Orth v. Orth

Decision Date30 March 2022
Docket Number3D21-458
Citation338 So.3d 363
Parties Scott Alan ORTH, Appellant/Cross-Appellee, v. Marcy ORTH, Appellee/Cross-Appellant.
CourtFlorida District Court of Appeals

Law Offices of Scott Alan Orth, P.A., and Scott Alan Orth and Eric Salvatore Giunta (Hollywood), for appellant/cross-appellee.

Lorenzen Law, and Dirk Lorenzen, Coral Gables, for appellee/cross-appellant.

Before LINDSEY, HENDON, and LOBREE, JJ.

HENDON, J.

This appeal relates to the enforceability and interpretation of a marital settlement agreement ("MSA")1 entered into between the parties, Scott Alan Orth ("Former Husband" or "Scott") and Marcy Orth ("Former Wife" or "Marcy"). The Former Husband appeals, and the Former Wife cross-appeals, from the January 5, 2021 Order Denying Exceptions and Cross-Exceptions to the General Magistrate's Report dated June 19, 2018, and the General Magistrate's Interim Report dated April 30, 2018, on the Former Wife's Motion to Enforce Final Judgment. We affirm in part, reverse in part, and remand for entry of an order(s) on the parties' exceptions consistent with this opinion.

I. FACTS AND PROCEDURAL HISTORY

In 2012, the Former Wife petitioned to dissolve her marriage to the Former Husband. On July 31, 2012, the parties entered into the MSA, which was filed in the lower tribunal in August 2012. On August 20, 2012, the trial court entered a Final Judgment of Dissolution of Marriage ("Final Judgment"), which provides as follows:

On August 20, 2012, this cause came before this Court for a hearing on a Petition for Dissolution of Marriage. The Court, having reviewed the file and heard the testimony, makes these findings of fact and reaches these conclusions of law:
1. The Court has jurisdiction over the subject matter and the parties.
2. Both parties have been residents of the State of Florida for more than six (6) months immediately before the filing of the Petition for Dissolution of Marriage.
3. The wife is not pregnant. The parties have no minor children. The children of the marriage are all pursuing College and University degrees and are well cared for.
4. The marriage between the parties is irretrievably broken. Therefore, the marriage between Scott Alan Orth and Marcy Le Vine Orth is dissolved, and the parties are restored to the status of being single.
5. All marital property and marital debts have been divided by a written agreement fully and voluntarily executed by the parties with the assistance of counsel.
6. The parties have entered into a Separation and Settlement Agreement dated July 21, 2012, filed under notice with the Court on August 8, 2012.
7. The Court reserves jurisdiction to enforce this judgment.
DONE AND ORDERED in Chambers, Miami, Dade County, Florida this 20th day of August 2012.

In November 2017, in the dissolution action, the Former Wife filed the Motion to Enforce Final Judgment ("Motion to Enforce"), seeking to enforce provisions in the MSA relating to the Former Husband's obligation to continue providing health insurance to the Former Wife and to maintain a $500,000 life insurance policy naming the Former Wife as the beneficiary. The relevant provisions in the MSA provide as follows:

6. MONTHLY SUPPORT AND DISTRIBUTION
....
e. The support obligation is not modifiable nor is it terminable ....
....
h. Health Insurance for Marcy. i. Scott shall continue to provide health insurance under the current plan or a reasonably equivalent and comparable plan for Marcy through his law practice as long as same continues and is legally obtainable.
ii. The obligation to provide insurance continues until Marcy qualifies for Medicare (whether or not she applies). In the event that Scott cannot or does not provide this insurance, his support obligation will be increased equal to the pro rata charge for insurance applicable to Marcy as of July, 2012 or the reasonable cost for Marcy to obtain cover, whichever is greater.
....
8. LIFE INSURANCE
1. As security for support, Scott shall maintain life insurance contracts/policies in the amount of $500,000 and will designate Marcy as the primary beneficiary of these policies for as long as he has a support obligation....

In December 2017, the trial court referred the Former Wife's Motion to Enforce to a general magistrate. That same month, the Former Husband moved to strike the Motion to Enforce, asserting that there is "nothing in the Final judgment to ‘enforce’ " and that "the proper vehicle would appear to be a petition to modify alimony." The trial court denied the Former Husband's motion to strike.

The general magistrate conducted two hearings on the Former Wife's Motion to Enforce—the first on April 6, 2018, and the second on May 9, 2018. During these hearings, the testimony and evidence showed that when the parties entered into the MSA in 2012, the Former Wife was insured under a preferred provider organization plan ("PPO") through the Former Husband's law office. The PPO plan had a $2,000 annual deductible, and the Former Wife's existing primary care physician, Dr. Franco, who has treated her for at least twenty-two years, and her preferred hospital, Aventura Hospital, were "in network" providers. The Former Wife further testified that prior to entering into the MSA, the Former Husband promised her that she could continue seeing Dr. Franco and go to Aventura Hospital although this alleged promise was not included in the MSA. Further, the Former Wife testified she began smoking cigarettes in high school, and smoked during the majority of the marriage.

