Gunn v. Gunn

The parties in this case divorced. The issue this case presented for the Supreme Court's review centered on the nature of the parties' marital interest in a limited liability company. They eventually agreed that the husband would retain the ownership interest but the wife would receive 25% “of the net commission” from certain sales if they occurred within a limited time after the divorce. When a sale occurred, the parties disagreed on how to define “net commission”: the wife contended that it meant the commission received by the company, but the husband contended that it meant only his share of it. The wife sought discovery in support of her interpretation of the agreement. The husband moved for a protective order, and the parties’ attorneys compromised on some limited production. Although the husband produced information that appeared to satisfy the compromise, the wife filed a motion to compel. The court granted the motion to compel and awarded the wife attorney’s fees for having had to file it. Then, following an evidentiary hearing, the superior court agreed with the wife’s interpretation of the settlement agreement. The husband appealed both the decision on the merits and the award of attorney’s fees on the motion to compel. Because the language of the agreement and relevant extrinsic evidence favored the wife’s interpretation of “net commission,” the Supreme Court affirmed the superior court’s decision of that issue. But because the Court could not find the rationale for the superior court’s award of attorney’s fees to the wife on her motion to compel, it remanded that issue to the superior court for reconsideration. View "Gunn v. Gunn" on Justia Law