Bono, M. v. Bono, T. ( 2020 )


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  • J-A19019-20
    NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37
    MARIA J. BONO                              :   IN THE SUPERIOR COURT OF
    :        PENNSYLVANIA
    :
    v.                             :
    :
    :
    TERRY B. BONO                              :
    :
    Appellant               :   No. 250 EDA 2020
    Appeal from the Order Entered December 23, 2019
    In the Court of Common Pleas of Northampton County Domestic
    Relations at No(s): DR-0109117
    BEFORE: PANELLA, P.J., McLAUGHLIN, J., and McCAFFERY, J.
    MEMORANDUM BY McLAUGHLIN, J.:                        Filed: November 25, 2020
    Terry B. Bono (“Father”) appeals from the child support order entered
    on December 23, 2019. He argues the trial court erred in ordering the parties
    to take depositions prior to the de novo hearing, in assessing his income and
    the income of his ex-wife, Maria J. Bono (“Mother”), and in allocating child
    care expenses between the parties. We affirm.
    Mother and Father have two minor children. Mother filed a complaint for
    child support in September 2017, and the parties first appeared for a hearing
    before a domestic relations conference officer in October 2017. The conference
    officer issued a recommended order that the trial court adopted as an interim
    order on October 26, 2017.1 The court ordered Father to pay Mother $1,234
    monthly, plus arrears.
    ____________________________________________
    1   The order was filed on the docket on October 27, 2017.
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    Father filed a written demand for a de novo hearing before the trial
    court. The parties appeared before the court on December 18, 2017, and the
    court ordered the parties to complete depositions and submit the transcripts
    of the depositions and briefs to the court prior to the de novo hearing. See
    Order, 12/18/17, at 1. After several continuances, the parties submitted the
    transcripts and briefs at a de novo hearing in October 2018. Following the
    hearing, the court entered an order finalizing the October 26, 2017 support
    order for the period of September 11, 2017, through December 31, 2017. See
    Order, 11/14/18, at 1.2 The court then remanded the case for a change of
    circumstances hearing and a new support recommendation for the period
    starting January 1, 2018. See id.
    Father filed a petition for modification. The parties appeared for an office
    conference in early January 2019, and the attorneys for both parties advised
    the conference officer to refer to the previous depositions for the parties’
    respective positions. See Trial Court Opinion, filed 3/12/20, at 6. The court
    entered an order continuing the proceedings until receipt of the parties’ 2018
    tax documents. Order, 1/23/19, at 1. The court entered an interim support
    order on April 5, 2019,3 and a modified order of support on May 31, 2019,
    both of which ordered Father to pay child support starting on January 1, 2018.
    ____________________________________________
    2 The order was dated November 14, 2018, but filed on the docket on
    November 16, 2018.
    3   The order was filed on the docket on April 8, 2019.
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    Both Father and Mother demanded a de novo hearing. Father’s counsel
    withdrew prior to the September 18, 2019 hearing, and Father was
    unrepresented. At the hearing, Father complained that the court had assessed
    his earning capacity as a “painter, construction, maintenance worker,” based
    on the upper end of the values in the PA State Wage Occupational Survey,
    rather than the midrange. N.T., 9/18/19, at 5-6. He further argued that his
    earning capacity should be lower, to reflect the economic circumstances of
    Carbon County, rather than the entire state. Id.; see also Tr. Ct. Op. at 11.
    In addition, Father argued the court erred when calculating his rental income
    based on his 2018 tax return. He specified the return displayed an annual
    rental income of $20,331, or $1,694 per month, which was lower than the
    amount on the modified order. N.T. at 9. He also argued the court did not
    include Mother‘s income from paragliding activities in the calculation of her
    net income. Id. at 10-11.4
    On December 23, 2019, the court entered a final order of support for
    three periods: January 1, 2018, through April 17, 2018;5 April 18, 2018,
    through June 23, 2019; and June 24, 2019, forward. For the first period, the
    court assessed Mother’s annual earning capacity as an office clerk to be
    $22,730; for the second and third periods, the court used Mother’s actual
    ____________________________________________
    4 Father also argued the court miscalculated his rental income for 2017 based
    on his 2016 tax return. As discussed below, we need not reach this issue, as
    this period is not addressed by the order under appeal.
    5The court erroneously labeled this period as commencing on “January 18,
    2019,” rather than “January 1, 2018.” See Order, 12/23/19, at 1.
