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Case Summary: Alyce H. King v. Walter W. King, Jr.

Court: Appellate Division of the Supreme Court of New York, First Department
Date: May 12, 1992
Appeal from: Supreme Court, New York County (Walter M. Schackman, J.)
Opinion / Concurrence: Opinion by the court; Concur — Rosenberger, J.P., Wallach, Ross, Asch and Kassal, JJ.

Factual and Procedural Background

This appeal arises from post-judgment proceedings in a divorce/support matter between Alyce H. King (respondent) and Walter W. King, Jr. (appellant). Defendant (appellant) originally moved to modify the support payments. A Special Referee made findings and recommendations, including suspicions that plaintiff (respondent) had unrevealed income and assets and that plaintiff's replacement counsel had duplicated prior legal work. The IAS court reviewed the Referee's report, confirmed the Referee's recommendation as to the amount of support, and awarded plaintiff counsel fees in the amount of $15,500. On appeal, the Appellate Division reviewed the hearing transcript and assessed whether the Special Referee's conclusions were supported by the record and whether the IAS court's actions (including awarding counsel fees and confirming support amounts) were within its discretion.

Legal Issues Presented

  1. Whether a court may reject findings of a Referee to the extent those findings are not supported by the record.
  2. Whether the IAS court acted within its discretion in awarding plaintiff counsel fees of $15,500.
  3. Whether the divorce judgment's emancipation clause requires a reduction in support payments now that the parties' daughter is emancipated.
  4. Whether the IAS court properly confirmed the Special Referee's recommendation as to the amount of support (including maintaining yearly payments at $35,500, with $21,900 allocated as alimony).

Arguments of the Parties

Appellant's Arguments

  • That the divorce judgment requires a reduction in support now that the parties' daughter is emancipated (i.e., the emancipation clause mandates a reduction).
  • Implicitly or explicitly contended (as reflected in the proceedings) that plaintiff had unrevealed income and assets which justified reducing support or other adverse findings.

The opinion does not contain a detailed account of the respondent's (plaintiff's) trial or appellate arguments beyond the factual findings and the relief awarded by the IAS court.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Kardanis v. Velis, 90 A.D.2d 727 That a court may reject the findings of a Referee to the extent they are not supported by the record. The Appellate Division invoked this principle in reviewing the hearing transcript and agreeing with the IAS court that certain Special Referee conclusions (duplication of counsel's work; unrevealed income/assets) lacked support in the record.
DeCabrera v. Cabrera-Rosete, 70 N.Y.2d 879, 881 Principle supporting a court's discretion to award counsel fees in appropriate circumstances. The court relied on this precedent in concluding that, since defendant moved to modify support and had substantial assets (found by the Special Referee to be worth well over $1 million), it was within the IAS court's discretion to award plaintiff counsel fees of $15,500.
Foy v. Foy, 121 A.D.2d 501 Supports analysis of financial burden and reasonableness of support payments in light of relative financial resources. The court cited this case in concluding that maintaining yearly payments at $35,500 (with $21,900 allocated for alimony) would not be an unreasonable burden on defendant's finances, given the Special Referee's finding that defendant's financial resources were much greater than plaintiff's.

Court's Reasoning and Analysis

The Appellate Division proceeded in the following analytic steps, based solely on the material contained in the opinion:

  1. Standard for review of referee findings: The court recognized the established rule that a trial court (or reviewing court) may reject a Referee's findings to the extent they are not supported by the record (citing Kardanis v. Velis). The court reviewed the hearing transcript to assess the evidentiary support for the Special Referee's conclusions.
  2. Assessment of specific Referee findings: Upon review, the court agreed with the IAS court that the Special Referee's conclusions that (a) plaintiff's replacement counsel had duplicated prior legal work, and (b) plaintiff had unrevealed income and assets, were not supported by the record. Accordingly, those conclusions were not sustained on appellate review.
  3. Counsel fees: The court considered the procedural posture (defendant was the party who moved to modify support) and the Special Referee's factual finding that defendant owned assets well in excess of $1 million. Applying principles authorizing discretionary awards of counsel fees in appropriate circumstances (citing DeCabrera), the court concluded that it was within the IAS court's discretion to award plaintiff counsel fees of $15,500.
  4. Emancipation clause: The court rejected defendant's contention that the divorce judgment required a reduction in support following the emancipation of the parties' daughter. The court interpreted the emancipation clause as merely placing a limit on the amount the plaintiff could receive in the event of emancipation, rather than mandating an automatic reduction now.
  5. Confirmation of support amount: The court upheld the IAS court's confirmation of the Special Referee's recommendation as to the amount of support. The court observed that the suspicion of unrevealed income/assets had not been established; that plaintiff's expenses had risen over the decade since support was fixed at $35,500 per year; and that defendant did not dispute the Special Referee's finding that defendant's financial resources substantially exceeded the plaintiff's. Considering these facts and authority concerning reasonableness of support obligations in light of resources (citing Foy v. Foy), the court concluded that maintaining the payments at $35,500 per year (with $21,900 allocated as alimony) would not impose an unreasonable burden on defendant.

Holding and Implications

Core Ruling: The Appellate Division agreed with the IAS court's determinations: it rejected unsupported Referee findings, sustained the IAS court's award of counsel fees to the plaintiff, rejected the defendant's emancipation-based reduction argument, and upheld the IAS court's confirmation of the support amount.

Direct consequences for the parties:

  • The Special Referee's unsupported findings that plaintiff's replacement counsel duplicated prior work and that plaintiff had unrevealed income/assets were not sustained.
  • The IAS court's award of counsel fees to the plaintiff in the amount of $15,500 was within the court's discretion and upheld.
  • The defendant's contention that emancipation of the parties' daughter required a reduction in support was rejected; the emancipation clause was interpreted as a limit rather than a mandatory reduction mechanism.
  • The court affirmed the maintenance of yearly support payments at $35,500, including $21,900 allocated for alimony, as not an unreasonable burden on the defendant given his greater financial resources.

Broader implications: The opinion applies established principles regarding (1) the reviewability of Referee findings that lack record support, (2) discretionary awards of counsel fees, and (3) consideration of parties' relative financial resources in support determinations. The opinion does not announce a new legal rule beyond applying these existing precedents to the facts of this case.

Source limitation: This summary is derived exclusively from the provided opinion text and does not add or infer facts not contained therein.

ALYCE H. KING, Respondent, v. WALTER W. KING, JR., Appellant.

A court may reject the findings of a Referee to the extent they are not supported by the record (see, Kardanis v. Velis, 90 A.D.2d 727). Upon a review of the hearing transcript, we agree with the IAS court that the Special Referee's conclusions that plaintiff's replacement counsel had duplicated prior legal work and that plaintiff has unrevealed income and assets lack support in the record. Since it was defendant who originally moved to modify the support payments, and, as the Special Referee found, defendant has assets worth well over $1 million, it was within the IAS court's discretion to award plaintiff counsel fees of $15,500 (see, DeCabrera v. Cabrera-Rosete, 70 N.Y.2d 879, 881). There is no merit to defendant's contention that the parties' divorce judgment requires a reduction in support now that the parties' daughter is emancipated. The clause on which defendant relies merely places a limit on the amount that plaintiff can receive in the event of emancipation. Finally, the IAS court properly confirmed the Special Referee's recommendation as to the amount of support. Despite the Special Referee's suspicions, it has not been established that plaintiff has unrevealed income and assets, and due to inflation, her expenses have risen over the decade since support was fixed in the judgment at $35,500 a year. Since defendant does not dispute the Special Referee's finding that "[t]he financial resources of the defendant are much greater than the plaintiff[`s]", maintaining the yearly payments at $35,500, $21,900 of which is allocated for alimony, would not be an unreasonable burden on defendant's finances (see, Foy v. Foy, 121 A.D.2d 501).

Concur — Rosenberger, J.P., Wallach, Ross, Asch and Kassal, JJ.

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KING v. KING
(May 12, 1992)