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Howell v. Howell, No. 3713 — Supreme Court of Oklahoma (Opinion filed June 9, 1914)

Factual and Procedural Background

This action was brought by Minnie H. Howell against Wm. T. Howell seeking a divorce, cancellation of a written property settlement, alimony, and attorney's fees and costs. The district court granted the divorce but upheld a prior written settlement dividing property between the parties. The plaintiff appealed from the portion of the decree upholding the property settlement.

Relevant factual background as recited in the opinion: the defendant, a widower and practicing physician who operated a drug store and held possessory rights to much of the disputed land, married the plaintiff in January 1895. The couple lived together until 1908, when the plaintiff left for Chickasha intending to sue for divorce and a division of property. The plaintiff engaged counsel. The parties communicated, reconciled, and entered into a written agreement settling and dividing property; the marital relation was resumed and they lived together until about June 1911, when the plaintiff filed this suit.

The appeal raised, among other matters, a preliminary jurisdictional question as to whether the appeal from the division-of-property portion of the decree was timely under section 4971, Rev. Laws 1910; the court resolved this by reference to prior decisions holding such orders separable from the divorce decree and appealable under general provisions when the appeal is limited to the property division.

Legal Issues Presented

  1. Whether the written property settlement is illegal and void as being made in contemplation of a future separation (and thus against public policy).
  2. Whether, under the evidence, the written settlement is inequitable or unfair to the plaintiff and therefore subject to rescission or cancellation in equity.
  3. Whether the court of appeals (this court) has jurisdiction to entertain the appeal from the portion of the decree awarding a division of property despite the appellant's failure to comply with the ten-day notice and four-month filing provisions of section 4971, Rev. Laws 1910 (i.e., whether the property division is separable from the divorce decree for purposes of appeal).

Arguments of the Parties

Appellant's (Plaintiff's) Arguments

  • The written settlement dividing the property is illegal and void because it was made in contemplation of a future separation of the parties and thus contrary to public policy.
  • Under the evidence the settlement was inequitable and unjust to the plaintiff; she alleged the settlement was obtained by fraud and duress and that she lacked the means to employ counsel (though the opinion notes facts developed at trial inconsistent with the allegation of poverty).
  • The plaintiff sought cancellation of the settlement and a further division of the property in the divorce proceedings.

Appellee's (Defendant's) Arguments

  • The contract does not fall within the rule invalidating agreements made in contemplation of future separation because the contract was made to effect a reunion and to re-establish the marital relation (the parties reconciled and resumed living together after the agreement).
  • The settlement was entered into fairly and without fraud, misrepresentation, or overreaching, and its terms are equitable and just when considered in light of the circumstances and relative contributions of the parties.
  • Much of the property was possessed by the defendant (and his child) prior to the marriage, and the more valuable lots were not created by joint effort after marriage; therefore the portion allotted to the plaintiff was not an unfair deprivation of any joint property interest.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Lewis v. Lewis, 39 Okla. 407, 135 P. 397 That an order relating to division of property is separable from a decree granting a divorce for purposes of appeal. The court relied on Lewis to hold that, where the appeal and assignments of error challenge only the property division portion of a divorce judgment, the appeal may be taken under the general provisions governing appeals despite noncompliance with the special ten-day/four-month timing provisions applicable to appeals from divorce decrees.
Montgomery v. Montgomery, 41 Okla. 581, 139 P. 288 That section 4971 (ten-day notice and four-month limitation) applies only when appealing from the judgment granting a divorce and not when the appeal is from an order awarding alimony or making a division of property; and that separation agreements procured by fraud or duress are voidable and contracts between husband and wife are subject to equitable scrutiny. The court cited Montgomery to resolve the jurisdictional/timeliness issue and to state the controlling equitable principles: that separation agreements may be rescinded for fraud or duress and that agreements between spouses occupying confidential relations are not binding on the wife unless just and equitable under all circumstances.

Court's Reasoning and Analysis

Jurisdictional point: The court first addressed a preliminary jurisdictional objection that the appeal was not taken within the time mandated by section 4971, Rev. Laws 1910. The court followed prior decisions (Lewis and Montgomery) holding that orders dividing property are separable from the divorce decree; where an appeal and assignments of error challenge only the property division, the appeal may proceed under the general statutory provisions rather than under the special timing rules applicable to appeals from divorce decrees.

