Professional Documents
Culture Documents
Irish v. Irish, 1st Cir. (2016)
Irish v. Irish, 1st Cir. (2016)
Before
Torruella, Lynch, and Lipez,
Circuit Judges.
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subject
relations
matter
exception
jurisdiction
to
federal
pursuant
to
diversity
the
domestic
jurisdiction.
The
the
same
provision
dividing
the
shares,
Craig
Agreement,
and
contained
the
following
clause:
"I
agreement
in
their
divorce
proceeding,
the
state
Additionally, and in
district
court
in
Massachusetts
based
on
diversity
The primary basis for Dawn's suit against Craig was her claimed
entitlement to 20% of the $21,600,000 payment.
Pointing to emails
between Craig and his accountant that support her contention, Dawn
insisted that Craig concealed a pre-divorce "side deal," which
granted him "phantom equity" well beyond the 6% interest he
purported to hold in shares.
equal to 20% of his actual profits from the sale, rather than 20%
of his 120 shares.
January
22,
2014,
the
court
entertained
Craig's
domestic
jurisdiction.
relations
exception
to
federal
diversity
to the claims sounding in tort and fraud, reasoning that they dealt
with "the formation of the divorce decree," and that to decide
them would therefore "necessarily involve[] a revision of that
decree."1
contract claims to the probate court so that the entire case could
be tried together, despite the fact that the case had not come
from the probate court.
stated that the probate court had been "unwilling to recognize the
remand order as valid, [as] the matter did not originate" there,
but she attached no document or order from that court.
She also
At oral
argument for this appeal, Dawn's counsel conceded that Dawn never
attempted to file a complaint or other paper in the probate court.
of that decision.
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that
hearing
on
the
merits,
the
court
its
rationale
contract claims.
for
asserting
jurisdiction
over
the
issue were not disclosed "and thus [were] not litigated in the
original divorce proceeding," "no judgment the Court could make
with regard to these assets would 'alter a divorce decree' in such
a way that would bring the matter within the domestic relations
exception."
After a bench trial on the issue of damages, the court
awarded Dawn (1) $3,840,000, representing 20% of the $21,600,000
that Craig had earned from the NLI sale, minus the share that Dawn
had already received; (2) $26,859.74, representing 50% of the
$53,719.47 that Craig had concealed in uncashed checks; and (3)
pre-judgment interest on both sums.
Craig
appeals,
raising
several
challenges
to
the
Cir. 2003).
of
jurisdiction
domestic
over
relations
"a
narrow
issues"
range
that
of
would
[cases
implicating]
otherwise
meet
the
Formally, it
anchored
Ankenbrandt, 504
the
exception
in
congressional
acquiescence
to
Federal Courts and The Federal System 1331 (4th ed. 1996).
Chief
This desire
federal
interference
distinctively local.
with
matters
thought
to
be
said,
we
have
explained
that,
"[i]n
general,
to
obtain
distribution
of
[marital]
property"
and
have
also
recognized
that
the
domestic
relations
entering
the
necessary
decrees,
and
handling
the
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Our
error
by
not
dismissing
particular
contract
claims
in
federal
court.
State
courts
are
perfectly
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relations
function,
and
she
relies
heavily,
mistakenly, on Dunn, 238 F.3d 38, and Mooney, 471 F.3d 246.
but
In
This
court
held
the
domestic
relations
exception
ex-spouses'
earlier
divorce
proceeding,
which
would
have
Id. at 41.
Id.
Here, in
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conclusion.
We reject Dawn's argument that her action is permissible
in federal court not as one to obtain a division of marital
property, but as one merely to enforce the division envisioned in
her existing agreement with Craig.
relations
exception
"governs
claims
over
The domestic
[domestic
relations
Cir. 2003) (citation omitted); see also Sutter v. Pitts, 639 F.2d
842,
844
(1st
Cir.
1981)
("Although
[plaintiff]
clothed
her
It is an "uncontroversial
Second, while it is true -- as we noted in Mooney -that state law, depending on the nature of the claims in the postdivorce suit, may provide for a further action in the probate
court, see, e.g., Carpenter v. Carpenter, 901 N.E.2d 694, 699-700
(Mass. App. Ct. 2009), or an independent action in superior court,
see, e.g., Reed v. Luther, No. MICV201101210, 2011 WL 6975979, at
*3 (Mass. Super. Ct. Nov. 28, 2011), that fact does not decide the
question of whether there is federal jurisdiction, which is a
matter of federal law, see Dunn, 238 F.3d at 42.
In any event, Dawn's action is clearly distinct from the
model independent "enforcement" action conceived of in Mooney -a suit to enforce compliance with a separation agreement's terms
ordering alimony -- and the converse action actually before the
Mooney court -- a suit to have the agreement deemed unenforceable
due to defects at contract formation.
deal for which she would not have bargained, but styles her
requested remedy as the benefit of what she bargained for.
Yet,
relations
overtones
but
asked
the
court
merely
to
acquired and held by Craig during the marriage and then to decide
what share of them should have been apportioned to Dawn upon the
parties' separation.
We simply