White v. Graham

325 S.E.2d 497, 72 N.C. App. 436, 1985 N.C. App. LEXIS 3102
CourtCourt of Appeals of North Carolina
DecidedFebruary 5, 1985
Docket843DC476
StatusPublished
Cited by15 cases

This text of 325 S.E.2d 497 (White v. Graham) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
White v. Graham, 325 S.E.2d 497, 72 N.C. App. 436, 1985 N.C. App. LEXIS 3102 (N.C. Ct. App. 1985).

Opinion

WELLS, Judge.

A separation agreement is a contract, and the laws governing ordinary contracts apply. See Lane v. Scarborough, 284 N.C. 407, 200 S.E. 2d 622 (1973). Under North Carolina law, such an agreement may be modified only by the parties (absent circumstances not applicable here). Crutchley v. Crutchley, 306 N.C. 518, 293 S.E. 2d 793 (1982); compare Henderson v. Henderson, 307 N.C. 401, 298 S.E. 2d 345 (1983) (distinguishing agreement adopted by court). The death of Steve White did not terminate his obligation, which his estate could satisfactorily perform. Shutt v. Butner, 62 N.C. App. 701, 303 S.E. 2d 399, disc. rev. denied, 309 N.C. 462, 307 S.E. 2d 367 (1983). No fraud, failure of consideration, or other ground for rescission under North Carolina law appears. On the facts in this case, then, a North Carolina court could not nullify the separation agreement in a subsequent divorce. We must now determine whether a Texas court action has greater power.

It is well established in Texas that, where no children are involved, courts may only order division of marital property upon divorce. Public policy forbids a court from ordering payment of alimony after a final decree of divorce. Francis v. Francis, 412 S.W. 2d 29 (Tex. 1967), followed Deen v. Deen, 631 S.W. 2d 215 (Tex. Ct. App. 1982). However, Texas policy does not affect con *439 tractual obligations to pay alimony; such agreements are accorded whatever force the law of contracts will give them. Francis v. Francis, supra. Texas policy also does not prevent enforcement of foreign money judgments predicated upon court-ordered support. Layton v. Layton, 538 S.W. 2d 642 (Tex. Civ. App. 1976) (writ ref’d n.r.e.). We have found no Texas authority for refusing to enforce contracts for support simply because they are entered into outside Texas. Texas has never adopted any policy reflective of an intent to provide a haven for spouses trying to escape their contractual obligations. Rather, Texas recognizes the sanctity of contracts and the “universal rule” that the validity and interpretation of a contract is determined by the law of the state where made, and if valid there is likewise valid elsewhere. State of Calif.-Ment. Hyg. v. Copus, 158 Tex. 196, 309 S.W. 2d 227 (1958), cert. denied, 356 U.S. 967 (1959); Bergstrom A.F.B. Fed. Credit v. Mellon Mort., 674 S.W. 2d 845 (Tex. Ct. App. 1984) (Texas law controls only procedure). Steve White’s death would not affect the validity of the contract under Texas law. Republic National Bank of Dallas v. Beaird, 475 S.W. 2d 344 (Tex. Civ. App. 1971) (error refused). A Texas court thus could not modify decedent’s support obligation without plaintiffs consent. Crutchley v. Crutchley, supra.. Even under Texas law, support agreements may not be modified (absent fraud, accident or mutual mistake) without the consent of the parties. Deen v. Deen, supra.

No Texas decision has attempted to deal with the question directly presented here, in large part because Texas long-arm jurisdiction and general recognition of foreign decrees have both been only recently expanded to conform to current notions of jurisdictional due process. See Tex. Fam. Code Ann. § 3.26 (Vern. Supp. 1984) and Mitchim v. Mitchim, 518 S.W. 2d 362 (Tex. 1975), discussed in J. Sampson, Interstate Spouses, Interstate Property, and Divorce, 13 Tex. Tech. L. Rev. 1285 (1982). In light of the Texas courts’ continued recognition of support agreements in the face of the state policy forbidding alimony, and the courts’ willingness to enforce judgments based on foreign support orders, we conclude that Texas would not deviate from the general rule that provisions in a separation agreement providing for support are not automatically abrogated by a subsequent absolute divorce. See 24 Am. Jur. 2d Divorce and Separation § 851 (1983); 27B C.J.S. Divorce § 301(2)d (1959). Rather, the Texas cases appear to *440 go to some length in the opposite direction to avoid the potentially harsh results of the “no alimony” rule. See Conner v. Bean, 630 S.W. 2d 697 (Tex. App. 1981), writ ref. n.r.e. (“property settlement” need not refer to any property; enforceable post divorce); Cornell v. Cornell, 413 S.W. 2d 385 (Tex. 1967) (monthly payments until marriage or eligibility for Social Security held property settlement; enforceable). We therefore conclude that a Texas court would not undertake, absent plaintiffs consent, to nullify the support provisions of the North Carolina agreement.

Nevertheless, argues defendant, the Texas decree purports to nullify any prior agreements between these parties, and if the decree contained error of law, those errors must be addressed in the courts of Texas, not North Carolina; otherwise, the decree is entitled to full faith and credit by the courts of this state. U.S. Const. Art. IV, cl. 1. North Carolina courts may entertain attacks on foreign judgments on the grounds of lack of jurisdiction, fraud, or public policy issues. Courtney v. Courtney, 40 N.C. App. 291, 253 S.E. 2d 2 (1979). Plaintiff therefore attempted to attack the Texas court’s exercise of in personam jurisdiction. However, the validity of that exercise involved questions of Texas, not North Carolina, law. Plaintiff, with the burden of overcoming the presumption of validity afforded foreign judgments, failed (both in the trial court and this court), to present any Texas authority indicating that Texas’ excercise of jurisdiction was improper. The trial court thus did not err in granting the decree full faith and credit.

The trial court did err, however, in the extent it allowed the decree effect. The due process clause of the Fourteenth Amendment requires not only that a foreign court must otherwise have jurisdiction, but also that parties have actual notice of the proceedings. Mullane v. Central Hanover Bank & Trust Co., 339 U.S. 306 (1950). Such notice must include not only jurisdictional notice (summons) but also notice of the nature of the proceedings (complaint). Id.; see Childress v. Forsyth County Hospital Auth., 70 N.C. App. 281, 319 S.E. 2d 329 (1984), disc. rev. denied, — N.C. —, — S.E. 2d — (filed 8 January 1985); N.C. Gen. Stat. § 1A-1, Rules 3, -4 of the Rules of Civil Procedure (1983). Plaintiff received a petition for divorce, which requested that the Texas court make a fair division of all property accumulated during the marriage. She had a contract between herself and decedent, *441 which included an executed property settlement; the only ex-ecutory provisions were those detailed above providing for plaintiffs support, which clearly constituted valid and binding support provisions under both North Carolina and Texas law. Crutchley v. Crutchley, supra; Deen v.

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Bluebook (online)
325 S.E.2d 497, 72 N.C. App. 436, 1985 N.C. App. LEXIS 3102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/white-v-graham-ncctapp-1985.