Luthen v. Luthen
| Decision Date | 13 July 1999 |
| Docket Number | No. C3-98-2277.,C3-98-2277. |
| Citation | 596 N.W.2d 278 |
| Parties | In re the Matter of Peggy A. LUTHEN, petitioner, Appellant, v. Ricky LUTHEN, Respondent Below, and Itasca County Health and Human Services, intervenor, Respondent, Linda G. Longrie, intervenor, Respondent. |
| Court | Minnesota Court of Appeals |
Rodney G. Otterness, Grand Rapids, for appellant.
John J. Muhar, Itasca County Attorney, Heidi Pertlicek, Assistant County Attorney, Grand Rapids, for respondent Itasca County.
Ellen E. Tholen, Grand Rapids, for respondent Linda G. Longrie.
Considered and decided by RANDALL, Presiding Judge, DAVIES, Judge, and G. BARRY ANDERSON, Judge.
Appellant argues the district court erred when it allowed the county and the mother of a child born out-of-wedlock to intervene in the dissolution of the marriage of the child's father to appellant. Appellant also claims the district court erred when it did not require the third-party intervenor to post security pursuant to Minn. R. Civ. P. 65.03. We reverse.
On July 16, 1998, appellant Peggy Ann Luthen commenced this dissolution action against respondent Ricky J. Luthen. The couple had three children during the marriage. Appellant originally filed a dissolution action in June 1996 because of Ricky Luthen's relationship with intervenor Linda G. Longrie. She withdrew her petition when she and Ricky Luthen attempted a reconciliation and Ricky Luthen promised not to see Longrie again. But after learning that Ricky Luthen fathered a child, T.L., with Longrie, appellant commenced the present dissolution action.
Appellant and Ricky Luthen negotiated the terms of a marital termination agreement (MTA) that was forwarded to the district court, along with a proposed judgment and decree. The parties were appearing pro se. The MTA provided that the parties would share joint legal and physical custody of the three children; appellant would pay $1,365 per month in child support; she would maintain health insurance for the children and the parties would split unreimbursed health costs; appellant would be entitled to remain on the homestead; there would be no spousal maintenance; and Ricky Luthen would be covered by appellant's insurance and he would be entitled to maintain such insurance through her employer. Appellant was to receive three parcels of real property; the Performance Sports Center, L.L.C.; stock certificates in L & M Supply Company; and a 1998 Dodge Durango. Ricky Luthen was to receive Lone Pine Enterprises, L.L.C.; a 1968 Corvette; a 1979 Blazer; a 1991 Suburban; and a 28-foot cabin cruiser. In addition, appellant was to pay off a $60,000 note on behalf of Ricky Luthen due to the Grand Rapids State Bank. A default hearing was scheduled for November 16, 1998.
On November 10, 1998, Longrie and Itasca County filed a motion pursuant to Minn. R. Civ. P. 24.01 to intervene as defendants in the Luthen dissolution. Earlier, in a paternity action commenced by intervenor Itasca County Health and Human Services and Longrie against Ricky Luthen, the district court adjudicated Ricky Luthen the father of T.L., but reserved the issue of child support. Longrie claimed that the Luthens were attempting to place Ricky Luthen's assets beyond her reach in an effort to reduce the assets from which Ricky Luthen would otherwise have to pay child support. In addition, Longrie filed a notice of motion and motion for temporary injunction, seeking to enjoin the Luthen dissolution. Longrie claimed that if the dissolution action was allowed to proceed, the Luthens could transfer assets of substantial value beyond her reach and this would result in irreparable injury, namely the loss of a potentially substantial amount of child support for which there is no remedy at law.
