Deangelis v. Deangelis

• Decision Date: 01 June 2007
• Docket Number: No. 2005-338-Appeal.,2005-338-Appeal.
• Citation: 923 A.2d 1274
• Parties: Laureen A. DeANGELIS v. Peter E. DeANGELIS.
• Court: Rhode Island Supreme Court

923 A.2d 1274

Laureen A. DeANGELIS v. Peter E. DeANGELIS.

No. 2005-338-Appeal.

Supreme Court of Rhode Island.

June 1, 2007.

Kathleen Managhan, Esq., for Plaintiff.

Robyn K. Factor, Esq., for Defendant.

Present: WILLIAMS, C.J., GOLDBERG, FLAHERTY, SUTTELL, and ROBINSON, JJ.

OPINION

Justice ROBINSON for the Court.

The defendant, Peter E. DeAngelis (defendant or Peter), appeals from a Family Court judgment that awarded the plaintiff, Laureen A. DeAngelis (plaintiff or Laureen), 80 percent of the marital assets.

On appeal, defendant argues (1) that the trial justice erred in ruling that defendant was not entitled to any portion of plaintiff's disability pension and (2) that the trial justice erred in his ultimate division of the marital assets.

For the reasons set forth herein, we affirm the judgment of the Family Court.

Facts and Travel

Peter and Laureen were married on February 16, 1975; they are the parents of two adult children, Amanda and Matthew. In November of 2002, Laureen filed a complaint for divorce, and shortly thereafter Peter filed a counterclaim for divorce. At the trial in Family Court, which was held over seven days in late January and early February of 2005, Laureen, Peter, their two children, and one other witness testified; additionally, more than fifty documents were introduced as exhibits. On June 15, 2005, the trial justice issued his bench decision, in which he made the following findings of fact.

Laureen had been employed as a public school teacher in South Kingstown for many years before she was diagnosed with breast cancer in February of 2000. Her illness has involved numerous hospitalizations and surgeries, and it is ongoing.

In 1996, Peter and Laureen were on the verge of seeking a divorce. Peter had not been living in the marital home for almost two years. According to Laureen's testimony in the instant case, Peter had been verbally abusive to her; moreover, Peter admitted to having engaged in extramarital affairs. When Peter requested permission to return to the marital home, several conversations took place between Peter and Laureen. In May of 1996, there was a family meeting regarding Peter's request. That meeting was attended by Peter, Laureen, and the two children. It was Laureen's testimony that, during this meeting, she agreed to allow Peter back into the marital home if he fulfilled three conditions: (1) continued alcohol treatment counseling; (2) contribution to family expenses; and (3) waiver of any claim to Laureen's pension. Laureen and the two children testified that Peter assented to these three conditions. Peter, for his part, acknowledged that the family meeting had taken place and that he had agreed to the first two conditions, but he denied that they had discussed any waiver of his interest in Laureen's pension. Shortly after the family meeting, Peter returned to the marital home.

In November of 2002, Laureen and Peter separated for the final time. Laureen obtained a restraining order against Peter, which order called for his removal from the family home and prohibited him from having any contact with Laureen.

Thereafter, in June of 2003, after twenty-six and one-half years of service as a public school teacher, Laureen applied for a disability pension on the ground that her illness and the resulting medical treatments prevented her from continuing her employment. She did not notify Peter about her application for that pension.¹ At that time, Laureen was out of work and facing economic hardship, and Peter was not providing any support.² Laureen began receiving disability pension payments in October of 2003.

On September 28, 2005, the trial justice issued a decision pending entry of final judgment. The defendant filed his notice of appeal on October 12, 2005. Shortly thereafter, on October 21, 2005, final judgment was entered.³

Standard of Review

The equitable distribution of property in a divorce action involves three steps: (1) determining which assets are marital property; (2) considering the factors set forth in G.L.1956 § 15-5-16.1(a); and (3) distributing the property. Horton v. Horton, 891 A.2d 885, 889 (R.I.2006); Koutroumanos v. Tzeremes, 865 A.2d 1091, 1096 (R.I.2005); Stephenson v. Stephenson, 811 A.2d 1138, 1141 (R.I.2002).

