Opinion ID: 2585502
Heading Depth: 2
Heading Rank: 2

Heading: equitable jurisdiction

Text: ¶ 8 The trial court based its decision on principles of equity. In 1987, the legislature enacted a new law, codified in the Oklahoma Statutes as § 1291 of Title 12, now 43 O.S. 2001, § 137. Section 137(A) provides that Any payment or installment of child support ordered pursuant to any order, judgment, or decree of the district court or administrative order of the Department of Human Services is, on and after the date it becomes past due, a judgment by operation of law. Except for the rearranging of some commas, the sentence is identical to that which was originally enacted. The Court of Civil Appeals has construed this statute as eliminating equitable defenses to excuse noncompliance with a support order. Aguero v. Aguero, 1999 OK CIV APP 38, ¶ 10, 976 P.2d 1088, 1090. Cowan v. Cowan, 2001 OK CIV APP 14, ¶ 10, 19 P.3d 322, 325-326, relied on Aguero to reach the same result. ¶ 9 In his Response of Michael L. Merritt to Motion to Dismiss Contempt Citation, the appellant argues that he has a series of judgments for unpaid child support as a result of the appellee's failure to make her required child support payments. Appellant cites 43 O.S.2001, § 137, which uses the term judgment by operation of law. The term judgment by operation of law appears to be incorporated into Oklahoma's statutes as a result of a requirement by Congress. [2] ¶ 10 A money judgment is discharged by actual payment in full to a person authorized to receive it. Hart v. Jett Enterprises, Inc., 1985 OK 24, ¶ 6, 744 P.2d 561, 562. Due process requires that an obligor be allowed a hearing for any legally-cognizable defense to an assertion of arrearage. The Supreme Court of Alaska recognized this in State v. Maxwell, 6 P.3d 733 (Alaska 2000). That court observed that an alleged obligor be allowed an opportunity for a fair and impartial hearing before finalizing and implementing a continuing child support order that would become a series of enforceable judgments. Maxwell, 6 P.3d at 737. ¶ 11 North Dakota likewise recognized this right to a hearing in Ruscheinsky v. Ulrich, 2000 ND 133, ¶ 10, 612 N.W.2d 283, 286. There the court noted that simply because obligor's arrearages constituted judgments by operation of law did not necessarily mean that North Dakota's Social Services could collect on the judgments. Pursuant to North Dakota statutes, the claims were subject to a statute of limitations or cancellation by N.D.C.C. § 28-20-35. ¶ 12 Like support alimony, child support becomes vested at the time each payment becomes due. Nantz v. Nantz, 1988 OK 9, ¶ 10, 749 P.2d 1137, 1140. [A]n action which seeks to recover unpaid installments for child support is an action for a debt created by law and evidenced of record, and is maintainable in the court which directed payment, or any other court of competent jurisdiction.... Turk v. Coryell, 1966 OK 194, ¶ 10, 419 P.2d 555, 558. ¶ 13 Even though the arrearages are judgments by operation of law, they are nevertheless subject to equitable defenses. We have already stated that Oklahoma recognizes equitable defenses. Hedges, 2002 OK 92, ¶ 10, 66 P.3d at 370. [T]he equitable jurisdiction of a district court is not dependent upon specific statutory authorization. Marley v. Cannon, 1980 OK 147, ¶ 8, 618 P.2d 401, 404. The purpose of a court sitting in equity is to promote and achieve justice with some degree of flexibility. Garrett v. Arrowhead Improvement Ass'n, 826 P.2d 850, 855 (Colo.1992). Therefore, the trial court's exercise of equitable jurisdiction requires an inquiry into the particular circumstances of the case. Garrett, 826 P.2d at 855. There is a legal maxim that equity must follow the law; it will not allow legal limitations to be abridged unless there are equitable considerations of a compelling nature. Hedges, 2002 OK 92, ¶ 8, 66 P.3d 364, 370. Equity will follow both the letter and the spirit of the law. ¶ 14 Pursuant to the standard of review, we must examine the record to determine if the trial court abused its discretion or if its findings were clearly contrary to the weight of evidence. In concluding that equitable estoppel applied, the trial court specifically considered the mother's disability, the fact that Social Security paid an amount in excess of the arrearage, and that the mother was not responsible for Social Security's decision to pay the adult son. ¶ 15 Equitable estoppel is employed to prevent one party from taking a legal position inconsistent with an earlier action that places the other party at a disadvantage. First State Bank v. Diamond Plastics Corp., 1995 OK 21, ¶ 39, 891 P.2d 1262, 1272. Equitable estoppel holds a person to a representation made, or a position assumed, where otherwise inequitable consequences would result to another, who has in good faith, relied upon that representation or position. Oxley v. General Atlantic Resources, Inc., 1997 OK 46, ¶ 20, 936 P.2d 943, 947. In the case at bar, the representation or position assumed must be the amount of time the father delayed before filing for his application for an indirect contempt citation and motion to reduce arrearage to judgment. ¶ 16 Both estoppel and the equitable defense of laches share the elements of delay and resulting prejudice to the other party. In Hedges, cited above, this Court found that a ten-year delay was not sufficient to support a laches defense where the only prejudice that could be shown was the fact that the party owing the arrearage must now pay the accrued interest along with the arrearage. Hedges, 2002 OK 92, ¶ 11, 66 P.3d at 370. In the case at bar, the mother is alleged to have failed to pay child support for three years and nine months. Concerning resulting prejudice from a delay in enforcement, the mother could claim to be prejudiced by the fact that the father's delay resulted in the Social Security Administration's paying the parties' adult child instead of paying the father. But she cannot claim that her failure to pay child support was in good faith. Also, there is no evidence that the father has taken now a legal position inconsistent with his earlier action. The evidence is insufficient to support the conclusion of the trial court that equitable estoppel applies. ¶ 17 But to affirm the decision of the trial court, it is not necessary for this Court to agree with the reason for the decision. It is a settled rule of appellate review in this jurisdiction that a judgment, if correct, must stand, regardless of the correctness of the reasons, theory or conclusions upon which it was based. McDaniel v. McCauley, 1962 OK 72, ¶ 10, 371 P.2d 486, 489, quoting Duncan v. Golden, 1957 OK 194, ¶ 6, 316 P.2d 1116, 1118. ¶ 18 The judgment of the trial court is based on an assumption that Social Security disability benefits may be credited for court-ordered support of a minor child. That assumption is correct. The foundation for crediting disability benefits for a minor child as child support payments was laid in Nibs v. Nibs, 1981 OK 25, 625 P.2d 1256. The Court found that the trial court in Nibs was within its discretion to credit Social Security payments against a child support obligation, although the Court held that the evidence in Nibs weighed against such a credit. Nibs, 1981 OK 25, ¶ 10, 625 P.2d at 1257. The entire Nibs court agreed that credit for Social Security disability benefits toward a child support order should be allowed. Nibs, 1981 OK 25, ¶ 1, 625 P.2d at 1258 (dissent). Social Security benefits are not gratuitous, but are earned, and they constitute, in effect, insurance payments substituting for lost earning power. [Citations omitted.] It is therefore equitable to substitute Social Security disability benefits for child support for the period during which such benefits are paid. Nibs, 1981 OK 25, ¶ 1, 625 P.2d at 1258 (dissent). ¶ 19 In the case before us, Social Security benefits have been paid for child support. The amount paid was in excess of that owed as an arrearage. The mother is entitled to credit for that payment. The trial court found that the mother was not responsible for the lump sum payment directly to the adult child of the parties. In balancing the equities, we will not require a disabled party on Social Security to pay a second time. McNeal v. Robinson, 1981 OK 43, ¶ 13, 628 P.2d 358, 360. We do not find an abuse of discretion in the decision of the trial court.