Zouck v. Zouck
Zouck v. Zouck
Opinion of the Court
delivered the opinion of the Court.
The appeal in this case is from a decree ordering Henry Charles Zouck, one of the appellants, to perform the obligation he had assumed in a separation agreement executed several years before by him and his wife, Betty Long Zouck, the appellee. A consideration of the agreement was the dismissal of a bill for divorce by the wife and a cross-bill by the husband, which had been filed in Baltimore, the matrimonial domicile. The agreement provided that the custody of the daughter, then seven years old, would continue in the mother, that the father was to pay $25.00 a week for the support of the child and to assign certain insurance policies to the daughter and execute a will, under which there would pass to her his remainder interests in three trust estates. One of the trust estates was created by deed from the husband’s father to the Safe Deposit and Trust Company, Trustee, the other appellant. The husband has not paid a cent since the execution of the agreement in 1949 and has never complied with any other of its terms, having thrown his executed copy into a trash can as he left the lawyer’s office where it was signed.
The decree of the lower court directed the husband to pay up the arrearages in a lump sum and, thereafter, to pay $25.00 a week, as well as to assign the policies and to execute the will, as agreed. It awarded custody of the daughter to the mother.
The trust held by the Safe Deposit and Trust Company, as Trustee, is a spendthrift trust. Nevertheless, the court, in order to enforce compliance with its decree, held that jurisdiction of the court attached to the interest of the husband in the trust, both as to principal and income — in other words, that the spendthrift trust could be invaded for the satisfaction of the court’s decree.
Both the husband and the wife are non-residents of Maryland. She lives in North Carolina, where she has supported herself and her daughter since the separation. He, an engineer by profession, has worked in various places in this country and abroad. In December, 1951,
Zouck argues that he was not subject to suit in Baltimore County — that if he was suable in Maryland, it was in Baltimore City, where he was when process was served. He relies on Article 75, Section 158 of the Code (1951), which provides that no person shall be sued out of the county in which he resides until a non est has been returned in such county. The privilege granted by Section 158 is applicable in equity as well as in law. Allender v. Ghingher, 170 Md. 156, 166; Evans v. Zouck, 172 Md. 12, 16. It has been stated that its purpose is to afford residents of the State an opportunity to avoid the defense of actions in counties distant from their homes or places of employment. Woodcock v. Woodcock, 169 Md. 40, 47. Since Zouck himself sets up and relies on his non-residence, he is in no position to claim the privilege granted by the statutes to residents only.
We pass then to the consideration of the merits. In our opinion, the court had power to enforce specifically the agreement between husband and wife and did not abuse its discretion under the established rules when it did so, either as to the arrearages or as to the weekly payments to be, made in the future. Traditionally, equity has had, and exercised, jurisdiction as to separation agreements between husbands and wives and, in appropriate cases, has specifically enforced payment of maintenance, including both that due and unpaid and that to be paid in the future. In Guth v. Guth, 3 Bro. C. C. 614, 29 Eng. Rep. 729, decided in 1792, the husband and wife had executed a separation agreement, whereby he had promised to pay her one hundred pounds per
The courts of a number of states have decreed specific performance of agreements for maintenance and support of a wife or a child, or both, directing payment of the amount in arrears and the future payments. In Burke v. Burke, Ct. of Ch. (Del.) 86 A. 2d 51, the court in enforcing an agreement for the support of a wife and minor child, said: “Courts favor the enforcement of such an agreement as a matter of public policy. From an early day courts of equity have assumed jurisdiction to enforce separation agreements between husband and wife and have enforced payment of allowances to be paid by the husband to the wife as stipulated in such agreement.” In Whitten v. Bird, Ct. of Ch. (Del.) 2 A. 2d 83, the court over-ruled a demurrer to a bill which sought specific performance of an agreement for the maintenance of the children of the couple, both as to arrearages and future payments. In Colburn v. Colburn, (Sup. Ct. of Pa.) 123 A. 775, the lower court specifically enforced a separation agreement for maintenance of the wife, directing the husband to pay arrearages of several thousand dollars and ordering him to pay the monthly sums required by the agreement. The action of the court was approved on appeal, although it was held that because of a Pennsylvania statute, the defaulting husband could not be imprisoned. In Weiss v. Weiss, 73 N. Y.S. 2d 568, affd. 81 N. Y. S. 2d 197, an infant daughter brought an action for specific performance of a separation agreement entered into by her father with her mother to pay monthly sums for her support. A motion for summary judgment was denied, because the daughter was not: “. . . precluded from taking appropriate action upon an agreement of which she was the beneficiary.” In Hagen v. Viney, supra, the Supreme Court of Florida held that separation agreements are generally enforced in equity and stipulations to pay money to the wife will be there enforced. See also Cooper v. Cooper, (D. C.) 35 A. 2d 921; Almond v.
