Eckert v. Eckert

• Decision Date: 04 March 2008
• Docket Number: No. 17943.,No. 17944.,17943.,17944.
• Court: Connecticut Supreme Court
• Parties: Patricia ECKERT v. David ECKERT.

941 A.2d 301

285 Conn. 687

Patricia ECKERT v. David ECKERT.

No. 17943.

No. 17944.

Supreme Court of Connecticut.

Argued October 22, 2007.

Decided March 4, 2008.

Samuel V. Schoonmaker IV, Greenwich, for the appellant (plaintiff).

George J. Markley, Fairfield, with whom, on the brief, was Michael A. Meyers, for the appellee (defendant).

ROGERS, C.J., and KATZ, PALMER, VERTEFEUILLE and SCHALLER, Js.

SCHALLER, J.

The dispositive issue in the present appeal is whether a clause in a separation agreement that precludes modification of the amount or duration of alimony also bars modification of the definition of "gross yearly earned income," as set forth in a separate section of the separation agreement. The plaintiff, Patricia Eckert, appeals¹ from the trial court's denials of her two postdissolution motions seeking a modification of the definition of "gross yearly earned income" in the separation agreement between her and the defendant David Eckert. In support of her claim, the plaintiff contends that the trial court improperly: (1) concluded that the separation agreement's prohibition of modification of the amount and duration of alimony also precluded modification of the definition of "gross yearly earned income"; (2) declined to exercise its equitable powers to modify the agreement in order to preserve the original intent of the parties; and (3) arrived at its rulings without first holding an evidentiary hearing. We affirm the judgment of the trial court.

The record reveals the following relevant facts and procedure. On July 7, 2000, the trial court dissolved the marriage of the parties. In accordance with General Statutes § 46b-66,² the judgment of dissolution incorporated by reference the parties' separation agreement, which contained a clause prohibiting modification of the defendant's alimony obligations as set forth in article 2.1 of the agreement. Article 2.1 of the separation agreement required the defendant to pay a percentage of his gross yearly earned income to the plaintiff as alimony. Article 2.2 of the agreement defined the term "gross yearly earned income" as "income actually received by the [defendant]" and expressly excluded from the defendant's income future stock grants and the exercise of stock options.

At the time of the parties' dissolution, the defendant, who was employed as the president of Rhodia, S.A., represented in his financial affidavit that he had a base gross income totaling $37,500 per month, or $450,000 per year, with bonuses and options at an approximate monthly gross of $40,916, or $490,992 per year, In January, 2004, the defendant's employment with Rhodia, S.A., terminated. In November, 2004, the defendant accepted a position as the chief executive officer with Exavera Technologies, Inc., where he was compensated by debt instruments that may be converted into stock.

In February, 2004, the plaintiff filed a motion for contempt, alleging that the defendant was in violation of the orders of the trial court because the defendant had stopped making alimony payments.³ Soon thereafter, based on the fact that the defendant was not working, the plaintiff filed a motion seeking a court order directing the defendant to pay alimony based on his earning capacity. She also filed a motion seeking alteration or modification of the definition of "gross yearly earned income" in article 2.2 of the separation agreement.⁴ After the defendant obtained employment with Exavera Technologies, Inc., the plaintiff amended her motion for modification, seeking modification of the definition of "gross yearly earned income" to include the type of compensation that the defendant received from Exavera Technologies, Inc. The plaintiff also subsequently amended her motion seeking a court order that the defendant pay alimony based on the value of his compensation and his earning capacity.

In November, 2005, the court sustained the defendant's objection to the plaintiffs motion for alteration and modification, concluding that the agreement plainly and unambiguously precluded modification of the definition of "gross yearly earned income." Following reargument, the court denied the plaintiffs motion to reconsider and vacate its ruling on the motion for alteration and modification. In an articulation of its decision, the court clarified that article 2.4 of the separation agreement precludes the parties from seeking an alteration of article 2.2 of the agreement. In November, 2006, the trial court sustained the defendant's objection to the plaintiffs motion requesting the court to order the defendant to pay alimony based on the value of his compensation and earning capacity. The plaintiff appealed from the trial court's rulings sustaining the defendant's objections both to her motion seeking a modification of alimony, and to her motion seeking a court order that the defendant pay alimony.

