376 P.3d 121
Mont.2016Background
- Tammy and Matt Wagenman filed a pro se Joint Petition for Dissolution in 2012 attaching Exhibit A, a detailed property settlement allocating 50% equity in the marital home to each spouse and other allocations.
- At a brief hearing the court granted the dissolution and entered a Final Decree using the Montana Supreme Court form but did not incorporate Exhibit A; instead the decree awarded the house entirely to Matt and listed an unexplained $180,000 mortgage amount.
- For two years the parties acted under the terms of Exhibit A, but when Matt failed to refinance or pay Tammy her equity, Tammy retained counsel in May 2014; in August 2014 both parties discovered Exhibit A had not been incorporated in the Decree.
- Matt’s counsel then moved to compel Tammy to quitclaim her interest under the Final Decree; Tammy filed a Rule 60(b)(6) motion to amend the Decree to incorporate Exhibit A.
- The District Court denied Tammy’s Rule 60(b)(6) motion, granted Matt’s motion to compel, and awarded Matt attorney fees; the Supreme Court of Montana reversed and remanded and vacated the attorney-fee award.
Issues
| Issue | Plaintiff's Argument (Tammy) | Defendant's Argument (Matt) | Held |
|---|---|---|---|
| Whether denial of Rule 60(b)(6) relief was erroneous | The court failed to incorporate the parties’ written separation agreement (Exhibit A) into the Decree, creating extraordinary circumstances; she moved promptly after discovery and was blameless | Exhibit A was only preliminary negotiations and not a binding final contract; parties did not fully comply with its terms | Reversed: court abused discretion; legal error in failing to incorporate Exhibit A or find it unconscionable; Rule 60(b)(6) relief warranted |
| Whether award of attorney fees to Matt was proper | (Implicit) Fees were improper because court erred on Rule 60(b)(6) and did not consider parties’ financial resources | District Court awarded fees tied to Matt’s motion to compel | Reversed: fee award vacated because District Court did not properly consider financial resources and the underlying ruling was incorrect |
Key Cases Cited
- Essex Ins. Co. v. Moose’s Saloon, Inc., 166 P.3d 451 (Mont. 2007) (standard for Rule 60(b)(6) extraordinary-circumstances test)
- Tanascu v. Tanascu, 338 P.3d 47 (Mont. 2014) (public policy favors enforcement of separation agreements)
- In re Marriage of Bushnell, 328 P.3d 608 (Mont. 2014) (standard of review for property-division legal conclusions)
- In re Marriage of Hopper, 991 P.2d 960 (Mont. 1999) (Rule 60(b) used where a party was wronged through no fault of its own)
- Blankenship, 682 P.2d 1354 (Mont. 1984) (court may not substitute its own property division for a separation agreement absent a finding of unconscionability)
- Bartell v. Zabawa, 214 P.3d 735 (Mont. 2009) (filing to set aside within a reasonable time where movant acted promptly after discovery)
