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Corrections at 176 NC App at 28
JO ANN OUTLAW KORNEGAY, Plaintiff v. BONNIE R. ROBINSON,
Administratrix of the Estate of Byard G. Kornegay, JIMMY B.
KORNEGAY, BYARD G. KORNEGAY, JR., GERALD CLAY KORNEGAY, RICKY
THOMAS KORNEGAY, LINDA KAY K. LANE, and MARY HAZEL K. MANUEL,
Defendants
NO. COA05-131
Filed: 21 February 2006
1. Husband and Wife_-invalidation of prenuptial agreement_-unconscionability
The trial court did not err by granting summary judgment in favor of defendant in plaintiff
wife's declaratory judgment action against decedent's estate seeking to invalidate a prenuptial
agreement on the basis that the agreement was void under N.C.G.S. § 52B-7(a)(2) as
unconscionable, because: (1) such an agreement between individuals with prior marriages and
offspring from those unions, recognizing that both parties had children from previous marriages
and possessed separate property obtained through inheritance and other means, is not so
oppressive that no reasonable person would make such terms on the one hand, and no honest and
fair person would accept them on the other; and (2) as a matter of law, the terms of the agreement
are not substantively unconscionable.
2. Husband and Wife
_-invalidation of prenuptial agreement--voluntariness--full
disclosure
The trial court erred by granting summary judgment in favor of defendant in plaintiff
wife's declaratory judgment action against decedent's estate seeking to invalidate a prenuptial
agreement based on the fact that the agreement was void under N.C.G.S. § 52B-7(a)(1) as not
voluntary, because taken in the light most favorable to plaintiff, material issues of fact exist as to
whether the execution of the agreement was voluntary including: (1) plaintiff, who possessed
only a high school education, was presented at the office of decedent's attorney with a premarital
agreement which waived all spousal rights, including all rights to decedent's estate, while en
route to the wedding; and (2) plaintiff averred that she understood the document to apply in the
event of divorce, that the agreement was not explained to her, that she signed the document
within ten minutes of its presentation without reading it, that decedent did not disclose his full
assets and plaintiff was not aware of the extent of his holdings at the time she signed the
agreement, and that she was not represented by independent legal counsel.
Judge TYSON concurring in part and dissenting in part.
Appeal by plaintiff from an order entered 25 October 2004 by
Judge Thomas D. Haigwood in Duplin County Superior Court. Heard in
the Court of Appeals 14 September 2005.
Warren, Kerr, Walston, Taylor & Smith, LLP, by John Turner
Walston and Henry C. Smith, for plaintiff-appellant.
J. Garrett Ludlum for defendant-appellee Bonnie R. Robinson,
Administratrix of the Estate of Byard G. Kornegay.
Harris, Creech, Ward and Blackerby, P.A., by Thomas M. Ward
and Charles E. Simpson, Jr., for defendant-appellees Byard G.
Kornegay, Jr., Gerald Clay Kornegay, and Linda Kay K. Lane.
Burrows & Hall, by Richard L. Burrows; J. Gates Harris for
defendant-appellees Ricky Thomas Kornegay and Mary Hazel K.
Manuel.
Turner Law Offices, by W. Carroll Turner, for defendant-
appellee Jimmy B. Kornegay.
HUNTER, Judge.
Jo Ann Outlaw Kornegay (plaintiff) appeals from an order of
summary judgment entered 25 October 2004. For the reasons stated
herein, we reverse the trial court's order of summary judgment.
Plaintiff presented evidence tending to show that after a
four-year relationship, Byard Kornegay (decedent) asked plaintiff
to marry him in early October 1990. Plaintiff, who had a high
school education, was a yarn inspector in a textile mill. At the
time of the marriage, plaintiff had a net worth of approximately
$50,000.00. Decedent was a farmer and businessman with extensive
real estate holdings and a net worth in excess of $500,000.00 at
the time of the marriage. Both plaintiff and decedent had children
from previous marriages.
Plaintiff moved into decedent's home in early October 1990.
