Alan Ray Price, Sr. v. Jennifer Hutchison Price
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IN THE COURT OF APPEALS OF THE STATE OF MISSISSIPPI
NO. 2007-CA-00981-COA
ALAN RAY PRICE, SR.
APPELLANT
v.
JENNIFER HUTCHISON PRICE
DATE OF JUDGMENT:
TRIAL JUDGE:
COURT FROM WHICH APPEALED:
ATTORNEY FOR APPELLANT:
ATTORNEY FOR APPELLEE:
NATURE OF THE CASE:
TRIAL COURT DISPOSITION:
DISPOSITION:
MOTION FOR REHEARING FILED:
MANDATE ISSUED:
APPELLEE
04/24/2007
HON. MITCHELL M. LUNDY, JR.
DESOTO COUNTY CHANCERY COURT
STEVEN GLEN ROBERTS
LEIGH ANN DARBY
CIVIL - DOMESTIC RELATIONS
HUSBAND FOUND IN CONTEMPT OF
COURT’S ORDERS AND PROPERTY
SETTLEMENT AGREEMENT MODIFIED
TO REDUCE AMOUNT OF ALIMONY TO
BE PAID BY HUSBAND
AFFIRMED - 03/17/2009
BEFORE MYERS, P.J., ISHEE AND CARLTON, JJ.
ISHEE, J., FOR THE COURT:
¶1.
Jennifer H. Price and Alan R. Price, Sr., were granted a divorce on March 27, 2006,
in the Chancery Court of DeSoto County on the ground of irreconcilable differences. The
final decree of divorce incorporated a property settlement agreement that the Prices had
previously executed. On March 29, 2006, Jennifer filed a Chapter 7 bankruptcy action in the
United States Bankruptcy Court for the Northern District of Mississippi. Jennifer then filed
a petition for contempt and other relief in the chancery court on April 19, 2006, against Alan
seeking a monetary judgment for failure to abide by the terms of the property settlement
agreement. Alan obtained an order to lift the automatic stay and filed an answer to the
petition for contempt and a counter-petition to modify the final decree of divorce and citation
for contempt. Following a hearing on the merits, the chancery court: (1) found that Alan was
in willful contempt of the court’s orders, (2) established the amount of arrearages, (3)
awarded Jennifer attorney’s fees, and (4) slightly modified the monthly alimony payments.
Aggrieved, Alan appeals asserting the following assignments of error:
I.
The chancellor erred in not finding fraud or overreaching by the
Petitioner/Appellee.
II.
The chancellor erred in not barring the contempt action by the
Petitioner/Appellee based on the “Clean Hands” Doctrine.
III.
The chancellor erred in failing to modify the final decree of divorce as
to the financial matters and as to the date of the modification.
IV.
The chancellor erred in the award of attorney’s fees to the Petitioner/
Appellee.
Finding no error, we affirm.
FACTS
¶2.
Alan and Jennifer were married on March 22, 1985. They lived together in Tate
County, Mississippi until they separated on March 1, 2005. During the course of their
marriage, they had two children: their son was born on January 16, 1991, and their daughter
was born on July 20, 1997. Jennifer filed for divorce in the Chancery Court of DeSoto
County on January 17, 2006. The parties entered a property settlement agreement on
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February 28, 2006, and it was filed in the DeSoto County Chancery Court Clerk’s Office on
March 27, 2006. The property settlement agreement provided that Jennifer and Alan would
have joint legal custody of the minor children, but Jennifer would maintain physical custody
of the children. The agreement also ordered that Alan: (1) pay $1,750, which represented
21% of his adjusted gross income, in child support each month; (2) provide medical and
hospitalization insurance for Jennifer and the children; (3) pay all reasonable and necessary
medical expenses incurred by Jennifer and the children that may not be covered by Alan’s
insurance policy; (4) convey to Jennifer any right, title, and interest he had in the marital
residence, but she would pay the mortgage; (5) assist Jennifer in obtaining a 2005 Nissan
Maxima or a vehicle of equal value, but she would be responsible for making the car
payments; (6) pay $4,500 each month in alimony until the children graduate from college or
Jennifer remarries; (7) accept responsibility for paying any and all of his and Jennifer’s debts
incurred during their marriage, which totaled $82,000 that was charged on eleven credit cards
listed in Jennifer’s name; (8) pay the children’s private school and college tuition until they
graduate or are otherwise emancipated; (9) pay Jennifer’s attorney’s fees and court costs;
(10) obtain a life insurance policy with Jennifer named as the sole and irrevocable
beneficiary in the amount of $1,500,000 if he is financially able, but, if not, then in the
amount of no less than $1,000,000.
