Haser, E. v. Haser, C. ( 2016 )

J-A35020-15
NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37
EDWARD P. HASER, IN THE SUPERIOR COURT OF
PENNSYLVANIA
Appellee
v.
CAROLINE HASER, N/K/A CAROLINE
JENNER,
Appellant No. 78 WDA 2015
Appeal from the Order December 15, 2014
In the Court of Common Pleas of Allegheny County
Family Court at No(s): FD 11-006647-006
BEFORE: BENDER, P.J.E., SHOGAN, and MUSMANNO, JJ.
MEMORANDUM BY SHOGAN, J.: FILED JANUARY 20, 2016
This is an appeal from an order interpreting a consent decree in a
matter of equitable distribution. We affirm.
Appellant, Caroline Haser, now known as Caroline Jenner (“Wife”) and
Appellee, Edward P. Haser (“Husband”) were married on March 19, 2005,
and separated on August 25, 2010. Husband filed a divorce complaint on
March 22, 2011, and Wife filed an answer, counterclaim, and petition raising
economic claims. Following lengthy discovery, the parties entered into a
consent decree of equitable distribution (“Consent Decree”) that resolved the
outstanding economic claims. The trial court approved the Consent Decree
on May 31, 2013.
The trial court summarized the pertinent history as follows:
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Husband is one of the owners of Reinsfelder Inc.
[(“Reinsfelder”)], a trucking company. Wife is the owner of Kuke
Lease LLC [(“Kuke”)], a trailer leasing company. On April 5,
2006, Kuke Lease LLC purchased four 2003 Manac steel flat
trailers for $51,560. On April 10, 2006, the parties signed an
Equipment Lease in which Kuke Lease LLC, Lessor, leased the
four Manac trailers to Reinsfelder, Inc., Lessee. Reinsfelder is to
pay $100 per week per trailer, payable every four weeks. Lessor
is responsible for the maintenance and repair of the trailers.
Paragraph 4 of the Equipment Lease provides as follows:
4. The Lessor agrees to deliver to the Lessee the
named equipment in good order and condition;
maintain the same in good working condition, furnish
all necessary oil, fuel, tires, misc. parts and repairs
for the operation of said equipment and to pay other
expenses incident to such operations.
The parties were unable to agree on provisions in the
Consent Decree and Equipment Lease relating to the four
trailers. Paragraph 7 of the Consent Decree provides as follows:
7. Husband has agreed to purchase the four (4)
2003 Manac flat trailers for the fair market value.
Parties will agree upon an appraiser and Husband
will pay the costs of the same. Husband will pay
Wife within thirty (30) days the fair market value of
the trailers as determined by the appraiser. Pending
the transfers of the trailers, the lease payments will
be made, so long as Wife does not unreasonably
withhold her agreement to an appraiser.
When the parties separated, Husband planned to buy the trailers
from Wife and he obtained appraisals from two different
companies. The first appraisal valued the trailers at $2,750
wholesale and $4,000 retail. The second appraiser valued them
at $3,500 wholesale and $6,500 retail. Wife refused to accept
either, and suggested that Husband retain Daniel Horgas of
Industrial Appraisal Company. Husband contacted Industrial
Appraisal Company to make arrangements for the appraisal.
Husband became concerned after several conversations with Mr.
Horgas that the company did not have the necessary experience
and expertise to appraise the trailers. In the interim, the trailers
needed repairs to keep them operational. Husband had one
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trailer repaired at a cost of $9,544. Due to the high cost of
repairs and a concern that Wife would not reimburse him, he did
not have the other three repaired. Husband stopped making
lease payments after June of 2013.
