Phillip G. Gillespie v. Elizabeth M. Gillespie
Date Filed2022-12-13
DocketWD85159
JudgeMitchell, P.J., and Martin, J., concur.
Cited0 times
StatusPublished
Full Opinion (html_with_citations)
In the
Missouri Court of Appeals
Western District
ďź
PHILLIP G. GILLESPIE, ďŻ
ďŻ
Respondent, ďŻ WD85159
v. ďŻ OPINION FILED:
ď˝
ELIZABETH M. GILLESPIE, ďŻ DECEMBER 13, 2022
ďŻ
Appellant. ďŻ
ďŻ
ďž
Appeal from the Circuit Court of Clay County, Missouri
The Honorable Alisha D. O'Hara, Judge
Before Division Three: Karen King Mitchell, Presiding Judge, Cynthia L. Martin, Judge,
Anthony Rex Gabbert, Judge
Elizabeth Gillespie (âWifeâ) appeals the circuit courtâs grant of judgment to Phillip
Gillespie (âHusbandâ) on Wifeâs âCounter Motion for Contemptâ and âMotion in Equityâ which
Wife filed in response to Husbandâs âAffidavit for Termination of Child Support.â Wife contends
on appeal that the circuit court erred in ruling that all obligations imposed on Husband in the
partiesâ dissolution of marriage judgment, including Husbandâs obligation to pay Wife one half of
the profits from the sale of a marital home, are deemed satisfied in full pursuant to Section 516.350,
RSMO 2016, arguing that the marital home obligation was not a debt or money judgment under
Section 516.350. We affirm.
Background and Procedural Information
The material facts are not in dispute. On June 29, 2009, the Hardin Circuit Court for the
Commonwealth of Kentucky in case number 09-CI-008883 issued Findings of Fact, Conclusions
of Law, and Judgment/Decree (âDissolution Judgmentâ) dissolving the marriage of Husband and
Wife. Pursuant to the Dissolution Judgment, which incorporated a âSettlement Contractâ between
the parties, Husband was awarded sole ownership and possession of a home located in Kansas
City, Missouri, and assumed all indebtedness due thereon, including the mortgage, taxes, and
insurance. The Dissolution Judgment further provided that, âIn the event the home is sold, the
HUSBAND shall receive the first $3,500.00 of the profit for his expenses in preparing the home
for sale, after all mortgage(s) and costs of sale are paid. Any remaining profit shall be divided
equally between the parties.â The Dissolution Judgment was registered in Clay County, Missouri,
case number 09CY-CV07819, as a foreign judgment on July 23, 2009.1 At no time did either party
revive the Dissolution Judgment. Husband sold the home on October 21, 2020, more than eleven
years after the Dissolution Judgment was rendered.
On January 6, 2021, Husband filed an Affidavit for Termination of Child Support. On
February 11, 2021, Wife filed an answer requesting that the court deny Husbandâs request to
terminate child support. Therein, as relevant to Wifeâs claim on appeal, Wife also made a âCounter
Motion for Contemptâ wherein she alleged that she had demanded her share of profits from the
1
In relevant part, Rule 74.14 states:
(b) Filing and Status of Foreign Judgments. A copy of any foreign judgment authenticated in accordance
with the act of Congress or the statutes of this state may be filed in the office of the clerk of any circuit court
of this state. The clerk shall treat the foreign judgment in the same manner as a judgment of the circuit court
of this state. A judgment so filed has the same effect and is subject to the same procedures, defenses, and
proceedings for reopening, vacating, or staying as a judgment of a circuit court of this state and may be
enforced or satisfied in like manner.
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sale of Husbandâs home, and that Husband willfully failed and refused to pay Wife her portion.
Wife asked that Husband be held in contempt for violating the court order regarding sale of the
home.
Husband responded to Wifeâs motion by alleging, among other things, that Wifeâs claim
was barred and the alleged debt deemed satisfied, in that pursuant to Section 516.350.1, judgments
are conclusively presumed paid ten years after they were originally rendered unless a party has
revived the judgment. Husband alleged that the Dissolution Judgment had not been revived and
was more than ten years old, causing the alleged debt to be presumptively satisfied. Wife moved
to file an amended counter motion for contempt, requesting to add an additional âMotion in
Equityâ count wherein Wife asked the court to determine Wifeâs interest in the home. The court
allowed the amended motion. Following trial on October 21, 2021, the court took the matter under
advisement.