Following a hearing on November 16, 1998, the district court granted, on the record, Longrie's motion to intervene. Appellant filed her notice of appeal on December 11, 1998. On December 21, 1998, the district court filed its written findings of fact and order, granting Longrie and the county's motion to intervene and for a temporary injunction staying the Luthen dissolution. The district court found that the proposed division of marital assets was "unusual" because appellant (1) had been a housewife during the marriage; (2) was now being given the business "by which [Ricky Luthen] was employed"; (3) was being awarded Ricky Luthen's stock in L & M Supply company; and (4) was being given four parcels of real estate. The court noted that it had sent a letter to each party advising them to retain counsel because it considered the proposed disposition of property to be neither just nor equitable. In its attached memorandum of law, the district court noted that it routinely referred proposed dissolution agreements that fail to make provisions of child support to the county. By order dated March 22, 1999, this court ruled that the present appeal is to be taken from the December 21, 1998 order.
1. Is the mother of a child born out-of-wedlock entitled, on behalf of the minor child and for future support purposes, to intervene as a matter of right in the dissolution of the marriage of the child's father?
2. Can the county, on behalf of a child born out-of-wedlock, intervene as a matter of right in a dissolution proceeding involving the child's father where it has not provided any support to the child?
3. Did the district court err when it refused to require intervenors to post security pursuant to Minn. R. Civ. P. 65.03?
Longrie and the county moved to intervene as a matter of right pursuant to Minn. R. Civ. P. 24.01. The rule provides:
Upon timely application anyone shall be permitted to intervene in an action when the applicant claims an interest relating to the property or transaction which is the subject of the action and the applicant is so situated that the disposition of the action may as a practical matter impair or impede the applicant's ability to protect that interest, unless the applicant's interest is adequately represented by existing parties.
When reviewing orders addressing intervention of right, we independently assess the propriety of the order. Gruman v. Hendrickson, 416 N.W.2d 497, 500 (Minn.App.1987). Before being allowed to intervene as a matter of right under Rule 24.01, a party must show: (1) the motion to intervene was timely; (2) an interest relating to the property or transaction that is the subject of the action; (3) as a practical matter, disposition of the action may impair or impede the party's ability to protect that interest; and (4) the party is not adequately represented by the existing parties. Id.
Costley v. Caromin House, Inc., 313 N.W.2d 21, 28 (Minn. 1981) (quoting 7A Charles A. Wright & Arthur R. Miller, Federal Practice & Procedure, § 1909, at 524 (1972) (footnote omitted)) (citation omitted). The rule "is designed to protect nonparties from having their interests adversely affected by litigation conducted without their participation." Gruman, 416 N.W.2d at 500 (citation omitted).
The crux of this appeal is appellant's claim that Longrie and the county cannot properly intervene as of right because they do not have an interest in the Luthen dissolution proceeding and do not have an interest in the Luthen's marital property. Appellant further contends that Longrie's (and the county's) interest in child support, if they have one, is inchoate and based on speculation because no child support figure for Ricky Luthen has yet been determined.
First, we agree with appellant that nothing in the record shows any prejudice to Longrie's future right to child support. When the support obligation is adjudicated, Longrie, on behalf of her child, will be entitled to an equitable amount of child support from Ricky Luthen. See Minn.Stat. § 257.66, subd. 3 (1998) (); Minn. Stat. § 518.57, subd. 1 (1998) (). Generally, support obligations are based on the obligor's income, not an obligor's hoped for property award. See Minn.Stat. § 518.551, subds. 5(b), (i) (1998) (). It is possible, in some circumstances, that a property award can impact a support obligation. See Quaid v. Quaid, 403 N.W.2d 904, 906-07 (Minn.App.1987) (), review denied (Minn. June 30, 1987). However, here, appellant correctly notes that the current record shows neither that Ricky Luthen has a present child support obligation for Longrie's child nor that he will lack the ability to pay that obligation when it is set. Further, the division of marital assets is governed by Minn.Stat. § 518.58 (1998), which makes no mention of third-party creditors, including potential child support obligees, having a vested interest in the marital property of either the husband or the wife. Longrie has failed to show a vested interest in the Luthen dissolution distribution of marital assets.
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