Wife filed a Petition to Enforce, and on November 7, 2013,
the [c]ourt ordered Husband to get an appraisal from Industrial
Appraisal Company and to pay Wife $8,000 in back lease
payments. Industrial Appraisal placed a value of $29,425 on the
four trailers. Husband offered to pay this amount to Wife, less
the $9,544 in repair costs. Wife refused and filed a Petition to
Enforce Consent Decree. The [c]ourt scheduled an expedited
conciliation but was unable to resolve the issue. The [c]ourt set
the matter for a hearing on July 23, 2014. The parties were
unable to present their evidence in the time allotted and a
second day of trial was scheduled for November 24, 2014. On
August 25, 2014, Husband presented a Motion requesting that
he be permitted to sell the trailers. By that time, they had
expired license plates, registrations and needed repairs. The
Motion was granted and Husband was permitted to sell the
trailers and place the proceeds in escrow. In September of
2014, Husband corresponded with Wife’s counsel asking for the
titles. Wife changed counsel and Husband filed a Motion for
Contempt to get the titles so he could sell the trailers.
At the hearing, Wife contended that Husband was
responsible for repairs under the Equipment Lease, and was
required to make lease payments under the Consent Decree
regardless of their condition. Husband contended that Wife is
responsible for keeping the trailers operational under the
Equipment Lease and that he should not have to make lease
payments after the trailers were no longer roadworthy. Both
parties sought counsel fees based on the other’s refusal to abide
by their agreements. On December 15, 2014, the [c]ourt issued
an [o]rder requiring Husband to pay Wife the full-appraised
value of the trailers in accordance with the Consent Decree. The
[c]ourt found that Wife was responsible for the repairs and that
Husband did not have to pay rent for the months that the trailers
were not operational. The net result was that Husband owed
Wife $23,681. Both requests for attorneys’ fees were denied.
Trial Court Opinion, 3/31/15, at 3–5. Wife timely appealed, and Wife and
the trial court both complied with Pa.R.A.P. 1925.
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Wife raises the following issues on appeal:
1. Did the Trial Court err in failing to consider and rule upon
the parties’ Consent Decree of Equitable Distribution that
was clear and unambiguous regarding the issue of the
trailers and the leasing thereof?
2. Was [W]ife responsible for the maintenance of the trailers
and, therefore, the cost for repairs?
3. Should [H]usband be found responsible for making the
rental payments for the trailers when he was obligated to
pay rent under the Equipment Lease and Consent Decree
of Equitable Distribution?
4. Should [W]ife be awarded counsel fees and expenses for
successfully enforcing the Consent Decree of Equitable
Distribution, which provided for payment of counsel fees
and expenses?
Wife’s Brief at 4.
“It is well-established that the law of contracts governs marital
settlement agreements.” Vaccarello v. Vaccarello, 757 A.2d 909, 914
(2000) (quoting Kripp v. Kripp, 849 A.2d 1159, 1163 (Pa. 2004));
Stamerro v. Stamerro, 889 A.2d 1251, 1259–1260 (Pa. Super. 2005).
Our courts observe the following principles in reviewing a trial court’s
interpretation of a marital settlement agreement:
Because contract interpretation is a question of law, this Court is
not bound by the trial court’s interpretation. Our standard of
review over questions of law is de novo and to the extent
necessary, the scope of our review is plenary as the appellate
court may review the entire record in making its decision.
However, we are bound by the trial court’s credibility
determinations.
When interpreting a marital settlement agreement, the
trial court is the sole determiner of facts and absent an abuse of
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discretion, we will not usurp the trial court’s fact-finding
function. On appeal from an order interpreting a marital
settlement agreement, we must decide whether the trial court
committed an error of law or abused its discretion.
Kraisinger v. Kraisinger, 928 A.2d 333, 339 (Pa. Super. 2007) (citation
omitted).
We have also reiterated this Court’s limited role in interpreting
contracts such as property settlement agreements between spouses:
A court may construe or interpret a consent decree
as it would a contract, but it has neither the power
nor the authority to modify or vary the decree unless
there has been fraud, accident or mistake.
* * *
It is well-established that the paramount goal of
contract interpretation is to ascertain and give effect
to the parties’ intent. When the trier of fact has
determined the intent of the parties to a contract, an
appellate court will defer to that determination if it is
supported by the evidence.
