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Gunn v. Gunn
505 N.W.2d 772
S.D.
1993
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*1 stipulation on the record The the lawsuit. accounting and the probate

settled both Ben now states that

related civil suit. the settlement his counsel like

does not ground on not a sufficient That is

reached. the settlement.

which to vacate court had before it

The trial accounts, discovery, and

various sworn There was and affidavits. pleadings

related question for the trial court and of fact of discretion for the an abuse non-oral issues on

court to determine errone

testimony. The trial court was not stipulation concluding that

ous in

be enforced. remaining issues are frivolous and the trial addressed.

court is affirmed. C.J., WUEST,

MILLER,

HENDERSON, SABERS, JJ., concur.

TUCKER, Judge, for Circuit

AMUNDSON, J., disqualified. GUNN, L. Plaintiff Appellant, GUNN, Appellee.

Lore E. Defendant

No. 17953. South Dakota. May 26, on Briefs

Considered Sept.

Decided

Rehearing Denied Oct.

tempt alimony payments for failure to make previously ordered the court. We affirm.

FACTS Michael by entry and Lore were divorced July and decree of divorce on 1982. The judgment provided that Michael was to per Lore week in $65.00 “until [Lore] becomes deceased or remarries[.]” alimony agreement was based cir- cumstances were dictated into the rec- parties ord at the presented time the their stipulation agreement to the court for its approval. Unfortunately, transcript proceedings the divorce could be located and thus there 'is no record of what the circum- alimony agreement stances for the were. paid Michael Lore a week in alimo- $65.00 ny from the time of divorce until mid-June 1986 when unemployed he became due to a strike at John Morrell’s. The court entered contempt against order Michael October past-due alimony. 1986 for Michael bor- money rowed from his mother and sister and expunged contempt by himself of paying the past-due amount. order,

Following Michael re- making weekly sumed time, through April Lore 1987. At that cohabitating Michael believed that Lore was impression and he was under the mistaken alimony payments that he could cease that reason. Michael has never resumed making payments.

Michael returned to work at Morrell’s in May and continued to work until there his retirement November plans begin job building chael had made hog buildings upon his confinement retire- but, ment as the result stroke suffered on December was unable to start Grunewaldt, Falls, Cecelia A. Sioux job. attempted Michael to work at sev- plaintiff appellant. jobs until eral he was declared disabled Dennis C. McFarland of McFarland & Ni- Sep- the Social Administration on cholson, Falls, appel- Sioux for defendant and 20,1990, illiteracy tember as the result of his lee. physical disabilities. prop- In late Michael sold one of two

AMUNDSON, Justice. attempted to erties he owned. Michael ob- (Michael) appeals by having Michael L. Gunn title in the court from a tain clear (Lore) judgment awarding satisfy alimony judgment Lore E. Gunn October 1986 past alimony paid. contemporane- holding Michael in con- which he had circumstances, assessing change we motion to