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    income from full-time employment. For all three periods, the court added
    Mother’s rental income of $718.67 per month to her assessed/employment
    income. The court found Mother’s monthly net income to be $2,349.48 for the
    first period, and $3,398.76, for the second and third periods.
    For all three periods, the court assessed Father’s annual earning
    capacity at $42,540.00, using the salary of “an experienced painter,
    construction, [and] maintenance worker” from Carbon County Labor Market
    of PA Occupational Wage Survey.” Order, 12/23/19, at 1. The court found
    Father’s rental income to be $2,937.25 per month, and calculated his monthly
    net income to be $5,773.79. The court ordered Father to pay support for each
    period in the amount of $1,529, $1,461, and $1,549 per month, respectively,
    plus arrears.6
    The court noted that it calculated both parties’ rental incomes using their
    2018 Federal Income Tax returns. It also stated it entered the order “without
    prejudice to either party filing a Petition for Modification upon finalization of
    the 2019 Federal Income Tax Returns.” Id. at 2.
    Father appealed, and raises the following issues:
    A. Did the trial court err and abuse its discretion by directing that
    the evidentiary record in this matter be developed by way of
    deposition testimony instead of a hearing before a judge of the
    court as provided by Pennsylvania Rule of Civil Procedure
    1910.11(i)?
    ____________________________________________
    6 Although the parties’ assessed incomes remained constant between the
    second and third periods, the amount of support differed based on changes in
    childcare expenses.
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    B. Did the trial court err and abuse its discretion by assessing
    [Father] with hypothetical income as the assessment was not
    warranted, the assessment resulted in a greater income than
    would ordinarily be earned from one full time position and the
    court failed to correctly apply Pa.R.C.P. 1910.16-2(C)(4)?
    C. Did the trial court err and abuse its discretion in assessing
    [Father’s] rental income for all time periods under consideration
    as the amount of rental income assessed to [Father] was not
    representative of [Father’s] cash flow from rental operations?
    D. Did the trial court err and abuse its discretion in the assessment
    of income to [Mother] in failing to consider any income from
    [Mother’s] business activities including paragliding equipment
    sales, other independent sales and [Airbnb] rentals?
    E. Did the trial court err and abuse its discretion in allocating child
    care expenses to [Father] as the amount of child care expenses
    allocated are greater than what should be justified by the
    circumstances of the parties[?]
    Father’s Br. at 10-11 (unnecessary capitalization and suggested answers
    omitted).
    “Appellate review of support matters is governed by an abuse of
    discretion standard.” J.P.D. v. W.E.D., 
    114 A.3d 887
    , 889 (Pa.Super. 2015)
    (quoting R.K.J. v. S.P.K., 
    77 A.3d 33
    , 37 (Pa.Super. 2013)). “[A]n abuse of
    discretion requires proof of more than a mere error of judgment, but rather
    evidence that the law was misapplied or overridden, or that the judgment was
    manifestly unreasonable or based on bias, ill will, prejudice or partiality.”
    Portugal v. Portugal, 
    798 A.2d 246
    , 249 (Pa.Super. 2002) (quoting Kersey
    v. Jefferson, 
    791 A.2d 419
    , 423 (Pa.Super. 2002)). We will therefore only
    reverse an order of support “where the order cannot be sustained on any valid
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    ground.” Krebs v. Krebs, 
    944 A.2d 768
    , 772 (Pa.Super. 2008) (quoting
    Mencer v. Ruch, 
    928 A.2d 294
    , 297 (Pa.Super. 2007)).
    I. Use of Deposition Testimony
    Father first argues the court erred in ordering the parties to take
    depositions prior to the de novo hearing. Father asserts that Northampton
    County has adopted Rule of Civil Procedure 1910.11, which provides that if
    the court enters an order based on a conference officer’s recommendations,
    and either party demands a hearing, the matter “shall” proceed to a hearing
    before the court. See Pa.R.C.P. 1910.11(f), (i). According to Father, this
    restricts development of the record to the de novo hearing.7 Father argues the
    court’s practice of ordering depositions prior to the de novo hearing also
    violates Rule 1910.1(b), which states that domestic relations matters shall
    proceed in accordance with the Rules of Civil Procedure, as the Rules limit
    situations in which deposition testimony may be admitted at trial. See Father’s
    Br. at 23-24 (citing Pa.R.C.P. 4020).
