Davidson v. Davidson

916 S.W.2d 918, 1995 Tenn. App. LEXIS 503
CourtCourt of Appeals of Tennessee
DecidedJuly 24, 1995
StatusPublished
Cited by44 cases

This text of 916 S.W.2d 918 (Davidson v. Davidson) 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
Davidson v. Davidson, 916 S.W.2d 918, 1995 Tenn. App. LEXIS 503 (Tenn. Ct. App. 1995).

Opinion

FARMER, Judge.

The subject of this domestic relations dispute concerns the proper allocation of a reduction in Husband’s pension benefits to the parties, Jerry Davidson (Husband) and Beverly Ann Bowker Davidson (Wife). After entry of a final divorce decree, and ostensibly in accordance with Rule 60.02 T.R.C.P, the trial court granted Husband’s motion to modify a Qualified Domestic Relations Order (QDRO) providing for the equal distribution of this particular marital asset, but calling for any reduction in plan benefits to be borne solely by Husband. At issue is whether the trial court exceeded the scope of Rule 60 in affording rebef to the husband. For reasons hereinafter expressed, we reverse the judgment of the trial court.

The parties were divorced by final decree entered on July 7, 1989. 1 The decree incorporated by reference a Marital Dissolution Agreement (MDA) executed between the *920 parties. 2 As here pertinent, it states as follows:

5. The parties acknowledge and agree that any right, entitlement, benefit or prospect of pecuniary advantage vested in Husband on the date of execution of this Agreement by virtue of Husband’s employment with Eastern Airlines, Inc., is marital property within the meaning accorded that term in § 36-4-121 Tennessee Code Annotated. ...
a. The parties acknowledge that, at the time of execution of this Agreement, Husband has been separated from regular employment by Eastern Airlines, Inc. as a direct result of such physical incapacity that he is “disabled” from continued employment as a flight member, co-pilot or engineer by the said Eastern Airlines, Inc. and it is the intention of the parties that each and every right, entitlement, benefit or prospect of pecuniary advantage, which, but for the intervention of divorce, would have flowed to the parties jointly and severally by virtue of Husband’s regular employment by the said Eastern Airlines, Inc. and separation therefrom under those circumstances above-mentioned, be apportioned, allocated and divided between the parties in equal shares.
b. The parties acknowledge that said rights, entitlements, benefits and prospects of pecuniary advantage are such that the division thereof may only be accomplished in conformity with provisions of certain “Benefit Plans” of Eastern Airlines, Inc. and provisions of the Internal Revenue Code of the United States and Rules and Regulations promulgated pursuant thereto by entry in the above-captioned cause of a “Qualified Domestic Relations Order”.... It is, however, the intention of the parties that the “equality” of the division of property provided for herein be determined by reference to “parity in result” only, and, in the event circumstances beyond the control of the parties shall effectively preclude avoidance of detriments of the type contemplated herein, then the parties agree that each shall do any and all things necessary to accomplish, by any lawful and legitimate means, apportionment of benefits and detriments between the parties so as to achieve reasonable parity between them.
c. The parties acknowledge that the rights, entitlements, benefits and prospects of pecuniary advantage mentioned herein include entitlement to distributions of money according to the terms of certain “Benefit Plans” of Eastern Airlines, Inc. known by the parties as “Plan A” and “Plan B.”
(1) The parties acknowledge that “Plan A” is a “defined benefit retirement income plan,” and it is contemplated, intended and agreed by the parties with respect to “Plan A” that each do any and all things necessary to cause a regular, periodic distribution of cash to be made directly from said plan to each party in equal amounts during his or her lifetime. The parties acknowledge that there is, at the time of execution of this Agreement, a risk that “Plan A” is or may become insolvent to the extent that distribution from said plan may be impaired, in whole or in part.
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d. Preparation of “Qualified Domestic Relations Orders” ... necessary to accomplish the foregoing shall be the responsibility of Wife, ...

A “Qualified Domestic Relations Order” was entered with the trial court on March 13, 1989, stating, as relevant here:

IT APPEARING to the Court that [Wife] and [Husband], in their [MDA] ... have agreed to apportion, allocate and di *921 vide between them in equal shares all of those rights, entitlements, benefits or prospects of pecuniary advantage which but for the intervention of divorce would have flowed to the parties jointly and severally by virtue of Husband’s regular employment by Eastern Airlines, ... and the parties have prepared and have agreed to cause the following [QDRO] ... to be entered in this Court, ...
1. This [QDRO] applies ... to the Eastern Airlines Pilots Fixed Benefit Retirement Income Plan (“A” Plan)....
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4. This Order creates a right in the Alternate Payee 3 to receive the sum of One Thousand Five Hundred Seven and 15/100 Dollars ($1,507.15) monthly, payable as a single life annuity from the “A” Plan.... If the aggregate amount due to Husband and Wife under the “A” Plan is reduced because of a change in Husband’s status as “disabled” pursuant to the “A” Plan or for any reason, then in such event, the Alternate Payee shall continue receiving payments under the “A” Plan in the amount set forth above. It is expressly understood and agreed to by the parties hereto that any such reduction in the amount due under the “A” Plan shall be deducted solely from any amounts receivable by the Husband pursuant to the “A” Plan. The intent of the above is to transfer the described allocated benefit to Alternate Payee.

The QDRO contains the signatures of counsel for both parties.

In June 1992, Husband filed a “Petition to Modify, Alter, or Correct Final Decree of Divorce,” seeking to modify the QDRO “to reflect the intent of the parties as evidenced in their [MDA].” Husband asserted that as a result of the bankruptcy of Eastern Airlines, the benefits payable under Plan A had been reduced and the parties were no longer receiving equal shares due to the wording of the QDRO. Husband stated that the entire reduction in benefits was taken from his share and that, although Wife’s share had remained at $1,507, his benefits had been reduced to $990. He insisted that a “discrepancy or dichotomy” existed between the final decree and the QDRO and that it was the intent of the parties, as reflected in the MDA and final decree, that both draw equally from Plan A during his or her lifetime. Husband requested that the trial court correct the QDRO so that the total monthly benefits from Plan A, $2,497, be distributed equally.

In July 1993, Husband filed a “Motion to Modify, Alter, or Correct [QDRO], and for Other Remedies,” 4

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Bluebook (online)
916 S.W.2d 918, 1995 Tenn. App. LEXIS 503, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davidson-v-davidson-tennctapp-1995.