ADAR UPDATE

October 18, 2010 § Leave a comment

The Adar decision issued by a three-judge panel of the Fifth Circuit was the subject of a post I made October 1, 2010.  You can read my post here.  The ruling, issued in February and amended in March, was that a same-gender adoption judgment in New York was entitled to full faith and credit in Louisiana. 

On the very day I made my post, the Fifth Circuit en banc vacated the three-judge panel ruling on a petition for re-hearing:

 On October 1, 2010, the Court announced that a majority of the Circuit Judges in regular active service voted in favor of granting En Banc rehearing. By operation of Fifth Circuit Rule 41.3, that decision automatically vacated the Panel decision of February 18, 2010.

That leaves us for now where the case started, which is with a pending appeal to the Fifth Circuit, which now will take the matter up in the full panel.

Stay tuned.

Thanks to attorney Bill Jacob for bringing this to my attention.

YET ANOTHER REASON TO TAKE EXTRA CARE WITH 8.05’S

October 14, 2010 § 4 Comments

In the case of Trim v. Trim, 33 So.3d 471 (Miss. 2010), the Mississippi Supreme Court held that “the intentional filing of a substantially false Rule 8.05 statement is misconduct that rises above mere nondisclosure of material facts to an adverse party,” and constitutes fraud upon the court.

So what is the significance of the Trim case for everyday practitioners?

Let’s say that your client isn’t deliriously happy with the outcome of her equitable distribution case, but she accepts it without an appeal.  Ten months later she comes in to your office mad as a hornet with sheaves of paperwork that prove conclusively that her ex substantially understated on his 8.05 the value of financial assets that he controlled, and the gain to your client could be in the hundreds of thousands of dollars.  Aha!  You think, we have the sorry so-and-so right by the [indelicate word deleted]!

But wait.  How are you going to get this before the court?  MRCP Rule 59 relief expired 10 days after the judgment was entered, and the appeal time ran 30 days after entry.  MRCP Rule 60 actions to set aside a judgment for fraud have to be brought within six months of the date of the judgment.   

That’s where Trim comes in.  By finding substantial misrepresentation on the 8.05 to be a fraud on the court, as opposed to fraud on the opposing party, the Supreme Court essentially ruled that there is no time limit to bringing an action to aside an action based on 8.05 fraud.  That’s because MRCP Rule 60 expressly states:  “This rule does not limit the power of a court to entertain an independent action to relieve a party from a judgment, order, or proceeding, or to set aside a judgment for fraud upon the court.”

Trim has ramifications for lawyers in Chancery.  If you are in the habit of accepting your client’s 8.05 at face value without going over it with him or her, and without questioning behind it, you may be leaving your client open to an action to set aside that divorce judgment you thought you had laid to rest long ago.  The client may well question why you never went over the statement with him and counseled him about what to include and what not to include.  “My lawyer never told me that I had to list those three securities accounts; in fact, he never talked with me at all about what to include on the form.” 

In case you think this is the kind of thing that happens to somebody else somewhere else, think again.  Only this year, I set aside a divorce that was nearly two years old for substantial misrepresentation of financial assets that amounted to a fraud on the court.  It can happen to you.

JUDGMENTS: PARTIAL AND FINAL

October 7, 2010 § 4 Comments

After a few weeks, the judge has issued his opinion in that thorny divorce trial.  He granted your client’s wife a divorce and gave her custody and child support, but ordered that you and the other attorney produce appraisals before he will adjudicate the equitable distribution and the alimony claim.  Your client is hopping mad at the outcome and demands that you appeal the judge’s ruling immediately.  Can you?

MRCP 54(b) provides that the when there are multiple claims for relief or multiple parties, the court may order final relief as to one or more but fewer than all of the claims or parties “only upon an expressed determination that there is no just reason for delay and upon an expressed direction for entry of the judgment.”  If the court does not so direct, then any order issued that adjudicates fewer than all of the claims or rights of fewer than all of the parties, no matter whether it is entitled as a judgment, is not final, and is subject to revision at any time.

So what does this mean?  There are several ramifications.  One is that if the partial judgment or order does not specifically direct that it is final, you may not appeal from it until the entire action is finalized.  If it does include the required finality language and you do not file a timely appeal, you may find yourself shut out from an appeal on the matters addressed in that order.  Another ramification of non-finality is that the Chancellor may change it at any time, even beyond ten days after its date, because the provision of MRCP 59 that allows the Chancellor to alter his judgment within ten days of entry applies exclusively to final, appealable judgments.           

