Summary
The Massachusetts Supreme Judicial Court affirmed dismissal of a former wife’s complaint seeking relief from a divorce judgment based on alleged fraud concerning the valuation of the husband’s business. The court held that the alleged misrepresentations and omissions did not support an independent equitable action, fraud on the court, or relief under Mass. R. Civ. P. 60(b)(6). The court concluded that the wife had not shown a manifestly unconscionable judgment or the extraordinary circumstances required to overcome finality.
Holdings
- An independent action seeking relief from a final judgment cannot be used to circumvent the specific time limitations applicable to Rule 60(b)(2) and (3). When the claim essentially falls within those time-limited grounds, the plaintiff must establish an additional equitable basis, such as circumstances demonstrating that enforcement of the judgment would be manifestly unconscionable or would result in a grave miscarriage of justice. The wife failed to make that showing.
- Fraud upon the court requires clear and convincing proof of egregious conduct that corrupts the judicial process itself or improperly interferes with the court's ability to adjudicate impartially. Nondisclosure to the opposing party or the court, without more, does not constitute fraud upon the court.
- Relief under Rule 60(b)(6) is available only in extraordinary circumstances, for a reason independent of the grounds listed in Rule 60(b)(1)-(5). A party may not invoke Rule 60(b)(6) when the asserted grounds are fraud or newly discovered evidence covered by Rule 60(b)(2) and (3).
- A division of marital assets is based on property owned by the parties at the time of the divorce. Licensing agreements entered into after the divorce trial were not existing assets of KSC at the relevant valuation time and therefore were not required to be included in the property division absent evidence that negotiations had been manipulated to delay execution.
Questions Presented
- Whether the wife could obtain relief from the final divorce judgment through an independent equity action under Mass. R. Civ. P. 60(b) based on alleged fraud and an assertedly unconscionable property division.
- Whether the husband's alleged misrepresentations and nondisclosures constituted fraud upon the court under Rule 60(b).
- Whether the wife could obtain relief under Rule 60(b)(6) when her asserted grounds were fraud and newly discovered evidence falling within Rule 60(b)(2) and (3).
- Whether the later-executed licensing agreements were marital assets that should have been included in the valuation at the time of divorce.
Disposition
affirmed
Cases Cited (35)
- Barry v. Barry, 409 Mass. 727, 732-733 (1991)(followed)
- Bankers Mtge. Co. v. United States, 423 F.2d 73, 77 (5th Cir.), cert. denied, 399 U.S. 927 (1970)(followed)
- Aronson v. Brookline Rent Control Bd., 19 Mass. App. Ct. 700, 708 n.21 (1985)(followed)
- United States v. Beggerly, 524 U.S. 38, 45-48 (1998)(followed)
- Geo. P. Reintjes Co. v. Riley Stoker Corp., 71 F.3d 44, 46-49 (1st Cir. 1995)(followed)
- Wheeler v. Springfield Sugar & Prods. Co., 15 Mass. App. Ct. 979, 979-980 (1983)(followed)
- Hazel-Atlas Glass Co. v. Hartford-Empire Co., 322 U.S. 238, 244-245 (1944)(followed)
- Aetna Cas. & Sur. Co. v. Abbott, 130 F.2d 40, 43-44 (4th Cir. 1942)(followed)
- Chicago, R.I. & P. Ry. v. Callicotte, 267 F. 799, 809-810 (8th Cir. 1920), cert. denied, 255 U.S. 570 (1921)(followed)
- Coughlin v. Coughlin, 312 Mass. 452, 454 (1942)(followed)
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