Courtney L. Schwartz v. Jodi S. Heeter
2013 Ind. LEXIS 725
| Ind. | 2013Background
- Parents (Courtney L. Schwartz and Jodi S. Heeter) entered a marital settlement agreement providing an annual recalculation of child support based on each year’s gross taxable income and the Child Support Obligation Worksheet; payments above a reduced base were made as annual lump sums (the "Distribution Clause").
- The Agreement did not specify which version of the Indiana Child Support Guidelines/Worksheet would be used for the annual recalculation.
- The Indiana Child Support Guidelines were amended effective January 1, 2010, significantly increasing support for high-income parents.
- Father calculated the 2010 payment using the 2009 Guidelines ($6,344); Mother calculated using the 2010 Guidelines ($44,720). Mother objected and both moved for summary judgment.
- The trial court held Father must use the version of the Guidelines in effect for the year the income was earned (i.e., 2010 Guidelines for 2010 income); the Court of Appeals reversed, holding the 2009 Guidelines applied perpetually. The Indiana Supreme Court granted transfer.
- The Supreme Court affirmed the trial court: the Distribution Clause incorporates the Guidelines version in effect for each year’s income unless the agreement specifies otherwise.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does the annual recalculation clause incorporate the Guidelines version in effect when the agreement was made or the version in effect for each income year? | Schwartz: the recalculation should use the Guidelines applicable to each year’s income (so 2010 Guidelines for 2010 income). | Heeter: the parties intended the 2009 Guidelines (in effect when agreement filed) to govern all future recalculations. | Court: agreement incorporates the version of the Guidelines applicable to each particular year’s income. |
Key Cases Cited
- Schwartz v. Heeter, 975 N.E.2d 820 (Ind. Ct. App. 2012) (Court of Appeals decision reversing trial court on Guidelines-version issue)
- Ethyl Corp. v. Forcum-Lannom Assocs., Inc., 433 N.E.2d 1214 (Ind. Ct. App. 1982) (applicable law at contract formation is presumed part of agreement)
- Bailey v. Mann, 895 N.E.2d 1215 (Ind. 2008) (marital settlement agreements are contracts)
- Sims v. Sims, 770 N.E.2d 860 (Ind. Ct. App. 2002) (tension between providing needed support and using ascertainable, dependable income when handling irregular income)
- Rosi v. Business Furniture Corp., 615 N.E.2d 431 (Ind. 1993) (trial court judgments on summary judgment are presumed valid; appellant bears burden to show error)
- Haegert v. University of Evansville, 977 N.E.2d 924 (Ind. 2012) (clear and unambiguous contract language enforced as written)