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Summary of Ledvinka v. Ledvinka, No. 2900, Sept. Term, 2002 (Ct. Spec. App. Md., filed Dec. 29, 2003)

Factual and Procedural Background

Appellee Joann Ledvinka filed an Amended Complaint for Annulment, Custody, Alimony and other relief, which originally contained three counts: (1) annulment; (2) intentional infliction of emotional distress; and (3) fraud (fraudulent inducement to marry). Counts two and three were eventually dismissed by appellee. The parties stipulated prior to the December 17–18, 2002 hearing that the only issues before the court were annulment, custody of the minor child (Mark Edward Ledvinka), visitation, and attorney's fees, and that there was no marital property to be valued and distributed.

Appellant Edmund F. Ledvinka, Jr. had previously been married to Velma Ledvinka; that earlier marriage did not become final in divorce until July 20, 1998. The parties were married in 1995, separated in 1997, and had one child born in 1996.

Relevant to this appeal, appellant had owned an interest in property located at 19730 Eagle Mill Road with his brother Charles from 1991 through June 1998; on June 22, 1998 appellant transferred his interest to Joyce Hohner for no consideration. At trial appellee raised, during closing argument, the question of valuing assets that may have been fraudulently transferred in connection with her request for attorney's fees; appellant responded that fraudulent conveyance had not been pleaded or made an issue. The trial court took the matter under advisement.

On January 28, 2003 the trial court entered an absolute divorce (concluding appellant was already married at the time of the 1995 marriage), awarded custody and visitation terms, reserved on fraudulent conveyance and attorney's fees, and in a separate written Ruling and Opinion found that appellant had engaged in a fraudulent conveyance of the Eagle Mill property in violation of Md. Code (2000), §§ 15-206 and 15-207 of the Commercial Law Article, set aside the conveyance to the extent necessary to satisfy an award of attorney's fees, and awarded appellee $27,000 in attorney's fees (the amount had been amended at trial to $26,000 on the record, but the court's written order reflects $27,000).

Legal Issues Presented

  1. Whether the trial court erred by setting aside the conveyance of 19730 Eagle Mill Road as a fraudulent conveyance pursuant to Md. Code (2000), §§ 15-206 and 15-207 of the Commercial Law Article when that cause of action was neither pleaded nor relief requested prior to trial.
  2. Whether the trial court erred by setting aside the conveyance when the grantee and the heirs of the deceased grantor were not named as parties to the proceedings.
  3. Whether the trial court erred by awarding appellee $27,000.00 in attorney's fees.

Arguments of the Parties

Appellant's Arguments

  • The fraudulent conveyance claim was neither pleaded in the amended complaint nor included among the issues the parties stipulated would be tried; therefore the trial court had no authority to set aside the conveyance on that basis.
  • Necessary parties to any action to set aside the conveyance (the grantee and the heirs of the deceased co-owner) were not joined, so setting aside the conveyance was improper. (The court noted appellant raised this ground but, because of the reversal on the pleading issue, did not decide the necessary parties question.)

