1. Judgments--stipulated separation agreement--lack of consent--trial court reads
agreement or evidence that parties understood
In a case involving a stipulated agreement hearing addressing child support, child
custody, visitation, alimony, property division, and attorney fees, the trial court did not err in
failing to set aside an order as void for lack of consent because: (1) the trial court can read the
agreement in open court; or (2) it has to be reasonably apparent from the record that both parties
either read or understood the stipulated terms. Although plaintiff's attorney rather than the trial
court read the stipulated terms of settlement, the record reflects that both parties understood the
stipulated terms because both answered affirmatively when the judge asked if the settlement as
read by plaintiff's attorney was fair and equitable and fully reflected what had been agreed upon.
2. Estoppel--equitable--stipulated separation agreement--lack of consent--ratification
by subsequent actions
Although defendant-husband attempted to withdraw his consent following a hearing but
prior to entry of an order concerning a stipulated agreement addressing child support, child
custody, visitation, alimony, property division, and attorney fees, the trial court did not err in
failing to set aside the order as void for lack of consent because subsequent actions of defendant
ratified and validated the order. Equitable estoppel precludes defendant from denying the
validity of the order in light of: (1) his later efforts to modify, correct, and enforce stipulated
terms of the order; (2) the fact he failed on two occasions to perfect appeals directed at the order;
and (3) the fact he acquiesced in his counsel's reliance on the order to deter action by the
Department of Social Services. Appeal by defendant from order filed 20 March 1998 by Judge
Susan E. Bray in Guilford County District Court. Heard in the
Court of Appeals 18 March 1999.
Morgenstern & Bonuomo, P.L.L.C., by Barbara R. Morgenstern,
for plaintiff-appellee.
Donna Ambler Davis, P.C., by Donna Ambler Davis, for
defendant-appellant.
JOHN, Judge.
Defendant appeals the trial court's order denying his motion
pursuant to N.C.G.S. § 1A-1, Rule 60(b)(4)(1990) (Rule 60). We
hold the trial court did not err.
Relevant facts and procedural history include the following:
Plaintiff and defendant married in 1975 and separated 7 March
1994, entering into a separation agreement 23 March 1994.
However, plaintiff subsequently filed suit 5 August 1994 to set
aside the agreement, the first action in an extensive period of
litigation between the parties involving issues of child custody,
support and visitation, and interim allocation of marital assets.
A 23 June 1995 hearing (the hearing) was scheduled on
certain pending motions. At the hearing, defendant's counsel
informed the trial judge, Judge Richard W. Stone (Judge Stone),
that the parties had settled all pending issues. Both plaintiff
and defendant were present and placed under oath, whereuponplaintiff's counsel read the settlement terms aloud in open
court. The stipulated agreement addressed custody and visitation
arrangements, alimony, child support, property division and
attorney's fees, and provided a mutual release of all other
claims whatsoever pending between the parties. Judge Stone
inquired into each of the proposed terms, mediated discussion
between the parties on additional issues, and questioned
plaintiff and defendant individually as to whether the recited
settlement was their final and full agreement. Defendant
replied, Yes, sir. Defendant's counsel thereafter noted that
both parties had been placed under oath and stipulate[d] the
formal order [wa]s going to be entry [sic] by consent of
counsel. In an affidavit filed in support of his Rule 60
motion, defendant indicated he had withdrawn consent to the
stipulated agreement within hours of the hearing and instructed
his attorney not to sign the order agreed upon in open court.
However, on 11 July 1995, defendant's attorney sent
correspondence to the Rockingham County Department of Social
Services (the Department), relating the parties had reached a
settlement on 23 June 1995 and agreed to dismiss all pending
issues. The letter was copied to Judge Stone, plaintiff's
counsel and defendant.
On 21 July 1995, plaintiff's counsel tendered a proposedorder (the Order) to Judge Stone containing the terms agreed upon
at the hearing. Defendant's counsel informed Judge Stone
defendant had withdrawn his consent to the agreement, leaving
counsel with no authority to acquiesce in the Order. Judge Stone
instructed that the Order be modified to reflect it was prepared
at his request and, following such modification, signed the Order
21 July 1995, nunc pro tunc 23 June 1995, without the signature
of defendant's counsel. Defendant appealed 21 August 1995, but
the appeal was dismissed 4 June 1996 for failure to be perfected
in a timely manner. Defendant appealed the dismissal 7 June
1996, which appeal was subsequently dismissed on grounds
identical to the earlier appeal.
