Sandra L. Penland (Warren) v. John W. Warren, Jr.
Sandra L. Penland (Warren) v. John W. Warren, Jr.
Opinion
¶ 1. Husband appeals the trial court's denial of husband and wife's joint motion to modify their final divorce order. The issue in this case is whether the trial court has jurisdiction under Vermont Rule of Civil Procedure 60(b)(6) to modify a property-division order based on the agreement of the parties after the divorce order has become absolute. We hold the court does have jurisdiction, and accordingly we reverse and remand.
¶ 2. Husband and wife divorced in 2011. Under their final stipulated property division, they each received fifty percent of husband's pension from the Vermont Teachers Retirement System. Husband transferred a half-interest to wife by means of a Qualified Domestic Relations Order (QDRO), and she has received regular payments since the divorce.
¶ 3. Sometime after the divorce became final, husband received a medical diagnosis that precluded employment and shortened his life expectancy. His inability to work increased his need for his full pension income. Because husband's pension is tied to his life, husband's health issues meant wife would lose her income from husband's pension if he predeceased her, and she might not receive the full value of her interest as contemplated in the final divorce order. Therefore, the parties agreed to modify the final property division in a way they believed would be mutually beneficial. Husband obtained an actuarial valuation of the remainder of his pension. Husband agreed to pay wife one-half of the remaining value of his pension in a lump sum from his share of his mother's trust. In exchange, wife agreed to have the full value of husband's pension restored to him so that he would receive the full benefit of the pension income.
¶ 4. In August 2017, the parties filed a joint motion pursuant to Vermont Rule of Civil Procedure 60(b)(6) to modify the final divorce order in accordance with this agreement. The court denied the motion, stating it lacked jurisdiction to modify the property division in a final divorce order and the parties could form an independent contractual arrangement. In November 2017, the parties filed a second joint motion to modify the final divorce order according to the same terms, and the court again denied the motion on the same basis.
¶ 5. Husband appeals this order, and wife agrees with and supports husband's request for relief. The parties argue that the court abused its discretion in denying their joint motion under Rule 60(b)(6) because a modification is necessary to prevent hardship and injustice to the parties. They also note that their motion was filed within a reasonable time and the other subcategories of Rule 60(b) do not apply.
¶ 6. We review a court's exercise of discretion in denying a request for relief under Rule 60(b)(6) for an abuse of discretion.
Richwagen v. Richwagen
,
¶ 7. Under Rule 60(b), "the court may relieve a party ... from a final judgment, order, or proceeding" for several enumerated reasons, such as mistake, V.R.C.P. 60(b)(1), and fraud, V.R.C.P. 60(b)(3). Rule 60(b)(6) authorizes relief for "any other reason justifying relief from the operation of the judgment." The subsection is available only where the other criteria under Rule 60(b) do not apply.
Olio v. Olio
,
¶ 8. But Rule 60(b)(6) is available and appropriately used to provide relief from a final property-division order where "extraordinary circumstances" justify relief "to prevent hardship or injustice."
Wilson v. Wilson
,
¶ 9. We have previously reviewed trial court decisions regarding requests for relief from final property divisions. For example, in
Wilson
, the husband requested relief under Rule 60(b)(6) from his obligation under the property settlement to pay property taxes and insurance on the marital home due to his loss of employment.
¶ 10. We do not decide here whether the trial court should grant the requested relief. The court has not exercised its discretion, so there is no discretionary decision to review. Instead, we remand the decision to the trial court so that it may consider all the circumstances and determine whether relief is appropriate in this situation. We reiterate that relief under Rule 60(b)(6) is appropriate in "extraordinary circumstances" in order to "prevent hardship or injustice."
Id.
¶ 5. In considering whether such circumstances exist here, the court should note that the parties have agreed to a stipulated modification. This is not a situation where one or both parties seek to continue litigation past its end. See
Richwagen
,
Reversed and remanded for additional proceedings consistent with this opinion .
Reference
- Full Case Name
- Sandra L. PENLAND (Warren) v. John W. WARREN, Jr.
- Cited By
- 11 cases
- Status
- Published