Lang v. Meske, 850 A.2d 737, 739 (Pa. Super. 2004) (internal
citations omitted) (quoting Osial v. Cook, 803 A.2d 209, 213–
214 (Pa. Super. 2002)). Further, where . . . the words of a
contract are clear and unambiguous, the intent of the parties is
to be ascertained from the express language of the agreement
itself. Brosovic v. Nationwide Mut. Ins., 841 A.2d 1071 (Pa.
Super. 2004).
Bianchi v. Bianchi, 859 A.2d 511, 515 (Pa. Super. 2004).
Wife first asserts that the trial court incorrectly relied upon and
interpreted the Equipment Lease to deduct the cost of repairs Husband made
to one trailer and to prematurely end the lease payments for three of the
trailers prior to their sale. Wife’s Brief at 11. Wife argues that because
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paragraph seven of the Consent Decree is unambiguous, it should be
interpreted and enforced as a contract without reference to the Equipment
Lease. Wife maintains alternatively that even if this Court concludes that
the trial court correctly interpreted the Equipment Lease as obligating Wife
to make repairs, the evidence shows that the lease “should have been
reformed to obligate” Husband to make repairs “under the doctrine of
mutual mistake.” Wife’s Brief at 12. She contends that the trial court
should have enforced the unambiguous language of the Consent Decree,
“which provided that [Husband] was to purchase the trailers for the value of
the appraisal and to continue making lease payments until the purchase
occurred.” Wife’s Brief at 13.
Husband counters that the trial court properly looked to the Equipment
Lease in addition to examining the Consent Decree. Husband’s argument on
this issue essentially is a restatement of the trial court’s findings. Husband’s
Brief at 12–14.
The trial court found the Consent Decree to be clear and unambiguous
regarding Husband’s obligations with respect to selling the trailers, and it
ordered Husband to pay the trailers’ full appraised price. We find no error
on the part of the trial court in considering the parties’ pre-existing
Equipment Lease. The Consent Decree did not address, exclude, or alter the
Equipment Lease; it merely provided that Husband was to buy the trailers
from Wife at the appraised value and pay the Equipment Lease pending the
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transfer. In the absence of any specific case law compelling Wife’s
contention, we reject her suggestion that the trial court was obligated to
consider the Consent Decree in a vacuum, without examining the relevant
Equipment Lease.
Wife next assails the trial court’s finding that Wife, as lessor, was
responsible for the maintenance and repairs of the trailers. Wife’s Brief at
14. She acknowledges that under the terms of the equipment Lease, the
lessor is responsible for repairs, and it was undisputed that Wife did not
maintain the trailers. Id. Wife argues, however, that the Equipment Lease
was created by mutual mistake. Id. Wife contends that while it refers to
Husband’s company, Reinsfelder, as Lessee and Wife’s company, Kuke, as
Lessor, many of the Equipment Lease’s provisions described duties of the
Lessor that, in fact, were fulfilled by Husband’s company, Reinsfelder, the
lessee. Thus, Wife sought reformation of the entire Equipment Lease under
the doctrine of mutual mistake, “because the parties committed a mutual
mistake as to the terms lessor and lessee in the provisions of the Equipment
Lease.” Id.Relatedly, Wife contends that paragraph four of the Equipment Lease,
which required the “Lessor” to be responsible for all maintenance and
repairs, actually referred to Husband. Wife’s Brief at 16. Wife acknowledges
signing the Equipment Lease with the designations of Kuke as Lessor and
Reinsfelder as Lessee. However, she suggests that the actions of the parties
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throughout the lease and the wording of the lease itself demonstrate that
the parties intended that Husband was the Lessor for the purpose of
paragraph four of the Equipment Lease. Therefore, Wife asserts that
Husband was responsible for the costs of the repairs. Id. at 20.
