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Case Summary: Hilda Gentry McKnight v. Don B. McKnight

Factual and Procedural Background

The parties were married on January 31, 1959. On January 17, 1969, they entered into a written separation agreement that provided for periodic support payments by the husband to the wife and included provisions linking increases to the husband's income and requiring annual disclosure of W-2 or 1099 forms. Paragraph XXV of the agreement provided that the parties remained bound by applicable terms of the agreement even if an action for absolute divorce were instituted.

An absolute divorce was entered on January 19, 1970, based on one year of separation. On January 8, 1974, the plaintiff (the ex-wife) filed this action to recover alleged arrearages under the separation agreement. The defendant admitted execution of the contract but pleaded the judgment of absolute divorce as a bar to the claim.

At trial, plaintiff presented evidence that the defendant was $2,470.00 in arrears under the contract (including payments for the first eight months of 1974). Defendant offered no evidence. The jury answered that the defendant breached the separation agreement and awarded $2,470.00 to the plaintiff. Judgment was entered on the verdict; the defendant appealed. The Court of Appeals heard the matter March 13, 1975, and filed its opinion April 2, 1975.

Legal Issues Presented

  1. Whether the plaintiff's claim under the separation agreement is barred by the judgment of absolute divorce.
  2. Whether the trial court erred in allowing evidence and permitting an amendment (or supplemental pleading) to include defendant's arrearages accruing after the action was filed.
  3. Whether the trial court erred in instructing the jury that an officer of the court had examined and certified the agreement was fair to both parties, and whether that instruction prejudiced the defendant.
  4. Whether the trial court erred in refusing the defendant's requested instruction that ambiguities in the separation agreement should be resolved against the party who drafted it.

Arguments of the Parties

Defendant's Arguments

  • The defendant argued that plaintiff's claim was a right arising out of marriage and therefore ceased upon the judgment of absolute divorce under G.S. 50-11(a), so the divorce barred the claim.
  • The defendant contended the trial court erred by allowing evidence of arrearages accruing after the action was filed and by permitting what the defendant characterized as a late amendment to the complaint to include those arrearages.
  • The defendant objected to the court's instruction that an officer of the court had examined and certified the separation agreement as fair, arguing the remark was improper and prejudicial.
  • The defendant requested an instruction that any ambiguities in the agreement should be resolved against the drafter and contended the court erred in refusing that instruction.

Note: The opinion does not contain a detailed account of the plaintiff's legal argumentation beyond her assertion that she sought to enforce the separation agreement and presented evidence of arrearages; accordingly, a detailed list of plaintiff's separate legal contentions is not set out in the opinion.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Hamilton v. Hamilton, 242 N.C. 715, 89 S.E.2d 417 (1955) Authority that rights arising out of contract survive an absolute divorce (distinguished from rights arising out of the marriage). Used as one of several authorities to hold plaintiff's claim was contractual and survived the absolute divorce.
Stanley v. Stanley, 226 N.C. 129, 37 S.E.2d 118 (1946) Authority on survival of contractual rights after absolute divorce. Cited with other cases to support the conclusion that the separation agreement created contractual rights not terminated by divorce.
Jenkins v. Jenkins, 225 N.C. 681, 36 S.E.2d 233 (1945) Authority on distinction between marital rights and contractual rights surviving divorce. Relied on to support the holding that the plaintiff's contract claim was not barred by the divorce.
Williford v. Williford, 10 N.C. App. 451, 179 S.E.2d 114 (1971) Support for the proposition that contractual obligations in a separation agreement survive an absolute divorce. Cited as precedent confirming contractual rights survive divorce; used in overruling related assignments of error.
Sebastian v. Kluttz, 6 N.C. App. 201, 170 S.E.2d 104 (1969) Authority consistent with the principle that contractual rights survive divorce. Included among cases demonstrating the plaintiff's right arose from contract and was not terminated by divorce.
Williams v. Freight Lines, 10 N.C. App. 384, 179 S.E.2d 319 (1971) Defines distinction between supplemental pleadings and amendments under Rule 15. Applied to characterize the plaintiff's post-filing arrearage allegations as, in effect, a supplemental pleading rather than an impermissible amendment.
New Amsterdam Casualty Company v. Waller, 323 F.2d 20 (4th Cir. 1963) Support for treating certain updates to pleadings as supplemental pleadings. Cited to reinforce the conclusion that the plaintiff's additional arrearage allegations could properly be treated as supplemental.
Minnesota Min. Mfg. Co. v. Superior Insulating Tape Co., 284 F.2d 478 (8th Cir. 1960) Principle that motions to amend pleadings and motions to file supplemental pleadings are within the discretion of the trial judge. Applied to uphold the trial court's discretionary allowance of the plaintiff's motion to amend/supplement the pleadings.
Galligan v. Smith, 14 N.C. App. 220, 188 S.E.2d 31 (1972) Authority illustrating the trial court's discretion in allowing amendments or supplemental pleadings. Cited to support the discretionary standard and to show no abuse of discretion in permitting the amendment/supplement.
Windfield Corp. v. Inspection Co., 18 N.C. App. 168, 196 S.E.2d 607 (1973) Rule that ambiguities in a contract are construed against the drafter. Referenced to explain that such a rule applies only if an ambiguity exists; the court found no ambiguity here, so the rule did not apply.
Yates v. Brown, 275 N.C. 634, 170 S.E.2d 477 (1969) Principle that when a contract is plain and unambiguous, its construction is a matter of law for the court. Applied to justify the court's refusal to give the requested ambiguity-against-drafter instruction because the contract was plain and unambiguous.

