action between spouses in matters involving marital property." Gardner v. Gardner, 175 Wis. 2d 420, 424, 499 N.W.2d 266, 267 (Ct. App. 1993). Furthermore, when the legislature provides a comprehensive statutory remedy, it is deemed to be the exclusive remedy. Id. at 428, 499 N.W.2d at 269. "Sections 766.15 and 766.70(1), when read together, create a cause of action against all conduct... that breaches the duty of good faith in matters involving marital property Gardner, 175 Wis. 2d at 426-27, 499 N.W.2d at 268.

We conclude that Elaine's rights with respect to the disputed death benefits are properly determined under the MPA. The trial court erred when it declined to apply the statutory remedy. The legislature has provided a comprehensive statutory remedy for a *480 breach of good faith between spouses, see

Free access — add to your briefcase to read the full text and ask questions with AI

Related

C & A Investments v. Kelly
2010 WI App 151 (Court of Appeals of Wisconsin, 2010)
Jackson v. Employe Trust Funds Board
602 N.W.2d 543 (Court of Appeals of Wisconsin, 1999)
Brosnan v. Sacred Heart University, No. 333544 (Oct. 21, 1997)
1997 Conn. Super. Ct. 9874 (Connecticut Superior Court, 1997)

Cite This Page — Counsel Stack

Bluebook (online)
555 N.W.2d 152, 204 Wis. 2d 474, 1996 Wisc. App. LEXIS 1154, Counsel Stack Legal Research, https://law.counselstack.com/opinion/socha-v-socha-wisctapp-1996.