Decker v. Decker

                   COURT OF APPEALS OF VIRGINIA


Present: Judges Benton, Elder and Annunziata
Argued at Salem, Virginia


JOY FRANCES McFADIN DECKER
                                              OPINION BY
v.   Record No. 0105-95-3             JUDGE JAMES W. BENTON, JR.
                                            JUNE 11, 1996
JOHN G. DECKER


              FROM THE CIRCUIT COURT OF HENRY COUNTY
                     David V. Williams, Judge
           Harry F. Bosen, Jr. (Charles B. Phillips;
           Phillips & Swanson, on briefs), for
           appellant.

           James F. Stutts (James H. Ford; McGuire,
           Woods, Battle & Boothe, L.L.P., on brief),
           for appellee.



      More than two years after entry of a final decree of

divorce, the trial judge entered an order that purported to grant

John G. Decker credits for mortgage and tax payments he made for

property jointly owned with his former wife, Joy Frances McFadin

Decker.   Those payments began during the divorce proceeding and

continued as ordered in the final decree of divorce.    The wife

contends that the trial judge (1) did not have jurisdiction to

enter the order granting the credits because more than twenty-one

days had passed from entry of the final decree, (2) erred by

relying upon extrinsic evidence to prove the existence of a prior

order, (3) erred by granting the husband reimbursement for past

mortgage payments, interest, and taxes, and (4) erred in

terminating the husband's duty to pay temporary spousal support,

health insurance, and mortgage payments as of July 1994.     For the
reasons that follow, we reverse the trial judge's December 14,

1994 order and remand the case to the circuit court.

                               I.

     The wife filed a bill of complaint for divorce in 1989.     On

January 25, 1990, the trial judge ordered the husband to pay

pendente lite spousal support of $7,277.45 per month.     The order

permitted the husband to deduct from the monthly spousal support

amount the payments he made for taxes on real estate occupied by

the wife and for the wife's health insurance.   After deductions

for taxes and insurance, the husband paid the wife $6,818.72 per

month.
     The pendente lite order also provided as follows:
             It further appearing to the Court that
          [the husband] . . . will, voluntarily and
          timely, pay all mortgage payments on jointly-
          owned real estate . . . which become due
          . . . prior to an equitable distribution
          hearing . . . , it is ORDERED that a formal
          Order directing the [husband] to make these
          payments is not necessary at this time,
          provided the [husband] continues to pay same
          accordingly.


When the trial judge entered the pendente lite order, the wife
resided in the jointly titled Water's Edge residence, one of the

properties for which the husband agreed to pay the mortgage.

Following the equitable distribution hearing, the commissioner in

chancery recommended that the Water's Edge residence be

transferred to the wife.

     Before entry of the final decree, the husband informed the

wife that he intended to pursue a claim that he should receive



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credit for principal payments made on the mortgages for the

Water's Edge residence and the other real estate transferred to

her.   The final decree of divorce was entered on June 30, 1992,

and awarded the wife the Water's Edge residence.   The final

decree also ordered that the residence be transferred to the wife

within ninety days and ordered that the husband "continue as

previously ordered . . . to pay the mortgages and liens

(including interest as due and payable), taxes and insurance

premiums related to the jointly held real estate until the

transfer of jointly held real estate . . . is effectuated and

until the payment of the monetary award Ordered herein has been

made in full."   The final decree further ordered "that the

pendente lite spousal support order and order for payment of

. . . health insurance . . . currently in effect shall remain in

effect until the end of the calendar month in which the monetary

award granted to the [wife] is paid in full by the [husband]."

       Following entry of the final decree, the trial judge held a

hearing by telephone on July 13, 1992, to consider the husband's

claim for credits.   However, the trial judge did not enter an

order suspending or vacating the final decree or otherwise

memorializing any rulings made at the hearing.   The record

contains no transcript of the hearing.

       The husband appealed to this Court from the June 30, 1992,

final decree of divorce.    See Decker v. Decker, 17 Va. App. 12,

435 S.E.2d 407 (1993).   That appeal, which affirmed the rulings



                                - 3 -
contained in the final decree, did not involve any issues

concerning the husband's claim for credits.    See id.

     After this Court affirmed the final decree, the husband paid

the monetary award on July 1, 1994, less deductions for credits

that he claimed.   At the wife's motion, the trial judge

considered the propriety of the husband's deductions for credits

and ruled by order entered December 14, 1994, as follows:
          1. That the [husband] is entitled to 100%
          credit for any principal payments made by him
          after the date of the telephone hearing of
          July 13, 1992 toward the Water's Edge
          mortgage encumbering Lots 130-133, which lots
          were heretofore awarded to the [wife] by this
          Court's Decree of June 30, 1992.
          2. That the [husband] is entitled to credit
          for any interest payments he has made on the
          aforesaid Water's Edge real estate mortgage
          on and after September 9, 1991.

          3. That the [husband] is entitled    to a
          credit of $6,000.00 in real estate   taxes he
          paid on the aforesaid Water's Edge   real
          estate since the date of September   9, 1991.

