125 So. 3d 833
Fla. Dist. Ct. App.2013Background
- Florida home mortgaged jointly by the parties; divorce finalized in New York and settlement incorporated into the NY divorce order, with New York law governing terms.
- Settlement required the husband to retain exclusive possession and pay all carrying charges, including mortgage, taxes, and insurance.
- Settlement mandated that within six months after entry of the divorce judgment the husband would transfer mortgage liability to his name by refinance or other means; wife to cooperate.
- Upon transfer of mortgage liability to the husband, the wife would transfer her interest in the Florida home to him.
- If the husband defaulted and failed to cure after notice, the wife could seek sale of the Florida home; the husband would indemnify the wife for liabilities from his default.
- Wife registered the NY divorce order in Florida and moved to enforce the settlement; husband argued he was not in default because he paid the mortgage and the provision used the conjunction 'and'.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Contractual interpretation of default trigger | Husband fails to remove wife from mortgage and fails to refinance -> default. | Default requires nonpayment; husband paid; both conditions not independently sufficient. | Contractual interpretation reversed; no default under plain language. |
| Contempt theory viability | Default supports contempt given clear directive to comply with the settlement. | No willful noncompliance; husband attempted refinancing. | Contempt theory reversed; no willful violation established. |
Key Cases Cited
- Rauso v. Rauso, 73 A.D.3d 888 (N.Y. App. Div. 2010) (interpret settlement contracts by plain meaning)
- Reape v. N.Y. News, Inc., 122 A.D.2d 29 (N.Y. App. Div. 1986) (reject absurd constructions not in parties' reasonable expectations)
- Griffith v. Griffith, 941 So.2d 1285 (Fla. 4th DCA 2006) (contempt requires willful noncompliance with a court order)
- Rubin v. Rubin, 78 A.D.3d 812 (N.Y. App. Div. 2010) (civil contempt requires willful violation of a clear mandate)