On 11 October 1990, plaintiff and decedent traveled to South
Carolina to obtain a marriage license. After moving into
decedent's home, and before obtaining the marriage license,
plaintiff learned that decedent wished for her to sign a prenuptialagreement. On 12 October 1990, plaintiff and decedent went to the
offices of decedent's attorney, Robert T. Rice (Rice). Rice
presented plaintiff with the prenuptial agreement. Plaintiff, in
her affidavit, stated that the contents of the agreement were not
reviewed or explained to her, and that she was not given the
opportunity to review the agreement with her own attorney.
Plaintiff did not read or request substantive changes to the
document, and relied upon her understanding that the prenuptial
agreement would only apply in the event of a divorce. Plaintiff
signed the prenuptial agreement after approximately ten minutes,
and plaintiff and decedent left Rice's office and were married in
South Carolina that same day.
On 16 May 2004, decedent passed away. Plaintiff believed that
decedent had executed a will with substantial provisions in her
favor in 1991; however a will executed 1 March 1991 made no
provisions for plaintiff. The prenuptial agreement signed by
plaintiff 12 October 1990 included a provision waiving all
plaintiff's rights as a spouse, including the right to claim a
spousal share of decedent's estate.
Plaintiff brought an action for a declaratory judgment against
decedent's estate to invalidate the prenuptial agreement on 9 July
2004. The trial court entered an order of summary judgment
dismissing plaintiff's action. Plaintiff appeals.
Plaintiff contends that the trial court erred in granting
summary judgment enforcing the prenuptial agreement, as there were
material issues of fact as to whether the agreement was executedvoluntarily, and as to whether the agreement was unconscionable.
Although we do not find the agreement to be unconscionable, we
find, when taken in the light most favorable to plaintiff, that
material issues of fact exist as to the voluntariness of the
agreement.
We first note the appropriate standard of review. Summary
judgment is properly granted when the pleadings, depositions,
answers to interrogatories, and admissions on file, together with
the affidavits, if any, show that there is no genuine issue as to
any material fact and that any party is entitled to a judgment as
a matter of law. N.C. Gen. Stat. § 1A-1, Rule 56(c) (2003). All
such evidence must be considered in the light most favorable to the
non-moving party. In re Will of Priddy, 171 N.C. App. 395, 396-
97, 614 S.E.2d 454, 456 (2005). If findings of fact are necessary
to resolve an issue of material fact, summary judgment is
improper. Prior v. Pruett, 143 N.C. App. 612, 617, 550 S.E.2d
166, 170 (2001).
I
The Uniform Premarital Agreement Act, N.C. Gen. Stat. § 52B-7
(2005), specifically governs the enforcement of premarital
agreements in North Carolina. The statute provides that a
premarital agreement is unenforceable if the party against whom
enforcement is sought proves one of two circumstances. The statute
states:
(a) A premarital agreement is not
enforceable if the party against whom
enforcement is sought proves that:
(1) That party did not execute the
agreement voluntarily; or
(2) The agreement was unconscionable
when it was executed and, before
execution of the agreement, that
party:
a. Was not provided a fair and
reasonable disclosure of the
property or financial
obligations of the other party;
b. Did not voluntarily and
expressly waive, in writing,
any right to disclosure of the
property or financial
obligations of the other party
beyond the disclosure provided;
and
c. Did not have, or reasonably
could not have had, an adequate
knowledge of the property or
financial obligations of the
other party.
Id.
[1] Plaintiff first contends that the agreement was void under
section 52B-7(a)(2), as the agreement was unconscionable. We
disagree.
In
King v. King, 114 N.C. App. 454, 442 S.E.2d 154 (1994),
this Court stated, [a] conclusion that the contract is
unconscionable requires a determination that the agreement is both
substantively and procedurally unconscionable.
Id. at 458, 442
S.E.2d at 157. 'Substantive unconscionability . . . involves the
harsh, oppressive, and one-sided terms of a contract,' i.e.,
inequality of the bargain.
Id. (citation omitted). The
inequality of the bargain, however, must be 'so manifest as toshock the judgment of a person of common sense, and . . . the terms
. . . so oppressive that no reasonable person would make them on
the one hand, and no honest and fair person would accept them on
the other.'
Id. (citation omitted).
Here, the terms of the agreement do not reveal so inequitable
a bargain as to 'shock the judgment of a person of common
sense[.]'
