1. Divorce_separation agreement_vague_void
A separation agreement was correctly declared void where it had not been ratified by the
court and was governed by the general principles of contracts. This agreement lacked the
required certainty and specificity in eight areas ranging from child support and alimony to
insurance and retirement benefits.
2. Evidence_parol evidence rule_not used to add terms-- vague separation agreement
The parol evidence rule prohibited the trial court from allowing the introduction of parol
evidence to add to the terms of a vague and uncertain separation agreement. Parol evidence is
allowed when the writing is not a full integration of the terms of the contract or to make certain
the intention behind an ambiguous contract.
3. Divorce_separation agreement_vague provisions_entire agreement voided
The trial court did not err by voiding an entire separation agreement where the
deficiencies in the agreement were such that merely striking portions of it was not feasible.
Moreover, plaintiff failed to object or otherwise dissent from the trial court's decision.
Judge Hunter dissenting.
Reid, Lewis, Deese, Nance & Person, LLP, by Renny W. Deese,
for plaintiff.
Sullivan & Grace, P.A., by Nancy L. Grace, for defendant.
BRYANT, Judge.
Judith Lynn Jackson (plaintiff - ex-wife) appeals from an
order filed 1 March 2004, denying and dismissing her claim for
specific performance pursuant to a separation agreement entered
into with Fred H. Jackson, Jr. (defendant - ex-husband). Plaintiff and defendant were married on 3 November 1981. Two
children were born to the marriage; respectively, Jo-Von Jackson,
born 24 August 1984 and Jan-Quil Jackson, born 2 March 1993. On or
about 1 December 2001, the parties separated and on 19 December
2001 signed a separation agreement. The separation agreement
provided for child custody, child support, alimony, and equitable
distribution. On 21 March 2003, the parties divorced, but the
terms of the separation agreement were not incorporated into the
divorce judgment.
Plaintiff filed this action on 17 June 2003, seeking specific
performance of the separation agreement; specifically alleging that
defendant failed to pay the correct amount of child support, failed
to name plaintiff as beneficiary on a life insurance policy, and
failed to pay the correct amount of military retirement pay to
plaintiff. On 19 September 2003, defendant answered and
counterclaimed for rescission of the separation agreement on the
grounds that the separation agreement was vague, contradictory, and
inconsistent.
This matter came for hearing at the 9 February 2004 civil
session of Cumberland County District Court with the Honorable
Kimbrell Kelly Tucker presiding. By order filed 1 March 2004, the
trial court denied plaintiff's claims and defendant's counterclaim,
and dismissed the complaint, ruling that the separation agreement
was vague, null and void, unenforceable, and is hereby set aside.
Plaintiff gave timely notice of appeal.
There existed only one policy of which defendant was the
policy owner and responsible for paying the premium, however, the
paragraph states he is to make plaintiff the beneficiary on these
policies. Plaintiff is the policy owner of the Metropolitan Life
Insurance policy and is responsible for paying the premium.
Therefore, it is unclear whether he is actually to be responsible
for one or both policies.
(6) Retirement paragraph reads:
That said 46% of the marital portion of the
Husband's vested pension, retirement, or other
deferred compensation pay from the United
States Army will be transferred to the Wife by
payments that Husband will set up through
allotment to wife's existing account. Husband
will pay Wife before the 5th of each month.
. . .
That the Husband shall leave Wife as sole
beneficiary of the Survivors Benefit Plan takenupon his retirement. And will take appropriate
action to notify the SBP in writing that former
spouse is entitled to the SBP when divorce is
granted. That the Husband shall be solely
responsible for any cost of the SBP.
The separation agreement is unclear as to when the payments
are to begin and for what duration these payments will continue.
(7) The second Military Benefits paragraph reads:
The Wife shall have all benefits to which she
shall be entitled to as a military dependent.
The husband shall execute such documents and
take such action as may be reasonable,
necessary or expeditious to enable the Wife to
obtain such benefits and the appropriate
identification cards until remarriage or death
which ever comes first therefore.
The separation agreement does not make clear whether the wife
is to obtain said benefits and identification cards until her or
defendant's remarriage or death.
