Ross v. Ross

PER CURIAM. This matter is before us on the petition of Jay S. Ross for a writ of certiorari. We shall grant the writ, summarily ¹⁰³ vacate the judgment of the Court of Special Appeals, direct that the judgment of the Circuit Court for Montgomery County entered 14 June 1990 be vacated, and remand the case for further proceedings. This divorce case was initially heard by a domestic relations master in September, 1988.

The master recommended that the wife be granted a divorce and custody of the minor child of the parties, and the master addressed matters of visitation and child support. The husband filed exceptions, which were heard and denied, and the matter was again referred to a master for consideration of issues relating to marital property, monetary award, and attorney’s fees. No judgment was entered at that time. The master conducted two days of hearings and filed a 41-page report, making findings of fact concerning the existence and value of marital property and other factors bearing on the questions of a monetary award.

He recommended that the wife receive a monetary award of $700,000, which represented 40 percent of the value of all marital property. The husband filed exceptions challenging, among other things, the master’s findings concerning the husband’s right to purchase corporate stock, the value of the husband’s stock in a closely held corporation, the authority of a court to award the value of stock on an “as, if, and when received” basis, and the husband’s alleged dissipation of marital property. The husband requested a hearing on the exceptions. See Maryland Rule 2-541(i).

Judge Calvin Sanders held a hearing on the exceptions on 16 May 1990. On 25 May he filed an order granting the exceptions in part and directing the wife to submit a proposed order incorporating the decisions made by him and by the judge considering the earlier exceptions. Among other things, Judge Sanders found that the master had incorrectly characterized a right of first refusal to buy stock as a stock option, and had incorrectly included this right as marital property. Judge Sanders also found that the stock owned by the husband should be valued with due regard for limitations ¹⁰⁴ imposed by a binding agreement among stockholders and reduced the value of the stock by $836,499.

As a result of these findings, Judge Sanders reduced the monetary award to $490,992. Judge Sanders retired on 31 May 1990. The wife did not submit a proposed order. Instead, on 7 June she filed a motion to reconsider and a proposed order which would have granted that motion.

On 12 June, the husband filed an opposition to the wife’s motion and a proposed order denying reconsideration. Also on 12 June, the file was referred to Judge J. James McKenna, who was acting as judge in chambers. On 14 June, Judge McKenna, without a hearing and without an opinion or any reference to the earlier order of Judge Sanders or to the motion for reconsideration, signed and filed a “Judgment of Absolute Divorce” that had been submitted by the master with his findings and recommendations in January. The husband appealed, and the Court of Special Appeals affirmed in part and reversed in part.

Ross v. Ross, 90 Md.App. 176 , 600 A.2d 891 (1992). We now grant the husband’s petition for certiorari, vacate the judgments entered by the Court of Special Appeals and by Judge