In Re the Marriage of Good

No. 83-454 IN THE SUPREME COURT OF THE STATE OF MONTANA 1984 IN RE THE MARRIAGE OF JEANNE M. GOOD, n/k/a JEANNE M. HARGETT, Plaintiff, Respondent and Cross-appellant, and GOOD, Defendant and Appellant. APPEAL FROM: District Court of the Eleventh Judicial District, In and for the County of Flathead, The Honorable J.M. Salansky, Judge presiding. COUNSEL OF RECORD: For Appellant : Garlington, Lohn & Robinson; E. Craig Daue, Missoula, Montana For Respondent : Hash, Jellison, O'Brien & Bartlett; James C. Bartlett, Kalispell, Montana -- Submitted on Briefs: June 7, 1984 Decided: November 15, 1984 Clerk Mr. J u s t i c e *John Conway H a r r i s o n d e l i v e r e d t h e O p i n i o n o f t h e Court. Appellant, Orville K. Good, filed a motion in the Eleventh J u d i c i a l D i s t r i c t , County of Flathead, seeking t o have t h e D i s t r i c t Court d e c l a r e h i s c h i l d s u p p o r t o b l i g a t i o n f u l l y paid through t h e d a t e of t h e motion. The H o n o r a b l e James M. Salansky conducted an evidentiary hearing and entered an order in favor of appellant's wife for child support arrearage in the amount o f $8,264.06. From that o r d e r Mr. Good a p p e a l s and h i s e x - w i f e cross appeals. We a ££ i r m . Issues (1) Whether an obligor husband may be given credit against his child support obligation for payments made outside the a m b i t of t h e d i v o r c e d e c r e e when the obligee wife has o r a l l y agreed t o such c r e d i t . ( 2 ) When a n o b l i g e e w i f e who h a s a s s i g n e d h e r child s u p p o r t r i g h t s u n d e r a Montana d e c r e e t o a n o t h e r s t a t e and t h a t s t a t e a g r e e s w i t h t h e o b l i g o r husband d u r i n g t h e term of t h e assignment t o a reduction i n h i s o b l i g a t i o n , is t h e w i f e l a t e r e n t i t l e d t o judgment a g a i n s t t h e h u s b a n d f o r : a. t h e amount of t h e r e d u c t i o n ; b. a n y o t h e r p a r t of t h e c h i l d support assigned? ( 3 ) Did t h e t r i a l c o u r t make a m a t h e m a t i c a l e r r o r in c o m p u t i n g t h e amount of c h i l d s u p p o r t a c c r u e d ? Facts By d e c r e e d a t e d J u n e 1 0 , 1970, t h e m a r r i a g e between appellant and respondent was terminated, the four minor children were placed in the custody of their mother and appellant was ordered t o pay f i f t y d o l l a r s per child per month c h i l d s u p p o r t . The d e c r e e was i s s u e d by t h e E l e v e n t h J u d i c i a l D i s t r i c t i n and f o r t h e C o u n t y o f F l a t h e a d . R e s p o n d e n t h a s l i v e d i n t h e S t a t e of W a s h i n g t o n s i n c e b e f o r e t h e d i v o r c e i n 1970. A p p e l l a n t h a s c o n s e q u e n t l y made h i s c h i l d s u p p o r t payments t o t h e Washington Department of S o c i a l and H e a l t h S e r v i c e s (WDSHS) and i n J u l y 1970 WDSHS r e d u c e d a p p e l l a n t ' s s u p p o r t p a y m e n t s t o a t o t a l o f $150 p e r month. WDSHS was t h e p a y e e of a p p e l l a n t ' s s u p p o r t p a y m e n t s throu g h September of 1979. From t i m e t o time between t h e date of the divorce and September of 1979, respondent r e c e i v e d p u b l i c a s s i s t a n c e from WDSHS a n d a s a c o n d i t i o n t o receiving such assistance assigned her support rights to t h a t agency. The last time s u c h an a s s i g n m e n t was made, June 6, 1 9 7 9 , r e s p o n d e n t a s s i g n e d t o WDSHS a l l u n p a i d c h i l d s u p p o r t a c c r u e d t o t h a t d a t e u n d e r t h e Montana d e c r e e . Appellant and respondent agreed orally between themselves that appellant would pay certain of the c h i l d r e n ' s m e d i c a l and d e n t a l b i l l s and i n r e t u r n r e s p o n d e n t would g i v e him c r e d i t a g a i n s t h i s c h i l d s u p p o r t o b l i g a t i o n . The p a r t i e s f u r t h e r agreed i n f o r m a l l y t h a t a p p e l l a n t would n o t be o b l i g a t e d t o respondent f o r s u p p o r t of a c h i l d w h i l e t h a t c h i l d l i v e d w i t h him. Each o f t h e f o u r c h i l d r e n h a s l i v e d w i t h a p p e l l a n t f o r certain periods of time since the date of the divorce. Appellant