          4. That the [husband] owes the [wife] the
          sum of $6,846.22 in spousal support for the
          month of July, 1994, and the sum of $442.90
          as and for the [wife's] July, 1994, health
          insurance, since his payment of the monetary
          award was not made until July 1, 1994 and
          since the [husband] withheld the aforesaid
          health insurance payment due and payable in
          June of 1994.

          5. That the [husband] is not entitled to
          credit for the interest he paid on the
          monetary award at rate of 9%.


                                II.

     Relying upon Rule 1:1, the wife argues that the trial judge



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lacked jurisdiction to enter the order of December 14, 1994,

because more than twenty-one days elapsed from entry of the final

decree.   Citing an unpublished opinion from this Court and Erlich

v. Hendrick Construction Co., 217 Va. 108, 225 S.E.2d 665 (1976),

the husband argues that the December 14, 1994, order was issued

pursuant to the trial judge's continuing jurisdiction to enforce

the terms of its final decree.

     Rule 1:1 provides as follows:
             All final judgments, orders, and decrees
          . . . shall remain under the control of the
          trial court and subject to be modified,
          vacated, or suspended for twenty-one days
          after the date of entry, and no longer
          . . . . The date of entry of any final
          judgment, order, or decree shall be the date
          the judgment, order, or decree is signed by
          the trial judge.


The Supreme Court has ruled that "[a]t the expiration of that 21-

day period, the trial court loses jurisdiction to disturb a final

judgment, order, or decree except for the limited authority

conferred by Code § 8.01-428."     School Bd. of Lynchburg v.
Caudill Rowlett Scott, Inc., 237 Va. 550, 554, 379 S.E.2d 319,

321 (1989).   In so ruling, the Supreme Court further explained

the manner in which Rule 1:1 may be tolled.
          Neither the filing of post-trial or post-
          judgment motions, nor the court's taking such
          motions under consideration, nor the pendency
          of such motions on the twenty-first day after
          final judgment, is sufficient to toll or
          extend the running of the 21-day period
          prescribed by Rule 1:1 or the 30-day period
          prescribed by Rule 5:9. The running of time
          under those rules may be interrupted only by
          the entry, within the 21-day period after
          final judgment, of an order suspending or



                                 - 5 -
          vacating the final order.


Id. at 556, 379 S.E.2d at 323 (citation omitted).

     Without explanation or qualification, the final decree of

divorce in this case specifically ordered "that the pendente lite

spousal support order and order for payment of the [wife's] . . .

health insurance coverage and non-covered medical costs currently

in effect shall remain in effect until the end of the calendar

month in which the monetary award granted to the [wife] is paid

in full by the [husband]."   In addition, the final decree

"further ordered [the husband] to continue as previously ordered

. . . to pay the mortgages and liens (including interest as due

and payable), taxes and insurance premiums related to the jointly

held real estate [, including the Water's Edge residence,] until

the transfer of jointly held real estate . . . is effectuated and

until the payment of the monetary award ordered herein has been

made in full."   Thus, until the husband paid the monetary award

and transferred the Water's Edge residence to the wife, he was

not relieved of his obligation to fully pay the amounts

explicitly ordered in the final decree.
     After entry of the final decree, the husband sought to have

the trial judge resolve his claim for a credit for the principal

payments he made on the Water's Edge mortgage.   The record does

not suggest that the husband had previously sought a ruling on

that issue.   Although the trial judge held a hearing by telephone

within twenty-one days of entry of the final decree, the record



                               - 6 -
does not reflect that a ruling was made or that the decree was

suspended or vacated.      See Caudill Rowlett Scott, Inc., 237 Va.

at 556, 379 S.E.2d at 323.     Obviously, the final decree of

divorce "was not modified by [anything said during] the telephone

conference . . . because a court may speak only through its

written orders."      Clephas v. Clephas, 1 Va. App. 209, 211, 336

S.E.2d 897, 899 (1985).     A judgment is not entered "when [a trial

judge orally] rules on a motion or directs counsel to prepare an

order."    Id.

     The facts in Clephas are analogous to the circumstances of

this case.    The trial judge issued a judgment in September

ordering Clephas to pay his wife support arrears.     On the twenty-

first day after the judgment was rendered, the trial judge held a

telephone hearing.     1 Va. App. at 211, 336 S.E.2d at 898.    During

that hearing, the judge announced that he was changing certain

portions of his decision, and he entered a supplemental order ten

days later.      Id. at 210-11, 336 S.E.2d at 898.

     On appeal, this Court held that the second order was

invalid:
             The September order was not modified by the
             telephone conference on October 3 because a
             court may speak only through its written
             orders. . . . A judgment occurs when a court
             directs the clerk to enter it on the court's
             order book, not when the court rules on a
             motion or directs counsel to prepare an
             order. . . .

                The September order was not modified by
             the October order since it could only be
             modified within twenty-one days after its
             entry. Rule 1:1.


                                  - 7 -
Id. at 211-12, 336 S.E.2d at 899 (citations omitted).

     In this case, the order in which the trial judge ruled that

the husband was entitled to a credit was entered December 14,

1994 -- more than two years after entry of the final decree.    In

the absence of an exception to Rule 1:1, the trial judge lost

jurisdiction over the case twenty-one days after the initial

judgment, and he could not issue a valid modification order.