(8) Alimony paragraph reads:
That the Husband shall pay the sum of
$500.00 per month in permanent alimony to
Wife. $200.00 starting when oldest minor
child support ends, and the remaining
$300[.00] to be paid when youngest minor child
support ends, to total $500.00 And continuing
each and every month thereafter. The Husband
shall establish an allotment payable to the
wife in the amount of $250.00 two times per
month. The alimony shall cease at the
occurrence at one of the following:
a) The death of the Husband
b) The death of the Wife
c) The remarriage of Wife
This paragraph does not establish exactly when alimony
payments will begin. In light of the fact that the two children
were born to the marriage more than eight years apart, it remains
unclear whether defendant will continue to pay child support forboth children until the youngest of the two children reaches the
age of twenty.
[2] Plaintiff argues that the vagueness and uncertainty in the
separation agreement should have been resolved by use of parol
evidence. The parol evidence rule prohibits the admission of
parol evidence to vary, add to, or contradict a written instrument
intended to be the final integration of the transaction. Hall v.
Hotel L'Europe, Inc., 69 N.C. App. 664, 666, 318 S.E.2d 99, 101
(1984). 'The rule is otherwise where it is shown that the writing
is not a full integration of the terms of the contract,' Vestal v.
Vestal, 49 N.C. App. 263, 266, 271 S.E.2d 306, 308 (1980) (citation
omitted), or [w]hen a contract is ambiguous, parol evidence is
admissible to show and make certain the intention behind the
contract, Dockery v. Quality Plastic Custom Molding, Inc., 144
N.C. App. 419, 422, 547 S.E.2d 850, 852-53 (2001).
Here, the trial court could not allow the introduction of
parol evidence to add, or supplement the terms of the separation
agreement. It is the province of the court to construe and not
make contracts for the parties. Williamson, 231 N.C. at 727, 58
S.E.2d at 747. Accordingly, the trial court could not create new
terms for the parties, and did not commit error in declaring the
agreement void without hearing additional parol evidence. This
assignment of error is overruled.
. . .
I mean, you're left - - if I gut it
partially, you are left with worse, almost
worse than what you started with, because I
don't believe as a judge I'm going to be able
to try - - should you come in here and try and
enforce the visitation, try and enforce
something called alienation of affection
that's in here, it is so vague it is going to
be virtually impossible for me to determine -
- and I'm looking at your counterclaim now, as
to whether somebody violated this vague
provision.
. . .
So the provisions you're contending he
violated are vague and unenforceable as
against him. The claims he has against you
are for provisions that he contends you
violated. Those are just as vague as the ones
he did.
Counsel, it is my intent, rather than to
try and gut it, just to declare this agreement
unenforceable, vague, unenforceable, and it is
null and void, and we start from scratch.
The record on appeal reveals that the deficiencies contained
within the separation agreement were such that it was not feasible
for the trial court to merely strike portions of the agreement
without eviscerating the entire agreement. Moreover, counsel for
plaintiff failed to object to or otherwise dissent from the trial
court's decision to void the entire agreement. See N.C. R. App. P.
10(b)(1) (In order to preserve a question for appellate review, a
party must have presented to the trial court a timely request,
objection or motion . . . .). Accordingly, this assignment of
error is overruled.
HUNTER, Judge, dissenting.
I respectfully dissent from the majority opinion, as I find
that the trial court erred in holding the separation agreement
vague, inconsistent, and so full of omissions as to render the
agreement null and void as a matter of law.
As the majority correctly notes, separation agreements not
ratified by a court are governed by the general principles of
contracts. See Dalton v. Dalton, 164 N.C. App. 584, 586, 596
S.E.2d 331, 333 (2004). Although this Court has noted that, to be
enforceable, separation agreements must have mutuality of agreement
as to the material terms specified directly or by implication, see
Rosen v. Rosen, 105 N.C. App. 326, 328, 413 S.E.2d 6, 7 (1992), our
Supreme Court has held that [w]here . . . the parties have
attempted to put in writing an agreement fixing the rights and
duties owing to each other, courts will not deny relief because of
vagueness and uncertainty in the language used, if the intent of
the parties can be ascertained. Goodyear v. Goodyear, 257 N.C.