Id. (citation omitted). The agreement, the terms of
which applied equally to both parties, recognized that both parties
had children from previous marriages and possessed separate
property obtained through inheritance and other means. The
agreement then waived all marital rights, including intestacy
rights, but permitted each party to make specific devises,
bequests, and legacies to the other, as specifically permitted by
N.C. Gen. Stat. § 52B-4(a)(3) (2005). Such an agreement between
individuals with prior marriages and offspring from those unions is
not 'so oppressive that no reasonable person would make them on
the one hand, and no honest and fair person would accept them on
the other.'
King at 458, 442 S.E.2d at 157 (citation omitted).
As a matter of law, the terms of the agreement are not
substantively unconscionable. As we find no substantive
unconscionability as a matter of law, we need not address
plaintiff's contentions that material issues of fact exist as to
procedural unconscionability.
II
[2] Plaintiff next contends that the agreement was void under
section 52B-7(a)(1), as the agreement was not voluntary. We agree. As discussed
supra, the statute states that a marital
agreement is not enforceable if the party against whom enforcement
is sought proves that [the] party did not execute the agreement
voluntarily[.] N.C. Gen. Stat. § 52B-7(1)(a). The statute does
not define the term voluntary, and a review of our existing case
law reveals that few cases have applied the statute since its
enactment in 1987.
(See footnote 1)
However, in
Howell v. Landry, 96 N.C. App.
516, 386 S.E.2d 610 (1989), a case concerning the voluntary nature
of a premarital agreement entered into before the effective date of
the statute, this Court found that such agreements are
unenforceable if procured by undue influence, duress, coercion, or
fraud, and further found that due to the confidential nature of the
relationship, there must be full disclosure between the parties as
to their respective financial status.
Id. at 525, 386 S.E.2d at
615.
The issue of financial disclosure was more specifically
addressed in the case of
Tiryakian v. Tiryakian, 91 N.C. App. 128,
370 S.E.2d 852 (1988), which also concerned a premarital agreement
signed before the effective date of the statute. In
Tiryakian, the
bride was asked to meet the groom on the day before the wedding athis attorney's office to execute a legal document.
Id. at 131, 370
S.E.2d at 853. The bride was given several copies of the
premarital agreement in the parking lot of the attorney's office,
and conflicting evidence was offered as to what was disclosed at
that time.
Id. The groom stated that the terms of the agreement
were discussed and the bride was aware of its contents, while the
bride contended that no specifics were discussed and that she was
told, and believed, that the documents were to protect the groom's
interest in his grandmother's estate.
Id. The bride did not read
the agreement or consult with an attorney, but instead rushed to
her bank, had her signature notarized, and promptly returned the
documents. The couple were married the next day.
Id.
The Court in
Tiryakian recognized the confidential
relationship of persons about to marry, and the corresponding
affirmative duty on the part of each perspective spouse to fully
disclose his or her financial status.
Id. at 132, 370 S.E.2d at
854. Although the agreement was entered into prior to the
effective date of section 52B-7,
Tiryakian noted that the Uniform
Premarital Agreement Act echoed these requirements for full
disclosure of financial status.
Id. at 133, 370 S.E.2d at 854.
Tiryakian also noted that the fact that a prenuptial agreement was
drawn up by one party's attorney and not throughly explained to the
other party, who was unrepresented by counsel, might influence a
court's disapproval of such an agreement.
Id. The Court concluded
that the lack of full disclosure, coupled with the fact that the
agreement was drafted by the groom's attorney, and was signed bythe bride without knowledge of its contents and without
consultation of independent legal advice, voided the premarital
agreement.
Id. at 133, 370 S.E.2d at 854-55.
Here, plaintiff, who possesses only a high school education,
was presented at decedent's attorney's office with a premarital
agreement which waived all spousal rights, including all rights to
decedent's estate, while en route to the wedding. Plaintiff avers
that she understood the document to apply in the event of divorce,
that the agreement was not explained to her, and that she signed
the document within ten minutes of its presentation without reading
it. Plaintiff further avers that decedent did not disclose his
full assets and that she was unaware of the extent of his holdings
at the time she signed the agreement. Finally, plaintiff avers
that she was not represented by independent legal counsel. In
light of
Tiryakian, when taken in the light most favorable to
plaintiff, material issues of fact exist as to whether the
execution of the agreement was voluntary. Summary judgment was
therefore improperly granted by the trial court.