     "Generally, a court has 'the inherent power, based upon any

competent evidence, to amend the record at any time, when "the

justice and truth of the case requires it" so as to cause its

acts and proceedings to be set forth correctly.'"   Dixon v. Pugh,

244 Va. 539, 542, 423 S.E.2d 169, 171 (1992) (citations omitted).

Moreover, by statute, "[c]lerical mistakes in all judgments or

other parts of the record and errors therein arising from

oversight or from an inadvertent omission may be corrected by the

court at any time on its own initiative or upon the motion of any

party and after such notice, as the court may order."    Code

§ 8.01-428(B).   Nothing in this record, however, establishes

either of these exceptions.

     "The power to amend should not be confounded with the power

to create."   Council v. Commonwealth, 198 Va. 288, 292, 94 S.E.2d

245, 248 (1956).   When the trial judge entered the order on

December 14, 1994, he ruled in a manner inconsistent with the

final decree and varied the terms of the final decree.   No

evidence in this record established that prior to entry of the



                               - 8 -
final decree the trial judge had ruled that the husband's

mortgage payments could be claimed as credits and deducted from

the monetary award.   The trial judge's ruling after the final

decree had become a final judgment could not create that which in

fact had not occurred.

     In addition, the Supreme Court has held that Code

§ 8.01-428(B), which contains limited exceptions to Rule 1:1,

"has no application to errors in the reasoning and conclusions of

the court about contested matters."    Safety Motor Transit Corp.

v. Cunningham, 161 Va. 356, 364, 171 S.E. 432, 435 (1933).    The

trial judge may modify its orders only "in the rare situation

where the evidence clearly supports the conclusion that an error

covered by Code § 8.01-428(B) has been made."    Dorn v. Dorn, 222

Va. 288, 292, 279 S.E.2d 393, 395 (1981).   This record supports

no such conclusion.

     Citing Code § 20-107.3(K), the husband argues that the trial

judge "has continuing jurisdiction 'to make any additional orders

necessary to effectuate and enforce any order' entered pursuant

to Virginia's equitable distribution statute."   However, as the

Supreme Court stated in Dixon, the trial judge could not avoid
the bar of Rule 1:1 and rule on a substantive, contested issue

that was encompassed by the terms of the final decree.   244 Va.

at 543, 423 S.E.2d at 171; see Toomey v. Toomey, 251 Va. 168,

171, 465 S.E.2d 838, 839-40 (1996).    The December 14, 1994 order

did not effectuate and enforce any ruling that the trial judge



                               - 9 -
made when he had jurisdiction over the case. 1

     We find unpersuasive the husband's reliance upon an

unpublished opinion from this Court in which a party successfully

appealed from a final decree.    In that case, the trial judge

failed to order in the final decree that the party was entitled

to credits for mortgage payments.    Unlike this case, the party

appealed from the final judgment and raised as an issue that

omission.   The husband in this case appealed from the final order

in 1992, see Decker, 17 Va. App. at 12, 435 S.E.2d at 407, but
did not raise in that appeal the issue of credits.

     The husband's reliance upon the following language in Erlich

also is not persuasive:   "'it [is] well settled that, when a

court of equity has once acquired jurisdiction of a cause upon

equitable grounds, it may go on to a complete adjudication, even

to the extent of establishing legal rights and granting legal

remedies which would otherwise be beyond the scope of its
     1
      The record contains no indication that prior to final
judgment the trial judge considered and ruled upon the husband's
claim that the mortgage payments were not in the nature of
spousal support. The husband argues that the payments were made
to preserve the jointly owned property and that equitably he was
entitled to a credit for the benefit that inured to the wife.

     The wife argues that based upon the clear and explicit
language in the pendente lite order and the final decree, the
payments were in the nature of spousal support. She argues that
the final decree explicitly continued as spousal support the
monthly payments she was receiving from the husband and the
payments the husband made for taxes and mortgage debt service on
the property that the wife was occupying. No evidence in the
record established that the trial judge ruled that those payments
were not in the nature of spousal support or otherwise ruled that
the husband was entitled to credits.




                                - 10 -
authority.'"   217 Va. at 115, 225 S.E.2d at 670 (citation

omitted).   This principle does not permit the trial judge to act

upon a substantive issue after entry of a final order.   Rule 1:1

bars such an act.

     For these reasons, we hold that the trial judge lacked

jurisdiction to enter his order of December 14, 1994.

Consequently, we need only address the further issue of whether

the trial judge erred in terminating as of July 1994 the

husband's obligation to pay spousal support, health insurance,

and mortgage payments on the Water's Edge property.
     The final decree of divorce required the husband to make

those payments "until the transfer of jointly held real estate

. . . is effectuated and until the payment of the monetary award

Ordered herein has been made in full."   In view of our holding in

this case and the evidence in the record that the property was

apparently not transferred until August 1994, we remand this

issue to the trial judge for reconsideration.

     Accordingly, we reverse the ruling, vacate the order, and

remand the case to the circuit court.

                               Reversed, vacated, and remanded.




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