The Maryland rule does not differ from the general rule. Authority of equity specifically to enforce separation agreements is at least implicit in the provisions of Article 16, Section 37 of the Code (1951). The rule was also recognized as early as 1830 in Helms v. Franciscus, 2 Bland Chancery 544, 564. In Offutt v. Offutt, 106 Md. 236, the Court found that in consideration of marriage, the husband had contracted to support and take care of his intended wife so long as she should live. After his death, a bill was brought against those who took from him, praying the appointment of a receiver, for specific performance and general relief. This Court held, reversing the lower court, that the contract for support requiring annual payments was a proper one to be specifically performed and required its performance. The cases of Kriedo v. Kriedo, 159 Md. 229, and Gregg v. Gregg, 199 Md. 662, are distinguishable from and do not control the case before us. In the Kriedo case, it was held that where a mother had expended money for necessaries, for which the father was liable, her remedy was by suit at law for reimbursement and not in equity. There, there was, and here there is not, any question of fact as to whether the services were rendered or whether they were necessary or the amount of the charge. Further, there was no contract or agreement in that case. In the Gregg case, the suit was at law for reimbursement for sums expended for necessaries by a deserted wife. The Court held that the right of a wife to sue her husband was only as to contracts made with him, and one would not arise by implication. In the case before us, there is a contract by the husband to pay a specified sum.
It is earnestly contended by Zouck that whatever the power of the chancellor to require specific performance of the agreement, the court was without authority to authorize invasion of the spendthrift trust for enforcement of the decree. The trustee makes a similar contention and urges beyond this, that as a matter of policy, the courts of Maryland should not lend their aid to the invasion of a domestic spendthrift trust, at the suit of a non-resident wife. The trust, by its terms, terminated in February of this year, when the youngest beneficiary became thirty-five. Whatever the rule elsewhere as to whether a trust for a short term of years is spendthrift as to principal, it seems clear that the language in the deed of trust is sufficient under the Maryland cases to make the trust spendthrift as to principal and income. Medwedoff v. Fisher, 179 Md. 192.
“ ‘ (a) by the wife or child of the beneficiary for support, or by the wife for alimony; . . ” Judge Henderson said for the Court, quoting 1 Scott, Trusts, paragraph 157.1, that: “ ‘Even though ordinary contract creditors cannot reach the interest of the beneficiary of a spendthrift trust, it has been held in a number of cases that his interest can be reached by his wife or children to enforce their claims against him for support. . ” There followed a thorough analysis of the grounds on which this decision had been reached and applied in the various jurisdictions. The Court continued: “We think the view expressed in the Restatement is sound.” The opinion pointed out that alimony is an obligation which continues during the joint lives of the parties and is a duty, not a debt. The opinion continued: “We think the rule that gives legal effect to spendthrift provisions as against contract creditors should not be extended to claims for support or alimony. In such situations
The Robertson case was followed by Hitchens v. Safe Deposit and Trust Company, 193 Md. 62, where there was a separation agreement entitling the wife to “permanent alimony”. This Court held that the trial court was correct in refusing to permit its payment from a spendthrift trust, saying: “The appellant’s claim is not based upon a lien or judgment, but merely upon an agreement to pay certain sums as ‘permanent alimony,’ and to pay one-third of the amount distributed to him after settlement of the estate. . . In any event, we think the claim is barred by the spendthrift trust provisions. . . The appellant is only a contract creditor and has not brought herself within the exception as to alimony laid down in Safe Deposit & Trust Co. v. Robertson, 192 Md. 653, 65 A. 2d 292.” 193 Md. 67.
