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Ochs v. Nelson
538 N.W.2d 527
S.D.
1995
Check Treatment

*1 under the verdict rendered ambiguity Paulson, 583, 77 S.D.

case. Anderson (1959). When the intention inference, jury is a matter of surmise pur- a verdict is insufficient within Anderson, supra

view of SDCL 15-14-30. at 306. effect, jury, argue can

One damages plaintiffs zero for the com-

found

ing the verdict for the defendant back with However, issues. if the admis-

on all of the anything, legal liability means there

sion of

only to have been one verdict form needed jury, to the for the amount of

submitted allowed,

damages any, plaintiffs. if to the only

I reverse for a new trial on the would holding damages,

issue Legal Li-

that the defendant’s “Admission of liability

ability” has removed the issue from jury using only jury

consideration of the one plaintiffs. form for the

verdict remaining taxation

As to the issues on the review, and notice of I concur with costs majority. joins I

Justice SABERS in this dissent and authorized to so state.

have been OCHS, Appellee,

Kristi J. Plaintiff and NELSON,

Robert Jason Defendant Appellant.

No. 18935.

Supreme Court of South Dakota. May on Briefs 1995.

Considered

Reassigned Aug. 1995.

Decided Oct.

Rehearing Denied Nov. *2 Burd, Falls, pher’s R. for and “standard of has been dictated Lee Sioux by marginal earnings appellee. of his mother rath- earnings than the far more er substantial Falls, Burke, E. for defendant John Sioux his father.” The court found: appellant. in a [Kristi] minor live mod- (on KONENKAMP, reassignment). Justice apartment est with the child trans- ported presented in an older car. [Kristi] action, paternity In this Robert Nelson monthly budget expenses of minimal calculation and appeals the trial court’s budget which totalled Her Kristi support award of child Ochs provisions payment, include for a vehicle son, Christopher of their minor Ochs. benefit insurance, savings, good quality life cloth- We affirm. out, home, ing, eating a residential vaca- tions, enriching opportunities for the FACTS minor all items which desires [Kristi] January was born on for the child. married, Although parents were never acknowledged paternity Robert and declared contrast, quality Robert owns a home his intent to in his take active role son’s a fashionable area of Sioux Falls to which he By agreement Christopher’s custody life. improvements has made substantial Kristi, subject remained with to Robert’s lib- past years. few He owns a vacation cabin in frequent paid eral all visitation. Robert Hills, extensively the Black travels expenses medical associated with Christo- business, provides his financial assistance to birth, pher’s as well as Kristi’s lost income automobiles, parents, his owns late model pregnancy. from work due to He also insurance, supports substantial his paid day- for the child’s health insurance and currently former wife and two children who Shortly birth, began after the he care. send- Finding financially live with him. Robert ing per support, month later $400 support “able to increasing monthly payment On $600. minor child commensurate with his standard 9, 1992, July Kristi commenced an action to living,” per- the court considered Robert’s legally paternity sup- establish Robert’s imputed earnings sonal income and from port obligations. Wheels, on support Deals to set his child $1,456 per month. This calculation was employed by Robert is and owns a control- on based mathematical from ling eighty percent closely interest held support guidelines. the child SDCL 25-7- magazine publishing business known as additionally Wheels, Inc., obligated 6.9. Robert was corporation. Deals on a “C” paying per daycare. continue month for remaining twenty per- $288 His brother owns the Lastly, considering after the amounts he had years, cent. Over the three Robert’s paid voluntarily, income, court ordered Rob- average personal annual taken as $20,000 $62,345, pay ert to in retroactive child salary, was after deductions for fed- tax, dated from the commencement of this action. eral income Medicare and FICA. For corporation average yearly net in- appeal; Robert raises three issues on years come over the last three was following discuss the two: $93,524 imputed of which to Robert re- flecting eighty percent interest. The cor- I. MAY RETAINED EARNINGS poration paid dividends, however, choos- FROM A CLOSELY HELD CORPO- ing profits, instead to hold its so that BE RATION CONSIDERED IN DE- it had accumulated retained exceed- TERMINING CHILD SUPPORT ing one-half million dollars. A PARENT A WHEN OWNS CON- TROLLING EIGHTY PERCENT OF Systems Kristi works for Midwest Office THE CORPORATE STOCK? averaging year for the last two In its of fact and conclusions II. MAY A TRIAL EXCEED COURT recognized of law the trial court that Christo- THE CHILD SUPPORT GUIDE- “plain meaning.” Lage to their SPE- Chiolis LINES WITHOUT SHOWING (S.D. Co., THE Development NEEDS FOR CHILD? CIAL 1994). OF REVIEW STANDARD An testified that earn- accountant retained will not disturb We *3 ings equivalent will not translate into an clearly unless the trial court abused award company and amount of cash the needs these Peterson, 503 its discretion. Steffens earnings growth. company’s to maintain The 257 Whether debt, company banker verified that due to it is not a

