Gerald R. Theberge v. Mary Ann R. Theberge
228 A.3d 998
Vt.2020Background
- Parties divorced in 2000; the divorce decree required plaintiff to pay spousal maintenance to defendant with an annual COLA tied to a regional cost-of-living index.
- After the divorce the parties orally agreed (not in writing) to share their children’s college tuition (plaintiff 75%, defendant 25%); that agreement was performed for the eldest child.
- Plaintiff failed to apply COLA increases for two to three years; when the youngest entered college defendant objected and sent a note mentioning both the unpaid COLAs and tuition balance.
- Plaintiff brought maintenance current (including past COLAs) and then—according to plaintiff—parties reached an oral compromise: defendant would be relieved of her tuition share and plaintiff would stop applying future COLAs; thereafter plaintiff paid maintenance without COLAs for about ten years.
- Defendant (now incapacitated; suit brought by her representative) later moved to enforce the COLA provision and collect arrears; the family court found two enforceable oral contracts and that defendant had waived the COLAs by agreement and performance, and denied enforcement.
- The Supreme Court reversed and remanded: it held the initial tuition-sharing agreement was enforceable (mutual promises supplied consideration), rejected the claim that waiver of a compensatory maintenance COLA is per se void on public-policy grounds, but found a clearly erroneous factual finding (the court misread defendant’s note) and remanded for corrected findings and clarification about the basis for any waiver by performance.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| 1) Was the oral tuition-sharing agreement a binding contract (consideration)? | The parties exchanged mutual promises (75%/25%) so there was consideration. | Parents have no legal obligation to pay post‑minority college tuition, so promise benefits third parties and lacks consideration. | Held: Mutual promises sufficed; the tuition agreement was an enforceable contract. |
| 2) Did the parties form an enforceable oral agreement waiving the COLA? | Plaintiff says yes—parties agreed orally to trade defendant’s tuition obligation for plaintiff’s waiver of COLAs; defendant accepted payments without COLA for years. | Defendant denies such an agreement; also argues higher standards for changing compensatory maintenance or lack of assent/consideration. | Held: Court may enforce an oral waiver if proven, but appellate court remanded because a key factual finding supporting the modification was clearly erroneous; trial court must re-evaluate and clarify whether waiver was by agreement or by other means. |
| 3) Is a waiver of a compensatory component of permanent spousal maintenance void as against public policy? | Plaintiff: parties are free to contract; waiver should be allowed. | Defendant: Compensatory maintenance is like child support and cannot be waived as a matter of public policy. | Held: Not analogous to child support; freedom of contract controls—such a waiver is not per se void on public-policy grounds. |
| 4) Does defendant’s long delay in enforcing COLAs operate as waiver or bar (laches)? | Plaintiff contends defendant waived rights by accepting payments without COLA for ~10 years and delayed enforcement. | Defendant argues delay alone is not waiver; she could seek arrears while the order remained in force. | Held: Delay alone does not establish waiver; the family court must clarify whether any relinquishment was voluntary and intentional (waiver) or the result of an enforceable oral bargain; remanded for clarification. |
Key Cases Cited
- Zink v. Zink, 147 A.3d 75 (Vt. 2016) (parties may contract to alter or affect court-ordered maintenance outside of judicial modification).
- Weaver v. Weaver, 171 A.3d 374 (Vt. 2017) (distinguishes compensatory component of permanent maintenance and explains modification standards and allocation issues).
- Kanaan v. Kanaan, 659 A.2d 128 (Vt. 1995) (waiver requires voluntary and intentional relinquishment of a known right; delay alone insufficient).
- Lloyd’s Credit Corp. v. Marlin Mgmt. Servs., Inc., 614 A.2d 812 (Vt. 1992) (consideration exists if promisor receives something desired; adequacy not for court to evaluate).
- H.P. Hood & Sons v. Heins, 505 A.2d 561 (Vt. 1986) (mutual promises furnish sufficient consideration for each other).
- Milligan v. Milligan, 613 A.2d 1281 (Vt. 1992) (family courts cannot order postsecondary education payments absent party agreement).
- Bergeron v. Boyle, 838 A.2d 918 (Vt. 2003) (existence of sufficient consideration is a question of law).