    Father further argues this practice prevented the court from assessing
    Mother’s credibility, and placed a financial burden on the parties. Father claims
    that although the court permitted the parties to testify and present evidence
    at the September 2019 de novo hearing, the hearing was more akin to
    argument, as the court told Father he could only speak “briefly,” due to the
    ____________________________________________
    7 In contrast, Father argues, Rule 1910.12 provides that a party unsatisfied
    with the support recommendation of the conference officer can elevate the
    case for development of the record before a hearing officer, prior to
    consideration by the court. See Pa.R.C.P. 1910.12(b)-(d).
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    existence of the depositions, and did not allow Father to introduce a document
    he had created with his accountant. 
    Id.
     at 26 (citing N.T., 9/18/19, at 12),
    28. Father contends that he raised this issue by demanding a de novo hearing,
    as provided by the Rules.
    As the trial court explains in its Rule 1925(a) opinion, Father did not
    object to the order for depositions, but fully complied with the order. Tr. Ct.
    Op. at 33. In addition, Father and Mother “were permitted to supplement the
    record during multiple conferences and hearings and were permitted to submit
    additional documents including the submission of Federal Tax Returns for
    subsequent years,” and Father was “permitted to testify and submit
    documentation at the September 18, 2019 hearing.” 
    Id.
    We agree. Father did not object to the use of depositions when the court
    ordered them, or when he submitted them at the de novo hearing in October
    2018, or when the court stated that it would use the same depositions at the
    de novo hearing in September 2019. Father’s failure to timely raise objection
    to the procedure adopted by the trial court prevented the court from timely
    addressing Father’s concerns, rectifying any defects, or alleviating any
    perceived prejudice. We therefore find the issue to be waived. 8
    ____________________________________________
    8 We are unpersuaded by Father’s attempts to avoid waiver. Christian v.
    Allstate Ins. Co., 
    502 A.2d 192
     (Pa.Super. 1985), which Father cites for
    support, is distinguishable from the instant case. There, we declined to find
    waiver, even though the appellant did not object to the court’s failure to hold
    an evidentiary hearing, because the court could not have proceeded in that
    case without a hearing to determine whether there had been a settlement
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    II. Father’s Earning Capacity
    Father next argues the court erred in assessing him with earning
    capacity as “an experienced painter, construction, maintenance worker.”
    Father’s Br. at 30 (quoting Order, 12/23/19). Father claims the court erred in
    making this assessment without considering his earning history or other
    statutory factors, and without finding that he willfully failed to obtain or
    maintain appropriate employment. Father’s Br. at 33-34 (citing Pa.R.C.P.
    1910.16-2(c)(4)). He points out that the court did not use an assessed income
    for the period of September 11, 2017, through December 31, 2017, and there
    was no discernable change in Father’s employment following that period.
    He further contends the court erred in including both his rental income
    and his assessed income in his net income, without first finding that Father
    does not spend any time maintaining his rental properties. According to
    ____________________________________________
    agreement. 
    Id. at 194
    . Here, however, there was nothing to prevent the court
    from proceeding to decide the issues in the support case based on the
    evidence already presented by the parties. Father’s reliance on Bell Fuel
    Corp. v. Cattolico, 
    544 A.2d 450
     (Pa.Super. 1988), is likewise misplaced. In
    Bell Fuel, we declined to find waiver where the appellant did not object when
    the trial court abruptly terminated an evidentiary hearing on a preliminary
    injunction matter and proceeded to argument on a motion for summary
    judgment. 
    Id.
     at 454 n.3. No such unanticipated, unorthodox procedure was
    adopted here. Rather, the court announced in advance that it would decide
    the support case using depositions, the parties acquiesced to this procedure,
    and the court proceeded accordingly. Nor do we find this case akin to DiMonte
    v. Neumann Medical Center, 
    751 A.2d 205
     (Pa.Super. 2000), in which we
    declined to fault the appellant for failing to object when the trial judge took
    personal phone calls and engaged in other inappropriate behavior during a
    jury trial. 
    Id. at 210
    . Here, the court simply conformed to the procedure that
    it had laid out months before, to which Father had ample opportunity to object.
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    Father, the court thereby attributed more income to Father than one single,
    full-time job. Father claims he maintains the properties himself, and does not
    use a third-party manager.
    Although the trial court was not bound by its previous orders, Father
    was aware that the court had utilized an assessed earning capacity for Father
    in generating both the April 5, 2019 interim order and May 31, 2019 modified
    order, as recommended by the conference officer. See Tr. Ct. Op. at 19-20.
