Underwood v. Colley

137 P.3d 365, 111 Haw. 51, 2006 Haw. App. LEXIS 196
Hawaii Intermediate Court of Appeals·Decided May 17, 2006·No. 26843·Published·Cited by 3 cases

Opinion

Opinion of the Court by

BURNS, C.J..

Plaintiff-Appellant Susan Underwood (Underwood) appeals from the August 27, 2004 Amended Order Amending the Findings of Fact, Conclusions of Law and Order (August 27, 2004 FsOF, CsOL and Order) entered in the Family Court of the Third Circuit. 1 We vacate and remand for compliance with the applicable statutes.

ISSUE AND DECISION

While the husband is living in Vermont and the wife is living in New Mexico, a divorce decree is entered in New Mexico ordering the husband to pay a specified amount of spousal support to the wife until the husband’s death or the wife’s remarriage or death. Under the Uniform Interstate Family Support Act (UIFSA), after the husband moves to Hawaii and the wife moves to Washington, and, in Hawaii, (a) the wife registers New Mexico’s August 9, 2001 Final Decree; (b) the wife moves for collection of an alleged spousal support arrearage and for payment of present and future spousal support; and (c) the husband responds with a motion for a reduction of past, present, and future spousal support, does Hawaii have subject matter jurisdiction to modify the spousal support order contained in the New Mexico divorce decree? We conclude that the answer is no. This conclusion is in accord with the holding in Hook v. Hook, 170 N.C.App. 138, 611 S.E.2d 869 (N.C.App. 2005).

BACKGROUND

On August 9, 2001, in case no. DM 99-02374, a New Mexico court entered a Final Decree divorcing Underwood and Defendant-Appellee Stephen Colley (Colley). This Final Decree approved and incorporated a prior Stipulation and Marital Settlement Agreement between Underwood and Colley. At that time, Colley was a resident of Vermont and his annual income was $124,500. This Final Decree stated that “[Underwood] is in need of lifetime alimony as she is physically disabled” and ordered, in relevant part, as follows:

9. SPOUSAL SUPPORT. [Colley] will pay [Underwood] alimony in the amount of $3,283 per month beginning August 1, 2001, by direct deposit into [Underwood’s] bank account provided the home sale closes on or before July 31, 2001. If [Colley] is required to make a house payment for August 2001 due to the failure in the sale of the home, [Colley] shall pay to [Underwood] support in the amount of $1,600 for August 2001, with Alimony beginning on September 1, 2001. [Colley] will cooperate in allowing [Underwood] to obtain a life insurance policy in an amount up to $500,000 on his life to secure the alimony award. The alimony will increase or decrease each year by a cost of living increase equal to the CPI index percentage for the previous year. The change in support will occur on August 1 of each year beginning August 1, 2002.
[Colley] is also required to pay as alimony 35% of all gross salary increases, bonuses and incentive payments over and above $125,000 per year up to a cap of $150,000 per year. The payment shall be made within thirty (30) days of receipt of the bonus or incentive payment. Alimony shall increase in the month following any salary increase. Expense reimbursements and lump sum payments for expenses shall not be included in any income calculations.
[Colley] shall also be able to decrease his alimony payments by 35% of any decrease in salary from $125,000 to $100,000. The formula shall be current alimony minus 35% of any decrease in salary.
*53 [Colley’s] monthly alimony payment will also be decreased by 50% of any earned income [Underwood] receives and by 50% of any social security benefits [Underwood] receives.
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[Colley’s] alimony obligations shall cease upon [Underwood’s] remarriage or death or [Colley’s] death.

On August 5, 2002, Colley’s employment in Vermont was terminated. In Vermont, Underwood filed an action to collect any unpaid spousal support. On August 6, 2002, Colley responded with a motion for a reduction of his spousal support obligation. Hawaii’s August 27, 2004 FsOF state, in relevant part:

7. During a hearing held on October 7, 2002, before the Honorable Linda Levitt, Judge of the C[h]ittenden Family Court of the State of Vermont, [Colley] appeared personally and [Underwood] appeared by way of telephone. At the hearing, [counsel for Underwood] placed on the record what the parties had agreed to with respect to the division of [Colley’s] current unemployment income and of his future earnings. The Agreement with respect to [Colley’s] then unemployment compensation of $1,599.00 was for payment of 20% thereof, or $320.00 per month to [Underwood]. However, the parties were unable to reach a meeting of the minds with respect to the division of future amounts received by [Colley]. Judge Levitt expressed her approval of the $320.00 per month support.
8.’ Subsequent hearings held on November 5, 2002, and January 21, 2003, ... failed to produce any agreement with respect to the amount of [Colley’s] future support obligations. However, [Colley] paid to [Underwood] 20% of his unemployment compensation for the period from his termination of employment at IBM to the date when he started employment in the State of Hawai'i.
9. At a hearing before Judge Levitt on March 25, 2003, ... [Colley] informed the Court that he had found employment, which was to start on April 1, 2003, in Hawaii with a starting salary of $80,000.00. 2 Subsequently, at a hearing held on May 29, 2003, the Vermont Court declined to exercise jurisdiction over the case because both parties were, at that time, residents of different states, and left unresolved the issue of [Colley’s] support obligations based upon his then income of $80,000.00 per year. Nevertheless, [Col-ley] commenced payment of support in the amount of $1,700.00 per month to [Underwood] commencing May 2003, based upon negotiations with [counsel for Underwood].
10. [Colley] reasonably believed, based upon the representations and conduct of [Underwood’s] counsel at the October 7, 2002, hearing, as well as the representation of the Vermont court, that the parties had agreed to set [Underwood’s] spousal support at $320.00 per month for the period when [Colley] was receiving $1,599.00 per month in unemployment compensation. [Underwood] knew, or should have known, that [Colley] was relying upon those representations. [Undeiwood] accepted the benefits of the parties’ understanding and caused [Colley] not to take any further steps to formally memorialize their agreement.
11. With respect to the support due [Underwood] for periods other than when [Colley] was collecting unemployment compensation, the evidence presented does not establish any meeting of the minds of the parties as to what [Underwood’s] support would be. Although [Colley] started payment of $1,700.00 per month to [Underwood] when he commenced his employment in Hawai'i, the record is unclear as to whether this amount was accepted by [Underwood] as the amount due her for her support.
12. Since the divorce, [Colley] has remarried, and he and his wife are the parents of a son with special needs.

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Underwood v. Colley, 137 P.3d 365, 111 Haw. 51, 2006 Haw. App. LEXIS 196 (hawapp 2006).

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