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SINLAO
V. SINLAO 2005 Supreme
Court of the No.
CVA04-033. Argued
and Submitted on June 29, 2005. Filed
Dec. 23, 2005. Appeal
from the Superior Court of Superior
Court Case No. DM 0867-03. OPINION TYDINGCO-GATEWOOD,
J.: [1]
Defendant-Appellant Kid D. Sinlao appeals the trial court's division of
community property and debt in this divorce action. He argues that the trial
court's division resulted in Plaintiff-Appellee Rosalind M. Sinlao receiving an
inequitably larger share of community property in violation of I. [2] The
parties are dental assistants who met in 1991, married on January 4, 1993, and
have two children. A few years after they married, the couple began experiencing
marital discord. The parties separated briefly in 1995, reconciled, and
separated again in 2003 when Rosalind filed for divorce. After the complaint was
filed, the parties and their families entered into a written agreement to
reconcile, which proved fruitless, as the couple finally separated January 2004. [3] During a
bench trial in August 2004, the parties testified regarding their community
assets and debt, which included the Dededo marital home mortgaged to Citizens
Security Bank, the parties' vehicles (a 1997 Honda Civic and 2000 Toyota
Tacoma), property in the Philippines, a savings account, Kid's retirement
account, income tax refunds from 2002 and 2003, a USA Federal Credit Union Visa
credit account, and an auto loan for the Toyota Tacoma with Pentagon Federal
Credit Union. Testimony was also presented that the parties entered into an
agreement with Kid's sister Gloria Mariano, to buy property in NCS, and paid her
$23,600 for their portion of the sale price. The sale never materialized, and
Gloria Mariano obtained a judgment against the seller in Superior Court Civil
Case No. CV1600-99. The trial court issued Findings of Fact and Conclusions of
Law regarding the property division and custody. The trial court awarded
Rosalind the marital home, the Honda Civic, and the Philippine property. The
court awarded Kid his 401(k) and the Toyota Tacoma. The court divided equally
the tax refunds, savings account and household furnishings, appliances and
effects. The trial court ordered Rosalind to pay the mortgage to Citizens
Security Bank and the Visa account, and ordered Kid to pay the Toyota Tacoma
auto loan. The trial court determined that despite the parties' community
interest in the judgment in Civil Case No. CV1600-99, the judgment is of no
value because the judgment is not in their name and they had not received
reimbursement from the judgment creditor. [4] The
Interlocutory Decree of Divorce expressly provided that the Findings of Fact and
Conclusions of Law were incorporated by reference into the Interlocutory Decree,
and the Final Decree of Divorce reaffirmed and incorporated the provisions of
the Interlocutory Decree. These decrees were entered onto the Superior Court
docket. Kid's appeal followed. II. [5] This
court has jurisdiction over an appeal of a decree of divorce entered in the
Superior Court. Title 7 GCA §§ 3107(b), 3108(a) (2005); Navarro v. Navarro,
2000 Guam 31 ¶ 5; Rinehart v. Rinehart, 2000 III. [6] The
trial court's “disposition of the community property and of the homestead
··· is subject to revision on appeal in all particulars including those which
are stated to be in the discretion of the court.” Title 19 GCA § 8414 (2005)
(emphasis added); see also Leon Guerrero v. Moylan, 2000 [7] Our
interpretation of 19 GCA § 8414 is supported by interpretations of California
Civil Code § 148, because 19 GCA § 8414 is based on California Civil Code §
148.FN1 See Torres v. Torres, 2005 Guam 22 ¶ 33; People v. Superior Court (Laxamana),
2001 Guam 26 ¶ 8; Sumitomo Constr. Co., Ltd. v. Zhong Ye, Inc., 1997 Guam 8 ¶
7. FN1.
California Civil Code § 148 stated that: “The disposition of the community
property, and of the homestead, as above provided, is subject to revision on
appeal in all particulars, including those which are stated to be in the
discretion of the Court.” (Quoted in Ballas v. Ballas, 3 Cal.Rptr. 11, 13
(Dist.Ct.App.1960)). In addition, California Civil Code § 146, which is the
source of 19 GCA § 8411, provided in part that “if the decree be rendered on
any other ground than that of adultery or extreme cruelty, the community
property shall be divided equally between the parties.” Green v. Green, 80
P.2d 513, 514 (Cal.Dist.Ct.App.1938). This identical language is still found in
19 GCA § 8411(b), which states: “If the decree be rendered on any other
ground than that of adultery or extreme cruelty, the community property shall be
equally divided between the parties.” California
statutes governing property division in divorce cases, including sections 146
and 148, were repealed and reenacted as California Civil Code § 4800, which
were repealed and reenacted once again in 1992. See note 3, infra. [8] [9] While
recognizing the power to revise the trial court, [10] The
standard developed by the While it is
true that Civil Code section 148 subjects the trial court's discretion in the
disposition of the community property to revision on appeal, even where the
action of the trial court does not amount to an abuse of discretion the
reviewing court will be slow to interfere, and will do so only where there is
manifest unfairness. Irish v.