would have made the same decision agreed had not to draw out its retained is, judi question a The could consideration. hand, earnings. On the other Robert bor- mind, and the circum cial in view of the law $79,600 company, rowed from the for which case, particular reasonably stances of the repayment had in there been made over Havens v. have reached such a conclusion. conflicting three These matters were Henning, 418 N.W.2d 312 factual issues for the trial court to unravel. why earnings Robert fails to show retained ANALYSIS closely corporation fall from held do not Earnings Corporate I. Retained juris- within of this the ambit statute. Other similarly dictions have found it only personal in Robert contends corporate earnings to consider retained as come, corporate earnings, not retained purposes calculating income for the as income for child should be considered Merrill, Nonetheless, purposes. support. 25- SDCL See Merrill v. 587 N.E.2d undoubtedly company’s re Dist.1992); 7-6.6 includes (Ind.App. Boudreau v. earnings defining in income: tained Benitz, (Mo.App.1992); 827 S.W.2d 732 Com. Maier, business, Pa.Super. profession, ex rel. Maier v. Gross income from a estates, rentals, (1980); Hertz, farming, royalties, trusts 418 A.2d 558 Hertz v. sources, profits (1975). or other are the net Minn. gain, any on or all or net losses shown computing In Deals on Wheels’ retained part parents’ schedules filed as of the fed- income, earnings part of Robert’s the any eral income tax returns or as corporation’s court took the after tax income any income tax returns busi- federal years over three and reduced that number to associated, except he ness with which ($357,717 eighty percent ownership his share may that the court allow or deduc- disallow = $280,573).1 average x.80 To arrive purposes tions for federal income taxation income, $280,573 yearly was divided require expenditure which do not three, $93,524. equaling The trial court then cash, to, including, depreci- but not limited by fifty per- discounted Robert’s allotment allowances, depletion may fur- ation or cent, reckoning company’s need for finan- ther consider the extent to which house- liquidity personal cial income Robert’s expenses, expenses, and hold automobile liability, money. if withdrew the partially related items are deductible or tax he $46,762, purposes. deductible for income tax was added to his result was which depreciation, $62,345 the event a court disallows it salary, making average yearly net necessary may capital expendi- consider $109,107. income We conclude the trial court parent’s tures which enhance the current calculating in its discretion abuse (Em- support purposes. income for child by adding salary, Robert’s income under phasis 25-7-6.3, eighty per- one-half his yearly company’s average cent interest explicitly court followed this statute pursuant to SDCL 25-7- calculating retained an award. See also SDCL 25- 6.3(2). according Statutes are construed 7— 6.6. although profit deducting depreciation, to do net arrived at it had the discretion This was after salaries, expenses, depreciation. all business SDCL 25-7-6.6. so. The court not add back in deductions for did Support and Standard 472 N.W.2d at 785.

II. Child —Needs Living There, adjustment upward proper because the children’s needs were not average in Adding Kristi’s annual $109,107 come of to Robert’s met. yearly total of annum resulted in a combined concerning expenses [Mother] testified monthly and a net total raising Specifically, her children. she joint number far exceeded the

This income supplement testified that she must her in- maximum level listed on the schedule found by using come vacation time because of the parents’ SDCL 25-7-6.2. To arrive money family. need for to raise her joint support obligation, the trial court She made purely from mathematical expensive further testified that guidelines.2 See Bloom v. sporting attend the children’s out-of-town *4 213, (S.D.1993); Steffens, 217 503 N.W.2d proof events. met her of [Mother] burden calculation, N.W.2d at 258. Based on this as to the needs of the children and their support obligation the court set Robert’s ($288), plus daycare less his of share ($11), premium the child’s health insurance Id. monthly support for a total amount of only aYet child’s necessities are not the $1,733.3 inquiry consideration. essential “[T]he re- argues support guidelines Robert child mains the actual needs and standard of any showing cannot be exceeded “absent of of the children.” 498 N.W.2d at 217 special good of a needs child health.” On (citations omitted) added). (emphasis contrary, we have held that findings par- trial court’s fact of reflect both beyond guideline per maximum level is missible, Christopher’s obligatory, ents’ standards of par but not when the joint guidelines. ents’ income exceeds the The court needs. noted Kristi drove a ten- 258; Bloom, Steffens, See 503 N.W.2d at 498 year-old problems. car with mechanical 217; Earley Earley, N.W.2d at 484 Among things other she used the ear to drive (S.D.1992), denied, 128 cert. 506 daycare. Christopher to and from Kristi also -, U.S. 113 S.Ct. 121 L.Ed.2d 200 debt; carried credit card to she was able Jones, (1992); Jones v. 472 N.W.2d 785 only policy afford small insurance provides guid SDCL 25-7-6.9 work, through Christopher with as the bene- ance in such situations: “For combined net ficiary; she would like to have funds for 25-7-6.2, § income above the schedule in Christopher preschool to attend when he is support obligation child shall be established older; money provide and she wanted him level, taking into account with music lessons later Robert the actual needs and standard of of points out that Kristi’s Jones, (Emphasis the child.” peculiarly trial court’s of fact are party requesting Court stated that a an recognition Christopher’s particu- without upward adjustment guidelines above the has needs; needs, proving they burden of the child’s needs and lar rather include Kristi’s = = 1,618 $637x2.54 x.90 Father Mother Total 109,107 12,681 121,788 Annual Net Income 9,092 1,057 10,149 Monthly Net Income Percent of Net 90% 10% 100% 1,456 1,618 Support Base Amt. — Child's Health Ins.

