Decided: April 5, 2007
Justice Laura E. Drager
NEW YORK COUNTY
Supreme Court
In this matrimonial action, plaintiff
(the "Wife") moves for this court to vacate the Stipulation of
Settlement, dated November 6, 2006 (the "Stipulation"), and restore
the action to the calender. Defendant (the "Husband") opposes the
motion.
The parties married on August 15, 1997. This was a second marriage for each of
the parties. There are no children of this marriage, but the wife's son (who is
now fifteen) lived with the parties during the marriage. There is a
disagreement as to when the parties separated. The husband claims that they
separated in June 2003, and the wife claims that they separated in January
2005. The wife commenced this divorce action on August 28, 2006. On November 6,
2006, each party appeared with counsel before this court for a preliminary
conference. After several hours of negotiation, the parties entered into the
fully acknowledged written Stipulation and an inquest was held. (See, Aff in
Opp., Exs. A, B, C).
In the instant motion, the wife claims that she did not understand the legal
process, and was not informed by her attorney as to what was taking place at the
conference held on November 6, 2006. The wife further contends that her
attorney pressured her into signing the Stipulation. In addition, she thought
the agreement resolved preliminary issues only, and was not the final
resolution of the action.
" . . . [T]he court encourages property settlements through stipulation
and will exercise judicial review sparingly" when the parties have
resolved their matrimonial action by agreement. Lockhart v. Lockhart, 159 AD2d 283 (1st Dept. 1990).
"Stipulations of settlement are favored means of resolving disputes, which
should not lightly be cast aside upon conclusory and unsupported allegations of
duress." Bo Young Choi v. Sei Young Choi, 167 AD2d 217, 218 (1st Dept.
1990). "This is all the more so in the case of 'open court'
stipulations . . . where strict enforcement not only serves the interest of
efficient dispute resolution but also is essential to the management of court
calendars and integrity of the litigation process." Doppelt v. Doppelt, 215 AD2d 715 (2nd Dept. 1995). Thus,
absent a showing of fraud, mistake, duress or overreaching, such stipulations
will not be disturbed by the court. Christian v. Christian 42 NY2d 63 (1977).
The wife is an educated woman, having attended __________________from 1982 to1985, majoring in
computer science. As the husband correctly points out, the negotiations leading
to the Stipulation occurred over several hours and involved several steps. The
attorneys first met with the court. They then, with participation by their
clients, negotiated the terms of an agreement. The terms were committed to
writing. The written Stipulation was read by each party and each of its two
pages was signed by the parties and their attorneys. The parties also signed a
document entitled "Affidavit of Appearance and Adoption of Oral
Stipulation" that was notarized to properly acknowledge the Stipulation.
Finally, a full inquest was held, during which the Wife testified to the
grounds for the divorce, and each party was fully questioned under oath with
respect to the terms of the Stipulation.
Throughout the proceedings on November 6th, the wife was represented by __________________., an
experienced matrimonial attorney. In both writing and under oath before this
court, the wife affirmatively acknowledged that she knowingly and willingly
agreed to enter into the Stipulation after having conferred with her counsel.
During the oral allocution, the wife was repeatedly asked if she was entering
into the Stipulation of her own free will and if she had any questions about
the Stipulation. She affirmatively acknowledged under oath, on the record, that
she had not been coerced into entering into the Stipulation and did so
voluntarily and of her own free will. She testified that she had no questions
about any of the terms of the Stipulation and that she had negotiated its terms
over a period of time with the assistance of her counsel. She stated that she
was satisfied with the agreement and was prepared to live up to its terms.
(See, Aff. In Opp., Ex. C). Moreover, by the Affidavit of Appearance and
Adoption of Oral Stipulation, the wife acknowledged in writing that "the
terms of said Stipulation were fully explained and understood and that said
terms were freely and voluntarily agreed to without force, fraud or duress and
with advice of counsel". (See, Aff. In Opp., Ex. B).
The wife's claim that she thought the Stipulation was only a preliminary
procedure is without basis. The Stipulation itself states at paragraph 7:
"All claims between the parties are fully resolved by this agreement
including without limitation all causes of action and all requests for further
disclosure." (See, Aff. In Opp., Ex. A). Moreover, during the inquest the
court made clear that the action was resolved. (Aff. In Opp., Ex. C, p. 10).
Finally, the court has reviewed the terms of the Stipulation and finds them to
be neither unfair nor inequitable. The wife obtained a favorable property
settlement. She received 55 percent of the marital assets ($80,000 of the
husband's retirement funds).1 In addition, the husband agreed to
accept responsibility for 100 percent of the marital liabilities, including past
due taxes, interest and tax penalties, as well as 100 percent of the marital
credit card liabilities totaling over $90,000.2 Admittedly, the wife
received no maintenance pursuant to the Stipulation. The husband claims he had
paid his wife voluntary support in the total amount of over $38,000 for the
period of their separation. It is unclear from the wife's papers whether she
concedes receiving any support. However, at least since January 2005 (the date
she claims the husband left) the wife found it unnecessary to seek court
ordered support until the commencement of this action in August 2006, one and a
half years after the separation. The court must surmise that maintenance was
not a critical issue.
The husband has no obligation to support the wife's child from a prior
marriage. Indeed, the wife apparently receives support payments from that
child's father.3 However, the husband has had both the wife and the
child covered under his health insurance plan. He has agreed to cooperate to
enable the wife to continue that insurance coverage through the provisions of
COBRA, if available. The requirement that the wife pay for this cost is not
unreasonable.
In sum, the court finds that the Stipulation, on its face, is not manifestly
unfair to the wife.
It has been held that where parties, represented by counsel, enter into a fully
executed and properly acknowledged settlement that is not manifestly unfair on
its face, a court will not set aside the agreement because a party was
emotionally distressed at the time the settlement was entered. See, Matuozzi v. Matuozzi, 90 AD2d 844 (2nd Dept. 1982) (wife
sought to vacate agreement one day after entering it because of her claimed
emotional distress); Rado v. Rado, 51 AD2d 811 (2d Dept. 1976) (wife sought to
vacate agreement two weeks after entering it because of her claimed emotional
distress). See also, Lockhart, supra.; Bo Young Choi, supra; Cantamessa v. Cantamessa, 170 AD2d 792 (3rd Dept. 1991). The
court concludes that there is no basis to set aside the Stipulation.
Accordingly, it is hereby
ORDERED, that the wife's motion to vacate the Stipulation and restore the
action to the calendar is denied.
This opinion constitutes the decision and order of the court.
1. The wife's belated claim that she did not understand the meaning of the term
Qualified Domestic Relations Order is without merit. The wife actively
negotiated the terms of this provision. Indeed, the wife rejected the husband's
initial offer of $50,000 of the retirement funds. Moreover, at the time the
Stipulation was signed she had a qualified attorney available to answer any of
her questions regarding the meaning of that term.
2. The wife's apparent refusal to cooperate in signing necessary tax returns is
without merit. The wife agreed to cooperate with the submission of the tax
returns and the husband, by the terms of the Stipulation, has agreed to be
responsible for any money owed and she agreed to cooperate in signing the
returns. The wife's failure to cooperate may ultimately lead to a finding that
she violated the terms of the parties' contract and she may sustain
liabilities.
3. Notwithstanding her claimed unfamiliarity with the litigation process, the
wife has obviously been through a prior divorce proceeding. Even if that
proceeding was uncontested, clearly that action required some negotiation to
resolve custody and child support.