Husband responds that Wife’s argument requires this Court to consider
only the Consent Decree and not the parties’ pre-existing Equipment Lease,
which provided that Wife’s company, Kuke, leased the trailers to Husband’s
company, Reinsfelder, and required Wife, as the Lessor, to maintain the
trailers in working order. Husband’s Brief at 17. Husband asserts that it
was undisputed that Wife did not maintain the trailers. Id. Husband
contends that the net effect of Wife’s position “would have Husband pay the
appraised price for the trailers plus all the repair costs and continue to make
lease payments on trailers he could not use because Wife did not abide by
the terms of the [Equipment] Lease to maintain the trailers. . . .” Id.
The trial court noted that Wife acknowledged that under the terms of
the Equipment Lease, Lessor is responsible for repairs. Trial Court Opinion,
3/31/15, at 6. Moreover, it stated that Wife did not take issue with the cost
or necessity of the repairs. Id. The trial court maintained that according to
Wife, there is no other way that the Equipment Lease, which refers to the
Lessor as “he” throughout, makes sense. Thus, in response to Wife’s effort
to have the Equipment Lease equitably reformed under the doctrine of
mutual mistake, the trial court relied on Giant Food Stores, LLC v. THF
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Silver Spring Development, LP, 959 A.2d 438 (Pa. Super. 2008), and
Zurich American Ins. Co. v. O’Hanlon, 968 A.2d 765 (Pa. Super. 2008).
The trial court held:
Husband testified that the Equipment Lease was a
standard lease used in the industry. The Lease places
responsibility on Lessor as owner to keep the equipment in good
repair and operational. He acknowledged that during the
marriage he often paid for repairs without seeking
reimbursement from Wife. According to Husband, there was
plenty of money available and everything came out of the same
pocket, so it made no difference. However, Husband was not
mistaken regarding which party was responsible for the repairs
under the Equipment Lease. The Court agrees that some of the
provisions cited by Wife make more sense if Husband bore the
responsibilities attributed to the Lessor. However, paragraph
4[,] which requires the Lessor to deliver the equipment in good
working condition[,] is not one of them. Moreover, Wife
carefully reviewed the document before signing, as is evident in
the changes she made and initialed to Paragraph 3 relating to
insurance. Wife failed to meet her burden of coming forward
with clear and convincing evidence entitling her to reformation of
the Equipment Lease.
Trial Court Opinion, 3/31/15, at 6–7 (emphasis added).
Mutual mistake will afford a basis for reforming a contract. Zurich,
968 A.2d at 770. In determining whether a mutual mistake occurred, the
court should consider, “the subject matter, the apparent object or purpose of
the parties and the conditions existing when it was executed.” Voracek v.
Crown Castle USA Inc., 907 A.2d 1105, 1108 (Pa. Super. 2006). Mutual
mistake exists “only where both parties to a contract are mistaken as to
existing facts at the time of execution.” Zurich, 968 A.2d at 770. To obtain
reformation of a contract because of mutual mistake, the moving party is
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required to show “the existence of the mutual mistake by evidence that is
clear, precise and convincing.” Id. (citing Holmes v. Lankenau Hosp.,
627 A.2d 763, 767–768 (1993) (citations and quotation marks omitted)).
A reformation of a written instrument is a matter of equity. See
Evans v. Marks, 218 A.2d 802, 805 (Pa. 1966). Courts sitting in equity
“have the power to reform a written instrument where there has been a
showing of fraud, accident or mistake.” Id. (citation omitted). Further, “[a]
mutual mistake is 1. A mistake in which each party misunderstands the
other’s intent . . . . 2. A mistake that is shared and relied on by both parties
to a contract.” Regions Mortg., Inc. v. Muthler, 889 A.2d 39, 41 (Pa.
Super. 2005) (citation and internal quotation marks omitted). “[E]vidence
of a mistake must be clear and convincing.” Jones v. Prudential Prop.
and Cas. Ins. Co., 856 A.2d 838, 844 (Pa. Super. 2004). “It is a well-
known general rule that where parties have come to a mutual understanding
as to the terms to be embodied in a proposed written contract or
conveyance, and the writing executed is at variance with that understanding,
it will be reformed to express their intention.” Broida, in Own Right and
For Use of Day v. Travelers' Ins. Co., 175 A. 492, 493–494 (Pa. 1934)
(citations omitted).