has a l s o paid c e r t a i n medical and d e n t a l bills i n c u r r e d by t h e c h i l d r e n . In each i n s t a n c e a p p e l l a n t h a s taken c r e d i t a g a i n s t h i s support o b l i g a t i o n by n o t making c e r t a i n payments t o re sp o n d e n t . Through correspondence with appellant during 1982, WDSHS agreed to accept $3,000 as full payment of support obligation from the date of the divorce through September of 1979. By motion dated November 10, 1982, appellant sought an order of the District Court declaring his child support obligation fully paid through that date. At no time prior to that motion did respondent seek to enforce her child support rights other than through the WDSHS. Discussion I. Appellant's first issue on appeal and respondent's lone cross-appeal issue is whether it is proper to allow a non-custodial parent credit against child support arrearage for sums he paid to physicians and dentists in reliance upon an oral promise of credit by the custodial parent. Based upon substantial evidence presented at the evidentiary hearing, the District Court Judge held there was a proper agreement between the parents regarding credit for payment of medical and dental bills and accordingly awarded appellant more than $1,600 credit against his support obligation. Respondent argues the District Court erred in so holding because such a ruling essentially permits the non-custodial parent to substitute his own judgment for that of the custodial parent as to how child support monies are to be spent. This argument is misplaced. The District Court did not rule on whether the father's judgment was being substituted for the mother's but rather ruled on whether there was an agreement between the two parents on this issue. The District Court found such an agreement between the parties and we see no error in that finding. The wife asked the husband to pay bills in lieu of support payments and he did so, relying on her judgment. Clearly, there was no substitution of judgment involved. Respondent further argues the dissolution decree cannot be modified to reduce or cancel past due and unpaid child support and then cites six cases to buttress the point. In one of those cases, Williams v. Budke (1980), 186 Mont. 71, 506 P.2d 515, this Court spelled out the correct approach to this issue (an approach evidently overlooked by respondent): "Two Montana decisions have addressed the issue of whether a parent upon whom a child support obligation rests should be granted credit for voluntary expenditures made in a manner other than that specified in the support order or dissolution decree. Haaby v. Haaby (1974), 165 Mont. 475, 529 P.2d 1387; Weber v. Weber (1978), Mont., 576 P.2d 1102, 35 St.Rep. 309. However, af ter examining the case law of this and other jurisdictions we have found the basic question addressed by the courts is whether there has been substantial compliance, in whole or in part, with the child support order. Was the spirit and purpose of the support order accomplished without violating any other provision of the dissolution decree? We believe this is the correct approach to the issue." In the instant case, we find no violation of the spirit and purpose of the support order by granting appellant credit for payments made to medical institutions. This is true particularly since respondent asked appellant to do so. It was nothing more than a streamlining of a payment process; husband paid the doctors directly rather than going through the wife as an intermediary. The dissolution decree was left unscathed by the transaction and we will not agree with respondent's contention that the District Court modified the divorce decree. 