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Savage v. Savage6/12/2002
The father, Robert G. ("Bob") Savage, appeals a judgment denying his rule to reduce a stipulated child support award of $750 a month for his 13-year-old daughter. He argues that the District Court improperly applied La. R.S. 9:311, regarding change in circumstances, made numerous unsupported factual findings, and should have reduced support to $114 a month. The mother, Martha Savage, argues that the court's findings were neither legally nor manifestly erroneous. For the reasons expressed, we affirm.
Factual background
Bob and Martha married in 1978. Their son Robert Jr. was born in 1982 (he is now a major and not involved in this suit); their daughter Annie was born in 1988. The parties physically separated in September 1996 and Bob filed for an Art. 102 divorce later that year. Martha was a teacher in the Monroe City School system, making $1,984 a month. Bob was, at the time, vice-president of Sunbelt Plastics, a corporation that made garbage bag liners. The record does not show his precise income, but based on the parties' 1995 tax return, he was making around $100,000 a year, including salary and bonuses.
By stipulated judgment on rule rendered December 12, 1996, Martha received domiciliary custody of both children, while Bob was to pay child support of $1,500 a month and maintain them on his company's medical and dental plan. The divorce became final in May 1997. Bob subsequently married Melissa, one of his co-workers at Sunbelt. In March 1999, Sunbelt was acquired by Tyco International, a large manufacturing corporation. At Tyco he was vice-president of institutional marketing.
Bob testified that on April 12, 1999 he was asked to resign because of a rumor that he was trying to start his own company. He admitted having "discussions" to that effect, but denied he intended to leave Tyco at that time. He resigned, taking a severance package but forfeiting a bonus of $32,000 that was anticipated in September. Melissa and another colleague, Billy Clark, also resigned.
Bob testified that there were no other positions in Northeast Louisiana comparable to his old one at Sunbelt. He explored options in other companies, but he did not want to relocate to out of state. After talking with several of Tyco's competitors, he decided to start a new business making plastic sheets and bags. With his wife and Billy Clark, both former colleagues at Tyco, he formed Sapphire Plastics, incorporating in late April or early May 1999. Bob's parents have also made capital contributions to Sapphire.
Sapphire began operation in late 1999. Bob and Melissa own a majority (64%) of Sapphire's stock; Bob testified that he has infused $420,000 in start-up and operating funds. Although in 2000 Sapphire had gross sales of $768,000, the company showed a net loss of $335,974 (excluding depreciation). Bob testified that he has fixed his salary, as well as Melissa's, at $225 a week, about minimum wage, until the company can show a profit.
Bob filed the instant rule in January 2001. He alleged that when Robert Jr. turned 18, the parties agreed to reduce child support to $750 a month. But he claimed that this was still too much, since he lost his job at Tyco and Sapphire was not yet profitable enough to match his old salary. He argued that based on his current weekly salary of $225, and Martha's teaching salary, his support obligation should be reduced to $114 a month.
At trial in May 2001, only Bob and Martha testified. Bob described the circumstances of his separation from Tyco as "absolutely" beyond his control. He mentioned that some initial financial commitments "never came through," and recounted in some detail how he, his partners and his p
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