Appellee's Arguments

  • At trial, appellee raised the issue of valuing assets that may have been fraudulently transferred in connection with her request for attorney's fees and asserted that, in her view, the fraudulent conveyance statute allowed the court to set aside a transfer "with or without litigation in support of [it]."
  • Appellee argued that certain transfers (including the transfer of Eagle Mill Road) were made to avoid her ability to reach assets for alimony/fees and that the court could use the fraudulent conveyance statute to remedy that in fashioning an award of fees.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Gatuso v. Gatuso, 16 Md. App. 632, 299 A.2d 113 (1973) The trial court has no authority to rule upon an issue not raised by the pleadings; parties must have notice and an opportunity to be heard. The Court of Special Appeals relied on Gatuso to hold the trial court exceeded its authority by setting aside the conveyance when fraudulent-conveyance relief had not been pleaded or framed as an issue.
Jeffcoat v. Jeffcoat, 102 Md. App. 301, 619 A.2d 1137 (1994) A chancellor may find that property was intentionally dissipated to avoid inclusion in monetary awards; such dissipation is a fraud on marital rights. Cited for the proposition that dissipation to avoid marital claims can constitute fraud on marital rights; distinguished because in Jeffcoat (and related cases) the fraudulent-transfer claims were pleaded or otherwise properly before the court.
Sharp v. Sharp, 58 Md. App. 386, 473 A.2d 499 (1984) Even non-marital property dissipated to avoid claims may be subject to equitable relief; example of a court setting aside transfers where appropriate. Used as supporting authority for the principle that transfers made in anticipation of divorce to prevent the other spouse from obtaining relief may be set aside; distinguished because Sharp's claims were in proper pleadings.
Levin v. Levin, 166 Md. 451, 171 A. 77 (1934) A conveyance made in anticipation of wife's divorce proceedings to prevent her from obtaining alimony is fraudulent and may be set aside (under predecessor statute). Cited to show historical precedent permitting setting aside transfers in anticipation of divorce when properly raised; again distinguished because underlying claims were pleaded in those cases.
Liberty Mut. Ins. Co. v. Ben Lewis Plumbing, Heating Air Conditioning, Inc., 121 Md. App. 467, 710 A.2d 338 (1998) Pleading requirements remain important despite abandonment of strict common-law forms; pleadings provide notice and define litigation boundaries. Courts cited Liberty Mutual to emphasize the continuing importance of pleadings and notice as integral to due process and fair litigation.
Scott v. Jenkins, 345 Md. 21, 690 A.2d 1000 (1997) Pleading and notice are critical; lack of notice in pleadings raises due process concerns. Quoted by the court (via Liberty Mutual) to underscore that notice is the most important purpose of pleading.
Painter v. Painter, 113 Md. App. 504, 688 A.2d 479 (1997) Trial courts should state the basis for decisions challenging legal fees so appellate review is possible. The court relied on Painter to require remand because the trial court failed to make factual findings justifying its attorney's-fee award.
Randolph v. Randolph, 67 Md. App. 577, 508 A.2d 996 (1986) In contested fee cases, the trial court ought to state the basis for its decision to allow appellate review. Quoted (via Painter) to support the conclusion that the trial court's failure to state its factual bases for the fee award precluded meaningful appellate review.
Barton v. Hirshberg, 137 Md. App. 1, 767 A.2d 874 (2001) Statutory criteria (Family Law § 12-103) govern fee awards; appellate review of fee awards is abuse-of-discretion review. Cited to frame the standard and statutory considerations applicable to an award of attorney's fees in custody/support/visitation cases.
Petrini v. Petrini, 336 Md. 453, 648 A.2d 1016 (1994) For a court to award attorney's fees the fees must be reasonable; consideration of statutory criteria is mandatory and failure to do so is legal error. Relied upon to require that the trial court make findings and demonstrate it applied statutory factors before awarding fees; the absence of such findings required vacatur and remand.
Brown v. Brown, 204 Md. 197, 103 A.2d 856 (1954) Supports the principle that fees awarded must be reasonable. Cited (via Petrini) as authority on reasonableness requirement for attorney's fee awards.
Rosenberg v. Rosenberg, 64 Md. App. 487, 497 A.2d 485 (1985) Describes standard of review for attorney's fee awards and emphasizes abuse-of-discretion standard. Quoted to explain the standard by which appellate courts review fee awards.
Carroll County v. Edelman, 320 Md. 150, 577 A.2d 14 (1990) Consideration of statutory criteria is mandatory in making certain awards; failure constitutes legal error. Cited to reinforce that mandatory statutory criteria must be considered in awarding fees and that failure to do so is legal error requiring reversal.
Hall v. Hall, 32 Md. App. 363, 362 A.2d 648 (1967) When a marriage is void ab initio (e.g., bigamy), a court historically could grant either annulment or divorce; an annulment treats no marital relationship as having existed while a divorce recognizes the marital relationship. Cited for historical treatment; the court explained Hall's rule is no longer controlling because statutory grounds for divorce no longer include "void ab initio," so annulment is the appropriate remedy now.
LeBrun v. LeBrun, 55 Md. 496 (1881) Reviewed three bases for equity courts to declare a marriage null: fraud affecting contracts, the marriage Act, and divorce laws. Used in the historical discussion to explain the sources of equity jurisdiction to grant annulments.
Wallace v. Wallace, 290 Md. 265, 429 A.2d 232 (1981) Divorce is a creature of statute; courts' authority to grant divorce stems from and is circumscribed by statutory authority. Relied upon to explain that divorce relief must be supported by statutory grounds and that "void ab initio" is no longer a statutory ground for divorce.
Bender v. Bender, 282 Md. 525, 386 A.2d 772 (1978) Referenced for the proposition that divorce is statutory. Included among authorities underscoring the statutory nature of divorce relief.
Altman v. Altman, 282 Md. 483, 386 A.2d 766 (1978) Referenced as part of the line of cases recognizing divorce as statutory. Used in the court's statutory-history analysis of divorce vs. annulment.
Emerson v. Emerson, 120 Md. 584, 87 A. 1033 (1913) Referenced as historical authority concerning divorce as a statutory remedy. Included in the historical discussion of the statutory foundations for divorce.
Redgill v. Redgill, 79 Md. 298, 29 A. 597 (1894) Historical authority cited in discussion of annulment and divorce history. Used in the opinion's historical background about annulment and jurisdiction.
Thomas v. Thomas, 294 Md. 605, 451 A.2d 1215 (1982) Explains that the authority to grant divorce stems from and is circumscribed by statute. Relied upon in the court's explanation that because "void ab initio" is no longer a statutory ground for divorce, annulment remains the appropriate form of relief for a bigamous marriage.
Stewart v. Stewart, 105 Md. 297, 66 A. 16 (1907) Referenced in the historical account of annulment and divorce law. Included as part of the historical authorities cited.