The monetary claim in the present case is based, in essence, upon the statutory obligation of the father, declaratory of the common law, to support his child. It is true that under Article 72A, Section 1, of the Code (1951), the obligation of support is jointly and severally that of the father and the mother, but by the agreement in this case, the father bindingly obligated himself to meet that obligation by the payment of $25.00 a week, and to this extent, exonerated the mother from her obligation. The fact that the father has recognized his obligation and has agreed in writing to meet it in a specified amount, does not change his duty to a debt nor does it create the relationship of ordinary contract debtor and creditor between the father and the child, or the father and the mother, as the representative of or trustee for the child. Marsh v. Scott, (N. J.) 63 A. 2d 275; Shaw v. Shaw, (Del.) 9 A. 2d 258; and Tullis v. Tullis, (Ohio) 34 N. E. 2d 212. His obligation remains the same whether it be calculated and required by original
We will not extend the holdings that a wife entitled to support by virtue of an agreement is a contract creditor only, who may not invade a spendthrift trust, but rather, here hold that a contract by a father to support a child, found by a court to be fair and reasonable, and so, judicially decreed to be enforced, is the equivalent of the decree of a court awarding support to the child or alimony to a wife, and as such, comes within the rule of public policy announced and followed in the Robertson case. There are differences between an agreement by a wife for support and such an agreement as to a child. The wife is sui juris and can make an agreement which, if otherwise valid, waives or concedes rights to whatever extent she desires. On the other hand, by such an agreement, she can exact from the husband concessions far beyond those which alimony would give her. Easy to foresee is a broken marriage where a grasping wife secures an agreement for the payment of exorbitant separate maintenance. The agreement might well be
The appellants do not seriously question the right of the court to order the assignment of the insurance policies and the execution of the will.
One final consideration remains. The court awarded custody of the child to the wife. As a practical matter, it makes little difference whether this was or was not done, since the daughter has lived with the mother since the execution of the agreement and the appellant wishes her to remain. Nevertheless, we think the court was without jurisdiction in the matter of custody. The child was neither domiciled in Maryland nor here present. It is established that if there has been no fixing of custody by a court, the domicile of the child is that of the parent with whom it lives. Restatement, Conflict of Laws, Section 32. It is later stated in the same volume, in Section 117: “A state can exercise through its courts jurisdiction to determine the custody of children or to create the status of guardian of the person only if the domicil of the person placed under custody or guardianship is within the state.” See also Section 146; and
Our conclusion is that the decree appealed from should be affirmed, with the exception of so much of it as awards custody to the mother. That part is reversed.
Case remanded for passage of a decree in conformity with this opinion. Costs to be paid by the appellants.
Dissenting Opinion
dissenting in part:
On the point of venue, I agree that a suit for specific performance of a contract is a transitory action that will lie wherever the defendant can be reached with process, and that no valid objection to a decree for specific performance can be raised on the ground that the contract is one for support. I also agree that the decree cannot properly include an award of custody of a nonresident child having the domicile of its non-resident mother and not present in the State, the father being also a non-resident. Whether the decree could properly réquire the execution of a will, in its nature ambulatory, is open to doubt. See Pomeroy, Specific Performance (3d ed.), p. 492; 5 Williston, Contracts (Rev. ed.) § 1421; Lorenzo v. Ottaviano, 167 Md. 138. A required change in the beneficiary of a life insurance policy, where the policy permits a subsequent change at the option of the insured, would seem to be open to the same objection. The opinion treats both these questions as not seriously
The bill of complaint relies solely on the contract, and seeks to fasten a lien upon the trust estate, of which the defendant is a beneficiary, to satisfy his contractual obligation. There is no claim for support as such under the pleadings. In the absence of contract, it may be doubted whether a suit in equity for support, unconnected with divorce or custody, would lie even against a resident defendant. Apparently no such redress was available at common law, although at least a moral duty was recognized. Borchert v. Borchert, 185 Md. 586, 590; Burns v. Bines, 189 Md. 157, 162; Rawlings v. Rawlings, 83 So. 146 (Miss.) ; note 33 Harv. L. R. 729. The matter has been dealt with by statute both in England and the United States. 2 Bishop, Marriage, Divorce and Separation, § 1155. None of the Maryland statutes touch the instant case. See Code (1951), Art. 16, secs. 34 and 75. See also Code (1951), Art. 89C, Art. 27, sec. 96, and Art. 12, secs. 8, 9, 12. Art. 72A, sec. 1, declares that a father and mother are jointly and severally charged with support, but does not implement the duty. Nor do any of these statutes indicate a policy of enforcing a duty of support when all of the parties are non-residents. Cf. Restatement, Conflict of Laws, secs. 457 and 458, comment (a) ; Melvin v. Melvin, 129 F. 2d 39, (C.A. D.C.); Kiplinger v. Kiplinger, 2 So. 2d 870.
