Starr v. Starr, 46502

• Decision Date: 18 February 1977
• Docket Number: No. 46502,46502
• Citation: 312 Minn. 561,251 N.W.2d 341
• Parties: Phyllis J. STARR, Respondent, v. Edward P. STARR, Appellant.
• Court: Minnesota Supreme Court

Page 341

251 N.W.2d 341

312 Minn. 561

Phyllis J. STARR, Respondent, v. Edward P. STARR, Appellant.

No. 46502.

Supreme Court of Minnesota.

Feb. 18, 1977.

Thomson, Wylde & Nordby and Fred A. Reiter, Minneapolis, for appellant.

Schway & Gotlieb and Eugene J. Schway, St. Paul, for respondent.

Considered and decided by the court without oral argument.

PER CURIAM.

The parties to this action were divorced by judgment and decree on August 13, 1973, in accordance with the terms of a stipulation between the parties. The stipulation and decree granted custody of the parties' seven minor children to plaintiff and provided that defendant pay child support in the amount of $100 per month per child. In addition, the stipulation and judgment and decree provided as follows:

"That as additional support for the minor children, Defendant shall pay to Plaintiff 25% of the increase in the net taxable income of Defendant up to $10,000.00 of additional net taxable income and shall pay 10% of the net taxable income of the next $20,000.00 of increased taxable income, which sum shall be paid to Plaintiff within 30 days after the date required for filing a tax return for Defendant commencing with the tax return due the year 1974. In connection therewith Defendant shall furnish to Plaintiff a copy of his partnership tax return and his personal income tax return for the preceding year. This procedure shall be followed each and every year so long as he shall be required to pay support or alimony. At this time Defendant has a net taxable income of $14,000.00 per year and any increases shall be considered from that point." (Italics supplied.)

The instant appeal arises from plaintiff's motion to find defendant in contempt of court for the violation of this and other provisions of the judgment and decree. Upon a hearing in the Ramsey County Family Court, the referee considered arguments upon the precise meaning of the term "net taxable income" within the context of the judgment and decree.

The referee concluded from the surrounding circumstances, the negotiations preceding the stipulation, and practical considerations that "net taxable income" as used in the decree was to be construed as adjusted gross income. As such, defendant's 1973 income tax return reflected an increase of $9,186, of which 25 percent or $2,296.50 was awarded to plaintiff as additional child support. The referee's findings, order, and memorandum were confirmed by the district court over the objections of defendant.

The sole issue presented is whether the district court erred in construing the term "net taxable income" to mean adjusted gross income.

The general rule for the construction of contracts, which the parties agree governs the interpretation of the stipulation, is that where the language employed by the parties is plain and unambiguous there is no room for construction. ¹ North Star Center, Inc. v. Sibley Bowl, Inc., 295 Minn. 424, 205 N.W.2d 331 (1973). Defendant argues that the phrase "net taxable income" as contained in...