Opinion ID: 2166944
Heading Depth: 1
Heading Rank: 7

Heading: Modifiability of Support Order

Text: As previously noted, the parties' agreement provided that Husband would make support payments through the Bucks County Domestic Relations Section. The trial court entered the divorce decree on February 2, 1988, and on February 10, 1988, the Domestic Relations Section entered a support Order per the divorce decree. Following a hearing on June 29, 1989, the trial court entered a stipulated Order requiring Husband to pay to the Bucks County Domestic Relations Section $1,230.00 per month for child support. The Order incorporates by reference all terms of the property settlement agreement and states: Both parties are further ordered to notify the Bucks County Domestic Relations Section in writing or in person within seven (7) days of any change of employment, change of personal address or change of address of any child receiving support. Willful failure to comply may be adjudged in Contempt of this Court. Mandatory income attachment shall occur, where possible, when a defendant is in arrears in an amount equal to or greater than one (1) month's support obligation or at such earlier date as the court may designate. Husband asserts that this Order is separate and modifiable, even if the support agreement cannot be modified. In Sonder, the Superior Court made the following observations regarding support orders: A support or alimony order is a creation of statute and an incident of the marriage which is enforceable by operation of law. Proceedings relative to such orders contain due process requirements, evidentiary findings and involve scrutiny by the court as to their validity, subject to appellate review. In return for this closely proscribed legal proceeding with its attendant safeguards and judicial findings, the legislature has extended the power to bring about compliance by granting courts the right to attach property and wages and to incarcerate willfully delinquent obligors. A further extension of this power is the right to modify the order or vacate the arrears upon a showing of changed circumstances, 23 P.S. § 504. . . . Thus, upon analysis, it is apparent that extraordinary attributes and conditions are attached to support and alimony orders, which become instruments of the court, and not subject to the control of the parties. Id. at 487-488, 549 A.2d at 162 (citations omitted). Regarding support agreements not entered through the court, Sonder noted: By comparison, agreements . . . are instruments of contract in which the court has no involvement. None of the elements of due process, court review and appealability are involved in agreements such as these, which are private undertakings between two parties, each having responded to the `give and take' of negotiations and bargained consideration.. . . Since they are not court orders, the extraordinary powers flowing from a court are not available. To jail a person for failing to pay on his agreement (which created a debt) is prohibited by our constitutions, state and federal, as imprisonment for debt. Id. at 488-489, 549 A.2d at 162-163 (citations omitted). After reviewing the differences between agreements and support orders, the Sonder court noted that our decision in Brown v. Hall, 495 Pa. 635, 435 A.2d 859 (1981), clearly provided that support agreements which were intended to survive a decree of divorce were enforceable in equity both as to past and future payments of support under the agreement. It was therein also provided that a subsequent reduction in support, through the imposition of a court-imposed support Order, did not abrogate the contract. Sonder, 378 Pa.Super. at 489, 549 A.2d at 163 (emphasis added). In Dechter v. Kaskey, 379 Pa.Super. 45, 549 A.2d 588 (1988), the companion case to Sonder, the parties entered into a written settlement agreement on September 5, 1985, providing that husband would pay support for two children in the amount of $200.00 per week, retroactive to November 1, 1984, and $235.00 per week as of January 1, 1985. Although the record was unclear, it appeared that the court entered a support order with similar provisions on July 1, 1985. The settlement agreement did not mention the order, and because it was never vacated, it continued in effect. On September 16, 1985, the court entered a divorce decree that incorporated but did not merge the settlement agreement. On February 26, 1986, the husband in Dechter filed a petition to modify the July 1, 1985 order. Following a hearing, the trial court granted the petition and reduced the July 1, 1985 support order from $235.00 per week to $150.00 per week. In its opinion, the trial court referred to both the separation agreement and the support order, and purported to reduce both. On appeal, the Superior Court determined that the trial court did not abuse its discretion in determining that due to a change in circumstance a modification of the July 1, 1985 order was proper. However, because the agreement did not merge with the divorce decree, it was not subject to modification. Accordingly, the Superior Court affirmed the modification of the support order and vacated the modification of the agreement, stating: Pursuant to Sonder, we held both agreements and support Orders under certain circumstances could be given independent effect. Obviously, double recovery cannot be allowed on both the agreement and the support Order. To the extent the agreement is not completely satisfied by the amount paid pursuant to the support Order, a debt is accumulated which may be recovered in equity. However, as we stated in Sonder, the enforcement remedies are not those pursuant to the support laws, therefore attachment of the person and wage attachment are not permissible. Dechter, 379 Pa.Super. at 49, 549 A.2d at 590. This Court examined the relationship between support agreements and orders in Knorr. In Knorr, the parties entered into an agreement on June 2, 1986, in which husband agreed to pay wife $200.00 per month in child support until he became employed, and then he would pay support according to the support guidelines. On August 11, 1986, the trial court entered a final divorce decree incorporating but not merging the agreement. Wife later filed a support complaint alleging that husband did not meet his obligations. In March 1987, the court issued an order requiring Husband to pay $200.00 per month plus arrearages, and directing him to seek employment. Nine months later, wife filed a petition to increase the support order because husband was employed. Husband filed for a reduction of the order because he was laid off from work and was ineligible for unemployment compensation. Wife sought to vacate an order setting a hearing date for husband's petition, on the grounds that the support order was based on a settlement agreement, and therefore unmodifiable. The trial court agreed, and vacated the order. On appeal, the Superior Court reversed and remanded, holding: In the instant case, [husband] did not seek to modify the agreement into which he had entered with his wife. He sought only to reduce the amount of the support order which the court, in response to a separate petition by [wife], had entered. . . . This order specifically had been made enforceable by the court's contempt powers. Such an order may be modified. It may be modified upwards or downwards as the circumstances require. This is essential if the order is to be enforced by the attachment of the payor's person. Knorr v. Knorr, 380 Pa.Super. 11, at 16-17, 550 A.2d 1338, at 1341 (1988), affirmed, 527 Pa. 83, 588 A.2d 503 (1991). This Court affirmed the Superior Court's decision, but held: In the instant case the mother appellant has chosen not to sue on their separation agreement, but has sought redress by complaint in the Family Court. In doing so, she has forsaken her right to sue, seeking the powers of the court for immediate relief. While such an option may provide swifter and more enforceable results, it becomes subject to the court and the court is not bound by their agreement. Knorr, 527 Pa. at 86-87, 588 A.2d at 505 (emphasis added). Husband maintains that pursuant to Knorr, Wife is precluded from seeking to enforce the support agreement because contempt petitions were filed on her behalf in the Bucks County Domestic Relations Section alleging that Husband failed to comply with the support Order. [4] He bases his position on the statement in Knorr that by filing a complaint in family court instead of suing on the separation agreement, mother has forsaken her contract right to sue, seeking the powers of the court for immediate relief. Id. at 86-87, 588 A.2d at 505. However, Husband's interpretation of Knorr fails to note that in that case the issue of whether mother could later sue on the separation agreement was not before the Court. Accordingly, the inference of complete abandonment of a separate cause of action was dictum. Our review of Superior Court cases discussing Knorr leads to the conclusion that our decision has once again engendered confusion and uncertainty in this area. For example, in Ashbaugh v. Ashbaugh, 426 Pa.Super. 589, 627 A.2d 1210 (1993), the court noted: Knorr never addressed the question of whether a party's conduct in filing a support complaint in one action would preclude that party from seeking to enforce the contract in future disputes. Knorr thus did not address the res judicata effect, if any, to be accorded to the parties conduct. Ashbaugh, 426 Pa.Super. at 598 n. 5, 627 A.2d at 1215 n. 5. In McGinnis v. McGinnis, 439 Pa.Super. 372, 654 A.2d 563 (1995), the parties entered into a child support agreement, but rather than seeking enforcement of the agreement, the wife initiated a support action. The Superior Court relied on Knorr, and stated: Appellee in this action elected not to sue on the support agreement, but instead initiated an action in support. By electing this course, she forsook her contract right to sue, and instead submitted her claim to the powers of the support court. Knorr v. Knorr, 527 Pa. 83, 86-87, 588 A.2d 503, 505 (1991). McGinnis, 439 Pa.Super. at 377, 654 A.2d at 565. Yet, in Swartz v. Swartz, 456 Pa.Super. 16, 689 A.2d 302 (1997), the Superior Court characterized Knorr as follows: We reversed and the Supreme Court affirmed our decision, concluding that the parties' private agreement could not be enforced or considered in a separate support action. However, the Knorr Court noted that to enforce the private agreement, wife would have to sue in contract under the theory of specific performance. Swartz, 456 Pa.Super. at 21, 689 A.2d at 304 (citation omitted). More important, the interpretation of Knorr suggested by Husband is inconsistent with this Court's decision in Brown and numerous Superior Court cases that have held that support agreements and support orders may be enforced separately. See Swartz (a court-imposed support order does not vitiate a private agreement that has not been merged into a divorce decree); Soll v. Soll, 429 Pa.Super. 312, 632 A.2d 581 (1993) (support agreements and court orders may coexist and be enforced separately); Lipschutz (a support order does not estop a party from enforcing a prior support agreement); Sonder (support orders and agreements can be given independent effect); Trumpp v. Trumpp, 351 Pa.Super. 205, 505 A.2d 601 (1985) (the remedy of specific performance of a private agreement is available even if there is an intervening support order). Husband's reading of Knorr fails to recognize the distinct nature of private agreements and court orders regardless of whether they are domestic relations orders, support orders entered by the family court, or orders resulting from agreement of the parties that support payments be made through the domestic relations office. Furthermore, under such an interpretation of Knorr, support orders that exist independently of agreements are of limited value if by enforcing them, payees forever abandon their right to enforce their private contracts. We are especially concerned that by giving preclusive effect to a support order, and preventing the payee from bringing an action on the contract, Husband's reading of Knorr fails to give due attention to the financial needs of the children whose interests the parties intended to protect through the support agreement. Accordingly, we clarify Knorr, and hold that when, as here, a payee seeks redress in the family court based on a support order, he or she cannot assert the existence of a separate agreement as a reason for the court not to modify its order downward. Because failure to comply with a support order can lead to incarceration, the court must be able to reduce the amount if the payor establishes an inability to pay. Moreover, we clarify that the existence of a proceeding on the support order in the family court does not preclude a payee from initiating a separate civil action based on a support agreement either for compensatory damages or for specific performance. In an action at law, the payee may recover breach of contract damages, which in this case would be the unpaid amount of support plus interest. The payee may also choose to seek relief in equity through an order of specific performance directing the payor to comply with his or her future support obligations under the agreement. In addition, the court of equity may order other relief as it deems just. The payee who is successful in his or her civil action has available the enforcement remedies set forth in the Pennsylvania Rules of Civil Procedure. As an example, consider a payor who is obligated to pay child support of $1000.00 per week. If the family court determines that he is only able to pay $100.00 per week, and reduces the support order accordingly, in the event he is rehabilitated after three years and obtains additional sums of money, the payee could initiate a civil action and receive a judgment of $140,400.00 ($900.00 X 156 weeks) plus interest and costs. Because support agreements that are incorporated but not merged into a divorce decree are enforced according to contract principles, we note that defenses such as impracticability may be available to the payor in an action in law or equity. However, a party normally assumes the risk of his inability to perform his contractual duties. Luber v. Luber, 418 Pa.Super. 542, 614 A.2d 771 (1992), appeal denied, 535 Pa. 636, 631 A.2d 1008 (1993); Restatement (Second) of Contracts, § 261, comment e. Where an agreement and support order coexist, the payee does not abandon his or her right to sue on the contract merely by bringing an action under the existing order. In the support action, however, the payee may not claim that the contract prevents the family court from modifying the order downward if such reduction is necessary to prevent payor from having to comply with an order that he cannot pay due to changed circumstances. Bringing an action on the support order does not preclude the payee from bringing a separate action on the contract. We specifically hold that the family court's determination of a payor's inability to pay does not preclude the court sitting in law or equity from determining that the terms of the agreement are enforceable.