41 A.3d 401
Del.2012Background
- Married Feb 1984, separated Apr 2005, permanently separated Nov 2005, one child born 1991.
- Sept 28, 2005, the parties signed a Marital Property Settlement Agreement drafted by Wife's counsel.
- Alimony provision stated: $1,200 per month for the life of Wife, terminating only at Wife's death.
- In 2005–2006 Husband learned Delaware law terminates alimony on remarriage or cohabitation unless otherwise agreed.
- 2006 divorce decree incorporated the Agreement; Husband later sought modification based on Wife's cohabitation.
- Family Court reformed the alimony provision to terminate on death or remarriage/cohabitation of the recipient; judgment dismissing Wife's petition affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the alimony reform was proper based on unconscionability | Stewart argues the provision was unconscionable and overreaching | Stewart contends the original contract was valid and not unconscionable | Yes; the court reformed the provision and held it unconscionable as executed. |
| Whether the contract was tainted by undue influence or lack of counsel | Stewart asserts Husband lacked counsel and was pressured | Stewart contends both parties understood the terms; no undue influence shown | Yes; the record showed overreaching and lack of informed consent by Husband. |
| Whether laches barred Wife's enforcement action | Stewart argues timely enforcement of alimony | Stewart argues laches was not applicable given ongoing proceedings | Rejected; laches not dispositive to invalidate modification. |
Key Cases Cited
- Robert O. v. Ecmel A., 460 A.2d 1323 (Del. 1983) (confidential relationship in contract validity and equitable considerations)
- Graham v. State Farm Mut. Auto. Ins. Co., 565 A.2d 908 (Del. 1989) (connotes standards for unconscionability)
- Brown v. Div. of Family Servs., 14 A.3d 507 (Del. 2011) (context for review of family court decisions and standards)