Court's Reasoning and Analysis

The court's analysis proceeded in three principal parts: (I) the fraudulent-conveyance ruling; (II) the attorney's-fee award; and (III) the proper remedy for a marriage void ab initio (divorce v. annulment).

I. Fraudulent Conveyance

The court began by identifying appellant's two principal objections to the trial court's setting aside of the Eagle Mill conveyance: (1) the fraudulent-conveyance cause of action was not pleaded nor raised as an issue before trial; and (2) necessary parties had not been joined. The panel agreed with appellant on the first ground and therefore did not reach the second.

The court explained the continuing importance of pleading requirements despite modern pleading liberalization, citing Liberty Mutual and Scott to reaffirm that pleadings serve to provide notice, state the facts, define litigation boundaries, and expedite resolution of frivolous claims (the court emphasized notice as paramount). The court relied on Gatuso to state the principle that a trial court has no authority to decide issues not raised by the pleadings because parties have no notice or opportunity to be heard on them.

Applying those principles to the present record, the panel observed that appellee's amended complaint (the operative pleading) contained only a general and limited reference to real property, identifying a family home (3019 Breidenbaugh Road) but not alleging any facts that would notify appellant that the transfer of 19730 Eagle Mill Road was in dispute or subject to attack. Because fraudulent-conveyance relief was neither pleaded nor made an issue by the parties' stipulation, the trial court lacked authority to set aside the conveyance in that proceeding. The court emphasized that its reversal was procedural (lack of pleading/notice) and not a determination on the merits of whether the transfer was fraudulent; it expressly declined to pass judgment on the substantive validity of such a claim if properly pleaded in a different proceeding.

II. Attorney's Fees

The court summarized the statutory framework for fee awards under Md. Code (1984, 1999 Rep. Vol.) § 12-103 (Family Law Article) — the court may award counsel fees that are just and proper in proceedings concerning custody, support, or visitation, but must consider the financial status of each party, the needs of each party, and whether there was substantial justification for bringing or defending the proceeding. The court also stated that fees must be reasonable and that an award is reviewed for abuse of discretion.

The trial court's written opinion had tied the fraudulent-conveyance finding to the ability-to-pay determination and concluded appellee had proven the ability to pay because setting aside the conveyance revealed a one-half interest sufficient to satisfy the fee award. The panel found the trial court, however, failed to make the factual findings required by the statute and failed to state its basis for the fee award (including a determination of the reasonableness of fees). Because the absence of stated factual findings prevented meaningful appellate review, the court vacated the fee award and remanded for the trial court to determine attorney's fees in accordance with the statutory criteria and to make findings enabling appellate review.

III. Divorce / Annulment

Although neither party challenged the form of the decree (absolute divorce rather than annulment), the appellate court invoked Maryland Rule 8-131(a) to address the issue to guide the trial court and avoid another appeal. The panel reviewed the historical and statutory background: annulment is an equitable remedy derived from courts' general equity jurisdiction, while divorce is exclusively statutory and available only on enumerated statutory grounds. The court explained that the statutory ground of "void ab initio" had been removed from the list of statutory grounds for divorce in 1983 and therefore an absolute divorce is no longer an available statutory remedy for marriages void ab initio.

Because appellee sought annulment on the ground the marriage was void ab initio (appellant already married at the time of the second marriage), and because "void ab initio" is no longer a statutory ground for divorce, the court held the trial court erred in granting an absolute divorce. The proper remedy on remand is an annulment under the court's equitable jurisdiction.

Holding and Implications

Holding:

The Court of Special Appeals reversed and remanded as follows:

  • ORDER SETTING ASIDE THE CONVEYANCE OF PROPERTY REVERSED. The trial court erred in setting aside the conveyance of 19730 Eagle Mill Road because fraudulent-conveyance relief was not pleaded nor otherwise properly framed as an issue in the proceedings.
  • ORDER AWARDING ATTORNEY'S FEES VACATED. The attorney's-fee award was vacated because the trial court failed to make required findings of fact and did not state that the fees were reasonable or otherwise explain the basis for the award under the governing statute; the matter is remanded for further proceedings consistent with statutory criteria.
  • ORDER GRANTING AN ABSOLUTE DIVORCE REVERSED. Because the marriage was void ab initio (appellant already married), the trial court erred in granting an absolute divorce rather than an annulment; on remand the court should grant an annulment under its equitable jurisdiction.

Direct Consequences and Further Proceedings:

  • The case is remanded to the Circuit Court for Baltimore County for further proceedings consistent with this opinion, including reconsideration of attorney's fees with explicit findings applying the statutory factors.
  • The trial court should grant an annulment rather than an absolute divorce for the marriage deemed void ab initio.
  • The trial court may not set aside the Eagle Mill Road conveyance in this litigation because the transfer was not properly put at issue by the pleadings; the appellate decision does not resolve the substantive validity of a fraudulent-conveyance claim if it is properly pleaded in an appropriate proceeding.
  • Costs were ordered to be paid by appellee (as indicated in the opinion).