We agree with the trial court that some of the provisions cited by Wife
“make more sense” if Husband bore the responsibilities attributed to the
Lessor. Trial Court Opinion, 3/31/15, at 7. Like the trial court, however, we
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conclude that paragraph four, which requires the Lessor to deliver the
equipment in good working condition, is not one of them. Significantly, it is
clear that Wife carefully reviewed the Equipment Lease, as is evidenced by
her alteration of paragraph three. Answer to Defendant’s Petition to Enforce
Consent Order of Equitable Distribution, Equipment Lease, Exhibit B, at ¶ 3.
As Wife failed to meet her burden of providing clear and convincing
evidence, Jones, 856 A.2d 838, the trial court did not err or abuse its
discretion in concluding that Wife is not entitled to reformation of the
Equipment Lease.
In issue three, Wife continues her argument that there was a mutual
mistake and that Husband, not Wife was obligated to maintain and repair
the trailers. Wife’s Brief at 21. Thus, she suggests Husband owed $31,600
for rent, not $11,800 as determined by the trial court. Id. In the
alternative, in the absence of mutual mistake and conceding that she was
obligated to repair the trailers, Wife suggests that because Husband paid for
repairs before the parties’ separation, despite the absence of any obligation
for him to do so, the rental cost remained his debt. Id. at 22. Wife
maintains that assuming she was responsible under both the Equipment
Lease and the Consent Decree for repairing the trailers, the trial court erred
by ceasing the lease payments prior to Husband providing notice of the
defects on October 17, 2013, the date of a letter from Husband’s counsel to
Wife’s counsel describing the trailers’ condition. Id.
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Husband responds that because the trial court found that the
provisions of the Equipment Lease were clear and unambiguous, “the
question turns on why did the Trial Court allow lease payments from
Husband to terminate as of August, 2013 and how is that supported by the
facts and law.” Husband’s Brief at 20. Husband asserts that the trial court
correctly determined that Husband proved that Wife did not maintain the
trailers in good condition and that three of the trailers were not operational.
Husband asserts that the trial court correctly found that Wife’s failure to
perform under the Equipment Lease was a valid defense to Husband’s
obligation to make lease payments. He cites Wayda v. Wayda,1 576 A.2d
1060 (Pa. Super. 1990), for the proposition that the trial court may use
equitable distribution to enforce an agreement or otherwise achieve equity in
light of an agreement and the spouses’ conduct.
In addressing this issue, the trial court noted that according to the
Equipment Lease, the Lessor is to deliver the equipment in good order and
condition and maintain it in good working condition. Trial Court Opinion,
3/31/15, at 7; Answer to Defendant’s Petition to Enforce Consent Order of
Equitable Distribution, Equipment Lease, Exhibit B, at ¶ 4. Wife did not
maintain the equipment in good working condition. After August of 2013,
only one of the trailers was operational. The trial court found that Husband
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1
As Wife notes in her reply brief, Husband incorrectly titles this case as
Wayden v. Wayden. Wife’s Reply Brief at 3.
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removed the other three trailers out of service because he could not afford
the costly repairs and determined that “Husband’s obligation to pay rent for
the trailers necessarily depended on being able to use them in his trucking
business.” Trial Court Opinion, 3/31/15, at 7. The record supports this
conclusion. N.T., 7/23/14, at 19–22, 51–59, 83–86; N.T., 11/24/14, at 81.
Because the trial court agreed that Husband should not be obligated to make
payments for trailers that were not usable due to their condition, it held that
Husband’s obligation was to pay $400 per week through August, and $100
per month thereafter. Id. We do not find this conclusion by the trial court
was an abuse of discretion or error of law; thus, we reject Wife’s claim.
