v.
Tracie Ondich DeLuca
Present: Judges Humphreys, Chafin and AtLee
UNPUBLISHED
Argued at Lexington, Virginia
PETER ANTHONY DELUCA
MEMORANDUM OPINION* BY v. Record No. 1560-18-3 JUDGE RICHARD Y. ATLEE, JR. MAY 21, 2019 TRACIE ONDICH DELUCA
FROM THE CIRCUIT COURT OF AMHERST COUNTY J. Michael Gamble, Judge Designate
Seth C. Weston (Law Office of Seth C. Weston, PLC, on briefs), for appellant.
Brian R. Moore (The Moore Law Firm, PLLC, on brief), for appellee.
Peter Anthony DeLuca (“husband”) appeals the decision of the Circuit Court of Amherst
County (“trial court”) that held him in contempt of court for failure to pay spousal support to
Tracie Ondich DeLuca (“wife”).1 On appeal, husband assigns twelve errors to the trial court’s ruling. Additionally, wife sets forth three assignments of cross-error. For the reasons that follow, we affirm in part and reverse in part.
I. BACKGROUND
“[W]e view the evidence in the light most favorable to the prevailing party, granting it the benefit of any reasonable inferences.” Congdon v. Congdon, 40 Va. App. 255, 258 (2003).
* Pursuant to Code § 17.1-413, this opinion is not designated for publication.
[*1]We recognize that “former husband” and “former wife” would be more accurate, but we use less cumbersome titles in this memorandum opinion for ease of reference.
Husband and wife married on October 3, 1992. On January 25, 2008, husband and wife entered into a property settlement agreement (“PSA”). The parties legally divorced on January
3, 2013, and the PSA was incorporated into, but not merged with, the final decree of divorce.
Relevant to this appeal, the PSA requires husband to pay the mortgage on the marital home, which was to be titled solely in wife’s name. Paragraph 4 of the PSA states that
“[h]usband shall support [w]ife in the manner to which she is accustomed and is currently being supported, recognizing the need of [w]ife to educate and nurture [the child].” Paragraph 6 provides that wife
shall receive a fifty-percent (50%) share of all of [h]usband’s military retirement pay and benefits. She shall be entitled to her legal share of any and all additional pay and benefits due her, having been in the marriage for more than fifteen years of [h]usband’s active-duty service time for retirement.
Additionally, the parties agreed that each party would pay his or her own attorney’s fees.
A. Events Leading to the First Appeal - DeLuca 1
On May 28, 2013, wife filed a motion to show cause, alleging that husband had failed to comply with the spousal support obligations in the PSA and a declaratory judgment action asking
the trial court to interpret the PSA. Because the PSA did not set a specific dollar amount of spousal support, the trial court ordered an evidentiary hearing to allow it to perform a retrospective analysis to determine whether husband had complied with the PSA.
After hearing the evidence, the trial court determined that the relevant time period was the year prior to the parties entering the agreement. During that time, wife received an average
of $4,373 each month in support from husband. Thus, the trial court concluded $4,373 was the amount the parties intended as the spousal support obligation under the PSA. Husband paid less than that each month from May 4, 2010 through April 1, 2014, and, relying on the numbers in an exhibit presented by wife, the trial court set the arrearages at $121,976.
[*2]The trial court asked wife’s attorney to prepare an order consistent with its ruling. The proposed order stated that husband owed “$4,373.00 net per month after taxes” and that husband had failed to meet his support obligation “in the net amount after taxes of $121,976.00.” The trial court informed the parties that it had crossed out “after taxes” in both places. The order
stated that it was a final order on the issue of support but that the trial court took the issue of contempt under advisement.
Husband appealed to this Court. In an unpublished opinion, a panel of this Court held that the agreement was unambiguous and the plain meaning of the PSA required husband to pay
“a sum certain in monthly spousal support.”2 DeLuca v. DeLuca, No. 1158-14-3, at *8
(Va. Ct. App. May 19, 2014) (“DeLuca 1”). It affirmed the trial court’s award of $4,373 per month.
B. Events Leading to the Second Appeal - DeLuca 2
While DeLuca 1 was pending before this Court, husband voluntarily retired from his position with the military. He began receiving his military retirement pay, and, as required under the PSA, wife began receiving $4,608.25 monthly, her fifty-percent share of husband’s pension.