Irish, 55 Cal.Rptr. 55, 57 (Dist.Ct.App.1966) (citations omitted). We agree with
this rule, and accordingly, reverse Navarro, 2000 IV. [11] Having
clarified the standard of review of a trial court's distribution of community
property, we first examine the trial court's overall distribution for any
“manifest unfairness.” If we find that the trial court's distribution was
manifestly unfair, we then determine whether to exercise our authority to revise
the division pursuant to 19 GCA § 8414, or remand the matter to the trial court
for redistribution of the community property. [12] In case of
the dissolution of marriage by the decree of a court of competent jurisdiction,
the community property, and the homestead, shall be assigned as follows: (b) If the
decree be rendered on any other ground than that of adultery or extreme cruelty,
the community property shall be equally divided between the parties. Title 19 GCA
§ 8411(b) (2005). [13] On
appeal, Kid argues that when taken as a whole, the trial court's calculation for
division of property results in Rosalind receiving an inequitably larger share
of the community property. We note that while Kid maintained during oral
argument that there was no error in the award of any one particular asset, in
his brief he points to the two specific examples that reveal the inequity:
first, the trial court's awarding him the Toyota Tacoma, a vehicle that was not
paid off, while Rosalind was awarded the paid-off Honda Civic; second, the
court's awarding Rosalind the Dededo marital home and the property in the
Philippines. Rosalind counters each argument and maintains that Kid is bound by
judicial admissions he made regarding the distribution of the vehicles, and that
Kid has failed to demonstrate that the trial court abused its discretion in the
award, or that there was “obvious unfairness” in the division. Appellee's
Brief, p. 11. A. Judicial Admission [14] Kid
maintains that he “does not complain about the award of the vehicles.”
Appellant's Reply Brief, p. 6 (Apr. 27, 2005). Rather, he argues that he was
denied an equal share of the community assets as a whole, which he asserts is
evident in Rosalind's being awarded the Honda Civic (which is paid off), and his
being awarded the Toyota Tacoma (which has little or negative equity). Rosalind
argues that Kid is bound by judicial admissions that were made by his attorney
regarding the distribution of the vehicles. Specifically, counsel for Kid stated
twice during the trial that Kid would take the Toyota Tacoma truck and assume
the payments on the loan, and Rosalind could take the Honda Civic. [15] Thus,
we consider whether statements made by Kid's counsel during the course of the
trial regarding the distribution of the vehicles are judicial admissions binding
on Kid, and if so, whether manifest unfairness has resulted. [16] “A
judicial admission [i]s defined as ‘a formal act done in the course of
judicial proceedings which waives or dispenses with the necessity of producing
evidence by the opponent and bars the party himself from disputing it.’ “
Goldsmith v. Allied Bldg. Components, Inc., 833 S.W.2d 378, 380 (Ky.1992)
(quoting Sutherland v. [17] In
MacDonald v. General Motors Corp., 110 F.3d 337 (6th Cir.1997), the Sixth
Circuit Court of Appeals articulated three factors that define a judicial
admission. First, “an attorney's statements must be deliberate, clear and
unambiguous.” FN2.
Although Rosalind's brief outlines a five-part test for judicial admissions, the
test she espouses apparently has been adopted only in The
elements required for a judicial admission are: (1) a statement made during the
course of a judicial proceeding; (2) that is contrary to an essential fact or
defense asserted by the person making the admission; (3) that is deliberate,
clear, and unequivocal; (4) if given conclusive effect, would be consistent with
public policy on which the rule is based; and (5) that is not destructive of the
opposing party's theory of recovery. See also [18]
Rosalind argues that statements made by Kid's attorney are judicial admissions
that bind Kid. When determining whether the attorney's statements are judicial
admissions, we have acknowledged that “certain statements by counsel can [ ]
be considered judicial admissions binding on the client.” B.M. Co. v. Avery,
2002 [19] In B.M.
