Stewart v. Stewart

41 A.3d 401, 2012 WL 858593
CourtSupreme Court of Delaware
DecidedMarch 15, 2012
Docket489, 2011
StatusPublished
Cited by10 cases

This text of 41 A.3d 401 (Stewart v. Stewart) is published on Counsel Stack Legal Research, covering Supreme Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stewart v. Stewart, 41 A.3d 401, 2012 WL 858593 (Del. 2012).

Opinion

HOLLAND, Justice:

The respondent-appellant, Danielle M. Stewart (the “Wife”), appeals from a Family Court final judgment in favor of the petitioner-appellee, Thomas D. Stewart (the “Husband”), arising from the Husband’s Petition to Modify Alimony and the Wife’s Motion for Specific Performance and Rule to Show Cause. In this appeal, the Wife contends that the Family Court erred when it reformed the parties’ Marital Property Settlement Agreement (the “Agreement”) to provide that alimony payments would terminate upon the Wife’s cohabitation. We have concluded that argument is not supported by the record.

Facts 2

The Husband and the Wife were married in February 1984, separated in April 2005, briefly reconciled in August/September 2005, and permanently separated in November 2005. They had one child, born in 1991. On September 28, 2005, the parties entered into the Agreement that is the subject of this dispute.

At the time the parties executed the Agreement, the Husband was not represented by counsel. The Husband had dismissed his prior counsel because he and the Wife intended to reconcile. The Family Court granted Husband’s counsel’s motion to withdraw on September 6, 2005. The Wife was represented by counsel at all times, and the parties signed the Agreement at the office of the Wife’s counsel.

The Agreement provides for the payment of alimony from the Husband to the Wife “for the life of Wife,” i.e., to terminate only upon the Wife’s death. The Agreement states in relevant part:

2. Support. Should reconciliation fail, Husband agrees to pay permanent alimony to Wife in the amount of One *403 Thousand, Two Hundred Dollars and Zero Cents ($1,200.00) per month. This alimony shall commence upon separation of the parties and will continue in force and effect for the life of Wife.

In late 2005, the Husband learned that Delaware law provides that a judicial award of alimony will terminate upon remarriage or cohabitation of the recipient spouse, unless the parties expressly agree otherwise. 3 In June 2006, a Family Court Commissioner entered a divorce decree and the parties stipulated to the incorpoT ration of the Agreement into that divorce decree.

On March 18, 2011, the Husband filed a Petition to Modify Alimony citing a real and substantial change in circumstances— the Wife’s cohabitation with another male for two years. The Husband also argued that he did not understand the implications of the Agreement on alimony because he lacked legal counsel. The Family Court decided to construe the Husband’s Petition as one to Reform or Rescind a Separation Agreement. On April 14, 2011, the Wife filed a Motion for Specific Performance and Rule to Show Cause on grounds that the Husband stopped paying alimony as required by the Agreement.

The Family Court consolidated the parties’ petitions and held a hearing at which both parties testified. The Husband testified that he did not understand the alimony provision and thought “it was going to be until either she got remarried, passed away, moved in with somebody.” The Family Court determined that the Agreement’s alimony provision was unconscionable, explaining:

[T]he Court does not find that Husband had a meaningful choice when he entered into the Agreement. Although there was no evidence submitted as to Husband’s state of mind when he signed the Agreement, it is reasonable to conclude that Husband believed he had to sign the Agreement in an attempt to save his marriage. Moreover, Husband testified that had he known that alimony generally terminates upon the death of either party, or remarriage or cohabitation of the receiving spouse, he would not have signed the Agreement. Furthermore, the Agreement was signed approximately three weeks following Husband’s decision to dismiss his attorney, which was precipitated by the parties’ decision to reconcile and withdraw their pending divorce action.

The Family Court reformed the Agreement to read as follows:

2. Support. Should reconciliation fail, Husband agrees to pay permanent alimony to Wife in the amount of One Thousand, Two Hundred Dollars and Zero Cents ($1,200.00) per month. This alimony shall commence upon separation of the parties and will continue in force and effect for the life-of — Wife until the death of either party or the remarriage or cohabitation of the party receiving alimony.

The Family Court also, sua sponte, considered and rejected the Wife’s possible defense of laches. The Family Court held that the Husband was no longer required to pay alimony to the Wife and dismissed the Wife’s petition.

Standard of Review

When reviewing a Family Court order, our standard and scope of review involves a review of the facts and law, as well as the inferences and deductions made by the trial judge. 4 To the extent that the issues on appeal implicate rulings of law, *404 we conduct a de novo review. 5 To the extent that the issues on appeal implicate rulings of fact, we conduct a limited review of the factual findings of the Family Court to assure that they are supported by the record and are not clearly erroneous. 6 We will not disturb inferences and deductions that are supported by the record and that are the product of an orderly and logical deductive process. 7 If the Family Court has correctly applied the law, our review is limited to determining if there was an abuse of discretion. 8

Where the Family Court is asked to terminate or modify a voluntary alimony agreement that is incorporated into a divorce decree, “the proper standards are the same that are generally applicable to the modification, reformation, or rescission of contracts.” 9 For the Family Court to find a contract provision unconscionable, “its terms must be so one-sided as to be oppressive.” 10 “[M]ere disparity between the bargaining power of parties to a contract will not support a finding of uncon-scionability. A court must find that the party with superior bargaining power used it to take unfair advantage of his weaker counterpart.” 11

When contractual parties stand in a confidential relationship, however, equity subjects their contract to a higher degree scrutiny. In cases alleging undue influence, “[e]quity raises a presumption against the validity of a transaction by which the superior obtains a possible benefit at the expense of the inferior, and casts upon him the burden of showing affirmatively his compliance with all equitable requisites.” 12

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Cite This Page — Counsel Stack

Bluebook (online)
41 A.3d 401, 2012 WL 858593, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stewart-v-stewart-del-2012.