Defendants, however, contend that the case of
Howell v. Landry
should control. We find
Howell distinguishable.
Howell, as
discussed
supra, also concerned an agreement entered into prior to
the effective date of the Uniform Premarital Agreement Act, but
raised claims of undue influence and duress in the execution of a
premarital agreement, rather than the issue of financial
disclosure.
Howell, 96 N.C. App. at 526, 386 S.E.2d at 616. The
bride, who held an active role in the groom's business prior to thewedding, had discussed the possibility of a premarital agreement
with the groom, and had agreed to review such an agreement.
Id. at
519, 386 S.E.2d at 612. The bride and groom planned to fly to Las
Vegas to be married. The night before leaving, the groom presented
the bride with an agreement which had been prepared by his
attorney.
Id. at 520, 386 S.E.2d at 612. The bride expressed
interest in having her own attorney review the document, but agreed
to sign it after making some adjustments to the terms, both as she
wished to marry and due to her own financial involvement in the
groom's business.
Id. at 520, 386 S.E.2d at 612-13. The Court in
Howell held that the brevity of time before the marriage alone was
insufficient to establish duress, and noted the bride's awareness
of the need for independent legal counsel and decision to
nevertheless sign the agreement, as well as the bride's adjustments
to the agreement, in determining that there was no undue influence
or duress.
Id. at 528-29, 386 S.E.2d at 618.
Howell's facts are distinguishable from the instant case,
however, where issues of fact exist as to plaintiff's knowledge of
the need for an attorney, the contents of the writing, and the
extent of decedent's disclosure of his assets, rather than claims
of undue influence and duress.
The trial court, therefore, improperly granted summary
judgment as material issues of fact exist as to whether full
disclosure was made to plaintiff prior to entering the agreement
between confidential parties.
III
We briefly address each of the concerns raised by the dissent.
The dissent contends that as plaintiff admitted she voluntarily
signed the agreement, that is signed without duress or undue
influence, no material issue of fact exists. However, as discussed
supra, full disclosure of assets is a necessary consideration in
determining the voluntary nature of a prenuptial agreement.
Tiryakian at 132-33, 370 S.E.2d at 854. Although the principles of
construction applicable to contracts also apply to premarital
agreements, see Turner v. Turner, 242 N.C. 533, 539, 89 S.E.2d 245,
249 (1955), our prior case law has made clear that this refers to
the substance of separation agreements, and that further inquiry as
to procedural fairness in the execution of the agreement is
required for agreements formed in a confidential relationship. See
Howell at 525, 386 S.E.2d at 615 (stating when the parties to the
agreement stand in a confidential relationship to one another,
there must be full disclosure between the parties as to their
respective financial status.)
The dissent further contends that Tiryakian is distinguishable
because it addressed a prenuptial agreement in the context of
equitable distribution, and was not raised from a grant of summary
judgment. Although Tiryakian arrived before this Court in a
different procedural posture than the instant case, the statements
of law as the nature of the confidential relationship of persons
about to marry, and the corresponding duties of disclosure which
are determinative in this case nonetheless are binding. See In the
Matter of Appeal from Civil Penalty, 324 N.C. 373, 384, 379 S.E.2d30, 37 (1989) (stating a subsequent panel of the same court is
bound by that precedent[.]))
The dissent also appears to suggest that summary judgment was
properly granted because plaintiff failed to challenge the
prenuptial agreement during the course of the marriage. Our
statute governing premarital agreements states, however, that
[any] statute of limitations applicable to an action asserting a
claim for relief under a premarital agreement is tolled during the
marriage of the parties to the agreement. N.C. Gen. Stat. § 52B-8
(2005). Here, plaintiff filed her action for declaratory judgment
within two months of decedent's death.
The dissent contends that plaintiff bears the burden to prove
that the trial court erred and has failed in this case to show
error in the trial court's judgment. However, as discussed supra,
our standard of review as to summary judgment makes clear that,
[i]f findings of fact are necessary to resolve an issue of
material fact, summary judgment is improper. Prior, 143 N.C. App.
at 617, 550 S.E.2d at 170. Plaintiff's affidavit as to her lack of
knowledge of the extent of both decedent's land holdings and
business enterprises, when considered in the light most favorable
to plaintiff as the non-movant, is sufficient to create a material
issue of fact as to whether full disclosure was made prior to the
signing of the agreement. Plaintiff has therefore shown error in
the trial court's grant of summary judgment. As material issues of fact exist as to whether plaintiff
entered the agreement voluntarily, summary judgment was improperly
granted.
