Scheetz v. Scheetz
| Decision Date | 24 June 1987 |
| Docket Number | No. 2-785-A-229,2-785-A-229 |
| Citation | 509 N.E.2d 840 |
| Parties | John Michael SCHEETZ, Appellant (Petitioner), v. Sandra Marie SCHEETZ, Appellee (Respondent). |
| Court | Indiana Appellate Court |
Michael A. Bergin, Locke, Reynolds, Boyd and Weisell, Indianapolis, for appellant.
Gregory F. Hahn, William T. Rosenbaum, Cohen, Malad and Hahn, Indianapolis, Chris L. Shelby, Lebanon, for appellee.
This is a consolidated appeal arising from a dissolution proceeding in which the trial court simultaneously granted a Trial Rule 60(B) motion and a motion to correct error filed by the appellee Sandra Marie Scheetz (Sandra) thereby allowing her the opportunity to present additional evidence as to the value of the marital property. Petitioner-appellant John Michael Scheetz (Michael) appeals alleging that the trial court did not have jurisdiction to act on the motion to correct error and the T.R. 60(B) motion. Also, in an interlocutory appeal, Michael claims the trial court lacked jurisdiction to award Sandra appellate attorney fees.
We reverse in part and affirm in part.
The evidence most favorable to the judgment establishes these facts. On June 2, 1983, Michael filed a petition for dissolution of marriage with the Hamilton Superior Court. After extensive discovery and numerous continuances, trial was held in June of 1984. Michael and Sandra had acquired numerous assets during the course of their fifteen-year marriage, and they devoted most of their efforts at trial to establishing a value for these assets. A dispute arose at trial concerning the admissibility of an appraisal of a Florida property owned by a partnership in which Michael had an interest. A Florida real estate expert hired by Michael appraised one of the partnership properties, the Raintree parcel, at $2.8 million. Michael disclosed the contents of the appraisal to Sandra's attorneys during discovery. At trial, however, Michael chose not to introduce into evidence the appraisal of his expert. Attempts by Sandra's attorneys to introduce the appraisal of Michael's expert were rejected by the court as hearsay. Michael testified that the Raintree On August 29, 1984, the trial court entered a dissolution decree in which it determined that Sandra's and Michael's total net worth was $783,293. Both Michael and Sandra complied with the property distribution ordered in the decree. Sandra filed a timely motion to correct errors on October 29, 1984, raising nineteen allegations of error. 1 On January 18, 1985, before the trial court ruled on her motion to correct error, Sandra retained new counsel and filed a motion for relief from judgment pursuant to Ind.Rules of Procedure, Trial Rule 60(B). Sandra listed nine bases for relief in her T.R. 60(B) motion requesting that the trial court admit additional evidence and that it enter a new division of property. The first eight grounds are premised on Sandra's mistake or excusable neglect in presenting adequate evidence at trial valuing the marital assets. The ninth ground requests relief on equitable grounds. On April 11, 1985, Sandra filed an amended, verified motion for relief from judgment raising the same grounds as her earlier T.R. 60(B) motion.
parcel was valued at $1.9 million; Sandra's expert estimated the worth of the property at $1.89 million.
On May 22, 1985, the trial court, after hearing oral argument by the parties, found that valuation evidence presented by Sandra was immaterial or inadmissible. The trial court found Sandra failed to introduce relevant evidence on virtually all of the marital assets of substantial value because the assets were not valued as of the date that Michael filed his petition for dissolution of marriage. In order to remedy the prejudice suffered by Sandra as a result of finding Sandra's valuation evidence to be inadmissible and immaterial, the trial court entered a memorandum decision describing its action as a grant of both Sandra's motion to correct errors and her motion for relief from judgment.
The following excerpts capture the essence of the trial court's findings and conclusions:
"Whether under Trial Rule 60(B)(1) or 60(B)(8), Trial Rule 59, or the general equitable power of this Court, this Court has the authority, within the sound exercise of judicial discretion, to re-open the case in order to accept additional evidence.
....
7. Because [Sandra] did not sumbit [sic] evidence of the value of Century 21 Scheetz Co., Inc.; the residence; Scheetz & Singleton, Inc.; Grandview Associates Ltd.; Westgate Associates Ltd.; or Raintree Associates Ltd. as of a date or on the date of final separation of the parties, the Court had no alternative but to accept the evidence submitted by [Michael] as to each of these assets.
