Wulf v. Wulf
36,303
| N.M. Ct. App. | Aug 8, 2017Background
- Parties are ex-spouses; an amended Marital Settlement Agreement (MSA) required Petitioner (ex-husband) to pay Respondent $87,500 at closing when Petitioner sold 1908 Carolina Way.
- The district court approved and adopted the amended MSA by stipulated order; the MSA did not specify a time for sale or payment.
- Respondent performed her obligations; Petitioner removed the house from the market and did not re-list it for nearly four years.
- Respondent moved for an order to show cause; the district court read a requirement of sale "within a reasonable time" into the MSA, found Petitioner in contempt, and awarded $87,000 plus fees and interest.
- Petitioner appealed, arguing the court unlawfully modified the MSA by implying a deadline (requiring Rule 1-060 relief) and that contempt was improper because the implied term was unforeseen.
- The Court of Appeals issued a proposed summary disposition to affirm, considered Petitioner’s opposition, and affirmed the district court.
Issues
| Issue | Plaintiff's Argument (Wulf) | Defendant's Argument (Reinecke Wulf) | Held |
|---|---|---|---|
| Whether the court improperly "modified" the adopted MSA by implying a requirement to sell within a reasonable time | District court converted the adopted MSA into a court order modification without Rule 1-060 authority; merger made the MSA an order that cannot be altered except by formal relief | The court merely enforced the judgment by implying a reasonable time where the contract was silent to effect the parties' intent | Court held it was enforcement, not an improper modification; implying a reasonable time was proper to fill contractual silence and effectuate the MSA |
| Whether holding Petitioner in contempt was improper because he lacked notice of an implied deadline | Petitioner contends he could not be held in contempt for failing to meet an implied term he did not know existed | Respondent argues courts may imply a reasonable performance term; removing the house and withholding payment for ~4 years breached the court-enforced obligation | Court held contempt was proper: implication of a reasonable time is recognized law, and the evidence supported that nearly four years was unreasonable |
Key Cases Cited
- Ottino v. Ottino, 130 N.M. 168, 21 P.3d 37 (N.M. Ct. App. 2001) (discusses merger of MSAs into divorce decrees, limits of merger, and purpose to enable contempt enforcement)
- Cortez v. Cortez, 145 N.M. 642, 203 P.3d 857 (N.M. 2009) (applies contract principles and equitable interpretation to an MSA merged into a decree)
- ConocoPhillips Co. v. Lyons, 299 P.3d 844 (N.M. 2013) (when contract is silent, law may imply a reasonable term)
- Castle v. McKnight, 116 N.M. 595, 866 P.2d 323 (N.M. 1993) (reasonableness in performance will be implied when it effectuates parties' intent and no contrary expression exists)
- Hall v. Hall, 114 N.M. 378, 838 P.2d 995 (N.M. Ct. App. 1992) (distinguishes enforcement from improper modification of a divorce decree; Rule 1-060 required for true modifications)
- Hadrych v. Hadrych, 140 N.M. 829, 149 P.3d 593 (N.M. Ct. App. 2007) (court may enforce a decree to protect parties' reasonable expectations and prevent unilateral acts that defeat awards)