Validity of the contract as against public policy: The opinion acknowledged the general rule that contracts made to provide for a future separation of husband and wife are void as against public policy. The court then examined the particular contractual language relied upon by the appellant, which conditioned the wife's return to marital relations on the husband's abstinence from alcohol. The court characterized the agreement as one intended to effect reunion rather than to contemplate or provide for another separation. Because the separation had already occurred when the contract was executed and the contract's purpose was to induce reconciliation (which in fact occurred for about three years), the court concluded the contract did not fall within the rule invalidating agreements made in contemplation of a future separation.

Fairness and equity of the settlement: Turning to the contention that the settlement was inequitable, the court noted that the plaintiff alleged fraud and duress in her petition but appears to have abandoned that position at trial; the court found no circumstances supporting fraud or duress. The opinion emphasized that agreements between spouses are subject to equitable scrutiny and must be just and equitable in view of all circumstances, citing Montgomery for that principle.

The court reviewed the evidence as presented: the plaintiff claimed the husband's property was worth $40,000 and that she received about $11,000; other evidence placed a much smaller valuation on the property and supported a conclusion that the portion awarded to the plaintiff represented roughly one-third of the estate. The court observed that a considerable portion of the estate was not acquired through joint efforts after marriage, because valuable lots were held by the defendant and his child before the plaintiff came into the marriage (noting possessory rights that later ripened into title). The court also noted that the plaintiff had some resources (about $1,000 in the bank) and that the property awarded her was income-bearing, which suggested she was in comfortable circumstances at trial.

Given these facts and the trial court's general finding in favor of the settlement (the court inferred that the general finding included a determination that the settlement was equitable and just), the Supreme Court concluded that it could not say the trial court erred in upholding the agreement.

Holding and Implications

AFFIRMED.

Holding: The Supreme Court of Oklahoma affirmed the district court's decree insofar as it upheld the prior written property settlement between the parties. The court rejected the contention that the contract was void as made in contemplation of a future separation, finding instead that it was intended to bring about reunion and was followed by cohabitation for several years. The court also found no persuasive evidence of fraud or duress and concluded that, on the evidence, the settlement was not shown to be inequitable so as to warrant disturbing the trial court's decree.

Direct effect on the parties: The divorce granted by the district court stands and the prior property settlement dividing the parties' property is sustained; the plaintiff's request for cancellation of the settlement and for a further division of the property was denied.

Broader implications: The opinion applies established precedent (Lewis and Montgomery) regarding the separability of property-division orders from divorce decrees for appeal purposes and reiterates the equitable rule that separation agreements between spouses are voidable for fraud or duress and must be just and equitable to bind the wife. The court declined to overturn the trial court's factual and equitable determinations on the record before it.

HOWELL v. HOWELL

1. DIVORCE — Time for Appeal — Application of Limitation. That part of section 4971, Rev. Laws 1910, requiring that a party desiring to appeal from a judgment of the district court granting a divorce must, within ten days after such judgment is rendered, file a written notice in the office of the clerk of such court, duly entitled in such action, stating that it is the intention of such party to appeal from such judgment, and requiring, further, that the proceeding in error be commenced within four months from the date of the decree appealed from and not thereafter, applies only where it is sought to appeal from a judgment granting a divorce, and not where the appeal is prosecuted from an order awarding alimony or making a division of property in divorce proceedings.

2. HUSBAND AND WIFE — Separation Agreement — Validity — Rescission. A separation agreement procured by fraud or duress or voidable upon other equitable grounds is subject to rescission and cancellation in equity, the same as any other contract. Where the agreement is executed directly between husband and wife, it is also subject to the rules which control the contracts of persons occupying confidential relations, and is not binding upon the wife, unless it is just and equitable in view of all the circumstances existing at the time when it was executed.

3. SAME — Evidence. In a suit for divorce and division of property acquired through the joint efforts of the parties, when the husband sets up a prior written contract of settlement entered into between himself and wife, as a defense against any further division of the property, he must be able to show, not only that it was entered into fairly and without misrepresentation, overreaching, or fraud, but also that its provisions are equitable and just under all the circumstances.