¶3.
Alan was self-employed in the real estate business throughout the Prices’ marriage,
and Jennifer had not worked for sixteen years prior to their divorce. Alan had a fluctuating
income, and he testified at trial that his business had slowed down from previous years. The
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income information that Alan provided at trial was an estimate because the computer
containing his business records was in disrepair at the time, and the parties had not filed
income tax returns since approximately 1999 or 2000. Alan testified at the hearing that his
average monthly gross income was $10,000, and Jennifer had recently begun working at an
insurance agency, which provided her with a monthly net income of approximately $1,000.
¶4.
At the time of the divorce, the mortgage on the marital residence, which was
transferred to Jennifer’s name, was six months past due on payments in the total amount of
$12,578.16. On March 29, 2006, two days after the final decree of divorce was entered,
Jennifer filed for Chapter 7 bankruptcy. Because the mortgage and credit card debt were
listed solely in her name, those debts were included in the bankruptcy action, thereby
relieving Jennifer’s and Alan’s obligations to pay the $12,578.16 arrearage on the marital
home and the $82,000 in credit card debt.
¶5.
Jennifer filed a petition for contempt and other relief claiming that Alan had failed to
abide by the terms of the property settlement agreement. Alan responded by filing his
answer and counter-petition to modify the final decree of divorce and citation for contempt.
Upon hearing testimony presented by both parties and reviewing the relevant financial
documents, the chancellor found the following:
1. Alan was in willful contempt of the previous orders of the court for failing
to provide and maintain medical and hospitalization insurance coverage for
Jennifer and the children. The parties agreed that he would not be required to
provide such for the children as long as they remained eligible for Mississippi
Medicaid/ CHIPS.
2. Alan was in willful contempt of the previous orders of the court for failing
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to obtain and maintain a life insurance policy in the amount of $1,500,000 or
no less than $1,000,000 for the benefit of Jennifer and the children. Alan was
ordered to convey ownership of his $250,000 Midland National Life Insurance
Company policy to Jennifer and immediately provide proof of a policy
benefitting Jennifer and the children in the amount of $1,500,000 if he is
financially able, but no less than $1,000,000.
3. Alan was in willful contempt of the previous orders of the court for failing
to pay the full $1,750 in monthly child support, and he owed Jennifer $1,900
in arrearages.
4. Alan was in willful contempt of the previous orders of the court for failing
to pay $4,500 in monthly alimony, and he owed Jennifer $37,825 in
arrearages.
¶6.
The chancellor further ordered Alan to pay Jennifer’s attorney’s fees in the amount
of $3,500 due to the fact he was found in willful contempt of the court’s previous orders. He
also reduced Alan’s monthly alimony payments from $4,500 to $3,000 because
approximately $2,000 of the alimony payments from the original order had been intended to
pay the mortgage on the marital home, which had since been foreclosed.
STANDARD OF REVIEW
¶7.
A reviewing court will defer to the chancellor’s final judgment. Sanderson v.
Sanderson, 824 So. 2d 623, 626 (¶12) (Miss. 2002) (citations omitted). We “will not disturb
the findings of a chancellor when supported by substantial evidence unless the chancellor
abused his discretion, was manifestly wrong, clearly erroneous or an erroneous legal standard
was applied.” Id. at 625-26 (¶8) (citations omitted).
DISCUSSION
I.
The chancellor did not err in not finding fraud or overreaching by
the Petitioner/Appellee.
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¶8.
Alan asserts that Jennifer knew before the final divorce decree was entered that she
planned to file for Chapter 7 bankruptcy, and she did not reveal her intentions to Alan or the
court in advance. Therefore, he contends that the property settlement agreement involved
overreaching and misrepresentation. He complains that the monthly expenses he was ordered
to pay under the agreement were too high and exceed his income.
¶9.
