Opinion ID: 1870849
Heading Depth: 1
Heading Rank: 3

Heading: and did the chancellor err in failing to require mr. craft to meet the burden of proof?

Text: These two assignments will be discussed together, in view of the fact that the crux of the argument by Mrs. Craft is that Mr. Craft at the time of the separation agreement withheld from her information about his financial condition, deprived her of independent advice, and perpetrated a fraud upon her so as to invalidate the original agreement. She further contends that at this time as Mr. Craft was the dominant figure in the marriage and the parties were still married there existed between them a fiduciary relationship and that, therefore, the burden of proof was upon Mr. Craft to prove that he had not withheld information from her and had not perpetrated a fraud upon her. Both parties cite numerous cases from other jurisdictions which discuss this issue but to which we are not compelled to go. In the first instance the chancellor ruled that there was no fiduciary relationship, and he further ruled that Mr. Craft had not perpetrated a fraud in inducing the agreement. On this record, there is ample evidence to uphold that finding of fact. Furthermore, we find that when parties have separated and have entered into negotiations in contemplation of a divorce, each party having obtained competent counsel, and a suit has actually been instituted between the parties seeking discovery in order to facilitate the entry of an agreement in contemplation of divorce, it can no longer be said that a fiduciary relationship exists between the parties. They are adversaries plain and simple. This is particularly true where both of the parties are adults under no disabilities and well educated. It cannot be said that the parties to this action were not throughout the time of the separation, the agreement, and the divorce actively represented by competent counsel. Furthermore, in the case of Warner v. Warner, 175 Miss. 476, 167 So. 615 (1936), this Court has already addressed this issue. In Warner, the parties separated and subsequently divorced. Prior to the divorce they entered into an agreement that read, It is agreed by and between the parties to this contract that the party of the first part, W.A. Warner, does hereby pay to Mrs. W.A. Warner the sum of $100.00 (one hundred dollars) in full settlement of all that may be due her or to become due her for separate maintenance and attorney's fees, if any, the receipt of which is hereby acknowledged. Id. at 478, 167 So. 615. The wife then alleged that the agreement was executed at a time when she wasn't advised of her rights, and that she didn't have a chance to discuss it or seek advice from friends or relatives. Furthermore, she alleged that she was induced to sign it by the false and fraudulent representations of the appellant as to his financial condition. Id. at 478, 167 So. 615. The chancellor found the settlement to be void, because the wife was not aware of her husband's financial ability to pay more and was not advised by him of the nature and extent of his holdings. This Court reversed, holding that the evidence was insufficient to support the finding of any misrepresentation or fraud that would invalidate the previous settlement. We find ourselves in the same situation this Court was in when it reviewed the record in Warner. There being no fiduciary relationship, the burden of proving the fraud fell upon Mrs. Craft and that burden calls for clear and convincing evidence. Gardner v. Jones, 464 So.2d 1144 (Miss. 1985). The burden was not met. In summary, in view of the fact that Mrs. Craft, (1) was represented by competent counsel, (2) sent a proposed settlement agreement to her husband's attorney, (3) did not complain about the settlement until some three and a half years after the divorce, (4) realized she was executing the settlement while dismissing the bill of discovery without gaining the business records, (5) and her attorney signed and agreed to the property settlement, and (6) was not unduly influenced nor was there a confidential relationship since the parties were adversaries, represented by counsel, and dealing with one another at arms' length, there is no merit to these assignments of error.