On November 16, 2021, the court entered Judgment, sustaining Husbandâs Affidavit for
Termination of Child Support and granting Husband âjudgment on all Counts of [Wifeâs]
Counterclaim.â The court further stated: âAll obligations imposed on [Husband] in the partiesâ
dissolution of marriage judgment and all subsequent modifications thereof are deemed satisfied in
full, including [Husbandâs] obligation to pay [Wife] one half the profits from the sale of the marital
home located at 8921 NE 111th Street, Kansas City, Missouri.â This appeal follows.
Standard of Review
Our standard of review in any court-tried case is set forth in Murphy v. Carron, 536 S.W.2d
30, 32(Mo. banc 1976). Schollmeyer v. Schollmeyer,393 S.W.3d 120, 122
(Mo. App. 2013). We will affirm the circuit courtâs decision unless it is unsupported by substantial evidence, is against the weight of the evidence, or erroneously declares or applies the law.Id. at 122-123
. We view
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the evidence and all reasonable inferences in the light most favorable to the courtâs judgment. Id.The party challenging the judgment has the burden of proving error. Beckham v. Beckham,41 S.W.3d 908, 911
(Mo. App. 2001). We apply de novo review to questions of law and give no deference to the trial courtâs conclusions regarding such questions. Pearson v. Koster,367 S.W.3d 36, 43-44
(Mo. banc 2012).
Point on Appeal â Application of Section 516.350
In Wifeâs sole point on appeal, Wife contends the circuit court erred in ruling that all
obligations imposed on Husband in the partiesâ Dissolution Judgment and all subsequent
modifications are deemed satisfied in full pursuant to Section 516.350.
Section 516.350.1 provides:
Every judgment, order or decree of any court of record of the United States,
or of this or any other state, territory or country, except for any judgment, order, or
decree awarding child support or maintenance or dividing pension, retirement, life
insurance, or other employee benefits in connection with a dissolution of marriage,
legal separation or annulment which mandates the making of payments over a
period of time or payments in the future, shall be presumed to be paid and satisfied
after the expiration of ten years from the date of the original rendition thereof, or if
the same has been revived upon personal service duly had upon the defendant or
defendants therein, then after ten years from and after such revival, or in case a
payment has been made on such judgment, order or decree, and duly entered upon
the record thereof, after the expiration of ten years from the last payment so made,
and after the expiration of ten years from the date of the original rendition or revival
upon personal service, or from the date of the last payment, such judgment shall be
conclusively presumed to be paid, and no execution, order or process shall issue
thereon, nor shall any suit be brought, had or maintained thereon for any purpose
whatever. An action to emancipate a child, and any personal service or order
rendered thereon, shall not act to revive the support order.
Wife contends that Section 516.350.1 is inapplicable to the home profits provision in the partiesâ
Dissolution Judgment, arguing that the home profits provision did not involve a debt or money
judgment in that it did not involve a specific or readily ascertainable monetary amount. In support
of her argument, Wife cites various cases including Longan v. Longan, 488 S.W.3d 728 (Mo. App.
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2016), Leung v. Fu, 241 S.W.3d 838(Mo. App. 2007), Pirtle v. Cook,956 S.W.2d 235
(Mo. banc 1997), Hanff v. Hanff,987 S.W.2d 352
(Mo. App. 1998), and Ronollo v. Ronollo,936 S.W.2d 188
(Mo. App. 1996). Wife focuses on the specific dollar amounts mentioned in these cases and
contends that âthe common thread in all of these cases is that the dissolution courts entered
judgments for specific or readily ascertainable monetary amounts.â Wife argues that, because the
Dissolution Judgment does not identify any specific or readily ascertainable monetary amount in
the home profits provision, the home profits provision within the Dissolution Judgment is a
bilateral contract between the parties which was not subject to specific performance until the date
of the sale. She argues that the Settlement Contract within the Dissolution Judgment is
âenforceable under Rule 74.07, which would require Husband to perform a specific act â namely,
splitting any profits -- and the Husband failing to comply within the terms specified â namely,
upon sale of the real estate.â We find no merit in Wifeâs argument.