Following entry of the Order, defendant advanced three
motions for modification, correction or enforcement of the
stipulated terms therein. On 29 September 1995, defendant filed
a Motion in the Cause to Modify a Prior Order, involving
custody provisions of the Order. On 22 February 1996, defendant
filed a Motion to Correct Order, addressing visitation
provisions of the Order, which Judge Stone granted 27 June 1996.
Finally, on 20 June 1996, defendant filed a Motion for
Contempt, complaining plaintiff had not abided by terms of the
Order.
On 24 June 1996, Judge Stone granted defendant's earliermotion for recusal and, on 25 September 1996, the parties
consented to transfer of all pending matters to Guilford County.
On 19 November 1997, defendant filed a motion pursuant to Rule
60(b)(4) (defendant's Motion) to set aside the Order as void for
lack of consent. Defendant's Motion was heard and denied by
Judge Susan E. Bray (Judge Bray) in a 20 March 1998 order (Judge
Bray's order). Defendant appeals.
[1]In his first assignment of error, defendant challenges
the Order as void, asserting the trial court failed to follow
requirements set forth in McIntosh v. McIntosh, 74 N.C. App. 554,
328 S.E.2d 600 (1985), governing oral stipulations. This
argument is unfounded.
Inter alia, Judge Bray's order contained the following
findings of fact:
1. The plaintiff [and defendant] w[ere]
present in Court and represented by [their]
attorney[s].
2. . . . Plaintiff's attorney then read the
terms of the settlement into the record. At
the conclusion of the announcement of the
terms of the stipulated settlement, the
presiding Judge . . . inquired of each party
as to whether he or she consented to the
terms of the stipulation and agreed that the
provisions were fair and equitable, to which
inquiry both parties indicated their consent.
Judge Bray further concluded as a matter of law:
2. At the June 23, 1995, hearing, JudgeStone complied with the requirements of
McIntosh . . . by having the terms of the
stipulated settlement read into the record,
and by then contemporaneously inquiring as to
whether the parties understood the terms of
the agreement and whether they agreed to
abide by those terms. Because both parties
indicated they consented to and agreed to be
bound by the terms . . . the consent order is
a valid and binding order.
A consent judgment is a contract of the parties that may be
sanctioned and entered upon the records of a court, see Highway
Commission v. Rowson, 5 N.C. App. 629, 631, 169 S.E.2d 132, 134
(1969), but the power of [a] court to sign a consent judgment
depends upon the unqualified consent of the parties, King v.
King, 225 N.C. 639, 641, 35 S.E.2d 893, 895 (1945). To set a
consent judgment aside for lack of consent, there must be proper
allegation and proof by the party attacking the judgment that
consent was not given. Nickels v. Nickels, 51 N.C. App. 690,
693, 277 S.E.2d 577, 579, disc. review denied, 303 N.C. 545, 281
S.E.2d 392 (1981). While the trial court's findings of fact are
conclusive on appeal when supported by competent evidence, its
conclusions drawn from such facts are subject to appellate
review. Wynnewood Corp. v. Soderquist, 27 N.C. App. 611, 615,
219 S.E.2d 787, 790 (1975). However, 'a motion for relief under
Rule 60(b) is addressed to the sound discretion of the trial
court,' Burwell v. Wilkerson, 30 N.C. App. 110, 112, 226 S.E.2d220, 221 (1976)(quoting Sink v. Easter, 288 N.C. 183, 198, 217
S.E.2d 532, 541 (1975)), and a decision made thereon will not be
disturbed on appeal absent an abuse of discretion, Harrington v.
Harrington, 38 N.C. App. 610, 612, 248 S.E.2d 460, 461 (1978).
Defendant first claims Judge Stone violated McIntosh by
allowing plaintiff's counsel to recite the stipulated terms
rather than Judge Stone reading the agreement himself. Defendant
is mistaken.