Court's Reasoning and Analysis

The court's analysis proceeded in several discrete parts aligned with the defendant's assignments of error.

First, addressing whether the divorce barred plaintiff's claim, the court examined G.S. 50-11(a) ("After a judgment of divorce from the bonds of matrimony, all rights arising out of the marriage shall cease and determine ...") and rejected the defendant's contention that the statute extinguished plaintiff's cause. The court distinguished rights "arising out of the marriage" from rights "arising out of contract," concluding that the separation agreement created contractual rights. The court cited multiple precedents (Hamilton; Stanley; Jenkins; Williford; Sebastian) to support the proposition that contractual rights under a separation agreement survive an absolute divorce, and overruled the related assignments of error.

Second, on the issue of the post-filing arrearages and the plaintiff's "eleventh-hour motion to amend," the court turned to G.S. 1A-1, Rule 15(b) and (d). It explained the doctrinal distinction: supplemental pleadings relate to events occurring after the date of the original pleading, whereas amendments relate to matters that could have been originally pleaded. Citing Williams v. Freight Lines and other authorities, the court determined that although the pleading was labeled an "amendment," the allegations concerning arrearages from January 1974 to trial were effectively supplemental. The court emphasized that the trial judge's allowance of amendments or supplemental pleadings is discretionary; because the arrearage amount was an issue already raised by the pleadings, the amendment merely updated the cause of action without prejudicing the defendant and was therefore permissible. The court overruled assignments of error challenging this ruling.

Third, concerning the trial judge's remark to the jury that "an officer of the court had examined into the facts and certified that the separation agreement was fair to both parties," the court characterized the instruction as gratuitous. However, because the defendant had admitted entering into the contract and neither pleadings nor evidence raised fairness as an issue, the court concluded the remark could not have prejudiced the defendant and thus did not require reversal.

Fourth, regarding the defendant's requested instruction that ambiguities be resolved against the drafter, the court explained the legal basis of that rule (citing Windfield Corp.). It observed that the rule presupposes an ambiguity. Relying on Yates v. Brown, the court found the agreement plain and unambiguous, making contract construction a question of law for the court rather than for the jury. The court noted that the issues submitted to the jury did not require contractual construction and that the defendant did not request additional issues or object to the issues submitted. Consequently, refusal of the requested instruction was not error.

The court concluded that the trial was without prejudicial error.

Holding and Implications

No error.

Holding: The Court of Appeals affirmed the district court judgment in favor of the plaintiff in the amount of $2,470.00. The court held (1) the separation agreement created contractual rights that survived the absolute divorce, (2) the trial court did not abuse its discretion in permitting the plaintiff to bring the arrearages through what was effectively a supplemental pleading (or amendment to conform to the evidence), (3) the judge's gratuitous remark about an officer's certification of fairness was not prejudicial, and (4) the agreement was plain and unambiguous so the requested ambiguity-against-drafter instruction was properly denied.

Implications: The direct effect is affirmation of the plaintiff's judgment for $2,470.00 and rejection of the defendant's defenses and procedural objections. The opinion applies established principles distinguishing contractual rights from marital rights and confirms the trial court's discretionary authority under Rule 15 to allow amendments or supplemental pleadings; it does not announce a new legal principle beyond the application of existing North Carolina and federal authorities cited in the opinion.

HILDA GENTRY McKNIGHT v. DON B. McKNIGHT

1. Husband and Wife 12 — support provided in separation agreement — survival of right after absolute divorce Where plaintiff and defendant entered into a separation agreement by the terms of which defendant was to make support payments to plaintiff, plaintiff thereby acquired a right arising out of contract, not one arising out of marriage, and such right survived the absolute divorce between the parties.

2. Rules of Civil Procedure 15 — amendments — supplemental pleadings — distinction The distinction between supplemental pleadings and amendments is that supplemental pleadings relate to occurrences, transactions and events which may have happened since the date of the pleadings sought to be supplemented, whereas amendments relate to occurrences, transactions and events that could have been, but for some reason were not, alleged in the pleadings sought to be amended. G.S. 1A-1, Rule 15.