In State v. James, 203 Md. 113, 121, it was held that a resident defendant was properly charged in Maryland with the crime of non-support, although the child was in another State, but it was stated that jurisdiction under Code (1951), Art. 27, sec. 96(b), was predicated upon the fact that the father was domiciled in Maryland. The Restatement, Conflict of Laws, § 457, was cited to indicate that a State has legislative jurisdiction to impose a penalty on that basis. The opinion in the instant case
I find nothing in Article III, sec. 38, of the Maryland Constitution to enlarge the court’s jurisdiction to award support against a non-resident. That amendment was adopted to confer on a court of competent jurisdiction the same power to punish for contempt for failure to support, as traditionally exercised for failure to pay alimony. Cf. Knabe v. Knabe, 176 Md. 606. It did so by declaring that a decree for support, or approving an agreement for support, should not constitute a debt within the prohibition against imprisonment for debt. The additional remedy for disobedience of the order has no bearing whatever upon jurisdiction to pass the order in the first instance. It is said that a decree approving an agreement for support is equated to a decree for support in the absence of • agreement, and that the agreement in the instant case has now been approved by a court. But the amendment seems to contemplate either a decree that presently and prospectively fixes an amount found necessary for support, or one that
If any implication is to be drawn from the amendment, beyond its enlargement of the remedy by contempt, it would seem to be that suits for alimony and support should be handled by the same court in the same way. Yet the decision in the instant case sets up a new distinction, based largely upon the argument that an agreement in lieu of alimony is between parties sui juris, while an agreement in lieu of support of a child is not. But, obviously, the agreement in the latter case is between parties who are sui juris, and merely undertakes to fix the liability for support as between persons who are jointly liable. Such an agreement could never be binding upon the Court in passing an award.
Our recent decisions clearly mark the line of distinction between a general moral or legal duty to support a wife or child which may in a proper case be enforced in equity, and a contractual one voluntarily assumed. In Safe Deposit & Trust Co. v. Robertson, 192 Md. 653, we adopted the view of the Restatement, Trusts, § 157, that there is an exception to the well-established rule recognizing the validity of spendthrift trusts, in the case of claims against the beneficiary by his wife or child for support or by the wife for alimony. We rested the exception on grounds of public policy, rather than upon interpretation of the instrument creating the trust, to indicate our disapproval of the cases cited in Scott,
The opinion stresses the reasonableness of the contract, in that the weekly payments do not appear to be above what a court, having jurisdiction to award support, might allow. But this is an extraneous circumstance that should not affect the result. Actually, these payments were fixed as a result of a bargain, in which the contemplated property transfers on the one hand, and the waiver of alimony on the other, played a part. Thus, the figure arrived at in lieu of support for. the child, may have been more or less than the court would determine or approve. The court could not decline to enforce the contract, based on an adequate consideration, even if it were grossly improvident and unreasonable. Cf. Lawson v. Mullinix, 104 Md. 156, 168, and note 65 A. L. R. 7, 75.
If the rule now announced is that any contract, for payments in lieu of support for a child, is enforceable against a spendthrift trust, then the protection stressed in the Robertson case is removed. I do not see how the court could sever the contract or limit its applicability
Reference
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- ZOUCK Et Al. v. ZOUCK (Two Appeals in One Record)
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