Note: This summary is strictly confined to the content of the provided opinion and does not add or infer facts beyond what the opinion expressly states.

EDMUND F. LEDVINKA, JR. v. JOANN LEDVINKA.

Opinion by Greene, J.

Edmund F. Ledvinka, Jr. appeals a decision by the Circuit Court for Baltimore County, setting aside the conveyance of 19730 Eagle Mill Road as a fraudulent conveyance pursuant to Md. Code (2000), §§ 15-201 et. seq. of the Commercial Law Article, and an award of $27,000 in attorney's fees. Appellee is Joann Ledvinka, appellant's ex-wife. The two were before the court seeking an annulment, determination of child custody, visitation, and attorney's fees.

Issues

Appellant presents three questions for our review. We have rewritten them for clarity:

1. Whether the court erred by setting aside the conveyance of 19730 Eagle Mill Road as a fraudulent conveyance pursuant to Md. Code (2000), §§ 15-206 and 15-207 of the Commercial Law Article when this cause of action was neither pleaded nor was relief requested prior to trial.
2. Whether the court erred by setting aside the conveyance of 19730 Eagle Mill Road as a fraudulent conveyance pursuant to Md. Code (2000), §§ 15-206 and 15-207 of the Commercial Law Article when the grantee and the heirs of the deceased grantor were not named as parties to the proceedings.
3. Whether the court erred by awarding appellee $27,000.00 in attorney's fees.

We hold that the trial court erred in setting aside the conveyance. The authority of a trial court to act in a given case is limited by the issues framed by the pleadings. Because we reverse on the first issue, we need not address the second question presented regarding necessary parties to an action to set aside the conveyance. We vacate the award of attorney's fees on the ground that the trial court neither made findings of fact regarding its basis for awarding the fees nor a determination that the fees were reasonable. We remand for further consideration of the facts in light of the statutory requirements for an award of attorney's fees. Lastly, acting pursuant to our authority under Maryland Rule 8-131(a), we hold that, because the marriage was void ab initio, the court erred in granting an absolute divorce rather than an annulment.

Facts and Procedure

The procedural history of the efforts of the parties to obtain a divorce is extensive. Relevant to our review, however, is a hearing held on December 17 and 18, 2002, on a complaint for annulment filed by appellee. The Amended Complaint for Annulment, Custody, Alimony and other relief contained three counts: an annulment (count one); intentional infliction of emotional distress (count two); and fraud (count three). Appellee sought $250,000 in compensatory damages and $250,000 in punitive damages. Counts two and three were eventually dismissed by appellee. Before the December hearing, during a conference in chambers, the parties agreed that the only issues before the court were the annulment on behalf of Mrs. Ledvinka, custody of the minor child, visitation, and attorney's fees. The parties also stipulated that there was no marital property to be valued and distributed.

Both parties filed actions for divorce soon after their separation. In a joint motion, the parties consolidated and dismissed the divorce proceedings and agreed to proceed pursuant to the Amended Complaint for Annulment.

Count three is captioned "Fraud" and refers to fraudulent inducement to marry.

Appellant and appellee were married on September 30, 1995, in a religious ceremony in Harford County, Maryland One child was born to the parties, Mark Edward Ledvinka, on November 8, 1996. On or about November 3, 1997, the parties separated. Both parties agreed the marriage was not a conventional one.

At the time the parties were married in 1995, appellant was already married to Velma Ledvinka. Appellant and Velma Ledvinka were married on May 9, 1964. Although they separated in 1986, their divorce did not become final until July 20, 1998. In 1990, the two signed a Separation and Property Settlement Agreement whereby appellant agreed to pay Velma Ledvinka $300 a week, on demand, for a period of ten years, and to transfer 100% of his pension from his employer, including all stock, bonds, savings and 401k plans to her. Additionally, Velma Ledvinka was awarded all of the marital property. In an unrelated matter, appellant submitted to a judgment against him in Velma Ledvinka's favor in the amount of $54,700. Appellant also borrowed $10,000 from Velma Ledvinka to help pay his attorney's fees in this matter. As a result of the child support and judgement in Velma Ledvinka's favor, appellant takes home approximately $100 of his $1,000 per week gross pay.

From 1991 through June of 1998, appellant and his brother, Charles Ledvinka, owned the property located at 19730 Eagle Mill Road. The record does not reflect how the property was titled except that both men were on the deed. The property was purchased for $165,000. Appellant testified that Charles Ledvinka paid all of the debts associated with the house, including the mortgage, which was paid in full as of the hearing. The parties never resided in the home. Joyce Hohner, appellant's girlfriend and the mother of two of his children, lived in the house with Charles Ledvinka. She testified that in lieu of rent she took care of Charles Ledvinka, the house, and the gardens. On June 22, 1998, appellant transferred his interest in the house to Ms. Hohner for no consideration. Appellant testified that the transfer was made at the request of his brother, who did not want the property tied up by the divorce proceedings. Specifically, he did not want appellee to "get at" the property.

