Opinion ID: 1156814
Heading Depth: 4
Heading Rank: 1

Heading: Did the Court Err in the Evaluation of the Parties' Retirement Benefits?

Text: Jay Hartland argues that the court possessed insufficient evidence to properly value the parties' retirement benefits. Patricia argues that any lack of evidence on Jay's retirement benefits is due to his own failure to produce additional evidence. As to the claim concerning her retirement benefits, Patricia argues that Jay never refuted the $26,618 figure at trial. She further argues that she fully complied with Jay's discovery requests and that all the terms of her teacher's pension are public information. After being subpoenaed, Jay produced a 1985 statement from Shearson Lehman indicating his accrued retirement benefits as of January 1, 1985. This statement only provided information regarding the annual benefit which he could expect to receive at a retirement age of 65. He stated that he had checked on more recent information and that Shearson hoped to have a 1986 statement out before the end of the year. Patricia then served the office manager of Shearson Lehman Brothers with a subpoena to obtain these documents. She was again told that no information was available on the status of Jay's retirement benefits until a Shearson Lehman audit was completed at the end of 1986. Patricia served a second subpoena for these and related documents just before trial. The judge and counsel had an extended discussion at trial concerning the difficulties in Patricia's obtaining needed documents. The court expressed its skepticism concerning the unavailability of the retirement data and noted that if records were being unreasonably withheld he would resolve any doubt against that party. At trial, Jay did not present any further evidence as to the value of his retirement benefits. Neither party presented evidence as to the present value of future payments under either pension plan. Neither party attempted to discount these future payments to present value terms. Patricia introduced the 1985 statement and questioned Jay concerning it. Patricia also introduced evidence as to Jay's life expectancy. In closing argument, Patricia calculated the amount which Jay could be expected to receive over his life expectancy after age 65 on the basis of the 1985 statement. At trial, Jay made no objection to the calculation. The trial court accepted this valuation in its Findings of Fact and Conclusions of Law.
Alaska Statute 25.24.160(a)(4) grants the trial court broad discretion in fashioning a property division in divorce actions. Laing v. Laing, 741 P.2d 649 (Alaska 1987). In Moffitt v. Moffitt, 749 P.2d 343, 346 (Alaska 1988), this court explained: The division of property by the trial court is a three-step process: Step one  determining what property is available for distribution  is reviewed under the abuse of discretion standard, although it may involve legal determinations to which this court applies its independent judgment. Wanberg v. Wanberg, 664 P.2d 568, 570 (Alaska 1983). The second step  placing a value on the property  is a factual determination that will be upset only if there is clear error. Alaska R.Civ.P. 52(a). Step three  allocating the property equitably  is reviewed purely under the abuse of discretion standard and will not be disturbed unless it is clearly unjust. Wanberg, 664 P.2d at 570. This court will disturb the trial court's valuation of marital property only if it is clearly unjust. Bousquet v. Bousquet, 731 P.2d 1211, 1213 (Alaska 1987). Jay argues that the valuations of the parties' retirement benefits are unjust because the court should have recognized the insufficiency of the evidence presented and required additional evidence before attempting to value these benefits. This argument is without merit. The cases Jay cites involve situations in which neither party presented any evidence as to the value of the retirement benefits. [1] In contrast, Patricia presented the 1985 statement into evidence and presented evidence as to Jay's life expectancy. She did not present further evidence of the plan's terms because Jay failed to supply such information when subpoenaed. In denying Jay's motion for a new trial the trial court noted, This court believes that any error in the valuation was the result of the position taken by plaintiff [Jay Hartland] to not provide complete information about his job benefits. Without such information, expert testimony would have been futile. See B. Goldberg, Valuation of Divorce Assets § 9.4, at 248-49 (West 1984) (Unfortunately, however, there is only one way to value [a pension plan]; by reading the plan in the entirety, so that it will be understood regarding rights granted thereunder). Alaska law clearly permits a trial court to resolve a finding of fact against a party whose vexatious, contemptuous, or obstructive behavior causes the trial court