Wise v. Nirider

862 P.2d 1128, 261 Mont. 310, 50 State Rptr. 1334, 1993 Mont. LEXIS 330
CourtMontana Supreme Court
DecidedNovember 2, 1993
Docket93-038
StatusPublished
Cited by10 cases

This text of 862 P.2d 1128 (Wise v. Nirider) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wise v. Nirider, 862 P.2d 1128, 261 Mont. 310, 50 State Rptr. 1334, 1993 Mont. LEXIS 330 (Mo. 1993).

Opinion

JUSTICE TRIEWEILER

delivered the Opinion of the Court.

Marian Joan Wise filed a complaint in the District Court for the Eleventh Judicial District in Flathead County to set aside the property settlement agreement she entered into with Edwin Keith Nirider, and to reopen their dissolution proceedings. After a trial on the merits, the District Court entered judgment for Marian granting the relief she sought. Edwin appeals from that judgment. We reverse the District Court.

The issue on appeal is whether the District Court erred when it set aside the property settlement agreement and reopened the dissolution proceedings based on findings of extrinsic fraud upon the court and unconscionability of the agreement.

The marriage of Marian Joan Wise and Edwin Keith Nirider was dissolved on August 6,1987, after 33 years. Judge Michael H. Keedy, who presided over the dissolution proceedings, approved a property settlement agreement entered into by the parties on July 9,1987, and amended on July 30, 1987. This agreement, which was incorporated into the dissolution decree, purported to distribute the parties’ entire marital estate.

Marian and her attorney, Randy Ogle, drew up the property settlement agreement. Edwin did not discuss the contents of the agreement with Randy Ogle, and did not retain his own counsel. Edwin voluntarily signed the agreement and concurred with the amendments, but made no appearance in court during the proceedings.

The agreement, in part, provided for a distribution of the marital estate. The parties’ real property was to be sold and the proceeds divided equally. Marian was to receive certain tangible items, and approximately $22,500 consisting of an IRA and an inheritance from her mother. Edwin was to receive certain tangible items, the “personal property in his possession,” and cash and IRA funds totalling $19,500. Additionally, Marian was to receive $50 per month as maintenance, and she reserved the right to petition the court for a modification in the event of changed circumstances.

*313 The addendum to the separation agreement provided that Marian would receive $3,600 from Edwin’s share of the proceeds from the sale of the residence as compensation for her interest in a windshield business which was retained by Edwin.

At the time of the dissolution, Edwin was retired from the Atlantic Richfield Company (ARCO) Almninum Plant at Columbia Falls and was drawing retirement income of $1,120 per month. This would continue until July 1,1992, at which time he would become eligible for Social Security benefits and the pension would be reduced to $495 per month. Although Marian’s knowledge of her right to share in the pension plan as a marital asset is disputed, it is undisputed that both parties knew of the existence of the ARCO pension plan at the time they entered into the separation agreement. Marian’s attorney also testified that he knew of the pension plan when he prepared the settlement agreement. However, neither the agreement, nor the dissolution decree, mention the pension plan specifically and no part of the pension was distributed to Marian.

Three months after the dissolution was finalized, Marian petitioned for modification of the maintenance award. She sought to increase maintenance to $800 per month because she was unable to meet her living expenses. Edwin resisted this motion and it was ultimately dismissed by stipulation on November 1,1988.

On May 25, 1989, Marian filed this independent cause of action against Edwin for fraud. She alleged that, while negotiating the settlement agreement, Edwin represented to her that the retirement program was personal in nature and was not a marital asset subject to division between the parties. The complaint was later amended to include claims of -unconscionability and extrinsic fraud upon the court. It was Marian’s contention that Edwin’s failure to disclose the provisions of the pension plan, and her entitlement to a portion of the pension, constituted a fraud upon the court which rendered the property settlement agreement unconscionable, and that it should, therefore, be set aside and the dissolution reopened.

Atrial was held on April 27, 1992, before Judge Ted O. Lympus in which Marian, Edwin, and Marian’s attorney, Randy Ogle, presented contradictory testimony. In deposition testimony, Ogle stated that he informed Marian that the pension was a marital asset subject to division. However, Ogle testified that Marian told him not to make the pension an issue because she did not want to delay the divorce. She said that Edwin considered the pension to be his asset that he *314 had accumulated during his years of work at ARCO, and would become upset if she sought a share in it.

Ogle stated that he told Marian she was asking for too little maintenance and that she ought to pursue a portion of the pension as a marital asset. Marian had originally wanted $350 per month in maintenance, but reduced her request to $50 per month when, according to her, Edwin became angry. Edwin did admit that he told Marian that if she sought more financial support from him, he would retain a lawyer.

Ogle did not explain the failure to identify the ARCO pension fund in the settlement agreement, but stated that when he drafted the agreement using the phrase “the personal property in his possession,” it was his intent, based on Marian’s statements, that the pension fund was to go entirely to Edwin.

Marian, however, testified that she had no idea of the value of the pension plan, never asked her attorney about it, and never believed she was entitled to share in the pension as a marital asset. Although she acknowledges that she told Ogle of the existence of the pension, she denies Ogle’s claim that he told her the pension was a marital asset and she had the right to share in it. Marian said she did not discuss a possible division of the pension with Edwin because she was intimidated by him and was fearful of him. It is her contention that she never willingly waived an interest in Edwin’s pension benefits.

In contrast, Edwin testified that Marian told him she was entitled to half of the pension plan but was not going to seek this in the separation agreement. He admitted, however, that he may have told Marian, prior to the time she retained counsel, that the pension was his and she had no right to any of it.

In its findings of fact, conclusions of law, and judgment issued on October 30, 1992, the court set aside the property settlement agreement and reopened the dissolution proceeding in order to effect a “fair and equitable division of all marital assets,” including the ARCO pension plan. This conclusion was based on the court’s finding that the separation agreement did not provide for a division of the pension plan and that Marian had not willingly, voluntarily, or knowingly waived her interest in this marital asset. The court rejected Ogle’s argument that the phrase “all personal property in [Edwin’s] possession” included the pension plan. Although the court found that Marian was aware of the existence of the pension plan benefits, it found that she was not aware that she had a legal right to a portion of this until the time that her action for fraud was commenced.

*315

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Cite This Page — Counsel Stack

Bluebook (online)
862 P.2d 1128, 261 Mont. 310, 50 State Rptr. 1334, 1993 Mont. LEXIS 330, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wise-v-nirider-mont-1993.