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Cases Cited for Vancouver Family Lawyer - Kathleen Walker>
Grierson v. Watters
4 Oct 1996
Date: 19961004 Docket: CA020838 Registry: Vancouver
COURT OF APPEAL FOR BRITISH COLUMBIA
ORAL REASONS FOR JUDGMENT:
Before:
The Honourable Madam Justice Rowles October 4, 1996 The Honourable Mr. Justice Donald The Honourable Madam Justice Huddart Vancouver, B.C.
BETWEEN:
RONALD EDWIN GRIERSON
PLAINTIFF (RESPONDENT)
AND:
CAROL LEE WATTERS formerly known as CAROL LEE GRIERSON
DEFENDANT (APPELLANT)
K. Walker appearing for the Appellant D. Paterson appearing for the Respondent
[1] DONALD, J.A.: This is an appeal by a mother of two children ages 11 and 13 regarding their maintenance and medical and dental care. She alleges that in his judgment of 24 July 1995, the learned chambers judge set an inadequate figure for the children's support and that he erred in refusing to order the father to provide the children with insurance coverage and to order that she has the authority to choose the children's health care providers. She further alleges that the trial judge erred in altering his reasons for judgment by a corrigendum which changed the effective date of the variation of maintenance from 1 August 1994 to 1 August 1995 and thereby deprived the order of any retroactive effect.
[2] For reasons which follow I would allow the appeal by increasing maintenance from $400 a month for each child, as ordered by the chambers judge, to $500 per month and I would order that the father ensure that the children are covered by his extended health, dental and medical plans and that the parties share any medical and dental expenses in excess of insurance coverage on the ratio of 1/3rd to the mother and 2/3rd to the father. This order makes it unnecessary to deal with the mother's request for an order allowing her to choose the health care givers for her children. I would not disturb the effective date of the variation, 1 August 1995.
[3] The parties were married on 2 October 1982, separated on 3 July 1988, and divorced on 30 November 1989. The children were born on 26 March 1983 and 28 February 1985. They have resided with the mother since separation.
[4] The history of child support begins with an interim order in the divorce action made on 18 January 1989 obliging the father to pay $100 per month for each child. That amount was increased to $250 per child in a consent order made 26 January 1993 in the Family Relations Act action (the divorce having been completed by a desk order without reference to maintenance). The father's income improved dramatically when he joined the Vancouver Fire Department in 1990. He was earning $18,000 per year when maintenance was originally set. As a firefighter the father earned $39,618 in 1992, $46,058 in 1993 and $51,695 in 1994. His earnings for the five months prior to the hearing below indicate the same level of income for 1995.
[5] At that hearing the mother sought a further variation in the amount of $750 per month for each child. The father agreed that the circumstances had changed; he proposed that the amount be increased to $350 for each child. The order under appeal set the figure at $400.
[6] Both parties have remarried. The father's new spouse earns $43,000 per year. They have one child of their marriage. The mother's new spouse earns $48,000 but he has support obligations for one child of a previous marriage, the amount of which is not in the record. The father has a home on acreage in Abbotsford with a large mortgage and a small equity. The mother lives in rental accommodation in Victoria. She has a $30,000 student loan incurred while acquiring an education degree after separation and while she was in receipt of only $200 a month child support.
[7] The mother's first job as a teacher was in Port McNeil on a part-time basis (0.6 full-time equivalent) for which she earned approximately $25,000 in the 1993/94 school year. She moved with her husband to Victoria and did not resume work as a teacher until she was enrolled on the substitute list in March, 1995. The chambers judge found that she earned an average of $1,300 per month in substitute teaching for the balance of that school year.
[8] In her property and financial statement the mother estimated her children's expenses at $1,852. This figure is largely made up of family expenses allocated to the children on a 50% basis. It embraces such items as the cost of rent, food and running an automobile. Her monthly payment on the student loan is $325; she allocated $216 or 2/3rds of that to the children.
[9] The standard of appellate review in maintenance cases was recently restated in Willick v. Willick (1994) 6 R.F.L. (4th) 161 (S.C.C.) at 183, where Sopinka J. said:
... an appellate court should not intervene absent a material error in principle, a significant misappre- hension of the evidence, or an award which is clearly wrong.
[10] The principles governing child maintenance under the Family Relations Act are based on the responsibility placed on both parents by s.56.1(1) which reads:
56.1 (1) Each parent of a child is responsible and liable for the reasonable and necessary support and maintenance of the child, taking into account the (a) cost of reasonable residential accommodation, housekeeping, food, clothing, education, recreation and super- vision for the child; (b) child's need for a stable and supportive environment; and (c) financial circumstances and obligations of each person liable for the support and maintenance of the child.
[11] When a child is living separate from the parent against whom an order is sought to be made, account may be taken of the factors set down in s.61(2). Included among those factors is "(d) the obligation ... to support another person".
[12] With respect, I do not think the learned chambers judge sufficiently recognized the difference in the parties' ability to maintain the children. I view this as an error in principle which requires correction by this Court.