to have insufficient evidence. Moffitt, 749 P.2d at 349 n. 7; Gabaig v. Gabaig, 717 P.2d 835, 842-43 (Alaska 1986). Courts in other jurisdictions have reached similar results. [2] Moreover, regardless of any obstructive efforts by Jay, a party who fails to present sufficient evidence at trial should not be allowed on appeal to challenge the inadequacy of evidence. For example, in National Bank of Alaska v. J.B.L. & K. of Alaska, Inc., 546 P.2d 579, 590 (Alaska 1976), this court noted that the trial court's damage award for the breach of a covenant not to compete was incorrect since the damage award should have only included net lost profits. The court noted, however, that the bank could not challenge the error on appeal since it had failed to produce further evidence and was therefore not in a position to claim the trial court erred in using the figures they supplied. Id. The Illinois courts have held that the parties rather than the court have a duty to present evidence on the value of marital assets. As the court noted in In re Marriage of Smith, 114 Ill. App.3d 47, 69 Ill. Dec. 827, 832, 448 N.E.2d 545, 550 (1983): We here opine that this case presents a situation which this court sees all too often in dissolution cases. Despite the fact that numerous hearings regarding the division of property were held and that only a limited amount of property was involved, neither party presented the trial court with solid evidence of the properties' value so that the trial court could make the fairest possible division of the parties' assets. We again emphasize that it is the parties' obligation to present the court with sufficient evidence of the value of the property. Reviewing courts cannot continue to reverse and remand dissolution cases where the parties have had an adequate opportunity to introduce evidence but have failed to do so. Parties should not be allowed to benefit on review from their failure to introduce evidence at trial. Remanding cases such as the one before us would only protract the litigation and clog the trial courts with issues which should have been disposed of at the initial hearing. As the trial court here said after numerous hearings in this case, at some point we must ring the curtain down. (Citations omitted). [3] In reviewing the record, we concluded that there is sufficient evidence of the value of Jay's retirement benefits to allow the court to consider the issue. Under the cases discussed above, the court had sufficient evidence of the pension's value in the future for it to properly evaluate it in terms of the present property division. The evidence presented was that if Jay were to quit as of January 1, 1985, he would receive an annual retirement benefit of $3,083 beginning when he reached the age of 65, some 22 years after the date of trial. At the age of 65 he would have a remaining life expectancy of 12.4961 years. The court multiplied 12.4961 X $3,083 and valued the fair market value of Jay's pension at the product, $38,525.47. Jay argues that this valuations of his retirement benefits constitutes clear error since it does not discount these future benefits to their present value. [4] We agree. The proper division of a vested pension can be accomplished in either of two ways. The court can either award a lump sum discounted to present value to one party or both, or retain jurisdiction and have payments made to the parties as retirement benefits come due. As we noted in Laing: Realistically, there is such a variety of pension plan designs that it is impossible to develop any one detailed formula that will produce an equitable result in every instance. Once the pension is vested, the trial court can determine whether the present value or the retained jurisdiction approach is appropriate in a given case and adopt that approach to the specific circumstances presented. 741 P.2d at 658. See also Rice v. Rice, 757 P.2d 60, 61 (Alaska 1988) (citing Laing ); Miller v. Miller, 739 P.2d 163, 166 (Alaska 1987) (trial court directed to recalculate retirement benefits on remand using present value method). In this case, the court failed to apply either method of division. Consequently, we remand the issue of Jay's retirement benefits back to the trial court for a determination of the benefits' present value. The court may reconsider any related issues and take such further evidence as it deems appropriate.
Jay argues that the court erred in valuing Patricia's teacher's retirement. This argument is without merit. Unlike the case with Jay's retirement, Patricia's retirement plan was a matter of public record. For whatever reason, he chose not to call his listed actuary witness as to her pension benefits. By not raising at trial the valuation calculation he advocates on appeal, Jay has waived his rights to contest the issue on appeal. Zeman v. Lufthansa German Airlines, 699 P.2d 1274, 1280 (Alaska 1985).