Catherine Smith v. Sally Brittingham Smith and John Michael Charles Smith

CourtCourt of Appeals of Tennessee
DecidedSeptember 24, 2008
DocketM2006-01806-COA-R3-CV
StatusPublished

This text of Catherine Smith v. Sally Brittingham Smith and John Michael Charles Smith (Catherine Smith v. Sally Brittingham Smith and John Michael Charles Smith) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Catherine Smith v. Sally Brittingham Smith and John Michael Charles Smith, (Tenn. Ct. App. 2008).

Opinion

IN THE COURT OF APPEALS OF TENNESSEE AT NASHVILLE Assigned on Briefs February 22, 2008

CATHERINE SMITH v. SALLY BRITTINGHAM SMITH and JOHN MICHAEL CHARLES SMITH

Appeal from the Circuit Court for Davidson County No. 05D-2508 Carol Soloman, Judge

No. M2006-01806-COA-R3-CV - Filed September 24, 2008

This is an appeal from an order joining a third party in a divorce action. During the husband and wife’s marriage, husband’s mother gave the couple a substantial amount of money. The wife filed for a divorce in circuit court. Soon after, the husband’s mother filed a lawsuit in chancery court against the husband and wife, alleging breach of an agreement to repay the funds and to grant her a security interest in the marital home. Simultaneously, she filed a lien lis pendens on the marital home. The marital home was sold, and the chancery court transferred the husband’s mother’s lien lis pendens to the proceeds of the sale. The husband allowed a default judgment to be taken against him in his mother’s chancery court lawsuit. Subsequently, the circuit court granted the wife’s motion to join the husband’s mother in the divorce proceedings as a necessary party. Thereafter, the chancery court case was transferred to the circuit court. The circuit court held a trial on the merits; it found no agreement by the wife to repay the monies given to the couple by the husband’s mother, and dismissed her claim against the wife. The husband’s mother was awarded damages against the husband for the full amount of the money loaned, to be paid out of his share of the proceeds from the sale of the marital home. The circuit court’s distribution of the martial estate, however, effectively eliminated his share of the proceeds. The husband’s mother appeals, arguing that she was improperly joined in the divorce action, and that the circuit court did not give proper effect to her lien lis pendens against the proceeds from the sale of the marital home. On appeal, we affirm, finding that the joinder was proper and finding no error in the application of the lien against the husband’s share of the proceeds.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Circuit Court Affirmed

HOLLY M. KIRBY , J., delivered the opinion of the Court, in which ALAN E. HIGHERS, P.J., W.S., concurred; W. FRANK CRAWFORD , J., did not participate.

Joel H. Moseley, Sr., Nashville, Tennessee, for the appellant, Catherine Smith

Grant C. Glassford, Franklin, Tennessee, for the appellee, Sally Brittingham Smith OPINION

Appellee Sally Brittingham Smith (“Wife”) and Appellee John Michael Charles Smith1 (“Husband”) were married. Over a nearly five-year period between February 2000 and December 2004, during the parties’ marriage, Husband and Wife received numerous payments totaling over $250,000 from Husband’s mother, Appellant Catherine Smith (“Mother-in-law”). Husband was out of work during some or all of this time period, and the monies were used to pay family living expenses, including mortgage payments on their marital home.

In July 2005, Wife filed a complaint for divorce against Husband in the Circuit Court for Davidson County, Tennessee. In the complaint for divorce, Wife sought, inter alia, an equitable distribution of the parties’ marital property, including the parties’ marital home. An agreed order was entered, in which Husband agreed to keep current the mortgage payments on the home.

In September 2005, Mother-in-law filed a lawsuit against Husband and Wife in the Chancery Court for Davidson County, Tennessee. In Mother-in-law’s complaint, she alleged that the monies she had given to the couple were loans. She asserted that Husband and Wife agreed to repay the amounts loaned, and that they agreed to secure the loan by granting Mother-in-law a security interest in the marital home. Mother-in-law alleged that the agreed monthly payments had not been made, and that Husband and Wife had taken no steps toward granting her the promised security interest. Mother-in-law contended that Husband and Wife had agreed to use a portion of the amounts loaned to satisfy a second mortgage on the marital home, that this was not in fact done, and that the second mortgage remained an encumbrance on the property.

Based on these alleged facts, Mother-in-law’s complaint asserted claims for breach of an oral agreement to grant a security interest in the marital home and for breach of an oral agreement to repay the loans. Mother-in-law sought an award of damages, an order requiring Husband and Wife to execute a security agreement in her favor as to the marital home, and an injunction against sale of the residence. On the same date that the lawsuit was filed, Mother-in-law filed an abstract of her complaint with the register’s office pursuant to Tennessee Code Annotated § 20-3-101,2 giving notice of her lien lis pendens on the parties’ marital home.

1 Mr. Smith is also referred to as “Michael John Charles Smith” in parts of the briefs and the record.

2 Section 20-3-101 states:

W hen any person, in any court of record, . . . shall seek to fix a lien lis pendens on real estate, or any interest therein, . . . that person shall file for record in the register’s office of the county an abstract, certified by the clerk, containing the names of the parties to such suit, a description of the real estate affected, its ownership, and a brief statement of the nature and amount of the lien sought to be fixed.

T.C.A. § 20-3-101(a) (1994).

-2- In October 2005, in the divorce litigation in Circuit Court, Wife filed a motion to sell the marital home. The motion was granted, and Wife listed the marital home with a real estate agent. Soon a buyer was found and a contract of sale drawn up.

On November 18, 2005, in the litigation filed by Mother-in-law against Husband and Wife, the Chancery Court entered an agreed order allowing the immediate sale of the marital home. The Chancery Court ordered that the proceeds of the sale be held in escrow, removed the lien on the home, and transferred the lien lis pendens to the proceeds from the sale.

The marital home was sold shortly thereafter, on November 21, 2005 for $580,000.00. Because Husband had failed to comply with the order requiring him to keep the mortgage payments on the home current, the proceeds realized upon the sale were reduced by $17,958.22, the amount necessary to bring the payments current on the first and second mortgages on the home.

Meanwhile, in the Chancery litigation, Husband had not filed a response to Mother-in-law’s complaint. Mother-in-law filed a motion for default judgment against her son, Husband. On December 12, 2005, the Chancery Court granted the motion, stating explicitly that Mother-in-law was granted a default judgment only as to Husband, and only as to liability, with the amount of the default judgment to be determined at a later hearing.

On December 2, 2005, in the divorce litigation in Circuit Court, Wife filed a motion pursuant to Rule 19.013 of the Tennessee Rules of Civil Procedure to join Mother-in-law as a necessary party to the divorce proceedings. In the Chancery Court litigation, Wife filed a motion for dismissal of Mother-in-law’s complaint or transfer to the Circuit Court. Mother-in-law filed a response in Circuit Court opposing Wife’s motion for joinder, arguing that joinder under Rule 19.01 was unnecessary and inappropriate. The Circuit Court disagreed with Mother-in-law. On December 20, 2005, it granted Wife’s motion for joinder, noting that Mother-in-law had claimed an interest in the equity realized from the sale of the marital home, and finding, accordingly, that joinder under Rule 19.01 was proper.

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Bluebook (online)
Catherine Smith v. Sally Brittingham Smith and John Michael Charles Smith, Counsel Stack Legal Research, https://law.counselstack.com/opinion/catherine-smith-v-sally-brittingham-smith-and-john-michael-charles-smith-tennctapp-2008.