Taylor v. Taylor

468 S.E.2d 33, 343 N.C. 50, 1996 N.C. LEXIS 157
CourtSupreme Court of North Carolina
DecidedApril 4, 1996
Docket191A95
StatusPublished
Cited by55 cases

This text of 468 S.E.2d 33 (Taylor v. Taylor) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Taylor v. Taylor, 468 S.E.2d 33, 343 N.C. 50, 1996 N.C. LEXIS 157 (N.C. 1996).

Opinions

FRYE, Justice.

The sole question on this appeal is whether a trial court, in ruling on a motion for attorney’s fees in a child custody and support action, may determine that a party has sufficient means to defray the cost of the action without considering the estate of the other party. We answer in the affirmative and reverse the Court of Appeals’ decision to the contrary.

The following facts and circumstances are pertinent to this appeal. John Anderson Taylor, Jr. (plaintiff) and Dulcia G. Taylor (defendant) were married on 30 December 1981 and separated on or about 7 May 1990. Two children were born of the marriage. Pursuant to a separation and property settlement agreement entered into by [52]*52the parties on 22 March 1991, defendant received the marital home valued at $200,000, the furniture contained in the marital home, and a distributive award of $1,036,307. Plaintiff was responsible for the monthly mortgage payments on the home in the amount of $1,436.65. Also, pursuant to the separation and property settlement agreement, the parties entered into a shared legal custody arrangement for their two children, with primary physical custody being with defendant.

On 10 May 1991, plaintiff filed a verified complaint for absolute divorce; and on 10 June 1991, defendant filed an answer and counterclaim, seeking primary physical custody of their two children, child support, and the costs of the action. Judge Margaret L. Sharpe granted the parties an absolute divorce on 18 July 1991; and on 6 December 1991, Judge R. Kason Keiger signed an interim child support order consented to by the parties and decreeing that

in lieu of a child support order in a sum certain . . . [p]laintiff will insure that funds are made available from applicable trusts or otherwise to continue to pay the children’s educational expenses . . . until such time as a final determination is made as to the issues of custody and child support.

Hearings on the issues of child support, child custody, and attorney’s fees took place in August and October of 1993. In an order signed 23 January 1994 and filed 24 January 1994, Judge Chester C. Davis found as fact that “[d]efendant’s answer and counterclaim . . . did request attorney’s fees on August 20, 1993”; that “defendant has paid $13,305.55 to her attorneys in this child support action and that $85,895.56 is still owed the attorneys for services rendered”; that “after deducting the expenses of a loan incurred by the defendant, she has a reasonably liquid estate of $666,581, a home now having an approximate value of $350,000, two cars, and furniture all of which have an approximate total value of 1.1 million dollars”; that “the defendant is an interested party”; that “the defendant was acting in good faith”; and that “defendant ha[s] sufficient means to defray the expenses of this lawsuit.”

The trial court then concluded as a matter of law, inter alia, that based on its findings of fact, “[d]efendant has sufficient means to defer [sic] the expense of this litigation and therefore, that defendant is not entitled to attorneys’ fees.” Based on these findings and conclusions, the trial court ordered, inter alia, that “[defendant shall have and recover no attorneys’ fees from plaintiff.”

[53]*53Both plaintiff and defendant appealed to the Court of Appeals from the order entered 24 January 1994 in District Court, Forsyth County. The Court of Appeals reversed the order for retroactive and prospective child support and remanded those issues to the trial court for reconsideration. However, the panel divided as to the issue of attorney’s fees. Concluding that the trial court erred in deciding that defendant was not entitled to an award of attorney’s fees based solely on defendant’s financial condition, the majority of the panel remanded the order denying an award of attorney’s fees to the trial court for consideration of the relative estates of the parties.

Judge Lewis dissented as to the decision of the majority of the panel on the issue of attorney’s fees. Judge Lewis disagreed with the majority’s conclusion that the trial court was required in this case to consider the relative estates of the parties in determining whether the party seeking attorney’s fees had insufficient means to defray the expense of the suit. He also disagreed that requiring this defendant to pay her own attorney’s fees constitutes an unreasonable depletion of her estate.

Plaintiff appeals to this Court based on Judge Lewis’ dissenting opinion. On this appeal, plaintiff argues that the Court of Appeals erred in rejecting the trial court’s determination that defendant had sufficient means to defray her litigation expenses because (1) the evidence established that defendant’s monthly income exceeds her monthly expenses; and (2) it is not unreasonable for defendant to pay her litigation costs from her estate, which is substantial and primarily liquid. Therefore, plaintiff contends that the majority of the panel of the Court of Appeals is legally incorrect in requiring trial courts as a matter of law to consider the relative estates of the parties in determining whether the party seeking attorney’s fees in a child custody and support action has insufficient means to defray the expense of the suit.

The relevant statute, N.C.G.S. § 50-13.6, provides in pertinent part:

In an action or proceeding for the custody or support, or both, of a minor child, . . . the court may in its discretion order payment of reasonable attorney’s fees to an interested party acting in good faith who has insufficient means to defray the expense of the suit. Before ordering payment of a fee in a support action, the court must find as a fact that the party ordered to furnish support has refused to provide support which is adequate under the circum[54]*54stances existing at the time of the institution of the action or proceeding..

N.C.G.S. § 50-13.6 (1991). We have interpreted this provision as requiring that before attorney’s fees can be taxed in an action for custody or in an action for custody and support, the facts required by the statute — that the party seeking the award is (1) an interested party acting in good faith, and (2) has insufficient means to defray the expense of the suit — must be both alleged and proved. Hudson v. Hudson, 299 N.C. 465, 472, 263 S.E.2d 719, 723 (1980). A party has insufficient means to defray the expense of the suit when he or she is “unable to employ adequate counsel in order to proceed as litigant to meet the other spouse as litigant in the suit.” Id. at 474, 263 S.E.2d at 725. If the action is one for support only, an additional finding must be made that “the party ordered to furnish support has refused to provide support which is adequate under the circumstances existing at the time of the institution of the action or proceeding.” Id. at 472-73, 263 S.E.2d at 724. “Whether these statutory requirements have been met is a question of law, reviewable on appeal.” Id. at 472, 263 S.E.2d at 724.

The instant action is properly characterized as one for “custody and support” because both the custody and support actions were before the trial court in August and October of 1993, the times the case was called for trial. Lawrence v. Tise, 107 N.C. App. 140, 153, 419 S.E.2d 176, 184 (1992).

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Bluebook (online)
468 S.E.2d 33, 343 N.C. 50, 1996 N.C. LEXIS 157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taylor-v-taylor-nc-1996.