Co., 2002 [20]
Rosalind asserts that Kid's attorney made judicial admissions during the trial.
First, during opening statement, Kid's attorney referred to his client, saying,
“He can take the truck, and make the payments, and she can have the Honda. I
guess we can stipulate to that at this point.” Tr. p. 7 (Trial, Aug. 13,
2004). Second, during closing argument, Kid's attorney said again, “He will
assume the debt on the truck···· And I think we're in agreement that he
should have the truck, and assume the payment on that. She can have the Honda
Civic.” Tr. p. 67 (Trial, Aug. 13, 2004). [21] Kid's
attorney does not dispute that during the trial, he indicated that Kid would
receive the truck and assume the debt on the truck, and that Rosalind would
receive the Honda Civic. Indeed, during oral argument, he conceded that Kid
would take the Toyota Tacoma and Rosalind the Honda Civic. In light of his
assertions in his brief and during the oral argument, Kid is bound by the
admissions regarding distribution of the vehicles. Therefore, we hold that there
was no manifest unfairness in awarding the Honda Civic to Rosalind and the
Toyota Tacoma to Kid and having him assume the payments on the auto loan. B. Equal division of community property [22] As
previously discussed, FN3. The [23] Title
19 GCA § 8411(b), like the [24]
Therefore, rather than adopting a hard and fast rule such as mathematical
equality, we believe that trial courts must have reasonable discretion in
determining how the equal division of property should be accomplished, on a
case-by-case basis. Cf. In re Marriage of Gowan, 62 Cal.Rptr.2d 453, 457
(Ct.App.1997) (“[T]he disposition of marital property is within the trial
court's discretion, by whatever method or formula will ‘achieve substantial
justice between the parties.’ ”) (citation omitted). We recognize that
mathematical equality is desirable as a goal to ensure that each party receives
an equal division of property; however, more often than not, mathematical
equality is difficult to achieve. Rather, we believe the trial court should
examine each case's particular circumstances and consider the overall equality
of the award, and revision on appeal will only occur when the division is
manifestly unfair. [25] We now
examine the trial court's division of property and debt in the case sub judice.
The trial court determined the community assets and debt as follows:
4. The
equity in the marital home is the appraised value of the home less the Citizens
Security Bank mortgage. Household
furnishings, appliances, effects no valuation The trial court did not indicate
any valuation for the vehicles in its award, apparently in part because of the
judicial admission regarding distribution of the vehicles. The court also did
not value the household furnishings, appliances and effects because they had
been divided between the parties. [26] The
trial court then divided the remainder of the property as follows:
In addition,
Rosalind was solely responsible for paying the Citizens Security Bank mortgage
and the USA Federal Credit Union Visa credit card. Kid was required to reimburse
Rosalind $6,690.06, which was half (1/2) of the payments Rosalind made, using
her separate funds after the couple had separated, to Citizens Security Bank and
the previous owners of the marital home Mr. and Mrs. Eduardo Orot. [27] Kid
argues this division was unequal. According to Kid's calculations, his net award
is only $13,449.52, as compared to Rosalind's net award of $45,629.67, for a
difference of $32,180.15 in Rosalind's favor. Rosalind also challenges these
calculation as faulty, and contends that her share was only $26,942.84 as
compared to Kid's share of $36,139.59, for a difference of $9,196.75 in Kid's
favor. [28] The
calculations offered by both Kid and Rosalind in this appeal are erroneous in
several respects. First, Kid indicated that Rosalind owed Kid a debt of
$11,996.75. This figure, however, represents the trial court's award of Kid's
equal share in the equity of the marital home, which was $18,686.82 reduced by
the payments Rosalind made, since separation, toward the mortgage and the
promissory note to the Orots in the amount of $6,690.07. This same error again
appears in Kid's assertion that he was awarded only $11,996.75 and in Rosalind's
calculation that she was required to pay him this amount. As discussed above,
Kid and Rosalind were each awarded an equal one-half (1/2) share of the equity
of the marital home in the amount of $18,686.82, but this was reduced by the
amount of Rosalind's payments since separation. Other errors in his calculation
included a $16,000 debt for the Pentagon Federal Credit Union for the Toyota
Tacoma, but not a corresponding value for the Toyota Tacoma itself. Clearly, the
Toyota Tacoma has a value, but this is unimportant because, as we held above,
