In re Marriage of Balcof

• Citation: 141 Cal.App.4th 1509,47 Cal.Rptr.3d 183
• Decision Date: 15 August 2006
• Docket Number: No. G035868.,G035868.
• Court: California Court of Appeals Court of Appeals
• Parties: In re MARRIAGE OF Ralph and Kathleen BALCOF. Ralph Balcof, Respondent, v. Kathleen Balcof, Appellant.

47 Cal.Rptr.3d 183

141 Cal.App.4th 1509

In re MARRIAGE OF Ralph and Kathleen BALCOF Ralph Balcof, Respondent, v. Kathleen Balcof, Appellant.

No. G035868.

Court of Appeal, Fourth District, Division 3.

August 15, 2006.

Law Offices of Jeffrey W. Doeringer and Jeffrey W. Doeringer, Huntington Beach, for Appellant.

Honey Kessler Amado, Beverly Hills, for Respondent.

OPINION

MOORE, J.

In a prior appeal,¹ Kathleen Balcof challenged a judgment holding that a writing she and her husband, Ralph Balcof, signed during marriage did not constitute a transmutation of certain of his property interests to those of hers.² We held that the writing satisfied the requirements for a transmutation of Ralph's interest in the marital residence and 20 percent of the stock in his separate property corporation. However, we observed that Ralph had been precluded from presenting evidence to the effect that he was under duress when he signed the writing. Consequently, we reversed and remanded the matter to give him an opportunity to present his evidence and to make his arguments concerning the enforceability of the otherwise valid transmutation. On remand, the trial court held that the transmutation document was unenforceable due to both duress and undue influence.

Kathleen appeals, challenging the judgment on a plethora of grounds. We hold that the trial court did not exceed the scope of this court's instructions on remand, and furthermore, that retrial was not precluded either because of a "judicial admission" on Ralph's part or because of case law concerning the use of extrinsic evidence. We also hold that substantial evidence supports the trial court's findings on both duress and undue influence. In addition, the trial court did not err in receiving the testimony of Attorney Brenda Agren, the tape recording of a discussion between Kathleen and the children, or the stipulated evidence that Kathleen struck Ralph in the face in front of the children. Finally, the statement of decision was not inadequate and the motion for new trial was properly denied. We affirm the judgment and the order denying the new trial motion.

I FACTS

Ralph and Kathleen were married in 1988. They had two children, born in 1990 and 1992, respectively. In October 1999, Ralph and Kathleen signed a writing concerning their marital residence and a portion of the stock in Ralph's separate property corporation. They separated three or four months later. Ralph filed a petition for dissolution in January 2000. Their marriage was dissolved as to status only on December 5, 2000.

The court bifurcated the trial proceedings pertaining to the effect of the October 1999 writing. The first issue to be tried was whether the writing constituted a transmutation of Ralph's community property interest in the marital residence and 20 percent of his stock in his separate property corporation, to Kathleen as her separate property. The second item to be tried, provided that the October 1999 writing were held to be a transmutation, was whether there were any defenses to the enforcement of the writing.

After a trial on the first issue, the court held that the October 1999 writing was ineffective to transmute property from that of Ralph to that of Kathleen. Given this, there was never any trial pertaining to Ralph's defenses to the enforceability of the October 1999 writing. Kathleen appealed from the judgment to the effect that the October 1999 writing was not a transmutation.

On appeal, we held that the October 1999 writing satisfied the transmutation requirements of Family Code section 852. However, we observed that Ralph had never had his opportunity to raise his claim of duress, so we remanded the matter for further trial proceedings.

On remand, the trial court entered judgment in favor of Ralph, holding that the October 1999 writing was unenforceable due to duress and undue influence. It thereafter denied Kathleen's new trial motion. Kathleen again appeals.

II DISCUSSION

A. Background:

The following background information is taken directly from the prior opinion:

"(1) Prenuptial agreement

"Shortly before their marriage, the parties signed a prenuptial agreement, the validity of which is not an issue in this matter. As disclosed in the exhibits to the agreement, Ralph then owned property worth several million dollars, including more than $2 million in Bolcof Plastic Materials, Inc. stock.³ Kathleen's assets were minimal.

"Under the prenuptial agreement, the parties agreed that Ralph would transfer the bulk of his property into a separate property trust and that Kathleen would not acquire any interest in that property or in the trust during the course of the marriage. In short, she would never acquire any interest in Bolcof Plastic Materials, Inc., even to the extent the value of the corporation might increase due to the efforts of Ralph during the marriage. However, Ralph agreed to transfer two $15,000 life insurance policies he owned to himself and Kathleen as community property. Also, Ralph and Kathleen agreed that if they were still living together as man and wife upon Ralph's death, Kathleen would receive the marital dwelling, free and clear of debt, plus $250,000.

