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423 P.3d 940
Wyo.
2018
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Background

  • 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)
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Case Details

Case Name: Deede v. Deede
Court Name: Wyoming Supreme Court
Date Published: Aug 14, 2018
Citations: 423 P.3d 940; 2018 WY 92; S-18-0015
Docket Number: S-18-0015
Court Abbreviation: Wyo.
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    Deede v. Deede, 423 P.3d 940