Unser v. Unser

526 P.2d 790, 86 N.M. 648
CourtNew Mexico Supreme Court
DecidedAugust 2, 1974
Docket9762
StatusPublished
Cited by43 cases

This text of 526 P.2d 790 (Unser v. Unser) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Unser v. Unser, 526 P.2d 790, 86 N.M. 648 (N.M. 1974).

Opinion

OPINION

ZINN, District Judge.

Appellant was the defendant in a divorce action brought by appellee as plaintiff. Six months after the decree was obtained, appellee applied for a modification of the terms of the decree as to child support and division of the community property and sought alimony. Relief was granted appellee under the theory of fraud and misrepresentation on the part -of appellant, and a judgment was entered increasing child support from $200.00 to $400.00 a month, awarding her a money judgment in the sum of $60,628.00 in addition to the property and money originally awarded her, decreeing that appellant pay her alimony of $350.00 per month and awarding her $2,500.00 for attorneys’ fees. Appellant seeks a reversal of this judgment and restoration of the original decree.

The appellant as defendant did not contest the original divorce action. Appellee selected her attorney without objection by appellant. He did not have counsel. The details of the property settlement and the amount of child support were mutually discussed by the parties before and after the complaint was filed. Both parties gave details of the proposed settlement to appellee’s attorney. While no written stipulation or agreement was executed, they agreed to the terms of the proposed decree. Appellee’s counsel informed her that the division of community property proposed would give her considerably less than an equal share. He advised her not to agree to the settlement. She acknowledged that she was aware of this inequality. Because of her attorney’s apprehensions about this disparity, he prepared a written statement which she signed expressly acknowledging his advice and that the terms of the decree were as she wanted them. Her statement ended:

“ * * * however, I have decided to accept the less than one half of the estate in final settlement due to my own personal reasons.”

Within a week after filing the complaint and two days following their agreeing upon the terms of the decree, the appellee with her counsel appeared in court and presented the cause as a settled matter and obtained the decree. Appellant did not appear in court.

The theory of the grant of relief to appellee from the first judgment appears to have rested upon Rule 60(b) of the Rules of Civil Procedure [§ 21-1-1(60) (b), N. M.S.A.1953 (Repl. Vol. 4 1970)], giving a trial.court jurisdiction to relieve a party from a final judgment upon timely application for certain grounds or reasons. The grounds include those of “fraud * * * misrepresentation, or other misconduct of an adverse party.”

Setting aside husband and wife property settlements for fraud has been the subject of cases here and in other jurisdictions. Beals v. Ares, 25 N.M. 459, 185 P. 780 (1919); Trujillo v. Padilla, 79 N.M. 245, 442 P.2d 203 (1968). In Beals v. Ares, a husband, in contemplation of divorce made a property settlement with the wife through his attorney, in which she accepted $4,000.00 in settlement of her share of community assets worth over $100,000.00. The wife did not have independent legal advice, she was not told the extent or the value of the community property, nor was she told of her entitlement to a half interest in the community property.

In Trujillo v. Padilla, the wife, who could not read English, executed documents in that language, a deed of the community property and an answer and waiver to a divorce proceeding, in the office of her husband’s lawyer. She received nothing for her interest in the property. She was informed that the property was the separate property of the husband which was untrue. She had no independent counsel.

The court in each case evaluated the relationship and found the dominance of the husband and the confidence of the wife to exist.

Neither Beals v. Ares, nor Trujillo v. Padilla, held that the mere fact of marriage created a fiduciary relationship in which the husband presumptively occupies the role of dominance and the wife confidence. In each case the facts supported the existence of the dominion of the one and the confidence of the other.

The elements necessary to establish - a fraud wrought by one of the persons who occupies a fiduciary relationship is not quite the same as in other circumstances.

If from the facts it appears that the parties have such a relationship to each other, and then as a result of confidence reposed by the one, dominion and influence resulting from such confidence can be exercised by the other, fraud and undue influence may be presumed to exist when an advantage is gained by the dominant party at the expense of the confiding party. Harrison v. Harrison, 21 N.M. 372, 155 P. 356 (1916).

Cases from other jurisdictions give some perspective on the issues of fiduciary relationships arising in the marriage and how to view the parties’ relative positions as to dominance or confidence.

In Collins v. Collins, 48 Cal.2d 325, 309 P.2d 420 (1957), the parties agreed on the terms of a property settlement and divorce. The wife went to Nevada and obtained the divorce incorporating the settlement. Later she asked the California court to set aside the settlement on the ground of failure to disclose assets by the husband as a fiduciary.

In answering the wife’s contentions the court from that opinion said:

“Plaintiff urges that on August 13, 1953, when she executed the property settlement and deeds, defendant had a fiduciary duty to her and was required to fully disclose to her the value and character of their property.
“Plaintiff, however, had ample opportunity to investigate, with the aid of independent counsel, the character and value of the property of the parties. Plaintiff had contemplated obtaining a divorce for some time before she made the property settlement agreement and obtained the divorce. Defendant did nothing to hinder her investigation of the property or to cause her to execute the agreement precipitately. Defendant owed plaintiff no duty to force her to investigate the properties when she announced that she was satisfied with the agreement prepared by defendant’s counsel.
“ ‘ * * * [3] The decision of plaintiff’s attorneys to accept defendant’s proposal without a contest, although now claimed to have been ill-advised and unfair to her was her decision and she is bound thereby.’
“ * * * Here the parties were dealing with one another at arm’s length — or at least the husband gave the wife every opportunity to deal at arm’s length— when the settlement agreement was negotiated. The wife had independent advice. The fact that it appears that she was eager to secure a Nevada divorce and that therefore she did not obtain, or have her counsel obtain, a complete listing of the properties of the parties is not chargeable to the husband.

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Bluebook (online)
526 P.2d 790, 86 N.M. 648, Counsel Stack Legal Research, https://law.counselstack.com/opinion/unser-v-unser-nm-1974.