    Nevertheless, at the de novo hearing, Father only raised a challenge to the
    amount of his assessed earning capacity, on the basis that the court utilized
    a high-end value from a statewide survey.9 Id. at 19. He did not argue that
    the court should not have assessed him with any earning capacity, or should
    not have classified him as a painter/construction/maintenance worker, or
    should not have added his rental income to his earning capacity. Father waived
    these issues by failing to raise them before the trial court. See Pa.R.A.P.
    302(a).
    Even if Father had not waived these issues, we would not find any abuse
    of discretion. The court found Father “could realistically earn additional income
    under the circumstances, considering his age, health, mental and physical
    condition and training.” Tr. Ct. Op. at 25-26. The court noted that Father
    testified he had been maintaining rental properties for 20 years or more, and
    ____________________________________________
    9 In response, the court utilized the Carbon County Labor Market of PA
    Occupational Wage Survey to glean Father’s assessed income for the final
    order following the de novo hearing.
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    determined that under the circumstances he could reasonably earn the
    assessed income of $42,540 per year. Id. at 26.
    III. Father’s Rental Income
    Father complains the court erred in calculating his rental income by
    using the rental income listed on his 2018 tax return and adding on the
    amounts listed for depreciation and attorneys’ fees. He claims that although
    he had asked the court to calculate his rental income in this manner in 2017,
    it was error for the court to utilize the same method to calculate his 2018
    rental income, as “[t]here had been no [e]videntiary [r]ecord made regarding
    Father’s 2018 Tax Return.” Father’s Br. at 37. Father claims he lost several
    rental properties in 2018 in the divorce settlement, and he made payments
    on debts he incurred to maintain the properties that were not reflected on the
    tax return. He also claims the court erred in its calculation because even
    considering only the values on the 2018 return, Schedule E of the return
    showed $7,130 income from rental operations, and $13,201 in claimed
    expenses, which would have totaled an annual rental income of $20,331,
    which does not support a monthly rental income of $2,937.25.
    The parties’ 2018 tax returns, from which the court derived the parties’
    rental incomes, are not included in the certified record. We therefore find the
    issue of how the court calculated Father’s rental income waived. See Kessler
    v. Broder, 
    851 A.2d 944
    , 950 (Pa.Super. 2004). Moreover, as the trial court
    points out, it used the 2018 tax return in the way Father had requested the
    court use his 2017 tax return earlier in the proceedings. See Tr. Ct. Op. at
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    23-24 (citing Father’s Brief Upon De Novo Review, 10/15/18, at 12).
    Regardless, we find no abuse of discretion in the court’s having gleaned the
    rental income from the values Father declared when filing his federal income
    taxes.
    Father also challenges the court’s assessment of $5,409 per month in
    rental income for the period from September 11, 2017, through December 31,
    2017. Father claims it does not relate to the parties’ reported net rental
    income of $19,863. However, this period was not addressed at the September
    18, 2019 de novo hearing, or by the final order under appeal. Rather, this
    period was covered by the order of November 14, 2018, which finalized the
    October 26, 2017 order for the period September 11, 2017, through December
    31, 2017. Father did not appeal that order. We are therefore unable to disturb
    the findings of the court on this point.
    IV. Mother’s Income
    Father argues the court abused its discretion when determining Mother’s
    income, because it did not consider her additional earnings from various
    income sources.10 Father also claims the court did not consider statutory
    factors in assessing Mother’s earning capacity, and that Mother failed to
    comply with a Notice to Attend and produce all relevant information.
    The court found Mother had minimal income from these sources during
    the first period of support, and so it instead determined her income by using
    ____________________________________________
    10These include renting out her home on Airbnb, selling wine for a direct sales
    business, selling coffee online, and selling paragliding equipment.
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    an assessed earning capacity and rental income. Tr. Ct. Op. at 27-28. The
    court found there was no evidence that Mother had additional income sources
    in the second or third periods, and therefore used only her rental income and
    her actual income from full-time employment. Id. at 28. The court points out
    that the order under appeal specifies that either party may file for modification
    based on the 2019 tax returns. We find no abuse of discretion.
    V. Childcare Expenses
    Father’s final argument is that because the court miscalculated Father’s
    and Mother’s incomes, it miscalculated their respective relative proportional
    childcare responsibilities. As we find no abuse of discretion in the court’s
    determination of the parties’ incomes, there is no basis for revising the
    proportional childcare allocation.
    Order affirmed.
    Judgment Entered.
    Joseph D. Seletyn, Esq.
    Prothonotary
    Date: 11/25/20
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