Charles Ledvinka is now deceased.

In her brief, appellee avers that the property was owned as a joint tenancy according to the Land Records of Baltimore County.

In her closing argument at trial, appellee first raised the issue of valuing assets that may have been fraudulently transferred in connection with her request for attorney's fees. Appellee originally sought an award of $27,000 in attorney's fees, however, the amount was amended on the record at trial to $26,000. Appellee first argued that the alimony payments to appellant's first wife were "[t]o try and make sure [appellant] doesn't have any money basically[.]" Appellee's second argument was in response to a question by the trial court asking about its authority to "take assets that [appellant] may or may not have dissipated or transferred in anticipation of litigation[.]" In response, appellee stated that she believed "the fraudulent conveyance statute allowed the court to exercise its authority to set aside a transfer with or without litigation in support of [it]." Appellant responded that if Joann Ledvinka was seeking some form of fraudulent conveyance, the issue was neither pleaded nor was it one of the issues the parties stipulated as being in controversy at the beginning of the hearing. The court requested that the parties brief the issue.

On January 28, 2003, the court granted an absolute divorce on the basis that appellant was already married at the time of his marriage to appellee. The court also held that custody of the child would remain with appellee and appellant would receive three weeks of visitation during the summer in addition to every other weekend in accordance with the schedule already in place. Child support obligations remained at the level of $540 a month. The court reserved its ruling on the issue of fraudulent conveyance and attorney's fees for further consideration.

In a separate written Ruling and Opinion dated January 28, 2003, the trial court found that appellant had engaged in a fraudulent conveyance in the transfer of 19730 Eagle Mill Road, Baltimore County, in violation of Md. Code (2000), §§ 15-206 and 15-207 of the Commercial Law Article. Specifically, the court found that appellant transferred his share of the property to Ms. Hohner for no consideration because of his pending divorce from Joann Ledvinka and with the intent of keeping appellee from "getting at" it. The court set aside the conveyance to the extent necessary to satisfy an award of attorney's fees to appellee in the amount of $27,000.

Additional facts will be included as necessary.

DISCUSSION I. Fraudulent Conveyance

Appellant claims the trial court erred in setting aside, as fraudulent, the conveyance of 19730 Eagle Mill Road. He raises two grounds for objection: first, that the cause of action was neither pleaded nor was relief on this ground requested in any pleading before trial; and second, that necessary parties were not joined in the action. We agree with appellant that the court exceeded its authority in setting aside the conveyance when no cause of action sufficient to put appellant on notice that the property was in dispute was pleaded in this case. Because we conclude the court may not apply the fraudulent conveyance statute in this action, we need not address the question of necessary parties.

In her amended complaint for annulment, custody, alimony, and other relief, appellee set forth three causes of action: annulment; intentional infliction of emotional distress; and fraud. By the trial date, only the annulment cause of action remained. Count one, the annulment, contained no facts sufficient to put appellant on notice that the conveyance of the non-marital home was challenged. The only reference to real property in the amended complaint is in paragraph six. It reads: "The parties acquired real property during the marriage which was used by the parties as their principal residence and is their family home." At trial it was established that the marital home was located at 3019 Breidenbaugh Road in White Hall, Maryland There are no other facts in the pleadings regarding real property.

Appellant claims that the trial court's action in setting aside the conveyance was erroneous as a matter of law. Relying on the case of Gatuso v. Gatuso, 16 Md. App. 632, 299 A.2d 113 (1973), and for the following reasons, we agree.

We begin by recognizing that

where a chancellor finds that property was intentionally dissipated in order to avoid inclusion of that property towards consideration of a monetary award, such intentional dissipation is no more than a fraud on marital rights.
Jeffcoat v. Jeffcoat, 102 Md. App. 301, 306, 619 A.2d 1137 (1994) (quoting Sharp v. Sharp, 58 Md. App. 386, 399, 473 A.2d 499 (1984) (internal citation omitted)). This is true even when the property dissipated is non-marital property. Sharp, 58 Md. App. at 395, 473 A.2d 499. Furthermore, it has been held that "a conveyance made by a husband in anticipation of the wife's proceedings for divorce . . . and to prevent her from obtaining alimony, is fraudulent, and may be set aside[.]" Levin v. Levin, 166 Md. 451, 453, 171 A. 77 (1934) (permitting a suit pursuant to the predecessor to today's fraudulent conveyance statute). These cases are distinguishable from the case sub judice in that the causes of action were either pleaded in the divorce proceeding or in a separate action.

The property in question was a farm owned by the husband The court found that the husband had recently refinanced the property, leaving him zero equity in the property. Sharp, 58 Md. at 398, 476 A.2d 499.