11. Next, appellant asserts as error the District Court's ruling that respondent was entitled to a judgment against him for the amount of the reduction in support payments granted by the WDSHS and for any part of the child support assigned by respondent to the WDSHS. In order to receive public assistance from the State of Washington, respondent assigned all of her unpaid child support accrued through September 30, 1979 to the WDSHS. During the term of the assignment the WDSHS agreed to a reduction in support and to a compromise of the arrearage with appellant. Appellant accepted, and made reduced payment to WDSHS. The court's findings of fact no. 7 and no. 8 were as follows : "7. That through January, 1983, and considering the dates three of the children obtained the age of majority, the total obligation of $50.00 per month per child is $25,000.00. The records maintained by the State of Washinqton through September 18, 1975, show payments of $7,057.50. In addition, Plaintiff has acknowledged payments totaling $5,000.00 through January 1983. In addition, a recent payment made by attachment to Defendant's IRS check in the sum of $698.96 should be credited. "8. That the total amount of arrearage due is calculated as follows: Total per Decree $25,000.00 Less records by State of Washington -$7,057.50 Less payment acknowledged -$5,000.00 Less IRS payment -$ 698.96 Less c r e d i t s f o r s t a y Less c r e d i t s f o r medical, d e n t a l and o r t h o d o n t a l payments -$1,629.48 TOTAL DUE t h r o u q h J a n . 1 9 8 3 Thereafter, t h e c o u r t made t h e following conclusions o f l a w and o r d e r : "1. P u r s u a n t t o 40-4-208, MCA, t h e C o u r t may m o d i f y c h i l d s u p p o r t o n l y a s t o installments accruing subsequent t o t h e t i m e a motion f o r m o d i f i c a t i o n is f i l e d . No m o t i o n f o r m o d i f i c a t i o n was s u b m i t t e d and t h e o b l i g a t i o n t o p a y c h i l d s u p p o r t a t $50.00 p e r month p e r c h i l d r e m a i n s unchanged. T h a t t h e C o u r t f i n d s no a g r e e m e n t on t h e p a r t o f P l a i n t i f f t o r e d u c e t h e $50.00 sum t o $37.50. " 2 . T h a t D e f e n d a n t s h o u l d be g i v e n c r e d i t f o r p a y m e n t s on b e h a l f o f t h e c h i l d r e n made i n t h e p a s t f o r m e d i c a l , d e n t a l o r o r t h o d o n t a l expenses. "3. That t h e d i v o r c e d e c r e e provided f o r no c e s s a t i o n o f s u p p o r t payinents d u r i n g the summer visitation periods and D e f e n d a n t s h o u l d be g i v e n no c r e d i t f o r same other than those amounts hereinbefore given. " 4 . D e f e n d a n t had t h e b u r d e n o f p r o o f of showing payment o f h i s s u p p o r t o b l i g a t i o n and t h a t b u r d e n h a s n o t b e e n m e t . " 5 . The C o u r t h a s j u r i s d i c t i o n o v e r t h i s m a t t e r and h a s the r i g h t t o p r o t e c t t h e p a r t i e s by making t h e o b l i g a t i o n f o r arrearage payable j o i n t l y t o P l a i n t i f f and t h e S t a t e o f W a s h i n g t o n , W e l f a r e Department. ORDER "1. T h a t t h e P l a i n t i f f s h a l l r e c o v e r o f t h e D e f e n d a n t t h e sum o f $ 8 , 2 6 4 . 0 6 , and c o s t s of s u i t ; " 2 . T h a t t h e v o l u n t a r y payment o f s a i d sum by O r v i l l e K . Good s h a l l b e made b y c h e c k o r money o r d e r made p a y a b l e t o J e a n n e M. H a r g e t t and t h e S t a t e o f Washington, Welfare Department; "3. T h a t i n t h e e v e n t t h e sum i s c o l l e c t e d i n v o l u n t a r i l y by e x e c u t i o n , J e a n n e PI. H a r g e t t s h a l l r e p o r t t h e amount r e c e i v e d t o t h e Washington Department of Welfare; " 4 . T h a t t h e r e q u e s t o f J e a n n e M. H a r g e t t t o h a v e h e r t r a v e l e x p e n s e s p a i d and t o have a t t o r n e y ' s f e e s a s s e s s e d , t o g e t h e r with her motion f o r increased c h i l d s u p p o r t w i l l b e h e a r d by t h e C o u r t on t h e 1 9 t h day of August, 1983, a t 9:30 o ' c l o c k , a.m.; and t h e D e f e n d a n t s h a l l h a v e h i s a f f i d a v i t of f i n a n c i a l s t a t e m e n t f i l e d ten (10) days before said hearing. Defendant s h a l l produce f o r examination b y P l a i n t i f f ' s c o u n s e l h i s 1980 and 1 9 8 1 income t a x r e t u r n a s w e l l a s wage s t a t e m e n t s f o r 1982 t e n ( 1 0 ) d a y s b e f o r e said hearing " . The a p p e l l a n t argues that due to the fact his wife r e c e i v e d p u b l i c a s s i s t a n c e from t h e S t a t e o f W a s h i n g t o n and assigned all of her unpaid child support accrued through September 30, 1979 to the WDSHS, he has no further o b l i g a t i o n t o p a y t h e amount s e t f o r t h i n t h e d e c r e e . He a r g u e s t h e WDSHS h a s t h e s t a t u t o r y a u t h