Stroud v. Stroud

641 S.E.2d 142, 49 Va. App. 359, 2007 Va. App. LEXIS 69
CourtCourt of Appeals of Virginia
DecidedFebruary 27, 2007
Docket3158054
StatusPublished
Cited by23 cases

This text of 641 S.E.2d 142 (Stroud v. Stroud) is published on Counsel Stack Legal Research, covering Court of Appeals of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stroud v. Stroud, 641 S.E.2d 142, 49 Va. App. 359, 2007 Va. App. LEXIS 69 (Va. Ct. App. 2007).

Opinion

JAMES W. HALEY, JR., Judge.

I.

The primary issues here for resolution are (1) whether the evidence compels the conclusion that the terms of a property settlement agreement (“PSA”) terminating spousal support upon “cohabitation with any person ... in a situation analogous to marriage” have been met, and (2) if so, whether such a clause involving a relationship among persons of the same sex is operative as a matter of law in Virginia.

Joseph Anthony Stroud (“husband”) maintains that the trial court: (1) erred in finding that husband had not established cohabitation by the preponderance of the evidence, and (2) erred in finding as a matter of law in Virginia that individuals of the same sex cannot cohabitate in a situation analogous to marriage. We agree and reverse on these issues.

Debra Lyn Stroud (“wife”) has assigned as error the trial court decision (1) to permit the introduction of evidence concerning the parties’ negotiations before execution of the PSA, and (2) to deny her request for attorney’s fees. We affirm on these issues.

*366 II.

PAROL EVIDENCE RULE

The parties were divorced by decree entered April 7, 1999. That decree ratified, affirmed, and incorporated a PSA dated March 22, 1999. The PSA required husband to pay wife $4,000 per month spousal support. The PSA continued: “[T]he aforesaid payments shall end upon the death of either party, the remarriage of Wife and/or her cohabitation with any person to whom she is not related by blood or marriage in a situation analogous to marriage for a period of thirty (30) or more continuous days____” (Emphasis added). Husband alleges the “person” here involved, who triggered the spousal support termination clause, was a female we identify as “Robyn.”

In opening statements, wife’s attorney noted that the issues in controversy included her “cohabitation with any person” and Virginia law concerning same-sex relationships. At trial, husband offered a pre-execution draft of the PSA, and testimony concerning the same. The trial court admitted both, concluding the PSA was ambiguous and such evidence, concerning “negotiations for a settlement,” was admissible to discern the parties’ intent in the use of the word “person” in the PSA. Wife has assigned this ruling as cross-error, maintaining the admission of the evidence violated the parol evidence rule. We disagree.

“Property settlement agreements are contracts and are subject to the same rules of construction that apply to the interpretation of contracts generally.” Southerland v. Estate of Southerland, 249 Va. 584, 588, 457 S.E.2d 375, 378 (1995); see also Plunkett v. Plunkett, 271 Va. 162, 166, 624 S.E.2d 39, 41 (2006); Boedeker v. Larson, 44 Va.App. 508, 518, 605 S.E.2d 764, 769 (2004).

In Vilseck v. Vilseck, 45 Va.App. 581, 612 S.E.2d 746 (2005), we noted that, “[a]n agreement should be deemed ‘ambiguous if it may be understood in more than one way,’ ” so long as both meanings are “objectively reasonable.” Id. at 588-89, *367 612 S.E.2d at 749 (quoting Video Zone, Inc. v. KF & F Props., 267 Va. 621, 625, 594 S.E.2d 921, 923 (2004)).

Furthermore, “whether contract language is ambiguous is [a question] of law, not fact.” Plunkett, 271 Va. at 166-67, 624 S.E.2d at 41. Thus, we review the trial court’s decision on a finding of ambiguity de novo.

In this case, a foundational issue was whether the parties intended, by the use of the word “person” in the context of the PSA, only individuals of different sexes, or individuals of both sexes. We hold the word “person” can be understood in either way by an objectively reasonable standard and, accordingly, that word is ambiguous as it is used in the PSA.

‘When the language of a contract is ambiguous, parol evidence is admissible, not to contradict or vary contract terms, but to establish the real contract between the parties ... [and] to determine the intention of the parties.” Tuomala v. Regent Univ., 252 Va. 368, 374, 477 S.E.2d 501, 505 (1996) (citations omitted) (emphasis added). The “[ultimate resolution of the question whether there has been a binding settlement [agreement] involves a determination of the parties’ intention[s], as objectively manifested.” Snyder-Falkinham v. Stockburger, 249 Va. 376, 381, 457 S.E.2d 36, 39 (1995); see also Shoup v. Shoup, 31 Va.App. 621, 625-26, 525 S.E.2d 61, 63-64 (2000).

Thus, “[t]he facts and circumstances surrounding the parties when they made the contract, and the purposes for which it was made, may be taken into consideration as an aid to the interpretation of the words used. . . .” Seaboard Air Line R.R. Co. v. Richmond-Petersburg Tpk. Auth., 202 Va. 1029, 1033, 121 S.E.2d 499, 503 (1961), cited with approval in VEPCO v. Northern Va. Regional Park Auth., 270 Va. 309, 319, 618 S.E.2d 323, 328 (2005). Those facts and circumstances include the “preliminary negotiations between the parties and the meaning of the language used. . . .” Bolling v. Hawthorne Coal & Coke Co., 197 Va. 554, 570, 90 S.E.2d 159, 170 (1955). Thus, parol evidence was admissible to determine *368 the intentions of the parties, and the meaning of the contextually ambiguous word “person,” in the PSA.

Subsequent to the trial court’s ruling on admissibility, husband testified that drafts of a proposed PSA “had already bounced back and forth several times [before] we finalized it on March 16th ... and it was signed on March 22nd.” Introduced into evidence was a draft PSA in which the support termination clause read “cohabitation with a male in a situation analogous to marriage.... ” (Emphasis added). Husband testified, “I remember scratching that out and putting in ‘person,’ and submitting that to my attorney, who submitted it to [wife’s attorney’s] office.”

Likewise, relevant to interpreting the word “person” in the PSA is evidence offered by wife. On direct examination by her counsel, wife testified as follows:

Q. You testified a moment ago that you don’t live with [Robyn] in a relationship analogous to a marriage. Are there reasons for that?
A. Yeah. The most important reason is the fact that I signed an agreement with [husband] in 1999 that said that I would not cohabit with anyone

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Bluebook (online)
641 S.E.2d 142, 49 Va. App. 359, 2007 Va. App. LEXIS 69, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stroud-v-stroud-vactapp-2007.