Ferguson v. Ferguson

Michelle Ferguson (plaintiff) and Jason Ferguson (defendant) wanted to end their marriage. Through mediation, the couple reached a settlement agreement in August 2008 that addressed the disposition of their Florida home. In accordance with the agreement, a judgment of divorce was entered. Under the agreement, Michelle was required to execute a deed on the home in favor of Jason, who would make an equalization payment of $185,000 to her within 60 days of the agreement’s execution. Jason agreed to refinance the home within 120 days of the agreement date or, if he could not refinance the property, to list it for sale. Soon after executing the agreement, and seemingly unanticipated by Jason, the Florida real estate market took a marked downturn. The property was not worth as much as it had been before. Michelle executed a deed in Jason’s favor, but Jason failed to pay Michelle the promised amount of $185,000 or to try and obtain refinancing. Instead, Jason directly sought to list the house for sale. Michelle filed a motion to enforce the agreement, while Jason filed a motion to order Michelle’s compliance with a sale. Jason argued that complying with the settlement agreement had become impossible due to the economic downturn. The court ruled in Jason’s favor based on his impossibility defense, ordering Michelle to vacate the home and an equal division of the net proceeds on the sale of the home when it was sold. Michelle appealed.