3. Husband and Wife 11; Rules of Civil Procedure 15 — support provision of separation agreement — action to enforce — amendment of complaint proper In an action by plaintiff to enforce the provisions for her support in a separation agreement entered into by the parties prior to their absolute divorce, the trial court did not err in allowing plaintiff to "amend" her complaint to include defendant's arrearages from the time plaintiff filed the action until the date of trial.

4. Husband and Wife 11 — support provided in separation agreement — fairness not in question In an action to recover support under the provisions of a separation agreement, the trial court's instruction that an officer of the court had examined into the facts and certified that the agreement was fair to both parties did not prejudice defendant.

5. Husband and Wife 11 — separation agreement — no ambiguity — requested instruction properly denied Where the trial court determined that a separation agreement between the parties was plain and unambiguous, the court did not err in failing to instruct the jury as requested that any ambiguities in the agreement would be resolved against the party drafting it.

This is a civil proceeding wherein the plaintiff, Hilda Gentry McKnight, divorced wife of the defendant, Don B. McKnight, seeks to enforce the provisions for her support in a separation agreement entered into between the parties prior to their absolute divorce.

The following facts are not controverted: Plaintiff and defendant were married on 31 January 1959 and on 17 January 1969 they entered into a separation agreement which contained, among other things, the following provisions:

"XX. The Husband agrees to pay to the Wife, as alimony, $25.00 on or before the 20th day of each September, October, November, December, January, February, March, April and May, and $25.00 on or before the 5th day of each September, October, November, December, January, February, March, April and May and $45.00 on or before the 20th day of each June, July and August and $45.00 on or before the 5th day of each June, July and August, with the first payment beginning January 20, 1969, and continuing until either the Husband or the Wife shall die or until the Wife shall have become remarried.
XXI. The Husband warrants that his present earned income is not in excess of $7,000.00 per year. The Husband agrees that with each $2,000.00 increase in his total income he shall increase his payments a total of $50.00 per month, divided equally between support for Bart Thomas McKnight and alimony for the Wife and paid as set out above, that is, on or before the 5th and 20th day of each month. In the event the Husband's income should increase and then decrease the payments shall be increased and then decreased according to the formula set out above, said payments to begin the year following the increase in income. The payments shall not be decreased below the payments set out in Paragraphs XIX and XX hereof.
In order to keep the Wife informed of any change in income the Husband agrees to furnish to the Wife, on or before January 31 of each year, beginning January 31, 1970, any and all W-2 forms and 1099 forms, or their equivalents, which he shall be entitled to for the previous year.

* * *

XXV. Nothing herein contained shall be deemed to prevent either of the parties from maintaining a suit for absolute divorce against the other in any jurisdiction based upon any past or future conduct of the other nor to bar the other from defending any such suit. In the event any such action is instituted the parties shall continue to be bound by any applicable terms of this agreement."

On 19 January 1970, based upon one year's separation, the parties obtained an absolute divorce. Thereafter, on 8 January 1974, plaintiff filed this action alleging that the defendant was in arrears in his support payments under the terms of the separation agreement. Defendant filed answer admitting execution of the contract but pleaded the judgment of absolute divorce in bar of plaintiff's claim.

At the trial, plaintiff offered evidence tending to show that the defendant was $2,470.00 in arrears in his payments for the support of the plaintiff under the terms of the contract. This figure included payments for the first eight months of 1974. Defendant offered no evidence.

The following issues were submitted to and answered by the jury as indicated:

"I. Did the defendant breach the separation agreement made between the parties?

ANSWER: Yes.

II. If so, what amount, if any, is the plaintiff entitled to recover of the defendant?

ANSWER: $2,470.00."

From a judgment entered on the verdict, defendant appealed.

HEDRICK, Judge.

Assignments of error 1, 2, 4, 6 and 10 raise the question of whether plaintiff's claim under the provisions of the separation agreement entered into on 17 January 1969 is barred by the judgment of absolute divorce entered on 19 January 1970.

G.S. 50-11 (a) in pertinent part provides: "After a judgment of divorce from the bonds of matrimony, all rights arising out of the marriage shall cease and determine . . . ."

Defendant argues that since plaintiff's claim is based on a right arising out of the marriage it did not survive the judgment of absolute divorce because of the plain language of G.S. 50-11 (a). The fallacy in defendant's argument is that plaintiff's claim is based on a right arising out of contract which survives a judgment of absolute divorce, see Hamilton v. Hamilton, 242 N.C. 715, 89 S.E.2d 417 (1955); Stanley v. Stanley, 226 N.C. 129, 37 S.E.2d 118 (1946); Jenkins v. Jenkins, 225 N.C. 681, 36 S.E.2d 233 (1945); Williford v. Williford, 10 N.C. App. 451, 179 S.E.2d 114 (1971); Sebastian v. Kluttz, 6 N.C. App. 201, 170 S.E.2d 104 (1969); 2 Lee, North Carolina Family Law 192, not a right arising out of the marriage which was terminated by the judgment of absolute divorce. These assignments of error are overruled.