ously filed in the necessities of the consider based on a of divorce and decree ability of the recipient and the financial obli- by filing responded circumstances. gor. that his Id. Michael asserts circum- why *3 show cause as motion to retired, in that he has changed stances have contempt for failure to be held in should not stroke, suffered a been declared disabled alimony April pay since and, Administration ac- Social entered an order for satisfaction The court cordingly, change his income. suffered held judgment, but the October of has a higher He likewise asserts that Lore property the sale of Michael’s proceeds from time of income than she did at the the di- The court further denied Mi- in escrow. great vorce and thus does not have as circumstances, change for a chael’s motion alimony. need for past-due for Lore for entered at the The record indicates time of contempt. alimony, and held Michael in only sporadi that worked the divorce Lore appeals. chael cally Following problems. due to health divorce, Washing to the state of moved ISSUES employment. ton and obtained She has re the trial court abused its 1. Whether dis- $25,490.00 adjusted ported incomes for denying Michael a cretion modifica- $32,246.00 The 1990 and for 1991. court alimony holding him in con- tion of and found, however, was a that there substantial pay alimony past tempt for failure to that be laid off likelihood Lore would from due? job Boeing her at near future due to addition, layoffs. projected In Lore contin- the trial court erred "Whether hold- prob- health ues to suffer from a number of jurisdiction ing over Michael’s home- lems, including pulmonary and cardiac dis- proceeds? stead ability impair which often her eases work. With the evidence of the likelihood of Lore’s ANALYSIS job terminating and in the near future her Alimony continuing not problems, and Past-Due health we do find Modification that the court abused its discretion in Michael asserts that the trial court . finding alimony that her for had not need its discretion when it to modi abused refused changed. Lampert, Lampert See fy alimony obligation him his and held (S.D.1986). 899, N.W.2d 902-03 alimony for his failure to make may since 1987. A trial court Michael’s income tax returns indicate modify support $12,- adjusted orders from time to time. that he has had income of However, 1988, $4,173.00 $19,676 alimony 25^4-41. an for SDCL award 982.66 for 1989, $6,352.00 $3,956.00 may change not modified be unless there is a and through of circumstances from those that existed incomes for 1988 however, original Foley misleading, they the time of the decree. as somewhat (S.D.1988). $2,500.00 Foley, 429 N.W.2d include losses of between and $7,800.00 party seeking property modification bears the burden rental Michael addition, proving in circumstances. the 1990 Id. rented to his son.1 In We review the trial court’s decision to incomes do not include month- ly disability payments award under the abuse of social discre ($11,698 Therefore, annually). tion standard. Id. “An of discretion’ ‘abuse while is discretion exercised to an end or Michael’s income has been effected his retirement, justified by, clearly against, reason his income tax returns not an Horr, ing entirely evidence.” Horr v. accurate reflection of his income. Michael’s current income comes his depreciation property proper- 1. The losses on the rental are a result able to deduct on the rental mortgage payments property taxes which ty from his income. addition, exceed rental income. security payments op by the court for as ordered homesteads and the pension and social wages. His annual income is still from the sale of the homesteads. posed to ($5,160.00 $16,858.00 annual approximately A homestead: $11,698.00 disability). + annual pension (1) chapter As defined and limited in 43- addition, in net absolutely exempt; or (more thoroughly of real estate sale (2) In the such event homestead is sold 2) .managed to in Issue and has discussed 21-19, provisions chapter under the $5,000 in since the divorce. accumulate bonds voluntarily, is sold the owner circumstances, Despite his sale, exceeding of such still has sufficient funds dollars, thirty sum of thousand is abso- *4 precedent obligation. the established Under lutely exempt period year for a of one court, say cannot that the trial of this we receipt proceeds by after the of such the finding in that court abused its discretion owner.... ability financial to make the Michael had the Judgment SDCL 43-45-3. creditors are alimony weekly payments. See Lam similarly prevented obtaining liens on pert, 388 N.W.2d at 903. the homestead. SDCL 15-16-7. Furthermore, Michael was accord exemp of the homestead contempt years in almost five of ingly for his provide tion the of a home to a 1987, Michael, nonpayment alimony. In of of family against Speck the claims of creditors. accord, alimony quit making the his own Anderson, 318 N.W.2d 339, 343 the divorce decree. dictated spouse “The children are not outside petition the Michael took no action to court creditors, family. exemption the but are any type until he for of modification cannot be used to harm the ones it is de nearly years arrearages five of accumulated protect.” signed Application In re of a clear title to sell some and needed to obtain Jensen, (Minn.Ct. 414 N.W.2d 742, 745-46 obligations real estate. Past-due App.1987). only filing modifiable as to the date of of petition for modification. SDCL 25-7-7.3. court, being equi A divorce a court of cannot come before this court now ty, possesses power impose upon the a lien expect years nonpayment of of his five purposes spousal a homestead for of or child support obligation to be erased. The trial Kerr, 454, 459, support. Kerr v. 54 S.D. holding in court did not abuse its discretion (1952) (quoting Harding alimony arrearages Michael in 406, 412-13, Harding, 16 S.D. N.W. beginning April (1902)). Kerr, Harding In neither nor provide original the divorce decree lien did Homestead Proceeds property upon the husband’s pieces Michael sold one of two of Rather, support. the court found that “both $32,000.00. real estate that he owned for provisions of our statute under the liberal proceeds The court the from the held sale general powers invested courts of and the pending escrow resolution the modification equity, perfectly competent for the was alimony dispute. After the trial court original circuit court to so far the judgment against Michael for ar- entered its make the a lien judgment as to rearages, required deposit possession of the defen the homestead judgment the amount with the court 412-13, Harding, 16 at 92 N.W. dant.” S.D. he could obtain the balance of the real before 1082; at 74 S.D. at 54 N.W.2d proceeds. estate Michael asserts that the Harding). The Minnesota (quoting proceeds pro- from the sale were homestead similarly “The Appeals stated: exempt judgment. ceeds and thus powers applica equitable court’s override Jensen, exemption.” provides protection from tion of the homestead South Dakota law attachment, liens, process final 414 N.W.2d at 746.2 and other exempt judgments for Legislature statute to out revised its homestead Minnesota law, statutory South trial court Under find that the do not