Simultaneous with his retirement, husband stopped paying spousal support, leading wife to file her second motion to show cause.
Husband argued that he should receive a monthly credit against his spousal support
obligation each month for the amount of wife’s share of the pension payment. He argued that the spousal support was not supposed to be a sum certain but rather was intended to support a certain lifestyle. According to husband, the parties intended that the retirement payment would replace the spousal support to support wife in that lifestyle. Wife argued that the retirement payment was intended as a separate obligation that was part of the equitable distribution of marital assets, not spousal support.
[*3]The trial court initially ruled in favor of husband, finding that he was entitled to a credit.
The trial court noted that wife’s interpretation would result in wife receiving nearly the entire amount of husband’s retirement pay, which it deemed a “tortured construction of the agreement.”
Wife filed a motion to reconsider. The trial court granted the motion and withdrew its
prior ruling, finding that husband was not entitled to a credit because the PSA did not contain language linking the two provisions, nor did it use the word “credit.” The trial court noted that it made the ruling “with great reluctance” because the “financial impact doesn’t seem right,” but that the court was legally bound to enforce the terms agreed upon by the parties.
Additionally, the trial court recalculated the arrearages and stated that husband was not
required to pay the state and federal taxes on the spousal support, an issue that arose during the hearing on the motion to reconsider. As it had before, the trial court took the issue of whether husband was in contempt under advisement.
Husband again appealed the decision to this Court. Prior to oral arguments, a panel of this Court asked the parties to provide supplemental briefing on whether it had jurisdiction over the appeal since the trial court did not adjudicate the issue of contempt. Ultimately, the panel determined it did not have subject matter jurisdiction because the trial court’s order was not final.
The order lacked finality because it took the contempt issue under advisement and thus did not
dispose of the whole case. See DeLuca v. DeLuca, No. 1249-16-3, *2 (Va. Ct. App. Mar. [7], 2017) (unpublished order) (“DeLuca 2”). Husband argued that the order in DeLuca 1 similarly lacked finality, but, since the issue was beyond the scope of the appeal, this Court declined to address it.
[*4]C. Events Leading to the Current Appeal
In response to the ruling in DeLuca 2, husband filed two motions with the trial court. In the first motion, he asked the trial court to declare DeLuca 1 void ab initio for lack of subject
matter jurisdiction. He argued that the DeLuca 1 order contained the same lack of finality as the order in DeLuca 2. The trial court denied husband’s motion, noting that DeLuca 2 was unpublished and did not address DeLuca 1 and therefore did not require voiding DeLuca 1.
Because this Court had addressed the merits in DeLuca 1, the trial court determined that it meant either “explicitly or implicitly . . . the Court felt that it had jurisdiction in that matter.”
Husband’s second motion asked the trial court for leave to file a late motion for declaratory judgment. He argued that the declaratory judgment action was necessary because he
would have no way to appeal the PSA interpretation rulings if the court did not hold him in contempt. Husband contends he did not want to relitigate issues; he only wanted the trial court
to issue an order incorporating all of its prior orders into the declaratory judgment action. The trial court denied the motion, deeming it unnecessary to issue an order about orders long since issued.
Wife also filed a third motion to show cause arguing that husband still was not paying
spousal support and was also not paying the entire mortgage payment. On October 18, 2017, the trial court ruled on all three motions to show cause. The trial court determined husband was not guilty of contempt on the first motion to show cause because he was unaware of the exact amount of support owed. Nor was he in contempt on the second motion to show cause because he had a good faith legal argument about the retirement pay as a credit against the spousal support and because the opinion in DeLuca 1 had not yet been issued. The trial court did find husband guilty of contempt on wife’s third motion to show cause. The trial court found that husband’s average monthly income was between $10,000 and $11,000 per month. When he did not pay spousal support, he had $1,100 left over after his other expenses. Additionally, husband was paying his attorneys $3,000 per month, which could be reduced to meet his support obligation. Although husband may not have been able to pay the entire amount, the trial court determined he could have paid at least some of the support obligation. The trial court sentenced him to thirty days in jail, and it set a hearing to determine husband’s current financial circumstances, calculate the arrearages, and establish a payment schedule. If husband paid his obligations from October 2017 through the date of the hearing, the trial court would suspend the jail sentence.