In pertinent part, McIntosh provides:
[i]f . . . oral stipulations are not reduced
to writing, [duly executed and acknowledged,]
it must affirmatively appear in the record
that the trial court made contemporaneous
inquiries of the parties at the time the
stipulations were entered into. It should
appear that the court read the terms of the
stipulations to the parties; that the parties
understood the legal effects of their
agreement and the terms . . . and agreed to
abide by those terms of their own free will.
McIntosh, 74 N.C. App. at 556, 328 S.E.2d at 602. However, our
courts have not construed McIntosh rigidly as requiring the
trial court to read [the stipulations] to the parties, Watson v.
Watson, 118 N.C. App. 534, 539, 455 S.E.2d 866, 868
(1995)(emphasis added), but rather as providing either that the
trial court read the agreement in open court or that it be
reasonably apparent from the record that both parties either read
or understood the stipulated terms, see id. at 538-39, 455 S.E.2dat 868 (although trial court did not read stipulated terms to
parties in open court, subsequent order valid because both
parties were present, represented by counsel, and indicated they
either had read or understood the terms).
In the case sub judice, both parties were present,
represented by counsel, and placed under oath prior to the
recitation of the stipulated terms by plaintiff's attorney.
During counsel's statement of the settlement, the parties
discussed additional provisions and the trial court intervened to
clarify new terms and conditions. The following exchange
occurred thereafter:
COURT: Is this your stipulation and
agreement, [plaintiff]?
. . . .
PLAINTIFF: Yes.
COURT: And the provisions for the
distribution of marital property is fair and
equitable?
PLAINTIFF: Yes, they are.
COURT: [Defendant], is this your agreement
and stipulation as outlined by [plaintiff's
attorney] and some subsequent conversation
here that the court reporter got on the
record?
DEFENDANT: Yes.
COURT: And the provisions for the
distribution of property are equitable?
DEFENDANT: I don't think they're
equitable, but I will not challenge it.
COURT: Well, equitable doesn't necessarily
mean equal.
. . . .
[DEFENDANT'S COUNSEL]: It means fair.
DEFENDANT: Okay.
COURT: That's your full agreement?
DEFENDANT: Yes, sir.
Therefore, although the stipulated terms of settlement were
read by plaintiff's attorney rather than the trial court, the
record reflects that both parties answered affirmatively when
Judge Stone asked if the settlement as read by plaintiff's
counsel was fair and equitable and fully reflected what had been
agreed upon. Based upon Judge Stone's extensive inquiry into the
consent and understanding of the parties, we hold it is
reasonably apparent from the record that both plaintiff and
defendant understood the stipulated terms, see Watson, 118 N.C.
App. at 538, 455 S.E.2d at 868, and that the consent of defendant
to the oral stipulations as read by plaintiff's counsel was
valid. Notwithstanding, there remains the issue of defendant's
subsequent attempt to withdraw such consent following the
hearing, but prior to entry of the Order.
[2]For a valid consent order, the parties' consent to theterms, King, 225 N.C. at 641, 35 S.E.2d at 895, must still
subsist at the time the court is called upon to sign the consent
judgment, Lee v. Rhodes, 227 N.C. 240, 242, 41 S.E.2d 747, 748
(1947)(citations omitted). If a party repudiates the agreement
by withdrawing consent before entry of the judgment, the trial
court is without power to sign [the] judgment. Id. at 242, 41
S.E.2d at 749.
In the case sub judice, defendant insists he notified his
attorney within hours of the settlement hearing that he was
withdrawing his consent to the oral stipulations and would not
authorize counsel's signature to the Order. Although informed of
this alleged circumstance at the time of presentation of the
Order, Judge Stone nonetheless signed and entered the Order
without defendant's consent or the signature of his attorney.
Notwithstanding, we conclude subsequent actions of defendant
ratified and validated the Order, and that defendant was thereby
estopped from challenging the Order.
In this regard, Judge Bray's order contained the following
findings of fact:
4. On July 11, 1995, defendant's then
counsel . . . wrote a letter to . . . the
Rockingham County Department of Social
Services in which he stated . . . the
parties reached a settlement on all pending
issues.
5. On September 29, 1995, the defendant
filed a . . . Motion in Cause to Modify a
Prior Order in which the defendant alleges .