4. SAME. A contract between husband and wife, made in contemplation of a future separation of the parties, is void as against public policy.

5. SAME — Agreement Dividing Property — Validity. The contract in suit was made for the purpose of reuniting the husband and wife, and to re-establish the marital relation, which had been interrupted, and is in no way repugnant to good morals nor opposed to public policy.

6. TRIAL — General Finding — Construction — Husband and Wife — Division of Property. The contract in suit was upheld by the court in a general order and decree. This implies a holding that it was equitable and just. We are unable to say, in the light of all the circumstances and the situation of the parties, that the court erred.

(Syllabus by Brewer, C.)

Opinion by BREWER, C.

This suit was brought by Minnie H. Howell against Wm. T. Howell to procure a divorce, a cancellation of a written property settlement, alimony, and for attorney's fees and costs. At a trial thereof she was granted a decree of divorce, but a settlement of property rights theretofore made between the parties was upheld. From this latter portion of the decree the plaintiff below has appealed, and urges for a reversal of the case: First, because the contract is illegal and void for the reason that it was made in contemplation of a future separation; second, because under the evidence the contract of settlement made by the parties is inequitable.

The facts, briefly stated, are that the defendant in the year 1895, who was then a widower, with a little daughter six years old, lived in the town of Duncan, was a practicing physician, and owned and was operating a drug store. He also owned the possessory right of the greater part of the property in the settlement involved herein, which at that time was of small value, but which with the development of the town and surrounding country has grown to be of considerable value. In January of 1895 the defendant married the plaintiff at Gainesville, Tex., and brought her to his home at Duncan, where they lived together until 1908, at which time the plaintiff left the defendant and went to the town of Chickasha with the avowed intention and purpose of bringing an action for divorce and for a division of the property. To this end she employed Judge J. T. Dickerson, who, in the settlement which followed, represented her interests. The defendant, through his attorney and friends, got into communication with her and learned of her purpose to sue for divorce, and they later met and effected a reconciliation, and at the same time entered into a written agreement by which a division of the property was made between the parties. This being accomplished, the marital relation was resumed and they lived together until about June, 1911, when this suit was filed by Mrs. Howell.

We are met at the threshold of this case with a preliminary question affecting the jurisdiction of this court to entertain the appeal, in that the appeal was not taken within four months, nor was the notice of appeal given as required by section 4971, Rev. Laws 1910. However, this question has been settled by this court since this point was made in the briefs. In the case of Lewis v. Lewis, 39 Okla. 407, 135 P. 397, it was ruled that the order of the court relating to the question of a division of the property is separable from the decree granting the divorce, and, where the appeal and assignments of error go solely to that portion of the judgment, that the appeal may be taken under the general provisions of law relating thereto. The Lewis case was followed later in that of Montgomery v. Montgomery, 41 Okla. 581, 139 P. 288, in which case section 1 of the syllabus is as follows:

"That part of section 4971, Rev. Laws 1910, requiring that a party desiring to appeal from a judgment of the district court granting a divorce must, within ten days after such judgment is rendered, file a written notice in the office of the clerk of such court, duly entitled in such action, stating that if is the intention of such party to appeal from such judgment, and requiring, further, that the proceeding in error be commenced within four months from the date of the decree appealed from, and not thereafter, applies only where it is sought to appeal from a judgment granting a divorce, and not where the appeal is prosecuted from an order awarding alimony or making a division of property in divorce proceedings."

1. The provision of the contract dividing the property which it is claimed is void because it violates public policy, in that it is made in contemplation of a future separation of the parties, is as follows:

"It is understood that the consideration of this agreement is that said Minnie H. Howell return and again assume the marital relations with Wm. T. Howell, intending to live with him as long as he shall abstain from the use of alcoholic beverages."