Missouri Supreme Court case Pirtle v. Cook involved a September 10, 1984, property
settlement agreement incorporated into a dissolution decree wherein it was agreed that real estate
be sold and the proceeds divided in a specific fashion. 956 S.W.2d at 237. The circuit courtâs judgment ordered that the wife receive a minimum sum of $40,000 from the husband, with the $40,000 to be paid from the proceeds of the sale of the real estate.Id.
If the sale proceeds were insufficient to cover the $40,000, âHusband shall make up the difference out of other assets owned by Husband.âId.
If the net proceeds exceeded $40,000, the wife was to receive $40,000 plus 65% of the excess.Id.
The real estate was listed for sale immediately, as agreed by the parties and ordered by the court, however the real estate did not sell and the lender foreclosed; there were no proceeds received by either party.Id. at 238
. The husband never paid the wife $40,000.Id.
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On September 22, 1994, the wife moved to revive the judgment and requested a declaratory
judgment ordering the husband to pay the wife $40,000. Id.The Missouri Supreme Court ultimately found the wifeâs claim barred by Section 516.350.1 as having been filed more than ten years after the judgment was originally rendered.Id. at 244
. (The claim was filed approximately twelve days after the ten-year limitation period expired).Id.
The Court rejected the wifeâs argument that the âten-year period set forth in section 516.350.1 did not run until the partiesâ real property was sold on February 8, 1985.âId.
The wifeâs rationale for her argument was that, until the sale, she could not have known the exact dollar amount to which she was entitled because, had the real estate made a profit in excess of $40,000, she was entitled to 65% of the excess.Id.
The
Court stated:
Although Wife cites no authority that supports her contention that the
statutory period in section 516.350.1 did not run while the partiesâ property
remained unsold, her contention has been addressed previously and rejected.
In Hedges v. McKittrick, 153 S.W.2d 790 (Mo. App. 1941), attorneys received a
judgment entitling them to payment of fees from proceeds from the sale of certain
property. Id. at 792. The property was never sold; consequently, the attorneys
could not execute on their judgment. Id. at 794. The attorneys brought suit on the
judgment more than ten years after it was rendered. Id. at 793. They argued that
the statute of limitations should be tolled while the property remained unsold. Id. at
794. The court refused to toll the statute and barred the attorneysâ suit because the
situation did not come within any of the exceptions contained within the statute and
the attorneys could have protected themselves by timely reviving the judgment. Id.
This Court finds Hedges to be authoritative in the instant case. Hedges rests
upon a plain reading of section 516.350.1, which provides that judgments shall
conclusively be presumed to be paid and satisfied ten years after the âoriginal
renditionâ of the judgment. Sec. 516.350.1. The statute dictates that the limitation
period begins to run when the judgment is rendered, not when the debt becomes
certain, due, or enforceable. See Wormington, 358 Mo. at 1048â1050, 218 S.W.2d
at 587â591. The statutes provide no tolling period during which debts are uncertain
or uncollectible. Id. Consequently, the inability to collect a debt does not prevent
the normal operation of section 516.350.1. Id.
Wifeâs inability to collect on her judgment for the first five months of the
statuteâs ten-year period does not justify ignoring the plain dictate of the legislature.
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Wife could have pursued her 1991 motion to enforce or timely filed her motion to
revive. She did neither. Her argument is without merit.
Pirtle, 956 S.W.2d at 245.
Wife cites Pirtle to support her argument that Section 516.350.1 is inapplicable to the home
profits provision in the Dissolution Judgment, focusing on the $40,000 monetary figure discussed
in Pirtle and arguing that Section 516.350.1 requires a specific or readily ascertainable monetary
amount for applicability. Yet, Wife glosses over the fact that the actual monetary amount due the
wife in Pirtle was not readily ascertainable at the time of the judgment, and the Supreme Court
directly addressed, and rejected, the idea that Section 516.350.1 is inapplicable if the exact
monetary amount is uncertain at the time of judgment. Id. at 244. And, while Wife attempts to take the home profits provision in the Dissolution Judgment out of the context of a âjudgment,â and thereby the purview of Section 516.350.1, by arguing that the provision originated from a âsettlement contractâ and thus created a bilateral contract between the parties, the Pirtle case similarly involved a âproperty settlement agreementâ which was incorporated into a dissolution decree.Id. at 237
.