. . [o]n July 21, 1995, nunc pro tunc June
23, 1995, a Consent Order and Judgment was
entered awarding the Plaintiff and the
Defendant the joint custody [sic] care and
control of the minor children . . .
alleg[ing] that there had been a substantial
change of circumstances since the entry of
the . . . consent order.
6. On February 5, 1996, the defendant
served the plaintiff with a . . . Motion to
Correct Order . . . request[ing] that the
Court modify the July 21, 1995, consent order
and judgment to correct a mistake in the
visitation provisions. . . . [T]he relief
requested by the defendant was granted . . .
[and] defendant's counsel then drafted an
order . . . entered June 27, 1996.
Judge Bray then concluded in pertinent part:
3. The defendant's counsel indicated the
defendant's consent to the entry of the . . .
consent order in a letter . . . copied to the
Judge more than two weeks after the
stipulated settlement was announced.
4. The defendant acquiesced in the validity
of the . . . consent order by filing two
motions subsequent to the entry of said
consent order in which he requested a
modification of its terms. Moreover, the
defendant's counsel ratified the . . .
consent order by drafting an order entered
June 27, 1996, which provides that, except as
modified, the terms of the . . . consent
order remain in full force and effect.
We note in addition that defendant on two occasions failed to
perfect appeals arising from the Order in question. Where a party engages in positive acts that amount to
ratification resulting in prejudice to an innocent party, the
circumstances may give rise to estoppel. Howard v. Boyce, 254
N.C. 255, 265-66, 118 S.E.2d 897, 905 (1961). Further,
[a] party who, with knowledge of the facts,
accepts the benefits of a transaction, may
not thereafter attack the validity of the
transaction to the detriment of other parties
who relied thereon.
Yarborough v. Yarborough, 27 N.C. App. 100, 105-06, 218 S.E.2d
411, 415, cert. denied, 288 N.C. 734, 220 S.E.2d 353
(1975)(quoting 3 Strong's N.C. Index 2d Estoppel § 4); see Lowry
v. Lowry, 99 N.C. App. 246, 253, 393 S.E.2d 141, 145
(1990)(wife's acceptance of agreement benefits for three years
ratified contract, and wife therefore estopped from claiming
agreement not settlement she authorized); see also Amick v.
Amick, 80 N.C. App. 291, 294-95, 341 S.E.2d 613, 614-15
(1986)(defendant estopped from denying validity of separation
agreement where plaintiff relied upon and performed obligations
pursuant to terms thereof), and Mayer v. Mayer, 66 N.C. App. 522,
531-35, 311 S.E.2d 659, 666-68, disc. review denied, 311 N.C.
760, 321 S.E.2d 140 (1984)(husband who actively participated in
wife's procurement of invalid divorce from her prior husband
estopped from denying validity of that divorce).
It must be interjected at this point that the estoppel underconsideration is quasi or equitable estoppel, under which
one is not permitted to injure another by
taking a position inconsistent with prior
conduct, regardless of whether the person had
actually relied upon that conduct.
Id. at 532, 311 S.E.2d at 666. Under true estoppel, one party
induces another to rely to his damage upon certain
representations. Id. (quoting Comment b, Restatement (Second)
of Conflict of Laws § 74 (1971)).
Application of equitable estoppel in general is dependent
upon the parties' actions along with the facts and circumstances
of each individual case. See Mayer, 66 N.C. App. at 534-35, 311
S.E.2d at 667-68. In the case sub judice, we particularly note
defendant's efforts to modify, correct and enforce stipulated
terms of the Order. For example, although defendant's affidavit
indicated he withdrew consent within hours of the agreement,
his attorney's 11 July 1995 letter to the Department, mailed
eighteen days following the hearing, reflects defendant's
acknowledgment and approval of the Order. The letter, copied to
Judge Stone, plaintiff's counsel and defendant,
place[ed] [the Department] on notice . . .
[that] the parties reached a settlement on
all pending issues . . . [and agreed to drop
all motions] including [a] Motion . . .
requesting assistance from [the] agency.
Nothing in the record indicates defendant objected to orrepudiated the foregoing statement of his attorney.