And what exactly is a judgment, anyway?  MRCP 54(a) states that “‘Judgment’ as used in these rules [MRCP] includes a final decree and any order from which an appeal lies.”  Any interlocutory adjudication is an order, and not a judgment; thus, e.g., Temporary Order, Order Compelling Discovery, Scheduling Order, Order Deeming Requests for Admission as Admitted.

MAKING YOUR JUDGMENT STICK

October 5, 2010 § Leave a comment

So you got your client a judgment for $10,000 lump sum alimony in her divorce.  Pretty good for a 5-year marriage.  You’ve gotten quite a few pats on the back for your good work, and your client was so pleased with your performance that she wrote a check for the balance of her fee the day you handed her a copy of the judgment.  You are so glad to be done with the case that you go and cash the check and take the weekend off in the French Quarter.  

Only problem is that your client calls you on your cell at Pat O’Brien’s complaining that her ex has sold the farm and claims he has spent all of the proceeds.  She says that the farm was his only asset, and wants to know how she is going to collect her $10,000.  You call the closing attorney, who advises you that there were no liens of record, and that the sale was perfectly legitimate. 

Where did you go wrong?

A judgment is not a lien against the real property unless it is recorded in the Circuit Clerk’s office.  Had you gotten an abstract of judgment from the Chancery Clerk, taken it to the Circuit Clerk’s office, and asked that it be recorded, the sale of the farm could not have been closed without the judgment being paid in full.  The unrecorded judgment is not binding notice to the closing lawyer or the purchaser, so they have no liability to your client.

MRCP RULE 77(d) MEANS WHAT IT SAYS

October 4, 2010 § Leave a comment

We are talking about judgments this week, a timely subject in view of the Supreme Court’s decision in In Re:  Barbara Dunn, Hinds County Circuit Clerk, decided last Thursday.

The Dunn case arises out of two other interlocutory appeals in which the defendants were adversely affected by judgments, but were not given notice of entry of those judgments as required by MRCP Rule 77(d), which requires the Circuit and Chancery Clerk to serve notice of entry of orders on all parties not in default.  The specific language of the rule is as follows:

(d)  Notice of Orders or Judgments.  Immediately upon the entry of an order or judgment the clek shall serve a notice of the entry in the manner provided for in Rule 5 upon each party who is not in default for failure to appear, and shall make a note in the docket of the service.  Any party may in addition serve a notice of such entry in the manner provided in Rule 5 for service of papers.  Lack of notice of the entry by the clerk does not affect the time for appeal, nor relieve, nor authorize the court to relieve, a party for failure to appeal, within the time allowed, except as permitted by the Mississippi Rules of Appellate Procedure.

In Dunn, the clerk failed to give notice that the trial judge had ruled on motions for summary judgment.   

As the Supreme court pointed out, the omission was serious and impacted substantive and procedural rights.  The opinion stated:

The seriousness of this omission is such that this Court should not, and it will not, regard it as an innocuous clerical error.  The notices required by Rule 77(d) are mandatory, and they are indispensable to the right of parties to receive timely information from our state trial courts concerning significant judicial actions in civil matters in litigation. 

Since this was Ms. Dunn’s third appearance before the Supreme Court on the same issue, the court assessed her with a $5,000 fine. 

In my experience as a practitioner and as a judge, I know of only one district where Rule 77(d) notices are routinely sent out, and it is not the Twelfth District.  On one occasion some years ago, I learned by pure happenstance that the court had entered a final judgment in my case 24 days before, leaving me only six days to confer with my client and decide whether we would appeal.   

MRAP 4(h) gives some relief, providing as it does that the trial court may reopen and extend the time for appeal on a finding that a party entitled to MRCP 77(d) notice did not receive it.  The MRAP rule, however, does have time parameters within which one must operate.

 The court’s strict stance on application of procedural rules in this case is reminiscent of the court’s ruling in Illinois Central railroad Co. v. Moore, about which I previously posted here.  It would appear that if your case on appeal turns on a procedural issue, you will have the uphill climb with this court if you did not dot every “i” and cross every “t.” 

Some intriguing questions remain in the aftermath of Dunn.  Are routine procedural orders and agreed orders included?  In Rule 81 cases, there is no default since no answer is required; what is the rule’s application to Rule 81 matters?  What are the practical ramifications for practitioners, since the rule explicitly does not relieve any party from operation of an order or judgment for failure of a clerk to give notice of entry? 

As a practitioner, when you have a particularly important order or judgment, you should avail yourself of that provision in Rule 77 whereby you can give notice yourself and have it noted on the docket.