Kid is bound by the admissions regarding the distribution of the vehicles. Kid
challenges the trial court's failure to include a finding as to the amount of
the Pentagon Federal Credit Union Visa card debt. The only evidence regarding
the Visa credit card was Rosalind's testimony that she did not know the balance
on the card because it was used solely by Kid. Kid did not provide any testimony
to counter Rosalind's testimony regarding the debt. The burden to prove
valuation “lies with the party who seeks the division of community
property.” Navarro, 2000 [29] In
conclusion, the division of property is equitable under the circumstances as it
appears that Kid received only $3,000 less than Rosalind. Although not required
to do so, the trial court ultimately came quite close to making
“mathematically equal” awards. In addition, the award divided the property
in such a way that would reduce entanglements and decrease the risk of future
litigation. There does not appear to be manifest unfairness in the trial court's
division. C. Issues raised for the first time on appeal [30]
Generally, this court will not entertain an issue raised for the first time on
appeal. Taniguchi-RuthAssociates, 2005 Guam 7 ¶ 78; Univ. of Guam v. Guam Civil
Serv. Comm'n, 2002 Guam 4 ¶ 20; B.M. Co. v. Avery, 2001 Guam 27 ¶ 33;
Dumaliang, 2000 Guam 24 ¶ 12. In Dumaliang v. Silan, 2000 [31] On
appeal, Kid raises certain arguments that he did not argue below. [32] Kid
first argues on appeal that the trial court should have considered Rosalind's
401(k) account that she “cashed out” during the marriage. Tr. pp. 31, 40
(Trial, Aug. 13, 2004). Pension rights represent property interest, and if
derived from employment during the marriage, are considered a community asset
subject to division during divorce proceedings. In re Marriage of Brown, 544
P.2d 561 (Cal.1976). Furthermore, because Rosalind withdrew the account and
obtained the proceeds during marriage, it is considered community property. See
In re Marriage of Weaver, 26 Cal.Rptr.3d 121, 125 (Dist.Ct.App.2005) (stating
that generally, property acquired during marriage by either spouse, other than
by gift or inheritance, is community property). However, Kid never asserted at
any point in the proceedings below, that the “cash-out” was community
property, and he has not shown “exceptional circumstances why this issue was
not raised below.” [33] Kid
next asserts that, when the court awarded Rosalind the marital home and ordered
her to pay him half of the equity, the trial court should have secured the
obligation with a lien on the home and required interest to accrue on Rosalind's
obligation.FN5 He cites, in support of this argument, In re Marriage of Juick,
98 Cal.Rptr. 324; In re Marriage of Tammen, 134 Cal.Rptr. 161; In re Marriage of
FN5. A
final decree of divorce is a judgment. Although we do not reach the issue of
whether interest should accrue on the amount Rosalind was ordered to pay Kid,
Title 18 GCA § 47106 (2005) states as follows: “The rate of interest upon the
loan or forbearance of any money, goods or things in action, or on accounts
after demand or judgment rendered in any court of the territory, shall be six
percent (6%) per annum····” [34]
Although we do not address the lien and interest issues, we are mindful of the
assertion made by Kid's counsel during oral argument, that Rosalind has yet to
make a payment to Kid even several months after the Final Decree of Divorce. The
trial court acknowledged the payments due to Kid in stating that “[t]he
parties can make payment arrangements on the balance” of the equity payments.
Appellant's ER, tab D (Findings of Fact and Conclusions of Law, Sept. 3, 2004).
However, the burden lays with the parties, not the trial court or this court, to
establish a payment plan, to ensure that payments are made, and in the event of
default, to pursue remedies through the judicial system. V. [35] We
hold, first, that pursuant to Title 19 GCA § 8414, we may revise the trial
court's division of community property and the homestead, even where the trial
court's action does not amount to an abuse of discretion. We acknowledge,
however, that the authority to revise on appeal should be invoked only where
there is manifest unfairness in the trial court's division. We next hold that
judicial admissions regarding the distribution of the vehicles are binding on
Kid, and thus, cannot challenge this award. Finally, we express our refusal to
bind our trial courts to a rule of mathematical equality when dividing community
property in dissolution cases based on irreconcilable differences. We believe
that the better rule is for trial courts to reach an equal division of property,
as required by Title 19 GCA § 8411(b), by evaluating the circumstances of each
particular case and considering the overall equality of the award. Therefore, we
AFFIRM.
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