It is well established that this Court will defer to a trial justice's determinations of fact in a divorce action "unless he or she has misconceived the relevant evidence or was otherwise clearly wrong." Stephenson, 811 A.2d at 1141 (internal quotation marks omitted); see also Horton, 891 A.2d at 888; Koutroumanos, 865 A.2d at 1097. Additionally, determinations of credibility made by a trial justice in a nonjury trial will not be disturbed by this Court "unless the findings are clearly wrong or the [trial justice] misconceived or overlooked material evidence." Andreozzi v. Andreozzi, 813 A.2d 78, 82 (R.I.2003); see also Opella v. Opella, 896 A.2d 714, 718 (R.I.2006); Bogosian v. Bederman, 823 A.2d 1117, 1120 (R.I.2003). Furthermore, the trial justice is accorded broad discretion with respect to the equitable distribution of marital assets; consequently, we will not overturn the trial justice's distribution unless it is demonstrated that he or she has abused his or her discretion. See Stephenson, 811 A.2d at 1141, 1142; see also Koutroumanos, 865 A.2d at 1098; Thompson v. Thompson, 642 A.2d 1160, 1162 (R.I.1994).

Analysis

I Laureen's Disability Pension

The defendant's first argument on appeal is that the trial justice erred in ruling that defendant was not entitled to any portion of plaintiff's disability pension. His argument is two-fold. He first contends that the trial justice erred in excluding plaintiff's disability pension from the marital property; he also contends that the trial justice erred in ruling that defendant was bound by an oral agreement between the parties, in which defendant purportedly waived his interest in plaintiff's pension rights. We disagree with defendant's contentions.

A Nature of Disability Pension

This Court has previously held that a disability pension does not constitute a marital asset and, therefore, is not subject to equitable distribution upon the dissolution of a marriage. Thompson, 642 A.2d at 1163. However, we have also held that a disability pension will be subject to equitable distribution to the extent that it represents vested retirement pay earned during the marriage. Allard v. Allard, 708 A.2d 554, 555 (R.I.1998). The latter holding is consistent with the principle that contributory retirement pensions are considered marital assets and are subject to equitable distribution. See id. at 556.

In the instant case, the trial justice concluded that any sums that Laureen collects from her disability pension until she attains sixty years of age (on July 28, 2010) should not be considered marital assets and, therefore, should not be subject to equitable distribution. He specifically distinguished the sums that Laureen would collect from her disability pension before July 28, 2010 (which he deemed compensation for lost earnings) from the sums that she would collect thereafter (which would be classified as retirement pay).⁴ Consequently, he ruled that the amounts received before July 28, 2010 would not be subject to equitable distribution but that any amounts received thereafter would be subject to equitable distribution. It is our opinion that the trial justice was correct in so ruling.

Laureen would be eligible to receive her retirement pension only after completing twenty-eight years of employment or upon turning sixty years of age. Since she has to date completed twenty-six and one-half years as a teacher and since her medical condition prevents her from returning to that employment, absent a change in her state of health that would permit her to return to teaching, she will become eligible to receive her retirement pension only upon turning sixty on July 28, 2010. Consequently, the sums that she receives through her disability pension until July 28, 2010 are compensation for her lost earning capacity and are not subject to equitable distribution. Unlike the defendant in Allard,⁵ Laureen did not elect to receive her disability pension payments in lieu of her retirement pension; she had no such choice to make since she is ineligible to receive her retirement pension before July 28, 2010. Therefore, Laureen's disability pension payments are not marital assets.

Accordingly, we hold that the trial justice did not abuse his discretion when he concluded that Peter was not entitled to receive any share of Laureen's pension before July 28, 2010.

B Alleged Waiver of Interest in Pension

Peter next argues that the trial justice erred in finding that he had waived his interest in Laureen's pension by way of an oral agreement. In his decision, the trial justice specifically ruled that, as of July 28, 2010, Laureen's pension would constitute a marital asset subject to equitable distribution. However, he also determined that, despite this fact, Peter would not be entitled to any portion of the pension even after that date because, through an oral agreement with Laureen, he waived any claim to her pension benefits.⁶ The defendant contends that there was no valid contract between Laureen and him concerning this matter because there was a lack of consideration. We disagree with this contention.

In the instant case, the trial justice indicated that his determination as to the existence vel non of an oral contract to waive an interest in the pension would depend on the credibility of the witnesses who testified about that issue. He specifically found that Peter's testimony was "vague, evasive[,] and contradictory." Additionally, the trial justice stated that Peter's answers were conflicting and confusing even on direct examination and that "[s]everal key portions of his testimony were negated by documents." For these reasons, the trial justice concluded that Peter was not a credible...