Werley, C. v. Hernandez, J.

CourtSuperior Court of Pennsylvania
DecidedJanuary 25, 2023
Docket1706 EDA 2022
StatusUnpublished

This text of Werley, C. v. Hernandez, J. (Werley, C. v. Hernandez, J.) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Werley, C. v. Hernandez, J., (Pa. Ct. App. 2023).

Opinion

J-A01008-23

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

CHRISTINE ANN WERLEY : IN THE SUPERIOR COURT OF : PENNSYLVANIA Appellant : : : v. : : : JOSEPH ANTONIO HERNANDEZ : No. 1706 EDA 2022

Appeal from the Order Entered March 31, 2022 In the Court of Common Pleas of Lehigh County Domestic Relations at No(s): DR-10-02209, PACSES: 884112096

BEFORE: LAZARUS, J., NICHOLS, J., and McCAFFERY, J.

MEMORANDUM BY McCAFFERY, J.: FILED JANUARY 25, 2023

Christine Ann Werley (Mother) appeals from the March 31, 2022, order

by the Lehigh County Court of Common Pleas, denying her exceptions to the

trial court’s November 10, 2021, order, which directed Joseph Antonio

Hernandez (Father) to pay child support in the amount of $595.68 per month

for the one minor child (Child)1 the parties share. On appeal, Mother raises

several claims: (1) the court failed to assign Father an earning capacity

commensurate with his prior work experience; (2) the court failed to properly

calculate Father’s income for child support purposes; and (3) the court failed

____________________________________________

1 Child was approximately 11 years old at the time of the underlying proceedings. J-A01008-23

to properly calculate childcare expenses based on the record. For the following

reasons, we affirm.

The parties were never married, and their relationship lasted only a

couple of months. See N.T., 10/14/21, at 61, 63. Child was born in October

of 2011. Following their separation, Mother filed a support action against

Father. Both parties are self-employed: (1) Mother owns a massage business;

and (2) Father is stonemason. On July 8, 2011, the court ordered Father to

pay support in the amount of $1,706.00 per month. 2 Father did not appeal

that decision. The support ordered remained relatively unchanged for the

following ten years.

In February 2021, Mother filed a petition for contempt of the July 8th

order, alleging Father was “inconsistent with his support obligation, and ha[d]

notified Mother via email and/or text that he will pay support when she

allow[ed] him to see the minor child.” Mother’s Petition for Contempt of Order

Dated July 8, 2011, 2/5/21, at 1.

Subsequently, on March 18, 2021, Father filed a petition for modification

of his support obligation due to his loss of income as a result of the Covid-19

pandemic. See Father’s Petition for Modification of an Existing Support Order,

2 The master determined that Father held an earning capacity of approximately $51,000 as an experienced mason. N.T., 9/13/21, at 49.

-2- J-A01008-23

3/18/21, at 2. An interim order was entered on May 28, 2021, requiring

Father to pay $1,445.95 per month. See Order of Court – Allocated, 5/28/21.3

Nevertheless, the parties were not able to reach an agreement with

regard to Father’s support obligation, and the matter was listed for a hearing

before Hearing Officer Richard F. Betz. See Summary Report, 11/10/21 at 1.

The parties appeared for three hearings that were conducted on August 5,

3 The interim order followed a support conference that was conducted the same day. The hearing officer, Errol Bott, issued a summary, in which he noted the following:

[Mother] is self-employed with her own business. A Schedule C from 2019 was provided which shows a profit of $23,669.00. [Mother] also receive[d] earned income credit of $3,055.00 and child tax credit of $1,691.00. These shall be considered income for [her]. [Mother] stated she did not receive wages or compensation from her employment. [She] provided documentation stating that due to medical issues, child needs supervision. Medical personnel stated a need for child care, the child care costs shall be considered.

[Father] is currently not employed. [Father] showed 2 statements of pay totaling $1,500.00, which he states represents the total income he has earned for 2021. [Father] provided limited income for 2020 as well doing masonry work. [He] provided very little information with respect to work sought and has not looked for any work outside of his field. It does not appear [Father] has attempted to mitigate any losses he may have had. [Father] shall be assessed an earning capacity. [He] was last assessed an earning capacity in 2011 by the Hearing Officer of $51,250. Per the Occupational Wage Guide for Masonry (47-2051) this assessment falls within the salary guides. As there has been no attempt to mitigate losses, Officer will not deviate from this assessment; as even though the assessment is over 10 years old, it still falls within the wage guide range.

Summary of Trier of Fact, 5/28/21, at 2-3.

-3- J-A01008-23

2021, September 13, 2021, and October 14, 2021. See id. The findings of

the Domestic Relations Conference Officer were admitted into evidence at the

time of the proceedings. See id. at 1-2.4 Mother made no objections, but

Father disagreed with the calculation of his income. See id. at 2.

On November 10, 2021, the hearing officer entered a report,

summarizing its findings. First, the officer pointed out the parties “are both

self-employed individuals.” Summary Report, 11/10/21, at 2. The officer

explained the evidence presented at the hearings and his findings as follows:

The Superior Court in the case of Fennell v Fennell, 753 A.2d 866 (Pa. Super. 2004) stated in relevant part, “[O]ur jurisprudence is clear, therefore, that the owner of a closely held corporation cannot avoid a support obligation by sheltering income that would be available for support by manipulating salary, perquisites, corporate expenditures, and/or corporate distribution amounts.” Id. at 868. The Pennsylvania Supreme Court made it clear that income available for support is based upon cash flow in lieu of tax code adjustments in cases where a party is self- employed. Labar v Labar, 731 A.2d 1252 (Pa. [ ] 1999). The only way to accurately determine cash flow is to give the opposing party and the court an opportunity to review all expenditures used to off-set gross income. In that vein, an order was entered requiring [Father] to provide a copy of his most recently filed tax return along with all corresponding receipts utilized to off-set gross receipts. On the original hearing date, it became apparent that [Father] failed to comply with that order. As a result, the matter was rescheduled so that [Father] could comply.

As it was not known that [Father] was going to challenge the calculation of [Mother]’s net monthly income until the second day of testimony, a corresponding self-employment order for [Mother] was not issued. Notwithstanding that fact, [Mother]’s

4 See also N.T., 8/5/21/ at 3.

-4- J-A01008-23

counsel assured the court that she would comply with the same requirements contained in [Father]’s order.

[Mother] submitted a copy of her federal tax return, and corresponding documentation, for calendar years 2019 and 2020. The undersigned Hearing Officer used the 2020 federal tax return in order to calculate [Mother]’s income level.

For 2020, the undersigned Hearing Officer has been prorating the profit reported by self-employed individuals if their business was not open for the entire calendar year due to Covid. [Mother] credibly testified that her business was open throughout the entire calendar year. [Mother] did realize a reduction in business as a result of Covid nonetheless. On the 2020 federal tax return, [Mother] reported gross receipts of $58,512.00.

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Werley, C. v. Hernandez, J., Counsel Stack Legal Research, https://law.counselstack.com/opinion/werley-c-v-hernandez-j-pasuperct-2023.