There is no dispute between the counsel as to the fact that contracts which undertake to provide for the separation of husband and wife in the future are void, nor do counsel for defendant take issue with the rule announced in the vast array of authorities cited by the plaintiff to sustain the rule; but it is contended that the contract involved here does not bring the case within the rule announced, and we are constrained to believe that this is true. It will be remembered that when this contract was executed these people were living apart. The separation had already occurred. The plaintiff's claim at the time, and later in her divorce suit, was based on the fact that defendant was addicted to the use of intoxicating liquor and at times drank to excess. The defendant evidently desired that his wife return to and live with him. To accomplish this purpose and to satisfy her anxieties and desires, he settled a substantial portion of his estate upon her in her own right. Upon her part, she was willing to become his wife, in fact, again, but qualified her intention to return with him with the condition that he remain sober. Both parties probably thought that this would operate as a moral force in the accomplishment of this end.

As we view it, the contract was in contemplation of, and for the very purpose of, effecting a reunion rather than of providing or looking forward to another separation; in fact, it had this result, and for three years thereafter they lived together. Having this view of the contract, it is not open to the objection urged.

2. The question of whether or not a contract between persons occupying a confidential relation toward each other, such as husband and wife, is equitable and fair to both, always presents difficulties, for the very reason that in arriving at a conclusion the surrounding circumstances and the situation of the parties must be taken into consideration and carefully weighed. Each case must stand on its own facts. In the instant case the plaintiff in her petition charged that the contract of settlement was obtained through fraud and duress. This position seems to have been abandoned at the trial, as it ought to have been, for there are no circumstances tending, in our judgment, to support it.

In the reply of plaintiff to the answer setting up the settlement, she raises the question of the want of fairness and equity in the settlement, and this phase of the settlement is urged here. The evidence is voluminous, and the court, having heard it all, sustained the settlement the parties had made.

It is true the court made no special finding that it was equitable and fair, but we take it that a general finding in favor of the settlement must have included this. In Montgomery v. Montgomery, supra, it is said in the syllabus:

"A separation agreement procured by fraud or duress or voidable upon other equitable grounds is subject to rescission and cancellation in equity, the same as any other contract. Where the agreement is executed directly between husband and wife, it is also subject to the rules which control the contracts of persons occupying confidential relations, and is not binding upon the wife, unless it is just and equitable in view of all the circumstances existing at the time when it was executed.

"In a suit for divorce and a division of property acquired through the joint efforts of the parties, when the husband sets up a prior written contract of settlement, entered into between himself and wife, as a defense against any further division of the property, he must be able to show, not only that it was entered into fairly and without misrepresentation, overreaching, or fraud, but also that its provisions are equitable and just under all the circumstances."

And we believe the above expressions fairly state the law; but, as suggested therein, a settlement such as is involved here must be measured and determined in the light of its own facts and surrounding circumstances.

We have studied the facts of this case with care. The plaintiff claimed that defendant's property was worth $40,000. She admits that the property she received was worth about $11,000. Other evidence in the case places a far smaller valuation on defendant's property, and we believe the evidence would fairly justify the conclusion that the portion allowed represents one-third of the estate. We cannot say this was unfair under the circumstances. No considerable portion of this estate was acquired through their joint efforts. The more valuable lots were held by defendant and his child before plaintiff came to them. It is true, and considerable point is made of this, that defendant did not own the lots in 1895. He did not own the title. No man, white or Indian, at that time could own the title to Indian lands, but he had possession with improvements which under the treaties later ripened into a title, and changing conditions caused this property to become of considerable value.

We do not mean to suggest that, after the marriage, the plaintiff did not aid and assist the defendant in preserving, building up, and adding to his property, and to this extent it might be said that it was the result of their joint efforts; but it presents a very different case from one where two people marry with nothing, and through years of co-operation and community of endeavor they create an estate through their joint efforts.

It is true the plaintiff in her petition alleged that she was without means to employ an attorney, or pay the expenses of litigation; but in the proof it developed that she was, at about that time, possessed of nearly a thousand dollars in the bank. It developed that the property awarded her was income-bearing property, and it is fairly inferable from the evidence that she was at the time of trial in very comfortable circumstances.

The court found against the plaintiff as to a further division of the property. We do not feel that we are justified in disturbing the decree.

It should be affirmed.

By the Court: It is so ordered.

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HOWELL v. HOWELL
(Jun 9, 1914)