Reversed.
Judge TYSON concurring in part and dissenting in part in a
separate opinion.
Judge STEELMAN concurs.
TYSON, Judge concurring in part and dissenting in part.
I concur with that portion of the majority's opinion, which
correctly holds the terms of the agreement are not substantively
unconscionable.
The majority's opinion then reverses the trial court's grant
of summary judgment in defendants' favor and holds material issues
of fact exist as to whether plaintiff entered the agreement
voluntarily. In reaching this conclusion, the majority cites
Tiryakian v. Tiryakian, and states [t]he Court in Tiryakian
recognized the confidential relationship of persons about to marry,
and the corresponding 'affirmative duty on the part of each
perspective spouse to fully disclose his or her financial status.'
91 N.C. App. 128, 132, 370 S.E.2d 852, 854 (1988). While I
completely agree with this statement, I disagree with the
majority's application of this rule to the facts before us to
reverse the trial court's judgment.
Plaintiff argues her husband failed to materially disclose all
of his financial assets prior to her signing the premaritalagreement. The majority's opinion holds, summary judgment was
therefore improperly granted by the trial court. I respectfully
dissent from that portion of the majority's opinion that reverses
the trial court's judgment.
I. Standard of Review
Our standard to review the grant of a motion
for summary judgment is whether any genuine
issue of material fact exists and whether the
moving party is entitled to judgment as a
matter of law. A defendant may show
entitlement to summary judgment by: (1)
proving that an essential element of the
plaintiff's case is non-existent, or (2)
showing through discovery that the plaintiff
cannot produce evidence to support an
essential element of his or her claim, or (3)
showing that the plaintiff cannot surmount an
affirmative defense. Once the party seeking
summary judgment makes the required showing,
the burden shifts to the nonmoving party to
produce a forecast of evidence demonstrating
specific facts, as opposed to allegations,
showing that he can at least establish a prima
facie case at trial.
County of Jackson v. Nichols, 175 N.C. App. 196, 199, 623 S.E.2d
277, 279 (2005) (internal quotations and citations omitted)
(emphasis supplied). Defendants showed, through the plain language
of the agreement and plaintiff's deposition testimony, that
plaintiff voluntarily executed the agreement when viewing the
facts in a light most favorable to her. Plaintiff failed to meet
her burden to produce a forecast of evidence demonstrating
specific facts, as opposed to allegations, showing that [s]he can
at least establish a prima facie case at trial. Id. The trial
court's judgment should be affirmed in its entirety.
II. Voluntariness
On appeal, the presumption remains that the trial court's
judgment is correct until overcome by the appellant. Id. The
burden rests upon the appellant to prove the trial court erred.
Plaintiff has failed to establish a prima facie case at trial or to
show any error in the trial court's judgment. Id.
In Howell v. Landry, this Court stated, [p]remarital
agreements, like postmarital agreements, are generally formed
within a confidential relationship. Accordingly, transactions
between such parties . . . must be free of fraud, undue influence
and duress, and furthermore must also be fair and reasonable. 96
N.C. App. 516, 524, 386 S.E.2d 610, 615 (1989) (citations omitted),
disc. rev. denied, 326 N.C. 482, 392 S.E.2d 90 (1990).
Here, the contract states, and plaintiff admitted she: (1)
voluntarily signed the premarital agreement on 12 October 1990;
(2) that it was fair and equitable; and (3) not the result of any
duress or undue influence. Plaintiff signed the agreement before
a notary public. The agreement was recorded in the Duplin County
Register of Deeds a week later on 19 October 1990. Plaintiff
waited until after her husband's voice was silenced by his death to
bring forward her unsubstantiated oral claims to impeach the
written agreement she signed.
