Whittaker v. Whittaker
228 W. Va. 84
W. Va.2011Background
- Jewell K. Whittaker and Andrew J. Whittaker were married in 1966 and divorced in 2008; the Family Court entered a 2008 equitable distribution order.
- The circuit court reversed the family court’s distribution order on remand in 2008, explaining the family court lacked authority to distribute assets of Whittaker, LLC (a separate legal entity).
- The parties then reached a settlement; the November 7, 2008 family court order memorialized the agreement to transfer certain Whittaker, LLC assets to Ms. Whittaker to satisfy her share, and neither party appealed that order.
- Ms. Whittaker sought contempt findings in 2009 for Mr. Whittaker’s alleged failure to convey assets per the November 7, 2008 order; a March 25, 2009 contempt order followed.
- The circuit court, in December 2009, reversed the March 25 contempt order and also reversed the November 7, 2008 distribution order, concluding the family court lacked subject matter jurisdiction to transfer LLC assets.
- The West Virginia Supreme Court of Appeals reversed the circuit court’s December 2, 2009 order, holding that the family court did not lack jurisdiction to enforce the dissolution settlement and that Mr. Whittaker voluntarily transferred LLC assets to satisfy the equitable distribution as part of the valid settlement.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was the circuit court's reversal of the 2008 order proper? | Whittaker argues circuit lacked jurisdiction to reverse the 2008 order since no party appealed it. | Whittaker contends the 2008 order is void for lack of subject matter jurisdiction since LLC assets are not marital property. | Circuit court erred; subject matter jurisdiction existed to enforce the settlement. |
| Is the 2008 distribution order void for transferring LLC assets? | The 2008 order enforces the settlement; Whittaker had authority over LLC assets as sole member. | LLC assets are not marital property; family court cannot transfer LLC assets. | Not void; settlement enforceable; LLC assets could be transferred pursuant to the agreement. |
| Can the family court enforce a settlement involving transfer of LLC assets for equitable distribution? | Settlement agreement is enforceable by the court to effectuate distribution. | The court cannot compel transfer of LLC assets since they are separate property of the LLC. | Yes; the family court had jurisdiction to enforce a valid settlement that transfers LLC assets as part of distribution. |
| Did Mr. Whittaker’s actions violate the 2008 settlement or related orders? | Ms. Whittaker asserts noncompliance with the 2008 order. | Mr. Whittaker voluntarily transferred LLC assets to satisfy the settlement to avoid dissolution. | Enforcement appropriate; settlement valid and binding; actions consistent with settlement. |
Key Cases Cited
- Hatfield v. Painter, 222 W.Va. 622 (2008) (voidness when subject matter jurisdiction lacking)
- State ex rel. TermNet Merchant Services, Inc. v. Jordan, 217 W.Va. 696 (2005) (court lacks subject matter jurisdiction; decrees void)
- McKinley v. Queen, 125 W.Va. 619 (1943) (lack of jurisdiction may be raised at any time)
- Charleston Apartments Corp. v. Appalachian Elec. Power Co., 118 W.Va. 694 (1937) (lack of jurisdiction may be raised in court on face of proceedings)
- Sanders v. Roselawn Memorial Gardens, Inc., 152 W.Va. 91 (1968) (policy favoring settlements and enforceability of settlement contracts)
- Moreland v. Suttmiller, 183 W.Va. 621 (1990) (enforcement of marital property settlement agreements)
- Sanson v. Brandywine Homes, Inc., 215 W.Va. 307 (2004) (enforceability of settlement contracts in marital context)