423 P.3d 940
Wyo.2018Background
- Deede and Wallace divorced in 2009; divorce decree awarded Deede the Longpoint property and required him to pay the Bank of America credit-card balance (a $25,000 down payment) by June 1, 2009.
- Deede failed to pay; account defaulted and Bank of America applied retroactive interest (allegedly 24.99%); Deede was held in contempt and jailed for noncompliance.
- Wallace’s father settled the Bank of America debt; Wallace reimbursed him and filed a bankruptcy proof of claim for amounts she paid plus attorney fees, receiving a partial distribution.
- Bank of America issued a Form 1099-C showing $27,782.91 as forgiven debt; Deede sought a set-off/credit against what he owed Wallace based on that forgiveness.
- The district court held an evidentiary (unrecorded) hearing, denied Deede’s motion to modify the amount due, ordered him to pay the outstanding balance or serve jail time; Deede appealed the denial of the modification but not the payment order.
Issues
| Issue | Plaintiff's Argument (Deede) | Defendant's Argument (Wallace) | Held |
|---|---|---|---|
| Whether Deede was entitled to a set-off/credit for debt shown as forgiven on Bank of America Form 1099-C | The 1099‑C shows $27,782.91 forgiven and Deede argued this amount must reduce what he owes Wallace because some principal was forgiven | Wallace argued the forgiven amount reflected retroactive interest charged after default, not principal; she and her father paid to prevent collection and she is entitled to full credit for that expense | Court affirmed: No abuse of discretion in denying set-off. Deede failed to prove the forgiven amount reduced the principal he owed to Wallace and equities favored Wallace |
| Whether the appeal lacked reasonable cause and sanctions (W.R.A.P. 10.05) | Deede asserted the trial court abused its discretion and misapplied facts regarding account statements and impossibility of the interest amount | Wallace argued Deede’s brief lacked cogent argument, record citations, and legal authority, warranting certification of no reasonable cause and fee award | Court certified no reasonable cause for the appeal and awarded Wallace fees; Deede’s brief was deficient in argument and record citation |
Key Cases Cited
- Dorr v. Smith, Keller & Assocs., 238 P.3d 549 (Wyo. 2010) (credit against a judgment allowed for settlements covering claims in the judgment; burden on party asserting satisfaction)
- Ultra Res., Inc. v. Hartman, 226 P.3d 889 (Wyo. 2010) (equitable set-off is within court discretion)
- Welch v. Welch, 81 P.3d 937 (Wyo. 2003) (standard for reviewing discretionary decisions: whether court could reasonably conclude as it did)
- Cargill, Inc. v. Mountain Cement Co., 891 P.2d 57 (Wyo. 1995) (trial court’s inherent power to allow or compel equitable set-off)
- Carbaugh v. Nichols, 315 P.3d 1175 (Wyo. 2014) (factors supporting W.R.A.P. 10.05 sanctions when appeals lack cogent argument or record/authority support)
- Hoffman v. Hoffman, 91 P.3d 922 (Wyo. 2004) (abuse of discretion standard of review)
- Basolo v. Basolo, 907 P.2d 348 (Wyo. 1995) (abuse of discretion review in family/divorce contexts)
