Recovery Resources, LLC v. Cupido

Summary

The North Dakota Supreme Court affirmed summary judgment holding Helen Cupido jointly and severally liable for medical debt incurred by her former spouse while they were married and living together. The court held that N.D.C.C. §§ 14-07-08(3) and 14-07-10 imposed liability despite the divorce judgment allocating the debt to her former spouse. The divorce judgment’s indemnification provision did not limit the creditor’s right to recover from Helen, although she could seek indemnification from her former spouse.

Holdings

1. A spouse is jointly and severally liable under N.D.C.C. § 14-07-08(3) and mutually liable under N.D.C.C. § 14-07-10 for necessary medical-care debt incurred by either spouse while the spouses were married and living together, even if the non-incurring spouse did not sign for or guarantee the services.
2. A divorce judgment allocating a debt between spouses and requiring indemnification does not affect a third-party creditor's statutory right to collect the debt from either liable spouse. The creditor's lack of participation in the divorce proceeding prevents the divorce judgment from barring the collection action.

Questions Presented

1. Whether Helen Cupido was jointly and severally liable under N.D.C.C. §§ 14-07-08(3) and 14-07-10 for necessary medical debt incurred by David while the spouses were married and living together.
2. Whether the divorce judgment's allocation of the debt to David and its indemnification provision barred Recovery Resources, a nonparty to the divorce proceeding, from collecting the debt from Helen.

Disposition

affirmed