374, 379, 126 S.E.2d 113, 117 (1962). Our courts, in determining
the intent of the parties, look first to the language of the
agreement. See Walton v. City of Raleigh, 342 N.C. 879, 881, 467
S.E.2d 410, 411 (1996) ([i]f the plain language of a contract is
clear, the intention of the parties is inferred from the words ofthe contract). If a term is ambiguous, parol evidence may be
admitted to explain the term. See Vestal v. Vestal, 49 N.C. App.
263, 266-67, 271 S.E.2d 306, 309 (1980) ([a]lthough parol evidence
may not be allowed to vary, add to, or contradict an integrated
written instrument, . . . an ambiguous term may be explained or
construed with the aid of parol evidence). A closer examination of
the contested provisions of the agreement is therefore warranted to
determine if the intent of the parties can be ascertained from the
plain language, or if parol evidence could properly be admitted to
explain ambiguous terms.
The majority first finds the paragraph entitled Child
Support to be defective, as it requires payment of the full amount
of support, $900.00, on a monthly basis until the youngest child is
20 years old. Although an age difference of eight years exists
between the children, thus resulting in continued payments of the
full $900.00 for ten years after the eldest child reaches majority,
such an age difference does not render the paragraph ambiguous.
While parents have a legal obligation to support their children and
cannot by contract relieve themselves of that obligation, see
Thomas v. Thomas, 248 N.C. 269, 274-75, 103 S.E.2d 371, 375 (1958),
a parent can by contract assume an obligation to his child greater
than the law otherwise imposes, and by contract bind himself to
support his child after emancipation and past majority. Shaffner
v. Shaffner, 36 N.C. App. 586, 588, 244 S.E.2d 444, 446 (1978). In
Goodyear v. Goodyear, a provision of the separation agreement
included payments of $400.00 monthly by the father to the motherfor benefit of their two children. Goodyear, 257 N.C. at 376, 126
S.E.2d at 114-15. Such payments were required to be made
subsequent to the date of the eldest child's twenty-first birthday.
Id. at 378, 126 S.E.2d at 116. Our Supreme Court found this
contract term to be enforceable, holding that the contract term
required a monthly payment of $400.00, rather than a monthly
payment of $200.00 per child. Id. at 378, 126 S.E.2d at 117.
Here, similarly, the parties agreed to a lump sum payment for the
benefit of the two children which would continue into the eldest
child's majority by their plain language. Such a term, although
providing for support beyond the requirements of law, is
nonetheless enforceable on its face.
The majority next notes the provision concerning Hospital,
Medical and Dental Insurance is unclear as to when the coverage
ends. The language of the provision states that coverage will
continue until said minor children reach age of 21 if not in
college or the age of 23 if minor children are attending college.
Here, the plain language again reveals the intent of the parties.
Unlike the child support provision, which specifies that support is
to end for both children at a fixed point in time, the insurance
provision refers to coverage ending for each of the minor children
as soon as they reach the age of twenty-one or twenty-three,
depending on their educational status. Thus, the plain language of
this agreement creates no ambiguity as to when the insurance
coverage ends.
The majority next addresses the Payment of Medical and DentalExpenses of Minor Children provision, finding that it is unclear
as to duration. Although the paragraph does not include a specific
termination, the plain language requires payment of the expenses
of the minor children. Thus it can be inferred that the payments
of these expenses are to be made for each child until that child
reaches the age of majority.
The majority next addresses the paragraph regarding Military
Benefits, finding it void as it establishes a different time table
for benefits than the Child Support paragraph. The Military
Benefits paragraph states that the minor children shall receive
all benefits to which they are entitled to as military dependents
so long as they shall be entitled to receive said benefits under
the prevailing laws[.] Although this provision does provide a
different termination period than the provision for child support,
payment of health insurance, and payment of other medical expenses,
each section refers to separate benefits, and therefore differing
schedules for duration of the distinct benefits should not render
the provisions void.