For insurance year 2016, the Former Husband changed plans, and he paid the Former Wife's insurance premium. As to insurance year 2017, the parties entered into an agreement, which was entered "without prejudice to insurance year 2018." As part of this agreement, the Former Wife agreed to accept from the Former Husband $1,280 per month, although the policy she would purchase cost $1,480.03 per month and had a greater deductible and higher co-pays. In return, the Former Husband agreed to extend his required alimony payment by one month.

In October 2017, the Former Wife was notified that the 2018 premium for her health insurance plan, which included Dr. Franco and Aventura Hospital, would increase to $1,928.80 per month. She informed the Former Husband about the increase, but they could not reach an agreement. At that point, the Former Wife obtained a health insurance policy that costs approximately $1,400 per month, includes Dr. Franco and Aventura Hospital as "in-network" providers, and has a $6,000 annual deductible. The Former Wife then filed the Motion to Enforce.

At the April 6, 2018 hearing before the general magistrate, the Former Husband moved ore tenus for the Former Wife to submit a "[m]arketplace application so that we have every tool we need to make the decision here." The general magistrate granted the request and directed the Former Wife to conduct a search for health insurance policies that included Dr. Franco but not Aventura Hospital.

On April 10, 2018, the Former Wife filed an affidavit as to her marketplace search along with an exhibit. The exhibit reflected monthly plan premiums ranging from $1,416 to $3,291.73, with varying deductibles.

On April 30, 2018, the general magistrate entered an Interim Report, stating in part:

The question is not whether the Former Husband needs to pay for the wife's health insurance plan, he clearly does. The issue is what is a "reasonable plan."

The Magistrate found that when the Former Husband cancelled the Former Wife's policy through his office, she sought a replacement policy that listed Dr. Franco and Aventura hospital. The general magistrate agreed that it is reasonable for the Former Wife to limit insurance plans to those that accept Dr. Franco. The general magistrate directed the Former Wife to conduct a search on the healthcare marketplace for an insurance policy that includes Dr. Franco, but not to limit her search to any particular hospital, and to provide the results of the search to the Former Husband and the trial court. On May 16, 2018, the trial court entered an order ratifying, approving, and adopting the general magistrate's Interim Order.

The general magistrate conducted a second hearing on May 9, 2018. At the hearing, the Former Husband asserted that the marketplace quotes were more expensive because the Former Wife is a smoker, and it is not reasonable for her to charge him the increased rate due to her smoking habit. The Former Husband provided information as to a health maintenance organization ("HMO") plan for a non-smoker that has a large deductible but would allow the Former Wife to choose Dr. Franco as her primary care physician, and once the large deductible is met, the HMO plan would cover 100% of her claims. This HMO plan, including the amount of the deductible, would be $14,910 for the year. The Former Husband then proposed for the first time that there be an "escrow account" where he would deposit $5,350 (the annual deductible of the HMO, $7,350, minus $2,000) in an account that the Former Wife could use as needed once she had paid $2,000 in deductibles. The Former Wife's counsel disagreed with the implementation of an "escrow account" as such an account is not referenced in the MSA. The Former Wife's counsel argued that the majority of the plans in her marketplace exhibit are inferior to the plan that was in place when the parties entered into the MSA, and that the MSA provides for a plan that is "reasonably equivalent or comparable."

On June 19, 2018, the general magistrate entered its report. The report provides as follows:

There was no dispute as to whether the Former Husband is required to pay towards the Former Wife's health insurance plan. The issue for 2018 and future years, is what is a "reasonable plan." ....
.... The Court agreed that it was reasonable to limit insurance plans to those that accepted a physician with whom an individual had a long-term affiliation .... Therefore the Court directed
...

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    • United States
    • Florida District Court of Appeals
    • March 15, 2023
    ... ...          "An ... appellate court reviews a trial court's ruling on a ... general magistrate's report de novo." Orth v ... Orth, 338 So.3d 363, 370 (Fla. 3d DCA 2022) (citing ... Coriat v. Coriat, 306 So.3d 356, 358 (Fla. 3d DCA ... 2020)) ... ...
1 books & journal articles
  • Enforcement of orders and judgments
    • United States
    • James Publishing Practical Law Books Florida Family Law and Practice - Volume 1
    • April 30, 2022
    ...agreement generally does not include jurisdiction to award damages for breaches that are not specified in the agreement. [ Orth v. Orth , 338 So. 3d 363, 371 (Fla. 2d DCA 2022) (agreement did not specify damages former wife sought and family court awarded).] The plain language of a settleme......

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