Parties are allowed broad latitude in making decisions regarding property settlement
agreements in divorce proceedings, and absent overreaching or fraud, the agreements will
be enforced. Speed v. Speed, 757 So. 2d 221, 224-25 (¶8) (Miss. 2000). Overreaching
occurs when an agreement: (1) “is so one-sided and unfair that it could never be considered
‘adequate and sufficient,’” and (2) “resulted from an inequality of bargaining power or other
circumstances such that there was no meaningful choice on the part of the disadvantaged
party.” In re Dissolution of the Marriage of De St. Germain, 977 So. 2d 412, 419 (¶21)
(Miss. Ct. App. 2008). Fraud, on the other hand, requires that the claimant bear the burden
of proof by a clear-and-convincing-evidence standard. Stringfellow v. Stringfellow, 451 So.
2d 219, 221 (Miss. 1984). The elements of fraud are as follows:
(1) a representation, (2) its falsity, (3) its materiality, (4) the speaker’s
knowledge of its falsity or ignorance of its truth, (5) [the speaker’s] intent that
it should be acted on by the person and in the manner reasonably
contemplated, (6) the hearer’s ignorance of its falsity, (7) [the hearer’s]
reliance on its truth, (8) [the hearer’s] right to rely thereon, and (9) [the
hearer’s] consequent and proximate injury.
Id.
¶10.
We agree with the chancery court that there was no overreaching or fraud in this case.
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Both parties were represented by counsel, and both parties voluntarily executed the property
settlement agreement. The agreement was not the result of one-sided or unequal bargaining
power; thus, there was no overreaching by Jennifer. In addition, we find that Alan fails to
meet the standard required to prevail on a claim of fraud. Despite his complaints of financial
difficulties, we again emphasize that Alan voluntarily executed the agreement. He is actually
in a better financial position now than he was prior to Jennifer’s filing bankruptcy because
it relieved him of paying $12,578.16 in arrearages on the marital home and $82,000 in credit
card debt. “[T]he law favors the settlement of disputes by agreement, and people are free to
enter into property settlement agreements – even unfavorable ones. We will not disturb such
agreements simply because an agreement is not necessarily in one’s best interest.” De St.
Germain, 977 So. 2d at 420 (¶23). Accordingly, we find no fraud or overreaching in this
case, and this issue is without merit.
II.
¶11.
Whether the chancellor erred in not barring the contempt action
by the Petitioner/Appellee based upon the “Clean Hands” Doctrine.
Alan also argues that Jennifer should have been barred from pursuing any action
against him for alimony, health insurance, life insurance, marital debts, or attorney’s fees.
He alleges that Jennifer had “unclean hands” because “she knowingly and willfully withheld
her intentions and plans from the [c]ourt and Alan[,]” and that “she knew when she presented
[the agreement] to the [c]ourt that it was an agreement to which she was not going to
comply.”
¶12.
Civil contempt actions are filed to enforce a court order and coerce a party to comply
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therewith. Lahmann v. Hallmon, 722 So. 2d 614, 620 (¶19) (Miss. 1998) (citing Jones v.
Hargrove, 516 So. 2d 1354, 1357 (Miss. 1987)). The “clean hands” doctrine provides a
defense to civil contempt actions where provisions of marital dissolution agreements have
been violated. Riddick v. Riddick, 906 So. 2d 813, 825 (¶38) (Miss. Ct. App. 2004). The
doctrine, as interpreted by our supreme court, stands for the proposition that “no person as
a complaining party can have the aid of a court of equity when his conduct with respect to
the transaction in question has been characterized by wilful inequity.” Id.
¶13.
The chancellor has substantial discretion in matters of contempt. Hunt v. Asanov, 975
So. 2d 899, 902 (¶9) (Miss. Ct. App. 2008). It is clear from the record that Alan was, in fact,
in willful contempt of the court’s previous orders, not Jennifer. He failed to pay child
support in the amount of $1,750 and alimony in the amount of $4,500 each month, and he
failed to provide the proper health and life insurance. Therefore, Jennifer did not have
“unclean hands,” and the chancellor did not abuse his discretion in allowing her to pursue a
contempt action. This issue is without merit.
III.
¶14.
The chancellor did not err in failing to modify the final decree of
divorce as to the financial matters and as to the date of the
modification.