....
13. Because of the vast disparity in [the] two appraisals [of the Raintree property], and because the appraisal by [Michael] cannot be considered to be disinterested and objective, the Court finds that additional evidence should be submitted upon the valuation of these Florida properties as of June 2, 1983.
....
17. Because of the lack of any other relevant evidence, the Court was required to accept the valuation of the Century 21 Scheetz Co., Inc. prepared by Bruce D. Allman, offered by [Michael]. However, after re-considering the evidence, particularly the valuation report [Michael's Exhibit] and [Sandra's] Motion, the Court finds that the valuation report is incomplete, and the Court requires further evidence in order to determine the value of this marital asset as of June 2, 1983.
....
20. At the hearing on [Sandra's] Motion for Relief from Judgment, [Sandra] submitted certified copies of records from the Department of Metropolitan Development, Division of Development Services regarding the re-zoning of [40 acres of ....
real estate owned by Scheetz & Singleton, Inc.].
22. Based upon these certified records of the Department of Metropolitan Development, which were not a part of the evidence in this matter, the Court finds that it should reconsider its Finding of Fact 50, [ that land was not rezoned for residential development as of June 2, 1983], and its valuation of this marital asset, and permit the parties to introduce additional evidence upon this issue.
23. The Court further finds that the only significant asset of Scheetz & Singleton, Inc. was the 40 acre parcel of real estate, and that such a marital asset should be valued by a real estate appraiser, rather than merely by an accountant.
....
25. Based upon [Sandra's] Motion for Relief from Judgment, Motion to Correct Errors, supporting Memorandum and oral argument, the Court finds that ... real estate partnership interests [of Southwest Housing Ltd. and Southeast Housing Ltd.] may have a value as a tax shelter and should have distribution value upon sale or refinance of the real estate and, at least, would have as a value the basis or cost of acquiring the partnership interests.
26. Since value of these partnership interests is unknown and since their value could have an effect upon the equitable division of marital assets, additional evidence should be admitted.
27. [Michael] is a participant in the Century 21 Scheetz Co., Inc. 'Employees Pension Plan.' While the Court has found, based upon the testimony of Toni S. Ax, that [Michael] does not have a present right of withdrawal under this plan and that it is not, therefore, a marital asset, the Court was not provided with any evidence of the plan's value or of [Michael's] interest in the Plan.
....
29. Based upon [Sandra's] Motion for Relief from Judgment, Motion to Correct Errors, supporting Memoranda and argument, the Court finds that it should reconsider the value of the Employees Pension Plan to [Michael], at least as an economic circumstance, in its division of the marital assets and that it should permit evidence of said value as of June 2, 1983, to be offered by the parties.
30. The Court finds, based upon [Sandra's] Motion for Relief from Judgment and Motion to Correct Errors that the Decree is inconsistent with respect to the application of gross values and net values of the various marital assets. While the valuations of the Century 21 Scheetz Co., Inc., and the three Florida properties have been adjusted for selling costs and tax considerations, the residence and the lake house were not.
31. The Court finds that additional evidence should be offered so that it can determine both the gross and net valuations of the marital assets and that the valuations of marital assets be consistent in their application of gross or net value to the extent reasonable and proper.
32. Based on the Motion to Correct Errors, the Court also finds that, because of the disparity of earning ability of the parties, it should also reconsider Finding of Fact 138., relating to the payment of [Sandra's] cost of litigation and attorneys' fees.
....
Conclusions of Law:
1. That as a result of mistake, surprise or excusable neglect, or Court error, the evidence introduced at the original trial of this cause was inadequate, insufficient, incomplete and did not permit the Court to determine the fair value of the marital and other property owned by the parties for the purpose of establishing a fair and equitable division of marital property in the Decree which was entered in this matter.
2. That relief from the division of property is justified on [Sandra's] behalf."
The trial court then ordered a new trial for the presentation of additional evidence "only on the major assets where there was not a fair and full presentation of evidence."
Record at 440. Michael has never filed a motion to correct error with the trial court alleging what error, if any, was committed by the granting of Sandra's motion for relief from judgment.
In preparation for the hearing to admit additional evidence, Sandra requested discovery, authorization to hire expert witnesses, and attorney fees. The court granted Sandra's...
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