Bryan Edward Grantom v. Sherri Lynn Swisher

CourtCourt of Appeals of Texas
DecidedMarch 25, 2021
Docket14-19-00705-CV
StatusPublished

This text of Bryan Edward Grantom v. Sherri Lynn Swisher (Bryan Edward Grantom v. Sherri Lynn Swisher) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bryan Edward Grantom v. Sherri Lynn Swisher, (Tex. Ct. App. 2021).

Opinion

Affirmed and Memorandum Opinion filed March 25, 2021.

In The

Fourteenth Court of Appeals

NO. 14-19-00705-CV

BRYAN EDWARD GRANTOM, Appellant V. SHERRI LYNN SWISHER, Appellee On Appeal from the County Court at Law Waller County, Texas Trial Court Cause No. 17-01-24131

MEMORANDUM OPINION As part of their divorce proceedings, Sherri Lynn Swisher (formerly Grantom) (“Wife”) and Bryan Edward Grantom (“Husband”) signed a mediated settlement agreement that reserved three issues for resolution via trial. After a jury trial, the trial court signed a final decree of divorce and Husband appealed. See Tex. Gov’t Code Ann. § 25.2392(a) (Waller County has concurrent jurisdiction with the district court in family law cases and proceedings). For the reasons below, we affirm. BACKGROUND

Husband and Wife were married in January 1999. Wife filed a petition for divorce in January 2017 and Husband filed a counterpetition. The trial court signed an agreed temporary order approving the sale of the parties’ marital home in Waller County, Texas. The home was sold and approximately $500,000 was placed in an escrow account. The trial court signed an “Agreed Order to Disburse Funds from Escrow Account” and Husband and Wife each received $100,000 to pay their divorce attorneys, leaving $306,855.21 in the escrow account.

The parties signed their first mediated settlement agreement in September 2018 (the “2018 MSA”), setting an agreed parenting plan for their two children. The parties signed a second mediated settlement agreement in April 2019, which approved certain mediation procedures and conditions.

In June 2019, the parties signed their third mediated settlement agreement (the “Property MSA”), which effected a partial settlement of their community estate. As relevant to our analyses below, the Property MSA made the following allocations:

Husband

• 50% of the funds held in escrow from the sale of the marital home. From this 50%, Husband would pay a lump sum of $13,875 to Wife representing a cash buy-out of her interest in the Capital Farm Credit account.1 Wife

• 50% of the funds held in escrow from the sale of the marital home. • 100% of the funds held in Husband’s attorney’s IOLTA account, which arose out of the agreed sale of certain items of personal 1 The Capital Farm Credit account is a loan taken out in 2001 and paid out over a 30-year period.

2 property and Capital Farm Credit disbursements. From this amount, $650 would be payable to Husband for Wife’s healthcare premiums. The Property MSA also included the following provisions:

G. It is AGREED that the following issues are carved out of the [Property MSA] and shall remain subject to a contested trial and further order of the Court: 1. Is Husband entitled to reimbursement of $42,308.54 on his claim that he supplied separate funds to the Community Estate to purchase the marital residence?2 2. How should liability and attorney’s fees, if any, arising out of the “Janac Litigation” be allocated between the parties? 3. How should Husband’s retirement interests arising out of his employment with the City of Houston Fire Department be allocated between the parties? H. While the parties understand and AGREE to the division of their remaining assets, they AGREE that the allocation of these remaining assets may need to be adjusted by the Court in light of the Court’s ultimate determination on the issues to be tried.

The “Janac Litigation” refers to a 2016 lawsuit against Waterland Kennels, a dog boarding and training facility owned by Husband and Wife.

The parties proceeded to a jury trial in June 2019. The jury heard testimony from two experts regarding the portion of Husband’s Houston Firefighter Relief and Retirement Fund (“HFRRF”) benefits that could be considered part of the community estate for purposes of a later division. At the time of trial, Husband was 52 years old and had spent 18 years working for the Houston Fire Department (“HFD”). The experts testified that Husband was eligible for the following HFRRF benefits:

2 This issue was not decided by the trial court because the parties stipulated to the separate funds during trial.

3 • Because Husband had worked at least 10 years but less than 20 years with HFD, he could retire immediately and participate in the HFRRF deferred pension plan, under which Husband would receive a $2,179.10 monthly payment. • Alternatively, Husband could receive a refund of contributions in the amount of $98,098.47. • If Husband acquired 20 years of HFD employment, he would be entitled to receive a supplemental $150 monthly payment and a $5,000 lump sum payment. • If Husband acquired 20 years of HFD employment, he would be entitled to participate in the HFRRF service pension plan instead of the deferred pension plan. The service pension plan would yield greater monthly payments than the deferred pension plan. • If Husband acquired 20 years of HFD employment, he could participate in the Deferred Retirement Option Plan (“DROP”), which would allow him to accrue additional retirement funds in a separate account.

The jury determined the parties’ community estate had a $2,179.10 interest in Husband’s monthly HFRRF retirement payments, regardless of whether those payments were made pursuant to the deferred or the service pension plan. The jury also found the community estate had the following interests in the other HFRRF benefits: (1) a $98,098.47 interest in the refund of contributions; (2) a $135 interest in the supplemental $150 monthly payment; and (3) a $4,500 interest in the $5,000 lump sum payment. The jury concluded the community estate did not have an interest in the optional DROP plan.

After the jury returned its verdict, the trial court heard testimony and evidence regarding the division of the parties’ community estate. An actuary testified as an expert with respect to the parties’ social security benefits. Because Husband did not contribute to social security, he would not be entitled to receive a social security payment in addition to any HFRRF benefits he would receive.

4 Conversely, Wife had contributed to social security and would be entitled to the following retirement benefits: a $1,240 monthly payment if she retired at age 62 or a $1,855 payment if she retired at age 67. At the time of trial, Wife was 52 years old.

The trial court also heard testimony from Husband and Wife regarding their assets and their preferred distributions of the community estate.

The trial court signed a final decree of divorce on September 12, 2019 and issued findings of fact and conclusions of law. In relevant part, the trial court made the following findings as allocations:

• $42,308.54 from the escrow account as Husband’s separate property. • 100% of the future payments from the Capital Farm Credit account, totaling $29,751.28. • 100% of Husband’s future retirement benefits, including those from the HFRRF. • With respect to the Janac litigation, 60% of (1) any settlement proceeds in favor of Husband, Wife, or Waterland Kennels, and (2) any judgment against Husband, Wife, or Waterland Kennels. • Any and all legal expenses and fees incurred in the Janac litigation. Wife

• 100% of the remaining funds in the escrow account, totaling $264,546.67. • 100% of the funds held in Husband’s attorney’s IOLTA account, totaling $7,143.56.3

3 The divorce decree conflicts with the findings of fact and conclusions of law with respect to the allocation of the IOLTA account. In the divorce decree, all of the IOLTA fund was allocated to Wife “save and except $650” to Husband. But in the findings of fact and conclusions of law, the trial court allocated 100% of the IOLTA account to Wife. Findings of fact and conclusions of law filed after a judgment are controlling if they 5 • 100% of Wife’s future retirement benefits.

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Cite This Page — Counsel Stack

Bluebook (online)
Bryan Edward Grantom v. Sherri Lynn Swisher, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bryan-edward-grantom-v-sherri-lynn-swisher-texapp-2021.