Despite the fact that Maryland has long since abandoned the necessities of common law pleading, it is clear that the pleading requirements "remain important elements in the process of bringing a case to trial[,]" and "cannot be dispensed with altogether." Liberty Mut. Ins. Co. v. Ben Lewis Plumbing, Heating Air Conditioning, Inc., 121 Md. App. 467, 475, 710 A.2d 338 (1998). Pleading serves four important purposes: (1) it provides notice to the parties as to the nature of the claim or defense; (2) it states the facts upon which the claim or defense allegedly exists; (3) it defines the boundaries of litigation; and (4) it provides for the speedy resolution of frivolous claims and defenses. Id. (citing Scott v. Jenkins, 345 Md. 21, 27-28, 690 A.2d 1000 (1997)). The most important of the four is notice. Id. (citing Scott, 345 Md. at 28, 690 A.2d 1000). In Liberty Mutual, we recognized that an important basis for the Court of Appeals' holding in Scott was the due process concerns raised by lack of notice in the pleadings. Id.

In Gatuso, 16 Md. App. 632, 299 A.2d 113, we addressed the issue of what discretion a trial court has to enter an order on issues outside the relief prayed or the issues framed in the pleadings. We held that a trial court "has no authority, discretionary or otherwise, to rule upon a question not raised as an issue by pleadings, and of which the parties therefore had neither notice nor an opportunity to be heard." Id. at 633, 299 A.2d 113.

The plaintiff in Gatuso sought an order to have her husband adjudged in contempt of a 17-year old court order awarding her alimony and child support. The wife claimed that her husband owed her $26,829 in back payments. The court looked beyond the pleadings and ruled on the facts as they were presented at trial, denied the prayer for a citation of contempt, modified the alimony award, and required the husband to pay the costs associated with the litigation. The plaintiff appealed, raising the issue of the court's authority to reach beyond the pleadings to grant relief. With regard to the trial court's ruling, we wrote: "On proper pleadings and a proper record, the same result may well have been reached. But given jurisdiction of the parties and of the subject matter, the authority of the court to act in any case is still limited by the issues framed by the pleadings." Id. at 636, 299 A.2d 113. We think Gatuso is analogous to the case at bar.

The parties did not seek a divorce.

We find that the trial court in the case sub judice had jurisdiction over the subject matter because the court was required to determine the parties' ability to pay attorney's fees and the determination requires a valuation of assets. See Md. Code (1984, 1999 Rep. Vol.) § 12-103(b)(1) of the Family Law Article. The court's jurisdiction does not, however, encompass legal action affecting the title of the assets. We recognize that the rationale behind the court's action regarding the property was the award of attorney's fees. Setting aside the conveyance, however, was beyond the scope of the pleadings and beyond the court's authority. We hold, therefore, that the trial court erred in setting aside the conveyance of 19730 Eagle Mill Road.

We recognize that the court acted on its belief that appellant had fraudulently transferred the property as a means of limiting his assets in anticipation of the divorce litigation. We further recognize that, based on the facts as they were presented at trial, the court could reasonably come to that conclusion. The error here, however, is not factual; rather it is procedural, as discussed above. In holding as we do today that the property may not be set aside in this litigation, we are not passing judgment on the validity of the claim if properly pleaded in a different proceeding.

Because we hold that the trial court was without the authority to set aside the conveyance without the issue being properly framed by the pleadings, we need not address appellant's argument regarding the failure to join necessary parties.

Moreover, on the record before us we would be unable to determine the required parties. Without the deeds to the property, this Court cannot determine if Ms. Hohner is the only necessary party or, depending on how the property was titled before and after the conveyance, whether Charles Ledvinka's heirs have a claim on the property as well.

II. Attorney's Fees

Md. Code (1984, 1999 Rep. Vol.) § 12-103 provides:

(a) The court may award to either party the costs and counsel fees that are just and proper under all the circumstances in any case in which a person:
(1) applies for a decree or modification of a decree concerning the custody, support, or visitation of a child of the parties[.]
(b) Before a court may award costs and counsel fees under this section, the court shall consider:
(1) the financial status of each party;
(2) the needs of each party;
(3) whether there was substantial justification for bringing, maintaining, or defending the proceeding.
See also Barton v. Hirshberg, 137 Md. App. 1, 31-33, 767 A.2d 874 (2001). For the court to award attorney's fees, the fees must be reasonable. Petrini v. Petrini, 336 Md. 453, 467, 648 A.2d 1016 (1994) (citing Brown v. Brown, 204 Md. 197, 213, 103 A.2d 856 (1954)).