We the sale of pro proceeds from escrowing the discretion abused its year absolutely exempt period of one real estate of Michael’s from the sale ceeds proceeds by the receipt of such after the Mi alimony arrearages. for a Therefore, trial court erred owner. one pieces of real estate: two chael owned jurisdiction concluding court has that he rented to his one which he lived and which proceeds from the sale of over the to use the planned son. Michael 43-45-3(1) provides homestead. SDCL property on which from the sale absolutely exempt and SDCL a homestead is mortgage remaining pay off living to 43-45-3(2) part: provides in he was property to which on his second Escrowing the sale did moving. homestead ... is sold In the event such home; permitting Michael of deprive voluntarily, proceeds of such the owner exemption the homestead the use of sale, thirty exceeding the sum of thou- years alimony to five deprives Lore of dollars, absolutely exempt for sand Michael made was entitled. which she year receipt after the of such period of one to termi independent, inappropriate decision the owner. notwith alimony payments nate his *5 majority opinion, judg- As indicated knowledge of the divorce decree standing his obtaining prevented are from ment creditors Equity afford Mi matter. will not in this 15-16-7. liens on the homestead. SDCL paying mortgage luxury of off the chael the statutory ex- There are no constitutional or proceeds property he owns with on a second ceptions provisions these for ex-wives. from the first when he has the sale of from provisions, it is incumbent In view of these arrearag- judgment outstanding security the party the who wants court did not abuse its discre es. The trial apply payment future indebtedness to placing in escrow the amount of mon

tion in the divorce or at least same at the time of real estate sale ey proceeds the his from shortly thereafter. alimony arrearages. necessary to cover upon majority the The two cases relied accordingly trial court is The order of the Harding, clearly distinguishable. In the affirmed. approximate- court modified a divorce decree by ly years ordering later the sale of the two C.J., WUEST, J., MILLER, concur. possessed by parties. homestead once both so, that, doing the court noted unlike this SABERS, J., part and dissents concurs case, the had been awarded husband part. theory ... that he would homestead “on the HENDERSON, J., dissents. by alimony prescribed promptly.” Harding, 16 92 S.D. SABERS, part (concurring in Justice at 1081. In the court modified N.W. dissenting part). support child less than two divorce decree for years by ordering against I vote to reverse on Issue 2. a lien non- later property of the father until he decree, At the time of the divorce eleven Kerr, 74 fully complied with the decree. years ago, the two Lore was awarded one of (Kerr simply held 54 N.W.2d 357 S.D. by parties. homes owned power impose to a lien that the court had the home, subject other to the exist- awarded the payments). to secure future mortgage. subsequently sold ing While State, approves a present opinion modifica- and moved out of the This her homestead a lien tion of divorce decree which allows equity continued to build it, the sale of Michael’s recently netting ap- proceeds on the He sold homestead. years ten after the di- homestead almost proximately which 43-45-3(2), there apply outstanding mortgage vorce. Under SDCL wishes to not be lien on these homestead homestead. on his current residence and § Minn. Stat. 510.07. child or maintenance arrears.