During plaintiff's deposition, defendants' attorney asked
plaintiff whether she voluntarily sign[ed] the premarital
agreement. She answered, [y]es, sir. Plaintiff was also asked
whether she had ever read the premarital agreement. Plaintiff
answered, I'm sure sometime over the years I probably looked atit. When asked, [y]ou did read the premarital agreement sometime
[after you signed it], she answered, [y]ears later, yes. Even
though plaintiff: (1) admits she voluntarily signed the premarital
agreement; (2) read the agreement; (3) retained all property and
assets she owned prior to the marriage; and (4) received liquid
assets exceeding three hundred thousand dollars ($300,000.00) from
her husband, she now orally contests the validity of the written
agreement after her husband's death.
Defendants' attorney had plaintiff read that portion of the
agreement, which states, [e]ach party acknowledged that the
agreement is fair and equitable. Defendants' attorney then asked
plaintiff, [i]s the fact that you didn't read it your only reason
for claiming that it was not fair and equitable? Plaintiff
responded, [i]t's unfair, yes. This is insufficient evidence or
grounds to reverse the trial court's judgment.
In her sworn affidavit, plaintiff admitted she was familiar
with a substantial portion of her future husband's assets prior to
the marriage. She testified:
At the time I married Byard Kornegay, I knew
that he owned the farm upon which we lived and
that there were four hog houses on the farm
(which had been recently constructed) and knew
that he had some other farm land. At that
time I also knew that he farmed land around
Scott's Store, but did not know if he owned or
leased that property.
In her deposition, plaintiff also acknowledged and testified
she was familiar with how to use the Register of Deeds office andthe tax supervisor's office and had researched property information
prior to and during the marriage.
Plaintiff now contends she did not voluntarily sign the
premarital agreement due to totality of the circumstances existing
at the time of execution of the Agreement. Plaintiff argues her
lack of legal counsel and lack of an opportunity to obtain legal
counsel are important elements in the circumstances surrounding
her execution of the Agreement. Plaintiff acknowledged in her
deposition she never requested: (1) additional time to read the
agreement; or (2) another attorney to be present to explain the
agreement before she signed it. This case fits squarely within the
facts and holding of Howell. 96 N.C. App. at 524, 386 S.E.2d at
615.
This Court has held contract rules apply to premarital
agreements.
[A]bsent fraud or oppression . . . parties to
a contract have an affirmative duty to read
and understand a written contract before
signing it. Park v. Merrill Lynch, Pierce,
Fenner & Smith, Inc., 159 N.C. App. 120, 126,
582 S.E.2d 375, 380 (2003). And, when
interpreting contract language, the
presumption is that the parties intended what
the language used clearly expresses, and the
contract must be construed to mean what on its
face it purports to mean. Stewart v.
Stewart, 141 N.C. App. 236, 240, 541 S.E.2d
209, 212 (2000) (discussing Hartford Accident
& Indem. Co. v. Hood, 226 N.C. 706, 710, 40
S.E.2d 198, 201 (1946)).
Roberts v. Roberts, 173 N.C. App. 354, 357, 618 S.E.2d 761, 764
(2005). (emphasis supplied). Plaintiff's argument that her execution was not voluntary
because she did not read the agreement is without merit. Plaintiff
had an affirmative duty to read and understand [the premarital
agreement] before signing it. Park v. Merrill Lynch, Pierce,
Fenner & Smith, Inc., 159 N.C. App. at 126, 582 S.E.2d at 380.
Plaintiff provided no evidence she was prevented from reading the
agreement or that she sought separate counsel prior to signing the
agreement. Howell, 96 N.C. App. at 524, 386 S.E.2d at 615.
Plaintiff admitted both in the agreement and at her deposition that
she voluntarily signed the agreement.
The Tiryakian case, relied upon by the majority, decided prior
to the enactment of N.C. Gen. Stat. § 52B, the Uniform Premarital
Agreement Act, is readily distinguishable from the facts here. 91
N.C. App. at 130, 370 S.E.2d at 853. Tiryakian addressed a
prenuptial agreement within the context of an equitable
distribution. Id. Both parties to the agreement were alive at the
time of trial and testified to the circumstances surrounding the
execution of the premarital agreement. Also, Tiryakian was not
before this Court on a ruling for a motion for summary judgment,
but rather the husband appealed that portion of the trial court's
order that voided the premarital agreement. Id.