An award of costs and fees is governed by the abuse of discretion standard "`and such an award should not be modified unless it is arbitrary or clearly wrong.'" Barton v. Hirshberg, 137 Md. App. at 32, 767 A.2d 874 (quoting Rosenberg v. Rosenberg, 64 Md. App. 487, 538, 497 A.2d 485, cert. denied, 305 Md. 107, 501 A.2d 845 (1985)). Abuse of discretion is determined by evaluating the judge's application of the statutory criteria as well as the consideration of the facts of the particular case. Petrini, 336 Md. at 468, 648 A.2d 1016. "Consideration of the statutory criteria is mandatory in making an award and failure to do so constitutes legal error." Id. (citing Carroll County v. Edelman, 320 Md. 150, 177, 577 A.2d 14 (1990)).

Consistent with these decisions, we review the trial court's award of attorney's fees in the amount of $27,000 to appellee. In its written Opinion and Order, the trial court held:

Under Md. Code Ann., Family Law Article § 12-301, the court may award to either party counsel fees in this application for a decree of custody, support, and visitation. After considering the financial needs and abilities of the parties, as well as the substantial justification for bringing the suit, the court finds that it is just and proper under all circumstances to award attorney's fees to the [appellee]. By setting aside the fraudulent conveyance, Mr. Ledvinka has a one-half interest in the property sufficient to satisfy the award of attorney's fees that [appellee] has prayed for. Therefore, this court finds that [appellee] has proven that [appellant] has the ability to pay. As such, pursuant to Md. Code Ann., Commercial Law Article § 15-109, the conveyance is ORDERED to be set aside to the extent necessary to satisfy the claim for attorney's fees and costs in the amount of $27,000. This award is hereby reduced to judgment and permitted to enroll directly against the aforesaid property for collection purposes.

Based on the record, we conclude that the trial court failed to make findings of fact to justify the award of attorney's fees. Absent the court stating the basis for its determination, this Court cannot properly review the decision. See Painter v. Painter, 113 Md. App. 504, 529, 688 A.2d 479 (1997) ("`In a case in which bills for legal services are challenged, [the trial court] ought to state the basis for his decision so it can be reviewed, if necessary, on appeal.'" (quoting Randolph v. Randolph, 67 Md. App. 577, 589, 508 A.2d 996 (1986))). We remand for a determination of attorney's fees in accordance with the statute.

Divorce/Annulment

We begin by recognizing that neither of the parties challenged the grant of an absolute divorce instead of an annulment. Ordinarily we would refrain from addressing issues not presented. Md. Rule 8-131(a) ("Ordinarily, the appellate court will not decide any other issue unless it plainly appears by the record to have been raised in or decided by the trial court[.]"). The same rule, however, also permits the appellate courts to "decide such issues if necessary or desirable to guide the trial court or to avoid the expense and delay of another appeal." Id. Our research reveals a change in the law since the last published opinion on the topic of the appropriate remedy for dissolution of a marriage which is void ab initio. In recognition of the potential confusion caused by the change, we exercise our authority pursuant to the Rule to address the issue.

We begin with a brief history of marriage, annulment, and divorce in Maryland For a valid marriage to exist, "[t]here must be certain conduct engaged in by competent parties under circumstances whereby they intend matrimony and both understandingly and freely consent to acquiring that status." John S. Strahorn, Jr., Void and Voidable Marriages in Maryland and Their Annulment, 2 Md.L.Rev. 211, 216 (1938). When one party to a marriage is already married to someone else, the first marriage not having been terminated by annulment, absolute divorce, or death, he or she is not competent to enter into the new marriage. Id. at 225. It is the lack of capacity to enter into the new marriage that renders the second marriage void ab initio. Id.

For a detailed discussion of the history of divorce and annulment in Maryland see Thomas v. Thomas, 294 Md. 605, 609-13, 451 A.2d 1215 (1982); Stewart v. Stewart, 105 Md. 297, 300, 66 A. 16 (1907); Redgill v. Redgill, 79 Md. 298, 300-05, 29 A. 597 (1894); John S. Staghorn, Jr., Fifteen Years of Change in Maryland Marriage and Annulment Law and Domestic Relations Changes, 13 Md.L.Rev. 128 (1953); John S. Strahorn, Jr., Void and Voidable Marriages in Maryland and Their Annulment, 2 Md.L.Rev. 225 (1938).

In the Act of 1777, ch. 12, § 15, the Maryland legislature first granted the general court the authority to "inquire into, hear and determine, either on indictment, or petition of either of the parties, the validity of any second marriage, the first subsisting, null and void." Ridgely v. Ridgely, 79 Md. 298, 303 29 A. 597 (1894). This authority was later transferred to the courts of equity by the marriage Act, Md. Code (1860), Art. 60, § 25. Id. In LeBrun v. LeBrun, 55 Md. 496 (1881), the Court reviewed the three means of conferring authority on a court of equity to declare a marriage null and void. The first basis of authority is the general jurisdiction of the court of equity in matters of fraud affecting contracts, that is, marriages procured by abduction, terror, fraud, or duress. Id. at 503. The second basis is the marriage Act discussed above. Id. And the third basis is by the authority of the divorce laws, Md. Code (1860), Art. 16, § 25, which permitted a divorce a vinculo matrimonii (essentially, an absolute divorce), on the ground that the marriage was void ab initio. Today the courts of the State derive their authority to grant an annulment from the general jurisdiction of the equity courts. Md. Code (1984, 1999 Rep. Vol.), § 1-201(a)(3) of the Family Law Article.