777 exceeding except portion cast to the wind he is forced to for the move into and. $30,000. dilapidated property. Majority some rental cleverly opinion refers to his homestead as a An should not be allowed to sit ex-wife is, “property.” Property it but it was his expect the rights her and then absolutely homestead and the protect to “bend the laws” to her courts 43-31-1; 43-45-3(2). exempt. SDCL SDCL at the the same manner as she was entitled past, In the the South Dakota far. time of divorce. The trial court went too recognized family, the head of the We should reverse on Issue as reflected our State Constitution. HENDERSON, (dissenting). XXI, Justice § South Dakota Constitution art. provides: 15-16-7, Under SDCL 43-45-3 SDCL right enjoy of the debtor to the com- the trial court was not entitled hold forts and necessaries of recog- life shall be in es- proceeds of Michael’s homestead sale nized exempting wholesome laws crow. homestead, forced sale a the value of which agree I that the of the homestead law, shall be limited and defined to all family exemption provide families, heads of and reasonable amount against Speck the claims of creditors. personal property, the kind and value of Anderson, 318 N.W.2d by general which to be fixed laws. Despite majority’s use of Minnesota au- Somers, 551, 558, See Somers v. 33 S.D. Jensen, thority, Application re (1914); Longstaff, N.W. Linander v. (Minn.App.1987), the ex-wife who (1895); Kingman 7 S.D. 63 N.W. 775 Washington maintains her own homestead (1894). O’Callaghan, 4 S.D. N.W. 912 longer part family *6 “The homestead laws of this state are in- homestead. prevent spouse, tended to one in life or discretion; The statutes leave no room for death, unilaterally depriving the other they provided exceptions any have not Gross, spouse of a homestead.” Gross v. creditor to be favored over another. Fred (S.D.1992). a This was unani- Winkler, Comment, Creditors and the South important mous decision in It this Court. is Exemption, Homestead depriving note that to Michael is not Lore of (1972). S.D.L.Rev. The homestead live, place to she received one of their two exemption cannot be used to harm the it ones appears houses the divorce award. It designed protect. protects The law deprive this intent is to Court’s Michael of Michael’s homestead —a to which homestead homestead, in contravention of our recent Thus, Lore has no familial attachment. she holding in Gross. She is not satisfied with is a creditor like other creditor. home, one she wants two: Her home and the Here, illiterate, physically we have an dis- majority proceeds of his home. The relies man, stroke, abled who suffered a and whose Harding upon the 1902 case in this Court. living through results benefits the Social inapposite it It is because is based savings Administration. He has no statute, which is not the law of this state and, essentially, or investments he has a which, anymore; and under the trial court monthly disability payments. homestead and authority assign the homestead of the hardship. He sold this home due to financial divorcing parties or direct a lien or sale of An attack on the homestead struck homestead to be set over unto the inno- fury, with was the sword of joint party. Harding concerned a cent battle. earns in excess of She parties and it homestead the divorced year. any alimony She does not need what- possession of the husband. We soever to herself. There has been a have law and different here. different facts justifies circumstances and joint We do not have a homestead involved alimony payments. Wegner husband and wife this case because both Wegner, 391 N.W.2d 690 separate Again, cited received homes. ruling today, majority, inapplicable because that Under the of this Court existing in statutory rights under law chael Gunn’s homestead case was decided court, deciding a the trial whereunder case, assign the homestead could

divorce not hold that Kerr did party.

the innocent against the homestead attached

lien could be this case on decide 'party.

of one We my read- particular case of this

the facts a case have never had that we

ing discloses Here, Dakota. in South

quite like this one proceeds be-

the homestead Michael Gunn. This exclusively to

long

Court, has not circumvented my opinion, It is mad- spawned one. inequity, it has

an majority logic to note

dening to the art of override, by equitable

opinion cites to court, exemp- over a homestead

Minnesota a footnote that Minneso- and to read

tion statute to legislature then revised the

ta ar- support or maintenance

exempt-out child

rears. matters, the trial I would reverse

In all motion Gunn’s

court for its denial judgment and decree of divorce modify the proceeds of the apply the

and its decision to alimony. Essen to back

sale of homestead

tially, and out and she is on he is-down

alimony gravy train. He wheezes

caboose.* *7 BROOK ACRES WATER

SPRING ASSOCIATION, INC., a South

USERS Corporation and Dawn E. Maz Appellees,

zio, Plaintiffs GEORGE, and

Abner H. Tom-Tom Com Inc.,

munications, Dakota Cor South Appellants.

poration, Defendants 18017.

No. Dakota. South April

Considered on Briefs Sept.

Decided

Rehearing Denied Oct. breath, disease, dysp- by shortness of quotes at 136-137: manifested *Her brief the Settled Record nea, coughs’.” has the serious [Michael Gunn] "Defendant same and chronic on exertion including problems, 'pulmonary health vascular

Case Details

Case Name: Gunn v. Gunn
Court Name: South Dakota Supreme Court
Date Published: Sep 8, 1993
Citation: 505 N.W.2d 772
Docket Number: 17953
Court Abbreviation: S.D.
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