Dougan v. Dougan
21 A.3d 791
Conn.2011Background
- Dougan and Hamada-Dougan married in 1988 and had two children, with substantial assets amassed during the marriage.
- In 2005 they entered a stipulation for judgment dissolving the marriage, distributing nearly $80 million in assets and requiring Dougan to pay $15,325,000 to Hamada-Dougan in two installments, with 10% interest on any late payment and defendant's collection costs.
- The stipulation provided $7,825,000 due within 30 days and $7,500,000 due on or before June 16, 2006; failure to pay triggered interest from the date of the stipulation.
- The dissolution decree incorporated the stipulation; Dougan paid the $7.5 million and later paid interest totaling $24,999.96; Hamada-Dougan moved to enforce the interest provision.
- The trial court held the interest provision unenforceable as a penalty against public policy; the Appellate Court reversed, and the matter proceeded to the Supreme Court on certified questions.
- The Supreme Court ultimately held that Dougan is barred from challenging the provision due to judicial estoppel, affirming the Appellate Court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the interest provision is enforceable despite public policy. | Dougan contends the provision functions as a penalty and is unenforceable. | Hamada-Dougan argues the provision is enforceable as part of a fair, negotiated settlement. | Judicial estoppel bars Dougan; the provision is enforceable. |
| Whether Dougan’s later position violates judicial estoppel given his prior sworn testimony. | Dougan asserts no inconsistency between prior testimony and current position. | Hamada-Dougan argues the positions are clearly inconsistent and the later stance should be barred. | Judicial estoppel applies; Dougan is barred from challenging the provision. |
Key Cases Cited
- Gillis v. Gillis, 214 Conn. 336 (1990) (stability of stipulations; contract-like effect of consent judgments)
- Afkari-Ahmadi v. Fotovat-Ahmadi, 294 Conn. 384 (2009) (contract interpretation of settlements incorporated into judgments)
- Hanks v. Powder Ridge Restaurant Corp., 276 Conn. 314 (2005) (public policy evaluation of contracts)
- Misthopoulos v. Misthopoulos, 297 Conn. 358 (2010) (interwoven nature of financial orders in dissolution actions)
- Assn. Resources, Inc. v. Wall, 298 Conn. 145 (2010) (definition and limits of judicial estoppel)
- Simon v. Safelite Glass Corp., 128 F.3d 68 (2d Cir.1997) (purpose of judicial estoppel to protect judicial integrity)