[*5]Husband testified at the hearing that he had worked as a consultant for various projects.
He presented a spreadsheet showing his income from each consulting job and his retirement pay since 2014. Husband’s attorney argued that husband could only afford to pay a few hundred dollars per month towards the arrearages. During his testimony, however, husband stated that he already owed wife about $7,700 per month, and, when it came to arrearages, “he would ask to try and keep th[e combined total] to something under $8,500 per month.” The trial court concluded that husband had earned $135,926 from employment over the past eighteen months, which
averaged $7,551 per month. Based on the combination of his earned income and retirement pay, the trial court ordered husband to pay $2,000 per month towards the arrearages.
During the hearing, husband pointed out an apparent math error in the calculation of arrearages in the May 22, 2014 order. According to him, the arrearage should have been
$91,377.01 rather than the $121,976 that the trial court set—a difference of $30,598.99.3
Husband argued that the trial court should use its equitable power to apply a credit to the May
22, 2014 arrearage. Wife argued that husband had not objected to the calculation at the time the order was entered and that the order was final and had already been affirmed in DeLuca 1. The trial court took that issue under advisement in order to review the documents.
[*6]Eventually, the trial court determined that it had made a mathematical error. The trial court awarded husband a credit of $30,598.99 because it was not fair that husband bear the full
burden for the miscalculation. But, because husband had not objected at the time and out of fairness to wife, the trial court awarded the credit to the current arrearage, not to the May 22, 2014 arrearage. Wife could then collect interest on the $121,976 arrearage pursuant to Code
§ 20-78.2, while husband ultimately received the credit. Both parties objected.
At the hearing, husband also argued that interest on the arrearages requires a final order, and he again argued that the May 22, 2014 order was not a final order. Therefore, interest should
only apply to the arrearages after the final order of contempt was entered, not from the date the trial court calculated the arrearages in each temporary order. The trial court determined that
Code § 20-78.2 allowed interest on the arrearages in orders setting out arrearages if the total arrearage was greater than the total of three months of support. Thus, from April 25, 2014 to
March 1, 2016, the arrearages of $121,967 would earn interest at 6%. From March 1, 2016 to
October 10, 2017, the updated arrearages of $185,229 would earn interest at 6%. From October
10, 2017 through April 26, 2018, the arrearages of $272,702 would earn interest at 6%. Finally, the trial court calculated the current arrearages, before applying the credit, as $268,080. After subtracting the credit, the arrearages were $237,481.01, and they too would earn interest at 6%.
Finally, wife requested attorney’s fees for her efforts to collect arrearages. Husband argued that wife was not entitled to them because the PSA provided that each party would pay
their own attorney’s fees. Wife argued that Code § 20-78.2 allowed for attorney’s fees in attempts to collect arrearages if the arrearages were greater than three months of support. The trial court agreed. Noting the PSA, however, the trial court limited its ruling to those fees accumulated in preparing for the April 26, 2018 hearing on arrearages and ability to pay.
[*7]Husband and wife both objected to the final order. Husband appealed to this Court.
II. ANALYSIS
A. Husband’s Assignments of Error Husband assigns twelve errors to the trial court’s ruling. We address each assignment of error in turn before addressing wife’s assignments of cross-error.
1. Authority of the Trial Court to Vacate a Court of Appeals Opinion4
In DeLuca 2, a panel of this Court determined it did not have subject matter jurisdiction to consider an appeal because the trial court’s order took the issue of contempt under advisement
and thus was not a final order. Husband argues that the order in DeLuca 1, which also took the contempt issue under advisement, is likewise not a final order, and, therefore, the trial court erred when it refused to declare our opinion in DeLuca 1 void ab initio for lack of subject matter jurisdiction.
“A trial judge is bound by a decision and mandate from this Court, unless we have acted outside our jurisdiction.” Rowe v. Rowe, 33 Va. App. 250, 257 (2000). A decision of a court entered without jurisdiction is a complete nullity and may be “impeached directly or collaterally by all persons, anywhere, at any time, or in any manner.” Singh v. Mooney, 261 Va. 48, 52
(2001) (quoting Barnes v. Am. Fertilizer Co., 144 Va. 692, 705 (1925)). The issue here, however, becomes whether a lower court can determine that a higher court lacked jurisdiction and then ignore a direct mandate from the higher court. Husband’s position that the trial court should have declared our opinion void ab initio for lack of subject matter jurisdiction is the equivalent of saying that we could ignore a mandate of the Supreme Court of Virginia if we determine that it lacked jurisdiction. The Supreme Court would almost certainly disagree.