Wife additionally labels the home profits provision in the Dissolution Judgment as one
involving specific performance, ânot a debt or money judgment,â and cites Longan v. Longan, 488
S.W.3d 728(Mo. App. 2016), for support. Longan involved real estate in the form of 23.08 acres which was used to conduct a partnership business.Id. at 729
. The real estate was awarded to the husband in a dissolution judgment, and the judgment ordered the parties âto do whatever is necessary to complete transfer of any property awarded to the other party.âId.
When the husband filed a motion to vest title of record to the real estate more than ten years after the judgment, the wife contended that the claim was barred by Section 516.350.1.Id. at 731
. The husband argued
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that Section 516.350 is inapplicable to judgments regarding specific performance, and Rule 74.07
which governs âJudgment for Specific ActsâVesting TitleâDelivery of Possessionâ applied
instead. Id. at 729. We agreed with the husband, finding that the judgment involved specific acts and not a monetary judgment.Id. at 731
.
Significantly, when the wife in Longan argued that Hanff v. Hanff, 987 S.W.2d 352(Mo. App. 1988) was essentially a specific performance case because it ordered a former wife to be named a beneficiary on the husbandâs pension and insurance policy, and yet the court still found Section 516.350 applicable, we stated that, although specific payments were not ordered in the dissolution judgment, it was clear that the judgment in Hanff granted the wife a financial benefit. Longan,488 S.W.3d 728
, 731 n.6. In Hanff, a âProperty Settlement Agreementâ was incorporated into a dissolution judgment and the husband agreed to retain the wife as beneficiary on all life insurance policies and on the husbandâs pension plan. Hanff,987 S.W.2d at 354
. The husband violated the agreement by removing the former wife as beneficiary and replacing her with his new wife.Id.
When the husband died and the former wife learned what had occurred, she sued the husbandâs new wife to obtain what she was granted under the dissolution judgment.Id.
The Eastern District found the former wifeâs claims barred under Section 516.350 as having been brought more than ten years after the dissolution judgment.Id. at 356
. The court stated:
Absent timely revival, section 516.350 plainly forbids the enforcement of
judgments over ten years old by conclusively presuming the judgments have been
paid. The language of section 516.350 naturally lends itself to a bright-line
approach: either revive a judgment within ten years of its entry or relinquish all
rights of enforcement. Applying this standard, it is sufficient to note that Betty Ann
knew the date of the dissolution decree and failed to take any action to revive the
judgment within the ten-year period. Therefore, section 516.350 now precludes
any action to enforce the decree.
Id.
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Moreover, the home profits provision of Husband and Wifeâs Dissolution Judgment
awarded a financial benefit to Wife and was not a specific performance provision.2 The fact that
a specific monetary amount was not included in the judgment, or that the ultimate monetary
amount Wife was to potentially receive was not readily ascertainable when the judgment was
rendered, does not preclude Section 516.350âs applicability. Because Wife failed to revive the
Dissolution Judgment or enter a payment on the record within ten years of its entry, the home
profits provision within the Dissolution Judgment is conclusively presumed to be paid pursuant to
Section 516.350.1.3
Wifeâs point on appeal is denied.
Conclusion
The circuit court did not err in adjudging Husbandâs 2009 Dissolution Judgment
obligations satisfied in full. Wife failed to revive the Dissolution Judgment or enter a payment on
the record within ten years of its entry thereby causing the home profits provision within the
Dissolution Judgment conclusively presumed to be paid pursuant to Section 516.350.1, and any
suit thereon barred. We affirm the circuit courtâs Judgment.
Anthony Rex Gabbert, Judge
All concur.
2
In Wifeâs âMotion in Equity, Count Three,â Wife expressly asks the court to order Husband to pay
$71,763.81 pursuant to the home profit provision of the Dissolution Judgment.
3
Wife cites Bozarth v. Bozarth, 653 S.W.3d 899(Mo. App. 2022), in her Reply Brief to support her claim that the home profits provision involved a bilateral contract because it originated from a settlement contract. Bozarth is inapplicable here. Bozarth involved violation of a separation agreement, and while the wife initially filed the matter with the dissolution court, the circuit court found that the issue should properly be determined in a breach of contract action.Id.
at 902 n.3. Bozarth states that, âthis issue was not challenged by either party, and they appear to be in agreement to have the courts consider the claims under the breach of contract action.âId.
Section 516.350 was not
considered or discussed in the Bozarth case.
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