Finally, Wife avers that she sought counsel fees and expenses for her
efforts to enforce the Consent Decree pursuant to paragraph seventeen of
the Consent Decree.2 Wife’s Brief at 24. She contends that the trial court
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2
Paragraph seventeen provides as follows:
17. It is expressly stipulated that if either party fails in the due
performance of any of his or her obligations with the exception
of unreimbursed medical expenses, under this Agreement, the
other party shall have the right, at his or her election, to sue for
damages for breach thereof, to sue for specific performance and
to seek any other legal remedies as may be available. In the
event that such action is resolved in whole or in part in favor of
the non-defaulting party, either by Court proceedings or
settlement–the defaulting party shall reimburse the non-
defaulting party his or her counsel fees, costs and expenses
incurred by the non-defaulting party in any such action or
proceeding to compel performance hereunder.
(Footnote Continued Next Page)
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effectively modified the parties’ agreement when it refused to award her
counsel fees. In support, Wife submits that matters within the divorce code
are enforceable as an order of court, citing 23 Pa.C.S. § 3105(a), and she
maintains that provisions in such an agreement for counsel fees are not
modifiable absent a specific provision to the contrary, citing 23 Pa.C.S. §
3105(c). In addition, Wife cites to Creeks v. Creeks, 619 A.2d 754 (Pa.
Super. 1993), contending that where a property settlement agreement had a
similar provision providing for counsel fees in the event of a breach, this
Court reversed the trial court’s determination that the parties had not
breached their settlement agreement and remanded to the trial court to
determine the full amount of counsel fees for the wife’s efforts to enforce the
agreement, including the cost of the appeal. Id. at 757–758.
Wife asserts that the trial court incorrectly relied on 42 Pa.C.S. §
2503(7), which provides for payment of counsel fees as a sanction when a
party engages in dilatory, obdurate, or vexatious conduct. Wife suggests
instead, that her claim for counsel fees is not related to Husband’s conduct
_______________________
(Footnote Continued)
Should either party unsuccessfully sue for specific
performance or damages for the breach of this Agreement, the
party initiating the unsuccessful suit for specific performance or
damages for breach of this Agreement shall pay the reasonable
legal fees and costs for any services rendered by the attorney
representing the party who has successfully defended said action
as well as any other attendant expenses relative to said
successful defense of said action or proceeding.
Consent Decree, 5/31/13, at ¶ 17.
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but to her own efforts to enforce the Consent Decree, and is based solely on
paragraph seventeen of the Consent Decree. Wife’s Brief at 27. Looking to
the plain language of the Agreement, Wife maintains that it provides for
counsel fees if enforcement proceedings must be brought, and she argues
that she is entitled to counsel fees under the terms of the agreement as the
prevailing party. Id. (citing Creeks, 619 A.2d at 757).
Husband counters that Wife did not file her Petition to Enforce the
Marital Settlement Agreement with clean hands. He urges that Wife wanted
Husband to continue to make lease payments as well as purchase the
trailers, even though Wife caused the trailers “to be in such a state of
disrepair that they were not roadworthy—not worthy of continued lease
payments.” Husband’s Brief at 22. In addition, Husband suggests that Wife
refused to obey a court order requiring her to deliver the trailer titles to
Husband so he could look to recoup his losses.
We agree with the trial court’s resolution of this issue. The trial court
acknowledged that counsel fees may be awarded as a sanction against
another participant for dilatory, obdurate, or vexatious conduct during the
pendency of a matter. 42 Pa.C.S. § 2503(7). It held:
Both parties were equally within their rights, and equally at fault
for their inability to settle their differences over the sale and
lease of these trailers. The [c]ourt found in favor of Wife on the
sale of the trailers, and in favor of Husband on the lease
payments. The [c]ourt did not find that either party engaged in
dilatory, obdurate, or vexatious conduct during the pendency of
the matter.
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Trial Court Opinion, 3/31/15, at 8.
Even considering paragraph seventeen of the Consent Decree, in light
of the trial court’s conclusions that both parties were within their rights and
equally at fault, and in light of its findings in favor of Husband and Wife on
separate, but intertwined issues, there was no “prevailing party.” The trial
court’s decision to deny counsel fees will be affirmed.
Order affirmed.
Judgment Entered.
Joseph D. Seletyn, Esq.
Prothonotary
Date: 1/20/2016
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