I

We first address the plaintiff's claim that the trial court improperly concluded that the separation agreement between her and the defendant plainly and unambiguously precluded the modification of the definition of "gross yearly earned income" in article 2.2 of the agreement. The trial court reasoned that, because modification of the definition of "gross yearly earned income" necessarily would change the amount of alimony that the defendant currently is obligated to pay under the separation agreement, the provision of the agreement precluding the modification of the amount and duration of alimony also unambiguously precluded modification of the definition. We agree with the trial court.

Our interpretation of a separation agreement that is incorporated into a dissolution decree "is guided by the general principles governing the construction of contracts." (Internal quotation marks omitted.) Issler v. Issler, 250 Conn. 226, 235, 737 A.2d 383 (1999). A contract must be construed to effectuate the intent of the parties, which "is determined from the language used interpreted in the light of the situation of the parties and the circumstances connected with the transaction. . . . [T]he intent of the parties is to be ascertained by a fair and reasonable construction of the written words and . . . the language used must be accorded its common, natural, and ordinary meaning and usage where it can be sensibly applied to the subject matter of the contract. . . . Where the language of the contract is clear and unambiguous, the contract is to be given effect according to its terms. A court will not torture words to import ambiguity where the ordinary meaning leaves no room for ambiguity. . . . Similarly, any ambiguity in a contract must emanate from the language used in the contract rather than from one party's subjective perception of the terms." (Internal quotation marks omitted.) Connecticut Light & Power Co. v. Lighthouse Landings, Inc., 279 Conn. 90, 109-10, 900 A.2d 1242 (2006). "Moreover, the mere fact that the parties advance different interpretations of the language in question does not necessitate a conclusion that the language is ambiguous." (Internal quotation marks omitted.) United Illuminating Co. v. Wisvest-Connecticut, LLC, 259 Conn. 665, 670, 791 A.2d 546 (2002). If the language of a contract is clear and unambiguous, the intent of the parties is a question of law, subject to plenary review. Montoya v. Montoya, 280 Conn. 605, 612, 909 A.2d 947 (2006).

Modification of alimony is governed by General Statutes § 46b-86, subsection (a) of which provides in relevant part: "Unless and to the extent that the decree precludes modification . . . an order for alimony may at any time thereafter be . . . altered or modified . . . upon a showing of a substantial change in the circumstances of either party. . . ." It is well established within our jurisprudence that "[p]rovisions which preclude modification of alimony [or support] tend to be disfavored." (Internal quotation marks omitted.) Amodio v. Amodio, 247 Conn. 724, 730, 724 A.2d 1084 (1999). In accordance with the preference in favor of modification, ambiguous nonmodification provisions are construed to permit modification. Id. Nonmodification provisions that are clear and unambiguous, however, are enforceable. General Statutes § 46b-86 (a); Amodio v. Amodio, 56 Conn.App. 459, 471, 743 A.2d 1135, cert. granted, 253 Conn. 910, 754 A.2d 160 (2000) (appeal withdrawn September 27, 2000); Wichman v. Wichman, 49 Conn.App. 529, 535, 714 A.2d 1274, cert. denied, 247 Conn. 910, 719 A.2d 906 (1998).

In deciding whether the trial court properly concluded that the separation agreement precluded modification of the definition of "gross yearly earned income," therefore, we must determine whether the agreement unambiguously precluded the plaintiffs requested modification. Article 2.4 of the separation agreement provides "The parties are expressly precluded from seeking a modification of the [defendant's] obligations under article 2.1 as to the amount or the duration of alimony except as provided in article 2.1." Article 2.1 of the separation agreement provides in relevant part: "During the lifetime of the [defendant] or until the death or remarriage of the [plaintiff] or cohabitation Of the [plaintiff] . . . the [defendant] shall pay alimony to the [plaintiff] in an amount equal to [33.33] [p]ercent . . . of the first $450,000 [of] his gross yearly earned income.

The [defendant] shall pay to the [plaintiff] additional alimony of [25][p]ercent . . . of his gross yearly earned income between $450,000 and $800,000. The [plaintiff] shall not be entitled to any share of the [defendant's] income over $800,000. . . ." (Emphasis added.) The term "gross yearly earned income" is defined in article 2.2 as "income actually received by the [defendant] and income which he has a right to receive in each calendar year . . . from any and all sources derived. . . . `[G]ross yearly earned income' shall include all income from wages, salaries, bonuses, pensions . . . consulting or other fees,...