You can read more about the case at Philip Thomas’s blog MS Litigation Review & Commentary.

 

FULL FAITH AND CREDIT AND SAME-GENDER COUPLE ADOPTIONS

October 1, 2010 § 1 Comment

In order to adopt a child under Mississippi law, the adoptive parent(s) must be either an unmarried individual or a married couple with both partners joining.  MCA § 93-17-3 specifically states that “Adoption by couples of the same gender is prohibited.” 

What about the situation where a same-gender couple adopt a Mississippi child in a state where it is legal for them to do so, and they ask Mississippi to alter the birth certificate?  Is Mississippi required to recognize the legality of that adoption and enforce their rights here? 

In the case of Adar v. Smith, 597 F.2d 697 (5th Cir. 2010), a New York same-gender couple in a New York proceeding adopted a Louisiana child.  They applied to Louisiana to change the child’s birth certificate to reflect the adoption.  Louisiana objected and took the position that the New York judgment was not entitled to full faith and credit because it was repugnant to Louisiana public policy embodied in its laws that prohibited adoption by unmarried couples. 

The U.S. Court of Appeals for the Fifth Circuit held that the full faith and credit clause of the U.S. Constitution requires states to recognize the valid judgments of other states, even where the judgment of the other state violates public policy in the state where it is sought to be enforced; there is no public policy exception.

Some may ask how this impacts Mississippi law that our state will not recognize same-gender marriages performed in other states.  The distinction for now, until the courts address the question, is that marriage is a bureaucratic, administrative act, as opposed to a judgment entitled to full faith and credit.

IS MY DIVORCE FINAL? YES. UH, NO. OKAY, YES. AT LEAST I THINK IT IS

September 13, 2010 § 2 Comments

We all hope that when a judgment of divorce on the ground of irreconcilable differences is entered, the result is a final resolution of the parties’ marital strife.  Sometimes, though, the disputes come reeling back to life, zombie-like, careening through the trial courts, or try to, anyway.  Consider: 

In Irby v. Estate of Irby, 7 So.2d 223 (Miss. 2009), the Mississippi Supreme Court finally laid to rest the troublesome question whether a divorce granted on the ground of irreconcilable differences is void because the parties failed to withdraw their contested pleadings.  In that case, the husband and wife were divorced based on a consent.  Husband died shortly after the judgment was entered, and wife sought to set aside the judgment on the basis that the parties’ contested pleadings had not been withdrawn before the judgment was entered.  The Supreme Court held that the consent operated as a withdrawal of the contest, and that it was not necessary to take any other action to withdraw pleadings.

The Irby decision effectively reversed the Court of Appeals decision in Pittman v. Pittman, 4 So.3d 395 (Miss. 2009), rendered only six weeks before Irby.  The reversal apparently did not go down well with the Court of Appeals, however.  In Sellers v. Sellers, 22 So.3d 853 (Miss. App. 2009), decided 2 months after Irby, the Court of Appeals fired back its disagreement with Irby in lengthy dicta that had nothing to do with any issue raised in the Sellers case.  Having gotten that off their chest, the Court of Appeals six months later again followed Irby in the case of Cossey v. Cossey, 22 So.3d 353, 357 (Miss. App. 2009), where they stated through figuratively clenched teeth, “We reach this decision, as we did in Sellers, by strictly applying the supreme court’s recent interpretation of section 95-5-2(3) and (5).”     

Bottom line is that when you have a consent that meets all the statutory requirements, you do not need to withdraw contested pleadings.  But why invite scrutiny?  It’s simple to include in your consent express language that the parties agree that all contested pleadings are withdrawn and dismissed.  Or, for an even greater comfort level, you can file an agreed motion followed by an agreed order withdrawing the contest.

The issue in McDuffie v. McDuffie, 21 So.3d 685 (Miss. App. 2009) was whether the Chancellor acted improperly in denying Michael McDuffie’s request to withdraw his consent after the trial had begun.  Michael and his wife Kathi had entered into a consent to divorce, which met all of the statutory requirements and had been duly filed.  The trial was percolating along nicely when, much to Michael’s dismay, Kathi admitted in her testimony that she had committed adultery.  Stung by the revelation, Michael moved to withdraw his consent, which the Chancellor refused, based on the facts that the consent had been filed three years before the trial was commenced, several motion hearings had intervened, and the trial had begun.  The Court of Appeals upheld the Chancellor’s decision based on § 93-5-2, MCA, which states in part that the consent, ” may not be withdrawn by a party without leave of the court after the court has commenced any proceeding, including the hearing of any motion or other matter pertaining thereto.”  It was not error in the circumstances for the court to refuse to grant leave to withdraw.