[*8]Although a party may attack an allegedly void judgment, we cannot agree that a lower court, in this case the trial court, is the appropriate forum to attack the jurisdiction (and mandate) of a higher court.[5] Therefore, the trial court did not err in denying husband’s motion.[6]
2. Contempt
Husband next argues that the trial court erred by finding him in contempt because he did not willfully disobey the court order but, instead, he was financially unable to comply.
We review the trial court’s exercise of its contempt powers for an abuse of discretion.
DHRI, Inc. v. Hanback, 288 Va. 249, 254 (2014). “A trial court may hold a support obligor in contempt for failure to pay where such failure is based on unwillingness, not inability, to pay.”
Barnhill v. Brooks, 15 Va. App. 696, 704 (1993).
In Barnhill, the support obligations exceeded the obligor’s income, and, after borrowing money and filing a motion to reduce his obligations, the obligor stopped paying. 15 Va. App. at
704-05. The trial court did not hold the obligor in contempt. On review, we determined that, “[a]lthough the trial court could, in its discretion, have ruled that the [obligor] should have paid at least a portion of the support due appellant, it did not so hold.” Id. at 705.
[*9]Here, despite an average income between $10,000 and $11,000 per month, and a positive balance of $1,100 after all of his expenses (excluding spousal support) were paid, husband failed to pay any spousal support from March 21, 2016 through October 10, 2017. The trial court also
noted that husband paid his attorneys $3,000 per month, which could be reduced and, in combination with the $1,100 positive balance, used to meet at least part of his support obligations. The record supports the trial court’s finding that husband could have met at least a portion of the support due. As we held in Barnhill, it is within the trial court’s discretion to hold that a failure to pay at least some portion of the support due is willful disobedience of a court order. Thus, the trial court did not err.
3. Retirement Pay as a Credit Against Spousal Support
Husband argues that wife’s share of his retirement pay should be credited against his spousal support obligation. He also argues that the contract is ambiguous and that the Court must consider the evidence presented at the hearing to determine the intent of the parties.
We review the trial court’s interpretation of the PSA de novo. Jones v. Gates, 68
Va. App. 100, 105 (2017). A PSA is a contract “subject to the same rules of construction that
apply to the interpretation of contracts generally.” Id. (quoting Southerland v. Estate of Southerland, 249 Va. 584, 588 (2017)). “The question for the court is what did the parties agree to as evidenced by their contract.” Schuiling v. Harris, 286 Va. 187, 192 (2013) (quoting Wilson
v. Holyfield, 227 Va. 184, 187 (1984)). “Where there is no ambiguity in the terms of a contract, we must construe it as written.” Smith v. Smith, 3 Va. App. 510, 514 (1986). “Contracts are not rendered ambiguous merely because the parties disagree as to the meaning of the language employed by them in expressing their agreement.” Wilson, 227 Va. at 187.
- 10 - Here the terms are clear and unambiguous.[7] The two paragraphs at issue are entirely separate; they are separately numbered and separately titled. They do not follow immediately after each other, nor do they contain any language linking them together. Paragraph 4, which provides for spousal support, does not contain an end date, reference to a credit, or any reference to modification upon retirement or any other circumstance.[8] Paragraph 6, which provides for the distribution of retirement pay, does not contain any reference or link to paragraph 4. The language of paragraph 6 references wife’s “legal share” and her entitlement based on the length of time she was in the marriage. This language suggests paragraph 6 is part of an equitable distribution award rather than a spousal support replacement. Husband relies on McGuire v. McGuire, 10 Va. App. 248, 252 (1990), where this Court rejected the argument that a federal pension was part of an equitable distribution award and, as such, could not be considered when setting spousal support. That case is inapplicable here. In McGuire, the PSA allowed modification of spousal support by proper motion to the court. The statutory factors in Code § 20-107.1(E) specifically direct a trial court to “consider the needs and financial resources of the parties including but not limited to income from all pension, profit sharing or retirement plans.” The PSA here, however, prohibits modification except by