In addition, defendant's 29 September 1995 verified motion
to modify provisions of the Order regarding custody of the
parties' minor children alleged that, subsequent to entry of the
Order, plaintiff purposefully deprived defendant of custodial
rights stipulated in the Order, providing grounds for
modification thereof. Also, in his 22 February 1996 motion to
correct a mistake in the visitation provisions of the Order,
defendant relied upon a transcript of the 23 June 1995 hearing
and alleged
[t]he Consent Order of June 23, 1995 contains
a mistake . . . [and] Defendant is in need of
an Order of this Court correcting the
language of the June 23, 1995 Order to
accurately reflect the parties agreement
which was entered into in open court.
(emphasis added). Specifically, defendant requested that the
court modify the June 23, 1995 Order entered . . . and redraft
the Order to conform with what was agreed upon by the parties.
(emphasis added). Judge Stone granted the motion and entered an
order 27 June 1996 modifying certain visitation provisions of the
Order and decreeing that [a]ll other provisions of the Consent
Order and Judgment . . . shall remain in full force and effect
except as specifically modified therein. The record contains no
interjection of an objection or appeal by defendant of thisorder. Finally, in a 20 June 1996 motion, defendant sought to
hold plaintiff in contempt for her failure to abide by visitation
terms of the Order.
Defendant thus on two occasions failed to perfect appeals
directed at the Order, acquiesced in his counsel's reliance upon
the Order to deter action by the Department, twice filed motions
for modification or correction of the Order citing its entry by
agreement in open court, declined to object to or appeal an order
providing that all terms of the Order were to remain in full
force and effect, and, most significantly, sought to have
plaintiff held in contempt for violation of the Order, thereby
not only seeking enforcement of provisions therein but also to
penalize plaintiff for failing to comply with the Order.
In view of the foregoing facts and circumstances, see Mayer,
66 N.C. App. at 534-35, 311 S.E.2d at 667-68, we hold defendant
may not now avoid the terms of the Order which he acknowledged,
acquiesced in and attempted to modify and enforce over a two year
period. See Hill v. Hill, 94 N.C. App. 474, 479, 380 S.E.2d 540,
544 (1989)(wife bound by subsequent ratification of property
settlement agreement). Moreover, defendant's actions also
affected plaintiff's rights and obligations under the Order. See
Yarborough, 27 N.C. App. at 105-06, 218 S.E.2d at 415. Defendant
in essence ratified and affirmed the Order and is now estoppedfrom seeking to avoid its effect.
Prior to concluding, we acknowledge that a consent order
signed without the consent of each party is void, Highway
Commission, 5 N.C. App. at 632, 169 S.E.2d at 134, and emphasize
that equitable estoppel is a personal disability of the party
attacking the [order]; it is not a function of the [order]
itself, Mayer, 66 N.C. App. at 536, 311 S.E.2d at 668. As this
Court in Mayer explained in rejecting a husband's reliance upon
his wife's invalid divorce in which he had participated:
We are not unmindful of [husband's] argument
that to estop him from questioning the
divorce's validity would have, as he puts it,
the effect of validating a marriage which
G.S. § 51-3 declares a nullity. There is a
difference, however, between declaring a
marriage valid and preventing one from
asserting its invalidity. The theory behind
the equitable estoppel doctrine is not to
make legally valid a void divorce or to make
an invalid marriage valid, but rather, to
prevent one from . . . avoid[ing] obligations
as a spouse. . . . It is a personal
liability of the party attacking the divorce
judgment; it is not a function of the divorce
decree itself.
Id. (citations omitted). The effect of our decision, therefore,
is not to make a void court order valid, but rather to preclude
defendant, by virtue of his ratification thereof, from
subsequently attacking the validity of the Order.
As to defendant's remaining arguments, suffice it to say wehave carefully considered each and find them unpersuasive.
In short, Judge Bray's findings of fact, supported by the
evidence and therefore conclusive on appeal, Wynnewood Corp., 27
N.C. App. at 615, 219 S.E.2d at 790, sustain her determination
that defendant ratified the Order by his actions and was thus
equitably estopped from challenging the validity thereof. Judge
Bray therefore did not abuse her discretion in denying
defendant's Motion. See Burwell, 30 N.C. App. at 112, 226 S.E.2d
at 221.
Affirmed.
Judges WALKER and McGEE concur.
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