Here, plaintiff and defendant were both previously married and
had children by those marriages. Defendant had six children. Both
plaintiff and defendant owned substantial real property assets
prior to the marriage that remained non-marital property under the
agreement. Plaintiff asserts no inequality in education orbusiness experience between her and her husband. Plaintiff did not
assert she made any disclosures to defendant of her pre-marital
assets to any greater extent than her knowledge of defendant's
assets on the date of the agreement.
In the agreement, plaintiff acknowledged:
Each of the parties waives, releases, and
relinquishes any right or claim that he or she
now has or may acquire, pursuant to the
provisions of Chapter 29 of the North Carolina
General Statutes, [Intestate Succession,
including Share of Surviving Spouse] as such
sections now exist or may hereafter be
amended, to take such property of the other
party through intestate succession or pursuant
to any present or future laws of any State of
the United States to elect to take any of such
property of the other party in contravention
of the terms of any last will of the other,
including any last will not executed or which
may be executed hereafter, or any disposition
of such property made by the other during his
or her lifetime or otherwise. Further, each
of the parties shall refrain from any action
or proceeding that may tend to void or nullify
to any extent or in any particular the terms
of any such last will of the other.
Plaintiff breached the agreement when she filed the underlying
action in this case. Plaintiff signed the agreement over fifteen
years ago. She failed to challenge the voluntariness of her
execution of the agreement until after her husband's death. She
now seeks to take an additional one third of decedent's estate away
from his six children from a prior marriage, after enjoying the
benefits of the marriage and receiving over three hundred thousand
dollars ($300,000.00) of decedent's personal property, while also
retaining all her premarital property. Plaintiff's assertions that
the agreement is unfair does not create a genuine issue ofmaterial fact that her execution of the agreement was not
voluntary. We all agree that the agreement is not substantively
unconscionable. Plaintiff's chief complaint of unfair appears
to be based upon the current value of her husband's assets, from
which she has received and enjoyed the income over the fifteen
years of their marriage, and not her knowledge of the nature and
extent of the decedent's assets on the date of the agreement. The
value of decedent's assets on the date the contract was signed
controls. Plaintiff's bootstrapped claim that her execution of the
agreement was not voluntary does not create any genuine issue of
material fact to overcome the plain language in the agreement and
her sworn admissions during her deposition. The trial court's
judgment should be affirmed in its entirety.
III. Conclusion
Based upon the plain language of the agreement, and
plaintiff's sworn testimony at her deposition, plaintiff failed to
carry her burden to show genuine issues of material fact are
present to warrant a reversal of the trial court's grant of summary
judgment in favor of defendants.
The result reached by the majority opinion is especially
damaging in light of its disregard of the sanctity of a solemn
written agreement, probated before a notary public, promptly
recorded in the public land records of the county, and unchallenged
for over fifteen years. The ruling is a wholesale disregard of the
bargained for and settled expectations of parties of equal
bargaining power in preference to wholly unsupported parolaverments in direct contradiction to the terms of the written
agreement. No regard is shown for the plaintiff's and decedent's
clearly stated bargain, long after the decedent is no longer able
to explain or defend the circumstances surrounding the execution of
the agreement. This result will only cause great uncertainty into
the finality and enforceability of an admittedly voluntary
agreement entered into lawfully.
The six children of the decedent are forced to suffer further
delays and great expense to quiet title to the real property
inherited from their father, while plaintiff continues to enjoy all
the benefits she retained under the agreement and the assets she
received during her marriage to the decedent. The fact that the
decedent's assets grew during the marriage does not make the
agreement unconscionable or unfair. It can be presumed that the
value of plaintiff's retained premarital assets also increased, and
the record shows plaintiff acquired virtually all of the decedent's
personal and intangible assets during the marriage.
I vote to concur that the agreement was not unconscionable and
affirm the trial court's judgment in its entirety. I respectfully
dissent from any holding that plaintiff did not voluntarily execute
the agreement.
Footnote: 1
We note that this Court reversed an award of summary
judgment as to enforcement of a premarital agreement under the
statute in the case of
Atassi v. Atassi, 117 N.C. App. 506, 513,
451 S.E.2d 371, 376 (1995), on the grounds that material issues of
fact existed as to whether the agreement was signed under duress
after the marriage date, the plaintiff had adequate knowledge of
the defendant's property or financial obligations, and the
agreement was unconscionable. However the case did not
specifically define the term voluntary in the context of the
statute.
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