By assignments of error 3, 8, and 9, defendant contends the trial court erred in allowing "evidence of defendant's alleged arrearages accruing after the action was filed and permitting plaintiff's eleventh-hour motion to amend the complaint . . . ."

G.S. 1A-1, Rule 15, Rules of Civil Procedure, in pertinent part, provides:

"(b) Amendments to conform to the evidence. — When issues not raised by the pleadings are tried by the express or implied consent of the parties, they shall be treated in all respects as if they had been raised in the pleadings. Such amendment of the pleadings as may be necessary to cause them to conform to the evidence and to raise these issues may be made upon motion of any party at any time, either before or after judgment, but failure so to amend does not affect the result of the trial of these issues. If evidence is objected to at the trial on the ground that it is not within the issues raised by the pleadings, the court may allow the pleadings to be amended and shall do so freely when the presentation of the merits of the action will be served thereby and the objecting party fails to satisfy the court that the admission of such evidence would prejudice him in maintaining his action or defense upon the merits. * * *"
"(d) Supplemental pleadings. — Upon motion of a party the court may, upon reasonable notice and upon such terms as are just, permit him to serve a supplemental pleading setting forth transactions or occurrences or events which may have happened since the date of the pleading sought to be supplemented, whether or not the original pleading is defective in its statement of a claim for relief or defense."

The distinction between supplemental pleadings and amendments is that supplemental pleadings relate to occurrences, transactions and events which may have happened since the date of the pleadings sought to be supplemented; whereas, amendments relate to occurrences, transactions and events that could have been, but for some reason were not, alleged in the pleadings sought to be amended. Williams v. Freight Lines, 10 N.C. App. 384, 179 S.E.2d 319 (1971). Therefore, although designated as an "amendment", plaintiff's allegations with respect to the failure of the defendant to make his support payments from January 1974 to the date of trial was in effect a supplementary pleading. See New Amsterdam Casualty Company v. Waller, 323 F.2d 20 (4th Cir. 1963); 3 Moore's Federal Practice 15.16[1].

In any event, since both motions to amend and motions to file supplemental pleadings are granted in the discretion of the trial judge, Minnesota Min. Mfg. Co. v. Superior Insulating Tape Co., 284 F.2d 478 (8th Cir. 1960); Galligan v. Smith, 14 N.C. App. 220, 188 S.E.2d 31 (1972); 3 Moore's Federal Practice 15.16[3], we perceive no prejudice to the defendant in the court allowing the "motion to amend". Furthermore, since the amount of defendant's arrearage under the contract was an issue raised by the pleadings, since the amendment only served to bring the cause of action up to date, and since the amount of support the defendant was obligated to pay for the first eight months of 1974 was to be determined from defendant's income in 1973, it was not error for the trial judge either to permit the plaintiff to introduce evidence of defendant's arrearage between the date she filed this action, 8 January 1974, and the date of trial or to allow the plaintiff to "amend" her complaint to include the additional amount owed to her. These assignments of error are overruled.

Next, defendant contends the court erred in instructing the jury that an officer of the court had examined into the facts and certified that the separation agreement was fair to both parties. Under the pleadings and the evidence, the instruction challenged by this exception was, as characterized by the defendant, gratuitous. However, since the defendant admitted entering into the contract and neither the pleadings nor the evidence raised an issue as to whether the agreement was fair to either party, we do not perceive how the gratuitous and erroneous remarks of the judge could have prejudiced the defendant.

Finally, defendant contends the court erred in not instructing the jury as requested that any ambiguities in the separation agreement would be resolved against the party drafting it. The requested instruction is a rule of construction bottomed on the premise that there is an ambiguity in the contract. Windfield Corp. v. Inspection Co., 18 N.C. App. 168, 196 S.E.2d 607 (1973). Where the contract is plain and unambiguous, the construction of the agreement is a matter of law for the court. Yates v. Brown, 275 N.C. 634, 170 S.E.2d 477 (1969). The issues submitted to the jury obviously do not require any construction of the contract. The defendant did not request that additional issues be submitted to the jury or object to the issues submitted. It is clear from the issues submitted that the trial judge had already determined that the contract was plain and unambiguous and there would have been no reason for the judge to have given the requested instruction in any form. This assignment of error is overruled.

We find and hold that the trial in the district court was without prejudicial error.

No error.

Judges PARKER and CLARK concur.

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McKNIGHT v. McKNIGHT
(Apr 1, 1975)