o r i t y t o compromise o r c h a r g e o f f a n y s u p p o r t a r r e a r a g e s a s s i g n e d t o i t and t h a t during the term of t h e a s s i g n m e n t t h e WDSHS a g r e e d t o t h e r e d u c t i o n of the support. He f u r t h e r argues t h a t because h i s wife acquiesced i n t h e a c t i o n s t a k e n by t h e a p p e l l a n t with the WDSHS for a period of thirteen years, she is c i r c u m v e n t i n g t h e e f f e c t of h e r u n c o n d i t i o n a l a s s i g n m e n t o f s u p p o r t t o t h e WDSHS and t h e r e s u l t i n g compromise made w i t h t h a t agency. H e f u r t h e r argues t h e w i f e ' s assignment of h e r c h i l d s u p p o r t r i g h t s u n d e r t h e Montana d e c r e e i s v a l i d . He c i t e s t h e d i v o r c e d e c r e e h e r e i n i s a judgment u n d e r Montana law. R u l e 5 4 ( A ) Montana R u l e s o f C i v i l P r o c e d u r e . "There can be no question that a judgment is assignable." G i n s b e r g e r v. Adams ( 1 9 2 2 ) , 62 Mont. 4 3 0 , 205 P . 658. W e d o n o t f i n d t h e above c i t a t i o n a p p l i c a b l e t o t h i s case. There is no question the effect of the wife's i n t e r e s t i n t h e a c c r u e d s u p p o r t payments t o t h e s t a t e c a n be a s s i g n e d and a l l o w s t h e s t a t e t o s t e p i n t o t h e s h o e s of the wife. However, t h e w i f e does n o t have t h e r i g h t t o modify t h e d i v o r c e d e c r e e f o r t h e a c c r u e d c h i l d s u p p o r t payments. Nor d o e s e n t e r i n g i n t o an a s s i g n m e n t t o r e c e i v e w e l f a r e i n a n y way a f f e c t t h e judgment of a c o u r t o f t h i s s t a t e . See, In re the Marriage of Linda Williams and Larry Williams (Mont. 1980), 612 P.2d 212, 37 St.Rep. 974; Williams v. Budke (1980), 186 Mont. 71, 606 P.2d 515; Dahl v. Dahl ( 1 9 7 8 ) 1 7 6 Mont. 3 0 7 , 577 P.2d 1230. The appellant relies on a W a s h i n g t o n compromise statute for his assertion that t h e d i s s o l u t i o n d e c r e e c a n be m o d i f i e d a s t o a c c r u e d c h i l d support. This compromise s t a t u t e provides in part: "The Department may accept offers of compromise of disputed c l a i m s from a p a r t i a l o r t o t a l c h a r g e - o f f of support a r r e a r s owed to the Department to the total amount of public a s s i s t a n c e paid t o or for the b e n e f i t of p e r s o n s f o r whom the support obligation is incurred." See R.C.W. 75.20 A.220. I t s h o u l d be n o t e d t h a t t h e s t a t u t e r e f e r r e d t o and relied upon, reveals that the state may only compromise a r r e a r s owed t o t h e s t a t e . The s t a t u t e d o e s n o t p e r t a i n t o support arrears due a parent. Clearly the state is n o t subrogated t o a n y t h i n g i n e x c e s s of t h e amount awarded in the o r i g i n a l decree. A s n o t e d i n Moore v . Yoore (Wash. App. 1 9 7 8 ) , 583 P.2d 1 2 4 9 , t h e W a s h i n g t o n c o u r t f o l l o w e d i t s own court decision and held that its subrogation r i g h t s only a p p l y t o t h e amount of the court ordered support, and d o e s n o t a p p l y t o t h e f u l l amount t h a t was p a i d by t h e S t a t e o f Washington t o the respondent i n t h i s case during t h e t i m e s h e was on w e l f a r e . 111. Appellant finally asserts as error the District Court's mathematical computation in adding a disallowed c r e d i t t o t h e t o t a l amount o f s u p p o r t a c c r u e d . W e need c i t e no authority to settle a question of simple mathematics. A p p e l l a n t owes X amount of arrearage. From t h a t t o t a l he c l a i m s Y amount o f credits. The D i s t r i c t C o u r t c a n n o t d o more t h a n d i s a l l o w t h e c l a i m e d c r e d i t s t o t h e t o t a l amount of arrearage, t o do s o would b e t o c h a r g e a p p e l l a n t twice for an indebtedness--the mathematical e q u i v a l e n t of double jeopardy. Summary Our h o l d i n g t o d a y i s d e s i g n e d t o e n f o r c e t h e t e r m s o f s u p p o r t a s s p e c i f i e d by t h e D i s t r i c t C o u r t d e c r e e ; not t o enforce an extrajudicial modification by the WDSHS. However, s i n c e t h e WDSHS i s a n a s s i g n e e i t h a s t h e r i g h t t o proceed