Day Care 1,733 2,046 Support Total wedlock, out,” Christopher was born out of cause “eating payment,” “vehicle as a only part of mean he will receive necessi- “vacations,” all as should not “life insurance” child.” more. “A a father who can Kristi’s “desires ties from especially troublesome finds parents Robert and does What does not choose its support award exceeded that the court’s relationship. such rea- control their For not monthly budget. Kristi’s sons, today simply tolerable to treat it is not differently because of circumstances a child defining the issue involves The crux of suggesting Id. We are not living, which the of its birth.” Christopher’s standard dictated father has treated found was trial court lived parents clearly never earnings. These shows he inadequately. Kristi’s The record Christopher lived with has together, par- nor loving generous always been a a child’s Obviously, in divorce cases father. ent, though prefer he would bestow parents’ stan reflects standard Nonetheless, voluntarily. the tri- generosity they separated. Stan living before dard of adjust support court had the discretion al factor important living remains dard partake could some of so that has an interest “This state after a divorce. living while he is high standard of his father’s children which the welfare of its protecting misapplies If Kristi with his mother. living.” Feltman includes their standard expenditures unrelated to Feltman, living, Christopher’s needs and standard of *5 support, setting “[t]here in All often too fears, trial court maintains as Robert the to meet even simply too few dollars are modify its order as jurisdiction to living ... [and of modest standard most Cool, 25-8-7; v. necessary. State poverty upon apportion called judges] are question The here N.W.2d 829 misery....” ex State accompanying and its clearly abused its discre- the court whether S.W., 442 N.W.2d v. rel. V.K.H. present amount. We hold setting in tion (Gilbertson, (S.D.1989) Judge, concur Circuit award. and sustain the it did not parents’ must endure their ring). If children their they not also share poverty, should assign- other considered Robert’s We have recognized previously have affluence? We to lack suffi- and find them ments of error stan parent’s in a well-to-do child’s interest upon the Based merit for discussion. cient v. living. Saint- of Saint-Pierre dard factors, in Kristi we award applicable (S.D.1984), Pierre, 357 N.W.2d appeal. Malcolm attorney in this fees ability to earn “a demonstrated mother had Malcolm, 365 N.W.2d prac from her medical income children Affirmed. Although the Saint-Pierre tice.” permitted to continue young, they were were income living their mother’s

in a standard of MILLER, C.J., and SABERS parents lived when provided JJ., GILBERTSON, concur. Wallahan, (citing together. Id. Wallahan (S.D.1979)). AMUNDSON, J., part and concurs in Christopher ever lived with Whether part. dissents “Today, par- a child of father is immaterial. should receive who are not married ents AMUNDSON, (concurring in Justice courts from our impartial consideration same dissenting part). parents.” Matter a child of married of II, the court whether it is unclear On Issue (N.D.1985) Kary, 321-22 needs, or Christopher’s actual considered (standard illegitimate father of of of desires, making its wants and Mother’s in award of proper consideration findings of trial court’s determination.* Simply be- exceeding guidelines). monthly expenses which budget of minimal emphasized: fact of *The trial court's budget include Her totalled in a minor child live Plaintiff and the payment, life insur- provisions a vehicle for being trans- apartment with the child modest ported presented a car. Plaintiff in an older you run replete fact are with concerns for Mothers that —do about at that level all Christopher’s. of The crux of the time? needs instead Christopher’s living, of the issue' is standard Probably right A. around there. by which the trial court found to be dictated Q. you any It doesn’t show that have earnings. parties Mother’s These never something insurance but that that together, Christopher nor has lived lived you private would like. You have thought the trial court with his Father. Yet your insurance of own? guideline appropriate multiply it was No, just through A. Iwork have a small amount of 254%. $687 one. You would like to be able to Although agree that Fathers standard O’ your assume, I some life making must be considered insurance? determination, requires SDCL 25-7-6.9 <j level, “appropriate final award be set Yes. taking into account the actual needs and How old is the child now? O (Emphasis standard the child.” is two and a half. <3 explicit language goal you thought Have of the kinds of O is to statute meet needs things you would like to be able living, and standard of not Mother’s needs for him in the future? nor Father’s standard of Mother’s I would like to able be to take