Divorce, on the other hand, is a creature of statute. Wallace v. Wallace, 290 Md. 265, 271, 429 A.2d 232 (1981) (quoting Bender v. Bender, 282 Md. 525, 529, 386 A.2d 772 (1978); Altman v. Altman, 282 Md. 483, 490, 386 A.2d 766 (1978); Emerson v. Emerson, 120 Md. 584, 589, 87 A. 1033 (1913)). The authority of the court to grant a divorce "stems entirely from and is circumscribed by statutory authority." Thomas, 294 Md at 610, 451 A.2d 1215 (internal citations omitted). The first statutory authority for a court to grant a divorce came in § 2, Ch. 262 of the Acts of 1841. The statute permitted divorce "for any cause which by law of this State render a marriage null and void ab initio." The "void ab initio" provision remained a ground for divorce until 1983, when the cause was deleted from the list. At the time of the annulment hearing in the present case, the grounds for an absolute divorce were: adultery, desertion, voluntary separation, conviction of a felony or misdemeanor, 2-year separation, insanity, cruelty of treatment, and excessively vicious conduct. Md. Code (1984, 1999 Rep. Vol.), § 7-103 of the Family Law Article.

Md. Code (1860) Art. 16, § 25; (1878) Art. 51, § 12; (1888) Art. 16, § 36; (1904) Art. 16, § 36; (1912) Art. 16, § 37; (1924) Art. 16, § 38; (1939) Art. 16, § 40; (1947) Art. 16, § 40; (1951) Art. 16, § 33; (1957) Art. 16, § 33; (1957, 1966 Rep. Vol.) Art. 16, § 24; (1957, 1981 Rep. Vol.) Art. 16, § 24. The ground was deleted from the list by 1983 Md. Laws, Chap. 491. There is no indication in the legislative history as to why the ground was repealed.

Appellee sought an annulment on the sole ground that the marriage was void ab initio as a result of appellant already being married at the time of their marriage. There was a discussion during closing arguments regarding the appropriate term for the dissolution of the Ledvinka "marriage," that is, should a divorce or an annulment be granted. The court, believing either method was permissible, granted an absolute divorce.

The Court of Appeals was presented with a similar situation in the matter of Hall v. Hall, 32 Md. App. 363, 362 A.2d 648 (1967). In Hall, the court was asked to decide if a trial court erred in dismissing a bill of complaint for an annulment filed by a husband and instead granting a divorce a vinculo matrimonii filed by his wife. Both complaints were supported by an allegation of bigamy. The court found that, since the marriage was void ab initio, it could grant either an annulment or a divorce pursuant to Md. Code (1957, 1966 Rep. Vol.), Art. 16, § 24. In Hall the court wrote that "[a]n annulment of the marriage fails to recognize any marital relationship between the parties, while a divorce, on the other hand, does recognize the marital relationship." Hall, 32 Md. App. at 367, 362 A.2d 648. Hall held that, under the circumstances, the dissolution of the marriage by divorce was the more appropriate remedy. Id.

The law as it existed in Hall, however, is no more. As we stated earlier, divorce is a creature of statute and only the grounds enumerated in the statute will support a divorce decree. Because the ground of void ab initio is no longer available under the statute, the only remaining option for dissolution of a bigamous marriage is annulment. We therefore hold that the trial court erred in granting an absolute divorce on the ground that the marriage was void ab initio. On remand the court should grant the parties an annulment on the specified ground pursuant to the court's general jurisdiction of equity matters. See Md. Code (1984, 1999 Rep. Vol.) § 1-201(a)(3) of the Family Law Article.

The grant of an annulment instead of an absolute divorce will have no effect on the trial court's authority to resolve the issues raised as to custody, visitation, child support, and attorney's fees. See Md. Rules 9-201 et. seq. (governing circuit court's authority in actions for divorce, annulment, alimony, child support, and child custody).

CONCLUSION

For the foregoing reasons, we hold that the trial court erred in setting aside the conveyance of property and in granting an absolute divorce rather than an annulment.

ORDER SETTING ASIDE THE CONVEYANCE OF PROPERTY REVERSED. ORDER AWARDING ATTORNEY'S FEES VACATED. ORDER GRANTING AN ABSOLUTE DIVORCE REVERSED.

CASE IS REMANDED TO THE CIRCUIT COURT FOR BALTIMORE COUNTY FOR FURTHER PROCEEDINGS CONSISTENT WITH THIS OPINION.

COSTS TO BE PAID BY APPELLEE.

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LEDVINKA v. LEDVINKA
(Dec 29, 2003)