"At the time the prenuptial agreement was signed, the parties had not yet acquired the property located on Pelican Drive, which was purchased after marriage and was not placed in the trust.

"(2) Transmutation document

"The parties have stipulated that in October 1999, while they were in a room together at an inn, Ralph penned a writing which is the subject matter of this dispute. That writing provides as follows: `I, Ralph Balcof Deed over all Interest in our house at 770 Pelican Dr. — Laguna Beach — also 20% interest (stock) in Bolcof Plastic Materials[.] This will be legal by Dec 1 1999[.]' Then appear the signatures of each of Kathleen and Ralph. Immediately thereafter is written: `P.S. I will pay $1000 a day Penlty [sic] iF [sic] this is not done by Dec 1[.]' [¶] . . . [¶]

"(3) Stipulated judgment

"In the March 12, 2002 judgment on reserved issues, the court divided certain [of] the assets between the parties and ordered the payment of spousal and child support, pursuant to their stipulated judgment.

"Ralph stipulated to pay Kathleen the sum of $8,000 per month in spousal support while she was living in the marital dwelling. After she vacated the dwelling, Ralph was required to pay her $12,000 per month, until the first to occur of the death of either party, Kathleen's remarriage, or June 15, 2012. The judgment contains a provision for the payment of an additional $33,000 in spousal support for a time period that cannot be ascertained due to the fact a portion of the copy of the judgment as contained in the record is illegible. In addition, the judgment addressed the provision of COBRA medical insurance coverage for Kathleen.

"Ralph also stipulated to pay child support in the amount of $2,488 per month for his daughter, Kelsey, and $4,172 per month for his son, Andrew. He further committed to provide health insurance for the children.

"In addition, Ralph stipulated to maintain an initial sum of $500,000 in life insurance, decreasing by $50,000 each year, with respect to spousal support. He also agreed to maintain $75,000 in life insurance with respect to child support.

"The court awarded Ralph the marital dwelling, with an assigned value of $2 million, as his sole and separate property. In addition, it awarded Ralph half of the miscellaneous personal property, furniture and furnishings the parties acquired during marriage, half of the parties' three Wells Fargo checking accounts, and half of the $403,177.56 community interest in the Bolcof Plastic Materials, Inc. Profit-Sharing Plan and Trust.

"Kathleen was awarded, as her sole and separate property, the following: (1) $123,026 in a joint Wells Fargo account; (2) $154,745 in the parties' Paine Webber account; (3) $141,000 in pre-distributions of community funds; (4) a 1996 GMC Suburban automobile; (5) half of the miscellaneous personal property, furniture and furnishings the parties acquired during marriage; (6) half of the parties' three Wells Fargo checking accounts; (7) half of the $403,177.56 community interest in the Bolcof Plastic Materials, Inc. Profit-Sharing Plan and Trust; (8) the Mammoth condominium, valued at $403,000; and (9) an equalization payment of $589,114.50. Also, Ralph was ordered to pay $100,000 of Kathleen's attorney fees.

"In addition to the foregoing, the judgment recited that Kathleen had indicated that she might file an appeal with respect to the characterization of the marital dwelling and the Bolcof Plastic Materials, Inc. business. The parties reserved the right to assert different values for those assets and to argue that the amount of the equalization payment was incorrect, depending on the outcome of any appeal.

"In the April 17, 2002 judgment on reserved issues, Ralph was awarded the following items as his sole and separate property: (1) any and all shares of Bolcof Plastic Materials, Inc. common stock; (2) any and all shares of e-resin.com common stock; (3) any and all shares of Bolcof Plastic Materials (Southeast), Inc. common stock; (4) any and all interest in Azusa Packaging a California general partnership; (5) certain real property located in Azusa; and (6) certain real property located in Fontana."

On remand, the trial court held that the April 17, 2002 judgment on reserved issues would remain in full force and effect.

B. Kathleen's Arguments:

(1) Introduction

Kathleen has chosen to wage a wide ranging attack on many fronts. She claims: (1) retrial was precluded because of a "judicial admission" on Ralph's part; (2) the case should not have been remanded because of case law concerning the use of extrinsic evidence; (3) the trial court exceeded the scope of the this court's instructions on remand; (4) the trial court's findings on duress were not supported by the evidence; (5) Ralph waived...