McCarter v. McCarter
303 P.3d 509
Alaska2013Background
- David J. McCarter Jr. and Deborah A. McCarter (Valdez) married in 1988 and petitioned for dissolution in 2007, with a property agreement incorporated into the decree.
- The Agreement required David to pay Deborah $2,000 per month for 320 months for Deborah’s equity in Dave McCarter Enterprises, Ltd., noting a $300,000 principal at 5% interest with a March 1, 2007 due date.
- In July 2007 the parties signed a Release purporting to release all claims and to outright purchase the $300,000 note, with Deborah to be paid $15,000 cash and other ancillary terms, plus a handwritten reverter clause.
- The superior court interpreted the Release and incorporated terms, and found the 320‑month schedule ambiguous in light of the stated principal and interest.
- In 2011 the superior court interpreted the contract under contract principles, found an ambiguity, concluded the intended arrangement was $300,000 paid as $2,000 monthly at 5%, totaling $471,869.47, and denied acceleration or other modification; Deborah’s motion to enforce was granted and judgment entered in Deborah’s favor.
- David appeals, arguing the court should have made AS 25.24.230 findings, vacated the ambiguity, or modified the agreement, which the court denied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the court abused its discretion enforcing the agreement. | McCarter contends the court failed to make required AS 25.24.230 findings. | Valdez argues enforcement under contract law, not failed findings, is proper. | No abuse; proper contract interpretation applied. |
| Whether AS 25.24.230 findings were required for enforcement. | McCarter argues findings were required for fairness of incorporated agreement. | Valdez contends findings relate to dissolution, not enforcement. | Not required for enforcement; waiver and finality controls. |
| Whether the court should have vacated ambiguous terms or amended the agreement. | McCarter seeks vacatur/amendment of ambiguous provisions. | Valdez asserts interpretation, not amendment, is correct. | Court did not amend; interpreted ambiguities under contract law. |
| Whether David waived relief under Rule 60(b). | McCarter relied on Rule 60(b) relief but did not file an actual motion. | Valdez asserts waiver of Rule 60(b) relief. | Waiver properly found; no Rule 60(b) relief granted. |
| Whether the court properly rejected David’s frustration/unclean hands defenses. | McCarter claimed frustration of purpose due to Deborah’s conduct. | Valdez argued lack of wrongdoing and no support for frustration defense. | Frustration/unclean hands defenses rejected; not proven. |
Key Cases Cited
- Morris v. Horn, 219 P.3d 198 (Alaska 2009) (contract interpretation; where applicable to enforcement/modification)
- Knutson v. Knutson, 973 P.2d 596 (Alaska 1999) (waiver and modification standards in Alaska family law)
- Keffer v. Keffer, 852 P.2d 394 (Alaska 1993) (principles for interpreting property settlements)
- Lowe v. Lowe, 817 P.2d 453 (Alaska 1991) (considerations of reasonable expectations in contract interpretation)
- Hartley v. Hartley, 205 P.3d 342 (Alaska 2009) (extrinsic evidence and ambiguity resolution in contract interpretation)
- Zito v. Zito, 969 P.2d 1144 (Alaska 1998) (ambiguity resolution and contract interpretation principles)
- Knaebel v. Heiner, 663 P.2d 551 (Alaska 1983) (unclean hands/frustration concepts in equity/contract contexts)
