Julie M. Fetters v. Jay M. Fetters
2015 Ind. App. LEXIS 113
| Ind. Ct. App. | 2015Background
- Julie and Jay began a sexual relationship when Julie was 14 and Jay was 29;
- Julie became pregnant at 15, and Jay proposed marriage to avoid prosecution for sexual misconduct with a minor;
- Before marriage, Julie signed a premarital agreement drafted by Jay’s attorney, promising each party would keep separate property;
- Julie, who had limited reading ability and no independent legal counsel, signed the agreement with her mother present;
- The trial court denied Julie’s attempt to invalidate the premarital agreement;
- On appeal, the Indiana Court of Appeals held the premarital agreement was unconscionable at execution and void, reversing and remanding for equitable property division.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was the premarital agreement unconscionable at execution? | Fetters contends unconscionability. | Fetters argues the agreement was valid. | Yes; the agreement was unconscionable. |
| Does laches/estoppel bar Julie from challenging the agreement? | Julie allegedly waited to disavow after maturity. | Palamora bars after benefits acceptance. | No; laches/estoppel did not bar her. |
| What is the remedy given the unconscionability? | Premarital agreement should be voided in part or whole. | Agreement remains enforceable. | The agreement is void; remand for property division under general laws. |
Key Cases Cited
- Rider v. Rider, 669 N.E.2d 160 (Ind. 1996) (premarital agreements not unconscionable if fair and voluntary)
- Wiley v. Wilson, 77 Ind. 596 (Ind. 1881) (contracts entered by a minor are voidable)
- Palamora v. Palamora, 513 N.E.2d 1223 (Ind. Ct. App. 1987) (equitable defenses like laches/estoppel; reliance on benefits not sufficient here)
- Estate of Palamora v. Palamora, 513 N.E.2d 1223 (Ind. Ct. App. 1987) (reaffirmed laches/estoppel analysis in premarital context)
- Boetsma v. Boestma, 768 N.E.2d 1016 (Ind. Ct. App. 2002) (premarital agreements generally favor validity but not if unconscionable)