against the husband for any a r r e a r a g e s under its a g r e e m e n t w i t h him. " T h i s s h o u l d n o t p r e c l u d e t h e w i f e from proceeding i n her own r i g h t . " Moore v. Moore (Wash. App. 1 9 7 8 ) , 583 P.2d 1249, 1252. I n Moore t h e w i f e had a s s i g n e d h e r s u p p o r t p a y m e n t s t o t h e WDSHS i n o r d e r t o r e c e i v e p u b l i c assistance. The h u s b a n d had f a l l e n b e h i n d i n h i s payments sometime during the assignment and continued to be d e l i n q u e n t e v e n a f t e r t h e a s s i g n m e n t had b e e n d i s c o n t i n u e d . The w i f e t h e n s t a r t e d a show-cause proceeding t o determine t h e amount of d e l i n q u e n t c h i l d s u p p o r t . The c o u r t e n t e r e d an o r d e r f i x i n g t h e amount o f d e l i n q u e n t s u p p o r t and a month later t h e h u s b a n d moved t o join t h e WDSHS a s a necessary party. The c o u r t d e n i e d t h e m o t i o n b u t amended t h e amount o f d e l i n q u e n t s u p p o r t s e g r e g a t i n g w h a t was owed t h e w i f e and what was owed t h e h u s b a n d . The h u s b a n d a p p e a l e d c o n t e n d i n g h i s e x - w i f e "was n o t e n t i t l e d t o a judgment f o r any c h i l d s u p p o r t d u r i n g t h e 4 0 m o n t h s i n which s h e was p a i d p u b l i c a s s i s t a n c e b e c a u s e s h e had a s s i g n e d a l l h e r right, t i t l e and interest t o support payments t o t h e s t a t e . " Moore, a t p. 1.251. The C o u r t o f A p p e a l s of W a s h i n g t o n a f f i r m e d t h e w i f e ' s r i g h t t o proceed i n h e r own r i g h t a g a i n s t t h e h u s b a n d e v e n f o r t h e p e r i o d s h e had assigned her s u p p o r t r i g h t s t o t h e ImSHS. The c o u r t reasoned t h e i n t e n t of t h e l e g i s l a t u r e when i t e n a c t e d t h e s t a . t u t e r e q u i r i n g t h e payee of p u b l i c a s s i s t a n c e t o a s s i g n a l l s u p p o r t r i g h t s is t o recoup p u b l i c monies. Therefore t h e WDSHS h a s a right to subrogation against the wife's judgment . However, t h e c o u r t s t a t e d : "A b e t t e r p r o c e d u r e m i g h t h a v e been t o s e r v e a c o p y o f t h e m o t i o n t o show c a u s e on t h e s t a t e s o t h a t i t would h a v e b e e n aware of t h e p r o c e e d i n g s e a r l i e r i n o r d e r t o g i v e t h e d e p a r t m e n t an o p p o r t u n i t y t o intervene. However, under these c i r c u m s t a n c e s , s h e should n o t be estopped t o p r o c e e d by t h e s t a t e ' s f a i l u r e t o prosecute." Moore a t p. 1252. I n o t h e r words, s i m p l y b e c a u s e t h e WDSHS had allowed the husband to fall into arrears on his support during the p e r i o d o f a s s i g n m e n t t h e w i f e was n o t p r e c l u d e d f r o m s e e k i n g t o c o l l e c t those arrears. I n t h e i n s t a n t c a s e w e s i m i l a r l y h o l d t h e w i f e may s u e to recover any arrearages under the Montana decree, the a g r e e m e n t b e t w e e n t h e h u s b a n d and t h e WDSHS n o t w i t h s t a n d i n g . This holding today is n o t t o be construed to subject the husband t o a d o u b l e c o l l e c t i o n b u t r a t h e r t o a l l o w t h e w i f e t o p r o c e e d on h e r own r i g h t w h i l e a l l o w i n g t h e WDSHS ( o r a n y o t h e r p u b l i c a s s i s t a n c e agency of any o t h e r s t a t e s i m i l a r l y situated) the right of subrogation against a recovery by her. W e hold t h a t n e i t h e r Washington nor Montana case or statutory law permits the modification of a dissolution d e c r e e t o reduce or c a n c e l p a s t due o r unpaid c h i l d s u p p o r t p a y m e n t s and t h a t t h e t r i a l c o u r t d i d n o t e r r i n g r a n t i n g t h e r e s p o n d e n t , w i f e , a judgment f o r c h i l d s u p p o r t p u r s u a n t to the dissolution decree, including the amount of the public assistance received during t h a t t i m e . The t h e D i s t r i c t Court is a f f i r m e d , e x c e p t II discusse \aebii g) & i n i s u e 111. We r e t u r n t o t h e D i s t r i c t Court with i n s t r u c t i o n s t o change its o r d e r t o comply w i t h t h i s o p i n i o n . W e concur: