Court Opinion

ID: 9757130
Source: CourtListenerOpinion
Date Created: 2023-08-28 22:19:42.462878+00
Date Added: 2024-06-11T07:28:35.255767
License: Public Domain

Karen R. Bailer, Judge, dissenting. The majority’s opinion is flawed in three distinct respects. First, it misstates the holding in the seminal case upon which it bases its decision. Second, it ignores critical testimony relied upon by the trial court in reaching its decision. Third, the disregard of this testimony leads to the improper shifting of the burden of proof. First, the majority misstates the holding in Grady v. Grady, 295 Ark. 94, 747 S.W.2d 77 (1988). The majority acknowledges that Grady is “the seminal case on this issue.” “This issue” is whether the trial court erred in imputing income to appellant when considering whether to modify the court’s previous award of alimony. Despite the majority’s recognition that Grady controls, it contends that the imputation of income in Grady was limited to the child-support obligation in the case, and that our supreme court allows imputed income for alimony purposes only where child support was also awarded. The majority completely ignores our supreme court’s specific proclamation in Grady that imputation of income is permitted in spousal support cases: We have not dealt with this issue direcdy, but elsewhere it has been held that the court may consider the fact that a supporting spouse voluntarily changes employment so as to lessen earning capacity and, in turn, the ability to pay alimony and child support. Camp v. Camp, 269 S.C. 173, 236 S.E.2d 814 (1977). A court may in proper circumstances impute an income to a spouse according to what could be earned by the use of his or her best efforts to gain employment suitable to his or her capabilities. Klinge v. Klinge, 554 S.W.2d 474 (Mo. 1977). Grady, 295 Ark. at 97, 747 S.W.2d at 78-79 (emphasis added); see also Christianson v. Christianson, 671 N.W.2d 801, 806 (N.D. 2003) (recognizing that other states have permitted imputing income in spousal support cases, citing Grady, but holding that imputation not appropriate on facts of the case); Moore v. Moore, 242 Mich. App. 652, 619 N.W.2d 723 (2000); In re Marriage of Carrick, 560 N.W.2d 407 (Minn. Ct. App. 1997). Our supreme court in Grady held that a trial court may impute income for alimony and child support purposes. This premise is clear and easily interpreted. What is unclear is how the majority embraces our supreme court’s explanation in Harvey v. Harvey, 295 Ark. 102, 747 S.W.2d 89 (1988), decided the same day as Grady, that the purpose of alimony is to rectify economic imbalance that includes the earning power of the parties, while completely eviscerating that purpose by holding that our supreme court allows imputation of income to rectify economic imbalance only when a child support order is also entered. I cannot imagine our supreme court adopting the limitation set out by the majority; however, had the supreme court intended to allow imputation of income for spousal support only when a child support order is entered, they certainly could have used this limiting language. This court is without power to modify and limit the supreme court’s specific statement allowing imputation of income in alimony cases found in Grady. The majority implicitly acknowledges that it cannot overrule our supreme court when it inserts, almost as an afterthought: “While we do not decide today that income may never be imputed to support an award of alimony, we hold that it was not appropriate in this case.” Apparently the majority finds that it is not appropriate in this case because no child-support order was entered. The majority holds that the trial court abused its discretion in imputing income to appellant, and finding that appellant had the ability to pay the reduced alimony award, by focusing on the decrease in appellant’s wages and emphasizing that appellee “had no dependents,” i.e., a child. Not once in discussing imputation of income does the majority address the fact that appellant’s wages were reduced when he lost his former job because he lost his driver’s license. In appellant’s testimony, he explained that he lost his driver’s license because he did not have insurance. The majority ignores the fact that appellant’s reduction in income was related to his refusing to purchase, or not being able to obtain, insurance. Nothing in the majority’s opinion explains how this fact was an improper consideration in the trial court’s decision that, although alimony should be reduced, it should not be eliminated. Certainly the majority does not explain how the trial court abused its discretion in finding that appellant had the ability to pay the reduced alimony award. The ability to pay is not limited to a supporting spouse’s current wages, as the majority indicates, but includes what could be earned by the use of his or her best efforts to gain employment suitable to his or her capabilities. Grady, supra. The decision to grant alimony lies within the sound discretion of the circuit court and will not be reversed on appeal, absent an abuse of discretion. Taylor v. Taylor, 369 Ark. 31, 250 S.W.3d 232 (2007). An abuse of discretion means discretion improvidently exercised, i.e., exercised thoughtlessly and without due consideration. Southwestern Bell Yellow Pages, Inc. v. Pipkin Enterprises, Inc., 359 Ark. 402, 198 S.W.3d 115 (2004) (citing Arnold v. Camden News Publ’g Co., 353 Ark. 522, 110 S.W.3d 268 (2003)). Our supreme court and this court have emphasized in the past that the circuit court is in the best position to view the needs of the parties in connection with an alimony award. See Taylor, supra. Despite this standard of review, the majority reaches its conclusion that the trial court abused its discretion by ignoring evidence that the trial court specifically considered in reaching its decision. This is the second distinct flaw in the majority’s reasoning. Based on appellant’s testimony explaining the loss of his driver’s license and job, the trial court found as follows: Mr. Morse, part of these circumstances are well within your control and I am basing this on the fact that what caused you not to be able to make the amount of money that you were making seems to me to be under your control and not someone else’s. You got terminated for reasons that were partially or totally within your control. . . . he’s capable of making more and the reason he isn’t making more is something he did. The case law is clear that if there’s a finding that he’s capable of making more, then I can impute what he might be able to make and come, up with a determination on that. He said that he lost his $18.00 an hour job because of things he did, not because they just terminated him or the job ended. I think that’s the difference here. I think there’s other jobs he could have done. He lost a good job because of his own doing and that’s my reasoning. The trial judge correctly stated the law and relied upon it to impute income. See Hurley v. Hurley, 255 Ark. 68, 498 S.W.2d 887 (1973) (holding that changes that are the result of decisions made by the obligor cannot be urged as a change in circumstances to justify reduction of alimony); see also Taylor v. Taylor, 8 Ark. App. 6, 648 S.W.2d 505 (1983). The majority ignores the evidence. Then it ignores our standard of review. The majority fails to explain how the trial judge acted thoughtlessly or without due consideration when he specifically stated that the reason appellant was terminated from his job was because he lost his license which was within appellant’s control. The trial court specifically found appellant’s fault was not an excuse for failing to meet his court-ordered obligations. Appellant was found in contempt and ordered to pay arrearages. Although the trial court reduced future support obligations, it refused to terminate the support altogether, specifically finding that, “he is capable of making more.” The trial court’s decision clearly was not exercised thoughtlessly and without due consideration. The majority also fails to explain how this court is in a better position than the circuit court to determine the need of one party and the ability to pay of the other in connection with the award of alimony, even though precedent clearly requires deference to the circuit court because that court is in the best position to view the needs of the parties in connection with an alimony award. See Taylor, supra. The majority can reach its conclusion only by assuming that it, rather than the trial court, is in the “best position” to view the financial need of one spouse and the other spouse’s ability to pay. In so doing, the majority impermissibly shifted the burden in this case from appellant to the appellee. It has long been held that a modification of an award of alimony must be based on a change of circumstances of the parties, Herman v. Herman, 335 Ark. 36, 977 S.W.2d 209 (1998), and the burden of showing a change in circumstances is always upon the party seeking the change in the amount of alimony. (Emphasis added.) Weeks v. Wilson, 95 Ark. App. 88, 234 S,W.3d 333 (2006) (citing Hass v. Hass, 80 Ark. App. 408, 97 S.W.3d 424 (2003)). The majority opinion specifically states that, “There is no evidence in the record to suggest that appellee needed alimony then or that she needs alimony now.” (Emphasis added.) Apparently, the majority is attempting to go behind the order to determine whether or not the trial court erred in its first award of alimony. There is no authority for that proposition, and the premise is untenable. See Taylor, supra (citing Lively v. Lively, 222 Ark. 501, 261 S.W.2d 409 (1953) (holding that the liberality of the original allowance cannot afford grounds for modification)). This last distinct flaw, the shifting of the burden to appellee, demonstrates the majority’s disregard of appellate precedent and deference to the trial court. It is clearly appellant’s burden to prove a change in circumstances existed, as he is the one seeking a modification of alimony in this case. It was appellant’s burden to prove that appellee no longer needed alimony. He presented nothing to demonstrate need or a lack of need to the trial court. To the extent that the majority’s reasoning relies upon that lack of evidence, they should remember that appellee did not have to prove anything, as it was not her burden. The majority’s reasoning is structurally unsound. It misstates the holding in the seminal case upon which it bases its decision; it ignores critical testimony relied upon by the trial court in reaching its decision; and, it improperly shifts the burden of proof to appellee. Accordingly, I dissent.