Alan contends that the final decree of divorce should be modified due to a material
change in circumstances and the parties’ financial situations. He requests the following: (1)
his child support obligations be reduced from $1,750 to $1,362.80 per month; (2) the alimony
be reduced to $1,000 per month, if not completely eliminated; (3) Jennifer be required to
assist in providing health insurance for the children, and all non-covered medical expenses
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be divided equally between the parties; (4) Jennifer continue paying the Northwestern Mutual
and Midland life insurance premiums on Alan’s life if she would like to keep them; and (5)
the provision regarding the $1,500,000 or $1,000,000 life insurance policy be deleted.
Furthermore, he asks for the changes to be retroactive to April 1, 2006.
¶15.
Pursuant to the original final decree of divorce, Alan was required to pay $4,500 in
alimony each month, approximately $2,000 of which was to be used by Jennifer to pay the
mortgage on the marital home. Due to the marital home’s foreclosure, the chancellor reduced
the monthly alimony amount that Alan would be required to pay from $4,500 to $3,000.
¶16.
As stated, this Court will uphold a chancellor’s findings of fact provided they are
supported by substantial, credible evidence in the record. Austin v. Austin, 981 So. 2d 1000,
1003 (¶7) (Miss. Ct. App. 2007). This is especially true in matters such as alimony and child
support, unless we find the chancellor abused his discretion or was manifestly wrong. Id.
With regard to modifying a divorce decree, this Court has held the following:
“[A] husband may not petition for modification of the original decree without
a showing either that he has performed it or that his performance has been
wholly impossible.” The supreme court has recognized that this showing must
be done in “particular and not general terms.” A husband is required to show
what his earnings, his living expenses, and who his dependents are. Yet, “the
payment of other debts or expenses will not excuse or justify his default,
unless such payment was necessary in order to continue his business or
occupation, because his wife’s right to alimony is a prior and paramount claim
on his earnings.” Moreover, if a husband wishes to prove an inability to pay,
his evidence must show “that he earned all he could, that he lived
economically, and paid all surplus money above a living on the alimony
decreed to his wife.”
Lane v. Lane, 850 So. 2d 122, 126 (¶12) (Miss. Ct. App. 2002) (internal citations omitted).
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¶17.
We find no reason why we should retroactively apply the modification of the divorce
agreement. Alan testified at trial that his gross monthly income was $10,000. He admitted
that he had not paid federal, state, or self-employment taxes since 1999 or 2000. He further
testified that he lives rent-free in a home owned by his current mother-in-law, that he does
not have a monthly car payment because he drives his current wife’s car, and that he does not
have health insurance; therefore, his take home pay would appear to be $10,000 minus any
business expenses for which he may be responsible. Despite his claims of fluctuating income
and business expenses, we see no reason why Alan should be relieved from fulfilling his
duties as set forth by the divorce decree. Having been in his business for over twenty years,
he was in a position to foresee and plan ahead for such circumstances and expenses at the
time the agreement was entered. Accordingly, we find that Alan’s argument lacks merit, and
we affirm the chancery court’s order.
IV.
¶18.
The chancellor did not err in awarding attorney’s fees to the
Petitioner/ Appellee.
Finally, Alan argues that there is no basis for awarding Jennifer attorney’s fees
because she was precluded by the “clean hands” doctrine from pursuing her claim. However,
for reasons previously discussed, Jennifer was not barred by the “clean hands” doctrine, so
her contempt action was appropriate.
¶19.
“[A]n award of attorney’s fees in a contempt case is proper . . . [and] is largely
entrusted to the sound discretion of the chancellor.” In re Hampton, 919 So. 2d 949, 958
(¶36) (Miss. 2006) (citation omitted). The chancery court must first consider whether a party
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willfully violated the court’s order. Moses v. Moses, 879 So. 2d 1036, 1041 (¶21) (Miss.
2004). As stated earlier, there is no question that Alan willfully violated the court’s order by
failing to carry out his responsibilities. Therefore, we find that the chancellor properly
awarded attorney’s fees to Jennifer, and this issue is without merit.
¶20. THE JUDGMENT OF THE DESOTO COUNTY CHANCERY COURT IS
AFFIRMED. ALL COSTS OF THIS APPEAL ARE ASSESSED TO THE
APPELLANT.
KING, C.J., LEE AND MYERS, P.JJ., IRVING, GRIFFIS, BARNES,
ROBERTS AND CARLTON, JJ., CONCUR.
MAXWELL, J., NOT
PARTICIPATING.
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