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Pending dissolution settlement not enforceable upon a party's death

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A property-settlement document is not an enforceable contract if one of the parties dies before the dissolution action is finalized, the Indiana Court of Appeals ruled today.

In Dwight Murdock v. Estate of Sharron K. Murdock, No. 45A03-0912-CV-585, Dwight Murdock appealed an interlocutory order from Lake Superior Court’s Probate Division that declared the property-settlement document in his dissolution action created an enforceable contract. The dissolution action between Dwight and Sharron Murdock was pending when Sharron died.

Before her death, Dwight had signed a drafted settlement, and attorneys for Dwight and Sharron had signed under “approved as to form.” Sharron via telephone told her attorney she intended to sign but she did not before her death examine or sign the document, and therefore the dissolution court also did not sign the agreement.

Dwight initially was appointed personal representative of Sharron’s estate, but two of their five children successfully petitioned for his removal, arguing he was not an “interested person” because he forfeited his rights based on probate statutes Ind. Code § 29-1-2-14 and Ind. Code § 29-1-2-15 addressing adultery and spousal abandonment. The two children were then appointed co-representatives of their mother’s estate.

During a hearing before the probate court, the daughters argued the property-settlement document was an enforceable contract and Dwight argued it was now null. The estate asked the probate court to use the property-settlement document as a “template” based of the “intent” of Sharron and Dwight.

Also at the hearing, Sharron’s attorney testified that Sharron had expressed her intention to sign the settlement, and the court admitted into evidence the attorney’s affidavit expressing the attorney’s “professional opinion that the property settlement document ‘was to become effective upon its execution, and was not contingent on any Court approval.’”

The probate court found the document was enforceable, found the issue of abandonment moot, and reserved final judgment regarding whether Dwight had forfeited the right to inherit from Sharron’s estate. Dwight then filed an interlocutory appeal, arguing the probate court effectively required him to “deliver property and execute documents.”

Appellate Judge L. Mark Bailey cited Bailey v. Mann, 895 N.E.2d 1215, 1217 (Ind. 2008), that noted settlement agreements become binding when incorporated into a dissolution decree, and in this case, no such decree would be forthcoming.

The court also cited Johnson v. Johnson, 653 N.E.2d 512, 516 (Ind. Ct. App. 1995), noting that dissolution proceedings, including property settlements, terminate upon the death of one of the parties.

The court noted the settlement document was silent regarding its operation in the event of one of the party’s deaths. It was drafted in contemplation of a dissolution and that would not occur upon Sharron’s death.

Judge Bailey wrote, “… an attempt to enforce the provisions of the property settlement document – which had neither been fully executed nor adopted by the dissolution court – based upon a determination of 'intent' would contravene our Indiana Supreme Court’s directive that marital property settlement agreements become binding when incorporated into the dissolution decree. See Bailey, 895 N.E.2d at 1217.”
 

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  1. Good riddance to this dangerous activist judge

  2. What is the one thing the Hoosier legal status quo hates more than a whistleblower? A lawyer whistleblower taking on the system man to man. That must never be rewarded, must always, always, always be punished, lest the whole rotten tree be felled.

  3. I want to post this to keep this tread alive and hope more of David's former clients might come forward. In my case, this coward of a man represented me from June 2014 for a couple of months before I fired him. I knew something was wrong when he blatantly lied about what he had advised me in my contentious and unfortunate divorce trial. His impact on the proceedings cast a very long shadow and continues to impact me after a lengthy 19 month divorce. I would join a class action suit.

  4. The dispute in LB Indiana regarding lake front property rights is typical of most beach communities along our Great Lakes. Simply put, communication to non owners when visiting the lakefront would be beneficial. The Great Lakes are designated navigational waters (including shorelines). The high-water mark signifies the area one is able to navigate. This means you can walk, run, skip, etc. along the shores. You can't however loiter, camp, sunbath in front of someones property. Informational signs may be helpful to owners and visitors. Our Great Lakes are a treasure that should be enjoyed by all. PS We should all be concerned that the Long Beach, Indiana community is on septic systems.

  5. Dear Fan, let me help you correct the title to your post. "ACLU is [Left] most of the time" will render it accurate. Just google it if you doubt that I am, err, "right" about this: "By the mid-1930s, Roger Nash Baldwin had carved out a well-established reputation as America’s foremost civil libertarian. He was, at the same time, one of the nation’s leading figures in left-of-center circles. Founder and long time director of the American Civil Liberties Union, Baldwin was a firm Popular Fronter who believed that forces on the left side of the political spectrum should unite to ward off the threat posed by right-wing aggressors and to advance progressive causes. Baldwin’s expansive civil liberties perspective, coupled with his determined belief in the need for sweeping socioeconomic change, sometimes resulted in contradictory and controversial pronouncements. That made him something of a lightning rod for those who painted the ACLU with a red brush." http://www.harvardsquarelibrary.org/biographies/roger-baldwin-2/ "[George Soros underwrites the ACLU' which It supports open borders, has rushed to the defense of suspected terrorists and their abettors, and appointed former New Left terrorist Bernardine Dohrn to its Advisory Board." http://www.discoverthenetworks.org/viewSubCategory.asp?id=1237 "The creation of non-profit law firms ushered in an era of progressive public interest firms modeled after already established like the National Association for the Advancement of Colored People ("NAACP") and the American Civil Liberties Union ("ACLU") to advance progressive causes from the environmental protection to consumer advocacy." https://en.wikipedia.org/wiki/Cause_lawyering

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