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Fellers v. Fellers
A-15-560
| Neb. Ct. App. | Oct 25, 2016
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Background

  • Sheryl and William Fellers divorced in 2012; decree awarded Sheryl a 40-acre tract called the “50 cent 40” and assigned debts secured by that tract (Farm Credit Services and First Central Bank) to William; William was ordered to indemnify and release Sheryl from those debts.
  • Sheryl owed William an equalization payment of $83,050 payable in installments; she had paid one installment and still owed $75,539.12 when events unfolded.
  • Sheryl sold the 50 cent 40 in February 2015 for $162,000; $146,090.33 of the sale proceeds were applied at closing to satisfy debts and taxes tied to William, and Sheryl also paid a $25 closing charge William should have paid.
  • In January 2015 Sheryl filed a “petition to enforce decree and obtain judgment” seeking recovery from William of the net proceeds applied to his debts (less the balance she owed him). William answered and counterclaimed; both parties moved to dismiss various claims.
  • The district court treated Sheryl’s petition as enforcement (not modification), found she was compelled to pay debts William had been ordered to satisfy, entered judgment for Sheryl (net $70,576.21 after offsetting her remaining debt) and awarded $2,000 in attorney fees to Sheryl.
  • William appealed, raising jurisdictional, claim‑failure, classification of the First Central Bank debt, counterclaim dismissal, estoppel, and attorney‑fee challenges; the appellate court affirmed.

Issues

Issue Plaintiff's Argument (Sheryl) Defendant's Argument (William) Held
Whether Sheryl sought enforcement or modification of the divorce decree Petition sought enforcement to recover proceeds used to pay debts William was ordered to satisfy Argues the petition was a disguised untimely modification requiring summons and different jurisdictional rules Court: enforcement, not modification; action enforces existing decree obligations (Davis, Dennis analogies)
Whether district court had subject‑matter jurisdiction (service/summons) No summons required for enforcement; court retains power to enforce its decree Lack of summons within six months deprives court of jurisdiction Court: had jurisdiction to enforce decree; summons requirement for modification inapplicable
Whether complaint failed to state a claim Alleged facts plausibly show William failed to remove liens and Sheryl was compelled to satisfy his debts; relief is enforcement Argues allegations insufficient to state enforceable claim Court: complaint sufficiently pleaded enforcement claim; denial of 12(b)(6) was proper
Classification of First Central Bank debt as premarital Sheryl relied on decree and trial exhibit showing debt treated as William’s premarital obligation William contends the debt was misclassified and should have been marital Court: classification already litigated; law‑of‑the‑case bars relitigation; district court correct
Dismissal of William’s counterclaim / setoff request — Sought credits and judgments based on prior recalculation and alleged undisclosed debt Court: counterclaim barred by law‑of‑the‑case because issues could have been raised on appeal
Equitable estoppel / acceptance of benefits defense — Argues Sheryl accepted benefits of decree and should be estopped from enforcement Court: issue not preserved below; appellate court will not consider it
Award of attorney fees to Sheryl Fees incurred because William failed to comply; Sheryl prevailed Argues fee award improper Court: fee award discretionary and supported by factors; $2,000 not an abuse of discretion

Key Cases Cited

  • Rice v. Webb, 287 Neb. 712, 844 N.W.2d 290 (construing decree meaning as question of law)
  • Davis v. Davis, 265 Neb. 790, 660 N.W.2d 162 (distinguishing enforcement from modification where decree fixed obligations)
  • Dennis v. Dennis, 6 Neb. App. 461, 574 N.W.2d 189 (award for amounts paid to satisfy spouse’s decree‑assigned debt is enforcement)
  • Whitesides v. Whitesides, 290 Neb. 116, 858 N.W.2d 858 (district court retains jurisdiction over marital‑relation matters)
  • Wilson v. Wilson, 19 Neb. App. 103, 803 N.W.2d 520 (court may enforce terms of initial decree)
  • Holloway v. State, 293 Neb. 12, 875 N.W.2d 435 (standard for motion to dismiss for failure to state a claim)
  • County of Sarpy v. City of Gretna, 276 Neb. 520, 755 N.W.2d 376 (law‑of‑the‑case doctrine principles)
  • Brunges v. Brunges, 260 Neb. 660, 619 N.W.2d 456 (attorney fees in dissolution are discretionary)
  • Sitz v. Sitz, 275 Neb. 832, 749 N.W.2d 470 (factors guiding attorney‑fee awards in family law)
Read the full case

Case Details

Case Name: Fellers v. Fellers
Court Name: Nebraska Court of Appeals
Date Published: Oct 25, 2016
Docket Number: A-15-560
Court Abbreviation: Neb. Ct. App.