Flaherty v. Flaherty

477 A.2d 1257 (1984)

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Nature of the Case

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Facts

W and H were divorced in 1977 after seventeen years of marriage. At that time, they had four dependent children. Prior to their divorce, they negotiated and executed a Property Settlement Agreement (Agreement). The trial court incorporated the Agreement in the final judgment of divorce, which expressly recited that the court had made no 'findings as to the reasonableness thereof.' The agreement provides that any financial dispute arising out of the Agreement must be arbitrated as a condition precedent to court action. Arbitration was to be under the rules of the American Arbitration Association (AAA); and the arbitrator's decision is binding on the parties. Eventually, W moved in the Chancery Division for an order fixing past-due alimony and child support and compelling discovery of defendant's business records. W claimed that H was in arrears of $25,400 in support payments and had defaulted on one of the equitable-distribution promissory notes of $25,000. H cross-moved, seeking to compel arbitration of the arrearages. The Chancery Division issued an order compelling arbitration of arrearages of alimony and child support as well as the issue of modification of future payments of alimony and child support in accordance with the Agreement. The arbitrator's award fixed the alimony arrearages of $37,648 and child support arrearages of $12,284. The award also denied H's requests for reduction in future alimony, if any, and future child support. W moved in the Chancery Division to confirm the arbitration award. H cross-moved to vacate the arbitrator's award and to obtain court hearings for modification of his prior and future payments due to his changed circumstances and modification of his payments in lieu of equitable distribution. The arbitration award was confirmed.