Michael v. Miller
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The Supreme Court reversed the judgment of the court of appeals determining that Karen Michael held an equitable lien on David Miller's Ram Sensors, Inc. stock shares securing David's current obligation to pay monthly spousal support to Karen, holding that an equitable lien did not exist on the stock to secure the current obligation.
When Karen and David divorced, the separation agreement incorporated into their final judgment entry of divorce provided that David would pay Karen $15,000 per month in spousal support for twenty years. Karen agreed to relinquish all rights she may have had in Ram Sensors, and David agreed to secure his spousal support obligations. Later, Karen filed a postdecree pleading against David and Cody seeking a declaration that David's ownership of the Ram Sensors stock secured his obligations under the divorce decree and requesting that the court order Cody Miller, the parties' son, to transfer David's stock to her. The court granted partial summary judgment to Karen, concluding that she held a perfected lien in the Ram Sensors stock and an equitable lien on the stock. The court of appeals affirmed. The Supreme Court reversed, holding that the court of appeals misconstrued the separation agreement and erred when it recognized an equitable lien securing David's current support obligation.
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