Stegall v. Nott

2017 Ohio 8683
Ohio Court of Appeals·Decided November 27, 2017·No. 2-17-11·Published·Cited by 1 cases

Opinion

IN THE COURT OF APPEALS OF OHIO THIRD APPELLATE DISTRICT

AUGLAIZE COUNTY

DEBORAH STEGALL, PLAINTIFF-APPELLEE, CASE NO. 2-17-11 v.

CHANDRA NOTT, ET AL., OPINION DEFENDANTS-APPELLANTS.

Appeal from Auglaize County Common Pleas Court Trial Court No. 2016 CV 0075

Judgment Reversed and Cause Remanded Date of Decision: November 27, 2017

APPEARANCES:

Dianna M. Anelli for Appellants Robert C. Wiesenmayer, II for Appellee

ZIMMERMAN, J.

{¶1} This appeal is brought by Chandra Nott and Ashley Stegall, (collectively referred to as the “Appellants”) the Administrators of the estate of Victor J. Stegall (“decedent” or “Stegall”), from the judgment of the Auglaize County Common Pleas Court, Civil Division, granting summary judgment in favor of Deborah Stegall, (“Appellee”). For the reasons that follow, we reverse the judgment of the Auglaize County Common Pleas Court and remand this matter for further proceedings consistent with this opinion.

Statement of Facts and Procedural History Domestic Relations Divorce Decree

{¶2} On October 16, 1998, Appellee and Victor Stegall were granted a divorce in the Auglaize County Common Pleas Court, Domestic Relations Division, in case number 97-DR-115. (Doc. No. 51, Ex. A). The divorce decree (the “Decree”) was filed the same day. (Id.). Pertinent to this appeal, and in regards to the trial court’s award of spousal support, the divorce decree provided as follows:

The Court further finds that at this time there shall be no payment of spousal support fka alimony by Plaintiff [Victor Stegall] to the Defendant [Appellee] or by the Defendant to the Plaintiff. This provision of spousal support shall continue solely for the division of property and shall be subject to the continuing jurisdiction of the Court until such time as the division of property has been accomplished. The Court recognizes that the payment on the division of property is for maintenance and support of the Defendant and therefore is nondischargeable in bankruptcy.

(Id. at 3). And, with respect to the division of marital property, the divorce degree further provided:

THE COURT FURTHER FINDS that the parties have agreed that the Defendant [Appellee] shall receive as her division of the marital property and accounts $1,352,826.00 to be paid as follows: $500,000 shall be paid within sixty (60) days of August 3, 1998. After that, the amount to be paid by the Plaintiff [Victor Stegall] to the Defendant shall be $50,000.00 per year at an interest rate of ten (10%) until paid in full. The Plaintiff shall designate the Defendant as a beneficiary on the pension account to protect or secure her interest in this division of property until such time as this division of property is complete.

IT IS THEREFORE ORDERED, ADJUDGED AND DECREED that the Plaintiff shall pay to the Defendant $500,000 within (60) days of the final hearing of divorce held on August 3, 1998. Further, the balance which shall be due and owing to the Defendant shall be paid at the rate of $50,000 per year on January 1 of each year with ten percent (10%) interest accruing on the unpaid balance, which includes principle [sic] and interest.

In order to protect Defendant’s interest, the Plaintiff shall designate the Defendant as beneficiary on his retirement accounts to protect or secure Defendant’s interest in the division of property until the division of property is finalized.

Until such time as the $500,000 has been paid by the Plaintiff to the Defendant, the Plaintiff shall continue to pay temporary spousal support in the amount of $1,027 per week.

(Id. at 11). Lastly, with respect to the division of property, the divorce decree provided that “the division of property as set forth above is incident to a divorce and is not a taxable event pursuant to IRS Code §408(b)(6) and IRS Code §71(b)(2)(A).” (Id. at 13).

Post-Decree Filings and Appeals

{¶3} After the issuance of the Decree, several motions were filed by Appellee in the trial court regarding the enforcement of the Decree due to Stegall’s failure to comply with the its terms.1 Further, and as a collateral matter, Appellee filed a legal malpractice lawsuit against her original divorce attorney, wherein decedent’s deposition, which is relevant to this instant appeal, was taken. See, Stegall v. Crossman, 2nd Dist. Montgomery No. 20306, 2004-Ohio-4691. Specifically, in his deposition, Stegall testified, in part, as to his interpretation of the division of property as ordered in the Decree.2

{¶4} Also relevant to this appeal, Stegall filed a post-judgment motion with the trial court, entitled “Plaintiff’s [Victor Stegall] Motion to Terminate or Modify Spousal Support,” on October 19, 2015. (Doc. No. 19, Ex. A). In this motion, Stegall requested the Domestic Relations Court to review his property division payments, averring that such “ha[d] nearly reached the end of the term.”3 (Id. at 2). Stegall’s motion also asserted that the Appellee was seeking an additional

1 While Appellants attached an unofficial copy of the docket in case number 97-DR-115 (Victor Stegall and Appellee’s divorce case), we are unable to review the actual Domestic Relations record because no appeal was filed from said case. Our information regarding the proceedings in the divorce case comes from a review of attachments and references to the divorce post-judgment proceedings in the parties’ briefs/filings. 2 The Decedent’s deposition was attached to the record for our review herein. 3 Victor Stegall averred that he had made “sixteen (16) payments of $50,000, totaling $800,000, on his balance of $852,825” owed to Appellee per the Decree.

$2,025,430 (at the time of the motion’s filing) “to complete payment of spousal support pursuant to the Judgment and Final Decree of Divorce.” (Id. at 3).

{¶5} However, prior to perfecting service of his post decree motion on Appellee, Stegall died on December 7, 2015. Nevertheless, after his death, Stegall’s adult daughters, Chandra Nott and Ashley Stegall were substituted as parties in the pending post-decree case and service of the motion was thereafter perfected upon Appellee on December 31, 2015. (Id., Ex. B).

Civil Division R.C. 2117.12 Suit

{¶6} Before the Domestic Relations Court ruled on Stegall’s motion to terminate or modify spousal support, Appellee filed a claim against the Estate of Victor Stegall in the Auglaize County Probate Court on February 17, 2016, claiming that the amount of $2,177,973.70 was owed her by the estate, and that such amount represented the unpaid balance due her under the property division award as set forth in the parties divorce decree. (Doc. No. 1, Ex. 1). Appellants, pursuant to R.C. 2117.11, rejected Appellee’s claim against decedent’s estate on March 14, 2016 and on April 27, 2016, and pursuant to R.C. 2117.12, Appellee filed a complaint versus Stegall’s estate in the Auglaize County Court of Common Pleas, Civil Division requesting $2,177,973.70 from the estate. (Id., Ex. 2; 4). Appellee asserted that the rejected claim was “a just and valid claim against the Estate of Victor John Stegall, deceased, and no part of it has been paid to Plaintiff.” (Id.).

{¶7} Appellants requested the trial court to dismiss Appellee’s complaint, asserting that since Stegall had filed his request to modify spousal support before he died (which was served upon Appellee prior to the filing of a claim against the estate) the Domestic Relations Court had exclusive subject matter jurisdiction to decide the dispute. (Doc. No. 19). In response, Appellee requested that the trial court overrule Stegall’s motion, asserting that after her claim against the estate was rejected she filed a complaint pursuant to R.C. 2117.12 in the Common Pleas Court, Civil Division. (Doc. No. 31).

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