testimony her reiterates own desires for a places just provide things that he commensurate with Fa- wanted, he needed. excerpt ther. An of her on her you Have considered musical lessons budget is as follows: <© any things of those kinds that he Q. you ... driving? What kind of car are might in the future need or want? *6 Dodge

A. ’85 Lancer. c Q. you preschool? Have considered Q. shape What kind of is that car in? right Maybe year A. Not now. or two got problems. A. It’s some ... [.] down the road Q. you Would like to be able to have a Both this and the trial court’s find- more rehable car? ings lacking of fact are statements of Chris- needs; A. Sure. topher’s they rather include “vehicle out,” payment,” “vacations,” “eating and “life Q. you get How do the kid to and from provide insurance” as Mother’s “desires to the sitter? for the child.” A. ... I drive him. agree We that these items are desirable Q. you I notice here However, have credit card amenities of life. Mother has not

payment that an outstanding they shows shown how are “needs” for two and one- eighteen Therefore, balance of year Christopher. about hundred. Is half old Moth- anee, savings, good quali[t]y clothing, eating present living 12. The child’s has out, home, vacations, enriching marginal earning a residential been dictated of his opportunities for the minor mother rather than the far more substantial all items father. which desires to for the child. quality 11. Defendant owns home in a fash- Falls, Dakota, ionable area of Sioux South 14. able to Defendant improvements support which he has made substantial the minor child with commensurate added.) living. (Emphasis over the last few He his standard owns a vacation Hills, cabin in the Black South Dakota. He extensively, provided addition, has traveled has financial accompanying the trial court's letter parents, assistance to his owns late model au- its of fact and conclusions of law stated: tomobiles, insurance, support obligation substantial life "Mr. Nelson’s calculated ability above, support his former wife and child is commensurate with stan- father’s who live living." (Emphasis with in this same fashion. dard of Therefore, proving age her burden of of five or six. I would re- er has not sustained mand for a determination of child are in this situation what the child’s “needs” arrearages consistent with the actual being neglected. they are or how Christopher. needs of accomplished the trial court What give the standard Christopher and Mother never lived

Father. explicitly The statute states

with Father. of the child” is to be

the “standard setting when “an lev-

considered This support. el” of See SDCL 25-7-6.9. Matters, Justin MATTERS and Mark guarantees that the child’s needs will be met. Appellants, Petitioners By using Father’s standard of as a determining Christopher’s sup- guidepost ignored the fact that

port, the trial court COUNTY, CUSTER a Political Subdivi- any prior family relationship Dakota, there was never sion of South and Custer Coun- ty Lintz, Christopher and Father. The stat- Commissioners: Jack Dan between Dooley, Oakley Hoy, in Their Offi- trial court fix ute allows the Capacity, Appellees. cial amount as meets needs, raising while not Mother’s standard of No. 19024. living through support. the vehicle of child Supreme Court of South Dakota. Effectively, the trial court in this case im- obligation posed an unauthorized on the May Considered on Briefs 1995. is, in of Father toward Mother. This award Reassigned Aug. essence, alimony/palimony windfall con- Decided Oct. support. in the rhetoric of tained result, circumstances should dictate the al-

lowing Christopher a standard of go

he never became accustomed to would

beyond the direction of 25-7-6.9. majority opinion Steffens, cites

N.W.2d at 498 N.W.2d at Jones,

Earley, 484 N.W.2d at uphold at

N.W.2d court’s

extrapolation. All can fac- these cases be

tually distinguished from the case at hand— parents in all of the above were married obligor. lived with the See child[ren] 256; Bloom,

Steffens, 503 N.W.2d at 126; 214; Earley, at at

N.W.2d Jones, at 783. any showing specific

Without need

articulation of how the child’s accustomed denied, this court $1,733.43 say

cannot month

“appropriate Following reasoning level.” majority, appears though

of the Christo-

pher probably would in line to receive a be ripe old

chauffeur-driven limousine

Case Details

Case Name: Ochs v. Nelson
Court Name: South Dakota Supreme Court
Date Published: Oct 11, 1995
Citation: 538 N.W.2d 527
Docket Number: 18935
Court Abbreviation: S.D.
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