The majority next finds that the provision entitled Life
Insurance is unclear as to whether defendant is responsible for
one or both policies, as he is to name the Wife as the sole
beneficiary on these policies[.] The paragraph is clear as to who
is responsible for maintaining premiums on the respective policies:
the wife is responsible for the policies held through Metropolitan
Life Insurance and the husband is responsible for those held
through MCI Life Insurance. Further, the paragraph is clear thatthe husband shall name the Wife as the sole beneficiary[.] The
evidence of record fails to show, however, who is the actual policy
holder for the three life insurance policies on defendant's life,
and thus who is the proper party to designate the beneficiary.
Therefore, parol evidence should properly be considered to clarify
this ambiguity. See Vestal, 49 N.C. App. at 266-67, 271 S.E.2d at
309.
The majority next addresses the Retirement paragraph,
finding the section unclear as to when the payments of the military
pension and retirement pay are to begin, and as to their duration.
Here the plain language of the paragraph is sufficient to create a
definite obligation between the parties, specifying an exact
percentage of defendant's military retirement to be received by
plaintiff. The paragraph also states that payments are to be made
by the fifth of each month. Further, evidence presented to the
trial court indicated that defendant, already retired, began paying
plaintiff a portion of the retirement benefits as soon as the
separation agreement was effective. Our Supreme Court has held
that:
A contract . . . encompasses not only its
express provisions but also all such implied
provisions as are necessary to effect the
intention of the parties unless express terms
prevent such inclusion. The court will be
prepared to imply a term if there arises from
the language of the contract itself, and the
circumstances under which it is entered into,
an inference that the parties must have
intended the stipulation in question.
If it can be plainly seen from all the
provisions of the instrument taken together
that the obligation in question was within thecontemplation of the parties when making their
contract or is necessary to carry their
intention into effect, the law will imply the
obligation and enforce it.
Lane v. Scarborough, 284 N.C. 407, 410, 200 S.E.2d 622, 624-25
(1973) (citations omitted). Thus, a term can be implied from the
language and circumstances that the parties intended the payment of
retirement benefits to begin upon certification of the separation
agreement.
Although the paragraph does not specify a duration of the
military retirement benefits, duration of such benefits would be
governed by the requirements of the retirement and pension plans.
Therefore, admission of parol evidence as to the retirement and
pension benefit plans would be appropriate to clarify this
ambiguity. See Vestal, 49 N.C. App. at 266-67, 271 S.E.2d at 309.
The majority next addresses the second paragraph entitled
Military Benefits, finding that the paragraph does not make clear
whether the benefit terminates on plaintiff or defendant's
remarriage or death. The plain language of the agreement indicates
that the benefits in question are those of the military dependant.
Thus the provision that such benefits shall be received by the
Wife until remarriage or death which ever comes first clearly
refers to the wife's remarriage or death, as she is the dependant
in question.
The majority finally addresses the paragraph entitled
Alimony, finding that the section fails to establish when alimony
payments will begin, as the section provides for a graduated
schedule that requires defendant to provide $200.00 monthly toplaintiff after the support to the oldest minor child ends, and an
additional $300.00 monthly to plaintiff when the support to the
youngest minor child ends. As discussed supra, the agreement does
not provide for a staggered termination of child support. A
contract must be considered as a whole, considering each clause and
word with reference to other provisions and giving effect to each
if possible by any reasonable construction. Development
Enterprises v. Ortiz, 86 N.C. App. 191, 194, 356 S.E.2d 922, 924
(1987). Here, the Alimony provision can be reasonably construed
to provide a payment of $500.00 to plaintiff only upon termination
of child support when the youngest minor child reaches the age of
twenty, and to provide no alimony payments to plaintiff prior to
that time. As the intent of the parties can be inferred from the
language of the agreement, the provision is enforceable.
As the intent of the parties can be determined by the plain
language of the separation agreement, and any ambiguities creating
questions of fact may properly be resolved with the use of parol
evidence, the trial court erred in dismissing plaintiff's claim on
the grounds the separation agreement was vague and unenforceable.
Accordingly, I respectfully dissent.
Hutson & Miskimon, North Carolina Contract Law § 2-29, at 131
(Matthew Bender 2001).
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