[13] The award of $800 per month for the two children does not reflect the disparity in the parties' earnings. The chambers judge did not make any specific finding regarding the level of child expenses nor did he determine the mother's earning capacity. Rather than send the matter back, I think we should reach a conclusion on this dispute. I work out the arithmetic in this way:
Ä the mother's estimate of child expenses is higher than is justified because of the allocation made on some expenses and the inclusion of others such as the mother's visa and chiropractor bills. The figure of $1,500 per month is supportable on the evidence;
Ä the father earns $52,000 per year;
Ä the mother's demonstrated earning capacity is in the region of $25,000;
Ä the incomes earned by the spouses of the parties are roughly equal making it unnecessary to consider them in this reckoning.
On these figures the result of the order in question is that the father pays only slightly more than 1/2 the child costs on an income twice that of the mother. An order obliging the father to pay $500 per month for each child would properly represent the relative abilities of the parties to contribute to the support of the children. He would pay $1,000 a month, 2/3rds of the total cost.
[14] This division of responsibility would recognize the father's obligation to support the child of his new marriage, his direct contribution to the children's health care, and the costs he incurs in exercising access between Abbotsford and Victoria.
[15] The mother also sought an order requiring the father to place the children on his medical, dental and extended health plans with the Vancouver Fire Department. The father has been looking after the children's expenses for eyeglasses and dental work but he organized the dental coverage in a complicated and somewhat dubious scheme involving his present spouse's dental plan. On that plan, only family members residing with the insured are eligible for benefits and so in order to obtain benefits both from his plan and his wife's plan, the father insisted on taking the children to dentists in his community. This would make it less likely that the insurer would discover that the children were living with their mother in Victoria. By this means the father was able to top up the dental benefits from his firefighters' plan with the benefits from his wife's plan with the result that 100% of the dental expenses were recovered.
[16] The mother disliked this arrangement for two reasons. First, it meant that she could not choose the children's dentist nor take them to a dentist closer to home. She is concerned about dealing with emergencies and her ability to manage their care as the custodial parent. Second, she felt that the present arrangement has an element of dishonesty to it and should no longer continue. She has been told that both children require orthodontic treatment. For obvious reasons, this should be given closer to their home. The cost will exceed the maximum allowable benefits under the father's plan. The question arises how to distribute the burden of the excess cost.
[17] The learned chambers judge found that the medical and dental arrangements had worked smoothly. He saw no reason to disturb them and refused the order sought by the mother. With respect, the arrangements are not satisfactory for the reasons advanced on behalf of the mother. The father does not oppose an order that he continue to cover the children for extended health and dental benefits and he is prepared to place them on his medical plan. The problem remains what to do about costs which exceed coverage, especially having regard to the anticipated orthodontic fees. In my view, the appropriate order is to split the cost between the parties on the same ratio as I have earlier discussed; that is on a 1/3rd-2/3rds basis with the father paying the larger share.
[18] Since the use of the present Mrs. Grierson's dental plan will now cease and consequently there is no need for the children to see dentists in the father's community there is no need to make an order declaring the mother's right to choose the children's health care providers.
[19] The final ground of appeal relates to the effective date of the variation ordered by the learned chambers judge. In his reasons for judgment he said that the change should take place as of 1 August 1994. He published a corrigendum on 5 September 1995 in which he said:
In my Reasons for Judgment filed July 28th, 1995 the final paragraph on page 6 refers to child maintenance of $400.00 per month per child commencing on the 1st day of August, 1994 and continuing as therein provided. This was clearly a typographical error. At the hearing, no argument was presented as to retroactive variation of the maintenance. I clearly intended the maintenance at $400.00 per month per child to commence on August 1, 1995.
I accordingly amend by Reasons to provide that the maintenance at the $400.00 per month per child rate commence on August 1st, 1995.
[20] The mother's argument on appeal is that she was not given an opportunity to be heard before the reasons for judgment were amended and since the amendment deprived her of a retroactive benefit she was entitled to make submissions.
[21] There is no merit in this contention. The notice of motion requesting a variance made no mention of retroactivity nor was it a topic of discussion before the learned chambers judge. All that happened was the correction of a typographical error. It was never the learned chambers judge's intention to make the variation retroactive.
[22] For these reasons, I would allow the appeal and vary the order below by increasing maintenance to $500 per month for each child, effective 1 August 1995, and by making an order that the father provide medical, dental and extended health insurance coverage for his children, and to pay 2/3rds of the expenses in excess of the coverage.
[23] ROWLES, J.A.: I agree.
[24] HUDDART, J.A.: I agree.
[25] ROWLES, J.A.: The appeal is allowed. The order of the trial judge will be set aside and an order for $500 per month per child substituted to commence August 1, 1995. There will also be an order that the father include the two children on his extended health care medical and dental insurance plans. Any costs which exceed the coverage will be paid by the parents in a one-third/two-thirds ratio with the father paying the greater share.
"The Honourable Madam Justice Rowles"
"The Honourable Mr. Justice Donald"
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