Can the trial court grant a divorce on irreconcilable differences where there is no pleading properly before the court requesting it?  In Tyrone v. Tyrone, 32 So.3d 1206 (Miss. App. 2009), husband had filed a complaint for separate maintenance, and wife filed a response that included a counterclaim for an irreconcilable differences divorce and a motion to dismiss husband’s complaint.  The trial judge dismissed husband’s pleading, but never conducted a hearing on wife’s counterclaim for divorce.  Husband subsequently filed a second complaint for separate maintenance, and wife responded with a motion to dismiss.  In a later hearing dealing with some contempt issues, the trial judge urged the parties to settle the matter as an irreconcilable differences divorce, which they did, and he granted a divorce on the ground of irreconcilable differences.  Wife appealed, and the Court of Appeals reversed.

If you read Tyrone, you will doubtless be struck by the tortuous route from pleading to final result at the trial level.  If you come away with the conclusion that there must be a pleading before the court, filed more than sixty days previously, requesting irreconcilable differences, and a consent or property settlement agreement that meets the statutory requirements, that is enough.

A similar result was reached in Johnson v. Johnson, 21 so.3d 694 (Miss App. 2009), where the trial court granted a divorce on the ground of irreconcilable differences where there was no agreement, and the parties had not executed a consent.

Perhaps the most zombie-like case of all is Henderson v. Henderson, 27 So.3d 462 (Miss. App. 2010), in which the trial judge signed a judgment of divorce on April 23, 2002, but the judgment was never filed with the clerk.  Some time later, the case was dismissed for inaction pursuant to Rule 41(d), MRCP.  In 2005, husband discovered the omission and filed a Complaint for Divorce on the ground of desertion.  In 2006, wife filed a motion asking the Chancellor to correct the oversight by entering the judgment nunc pro tunc to April 23, 2002, which the judge did.  Husband appealed, complaining that it was error for the judge to enter the judgment after had filed his pleading on a fault ground.  The Court of Appeals disagreed, pointing out that, “[C]ourts may by nunc pro tunc orders supply omissions in the record of what had previously been done, and by mistake or neglect not entered,” and that the later judgment is effective on the date that it should have been entered but for the omission.  Thus, husband’s pleading had no effect on the ultimate outcome.  

GETTING DONE WHAT IS ORDERED TO BE DONE

September 9, 2010 § Leave a comment

The court ordered the opposing party to convey her interest in the homestead to your client, but it’s been a month and you still don’t have the executed deed.  Now your client is calling about the riding lawn mower and big-screen tv he was supposed to get.  His ex claims she doesn’t know anything about them, but he sees them at her place every time he goes to pick up the children for visitation.

The attorney on the other side has given up in exasperation.  She is not having any success in getting her client to cooperate, and she asks you to quit calling her; she considers her representation at an end.

What to do? 

Of course, you can file a contempt action, but there are a couple of other avenues. 

Rule 70(a), MRCP, provides that you can ask the court to appoint some other person, the Chancery Clerk for example, to execute and deliver that deed.  And any cost of getting it done is at the cost of the recalcitrant party.  The resulting deed with the court’s order will have “like effect as if done by the party.” 

Better yet, next time get the court to include language in the judgment divesting title from the other party and into your client, as provided in Rule 70(b), MRCP.  That would eliminate the need to get a deed signed, and, after all, the purpose and effect of the deed is to divest title from the other party into your client.  The rule says that “such judgment has the effect of a conveyance executed in due form of law.”

As for the riding lawn mower and tv, Rule 70(c), MRCP may help you out.  It states that a certified copy of the judgment or court order shall be sufficient authprity for the sheriff in the county where the property is located to seize it and deliver it to your client.  Only problem here is that most attorneys do not put enough information into the record for a sheriff, much less a judge, to determine whether the riding lawn mower and tv your client says he is to seize are really the ones subject to being seized.  What is the sheriff to do when the ex-wife claims that this riding lawn mower is her separate property purchased since the separation, and that she does not know where the marital mower is?  Does the sheriff seize it and hope that she is lying or that his liability insurance will pay any damages?  Or does he hand your client back his papers, shrug his shoulders, and return to his patrol car for the next job at hand?  I would choose the latter, if I were the sheriff.  Best practice is to be sure there is enough information, such as make, model, color, serial number and any other identifying information you can get in the record and the judgment to back up your client’s claim to possession.

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