Deidra Kay Minor v. Melvin Richard Nichols

CourtCourt of Appeals of Tennessee
DecidedJanuary 31, 2014
DocketW2012-01720-COA-R3-CV
StatusPublished

This text of Deidra Kay Minor v. Melvin Richard Nichols (Deidra Kay Minor v. Melvin Richard Nichols) 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
Deidra Kay Minor v. Melvin Richard Nichols, (Tenn. Ct. App. 2014).

Opinion

IN THE COURT OF APPEALS OF TENNESSEE AT JACKSON December 12, 2013 Session

DEIDRA KAY MINOR v. MELVIN RICHARD NICHOLS

An Appeal from the Circuit Court for Shelby County No. CT-005750-08 Robert L. Childers, Judge

No. W2012-01720-COA-R3-CV - Filed January 31, 2014

This appeal involves the interpretation of a marital dissolution agreement. In the parties’ divorce, the wife was awarded the marital home and the associated debt on the home. In the parties’ marital dissolution agreement, the husband was required to pay alimony in an amount that covered half of the wife’s monthly mortgage payments. The alimony payments were to be made for fifteen years or until the mortgage on the marital home was “paid off in full.” The husband stopped making his alimony payments and the wife filed a contempt petition against him. While the contempt petition was pending, the wife fell behind on her mortgage payments and the house was sold in foreclosure. The husband then filed a petition to terminate his alimony obligation. After a hearing on both petitions, the trial court held the husband’s failure to pay alimony constituted willful contempt of court. Interpreting the marital dissolution agreement, however, the trial court also held that the husband’s alimony obligation ended when the marital home was sold in foreclosure, because at that point the mortgage was “paid off in full.” The wife now appeals. We decline to interpret the parties’ marital dissolution agreement in a manner that would terminate the husband’s alimony obligation if the foreclosure resulted from his contemptuous failure to pay alimony to the wife. Accordingly, we vacate the trial court’s decision and remand for further proceedings.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Circuit Court is Vacated in Part and Remanded

H OLLY M. K IRBY, J., delivered the opinion of the Court, in which D AVID R. F ARMER, J., and J. S TEVEN S TAFFORD, J., joined.

William E. Friedman, Memphis, Tennessee, for the Plaintiff/Appellant, Deidra Kay Minor

No brief filed on behalf of Defendant/Appellee, Melvin Richard Nichols MEMORANDUM OPINION 1

F ACTS AND P ROCEEDINGS B ELOW

On March 2, 2009, Plaintiff/Appellant Deidra Kay Minor (“Wife”) and Defendant/Appellee Melvin Richard Nichols (“Husband”) were divorced by final decree. The final decree incorporated the parties’ marital dissolution agreement (“MDA”), signed on January 12, 2009. The MDA reflects that the parties’ marital home was the only marital property and the mortgage on the home was the only marital debt.

Under the MDA, Wife received the marital home, along with the mortgage and all of the related obligations. Husband, in turn, was to convey to Wife by quitclaim deed his interest in the house. The MDA provided:

20. REAL ESTATE. . . . The parties agree that Wife will continue to live in the marital residence and will be responsible for payment of all upkeep of the property, including all bills associated with the residence including, but not limited to, mortgage payments, utilities, phone service, house cleaning service and minor and major repairs. Husband agrees that he will sign a Quit Claim deed conveying any interest he has in the property to Wife and disclaims any interest he has in the equity of the home. Wife agrees to hold Husband harmless and indemnify him from any payments thereof. She shall also remove Husband’s name from the mortgage within one (1) year from the entry of the Final Decree if it is possible for her to do so.

The MDA included a specific provision linking Husband’s alimony obligation to the mortgage on the marital home:

21. ALIMONY. Husband shall pay the sum of $314.00 per month to Wife as periodic alimony, with said amount being paid to Wife beginning on the

1 Rule 10. Memorandum Opinion

This Court, with the concurrence of all judges participating in the case, may affirm, reverse or modify the actions of the trial court by memorandum opinion when a formal opinion would have no precedential value. When a case is decided by memorandum opinion it shall be designated “MEMORANDUM OPINION”, shall not be published, and shall not be cited or relied on for any reason in any unrelated case.

Tenn. Ct. App. R. 10.

-2- fifth day of the first month after the [MDA] is signed, and continuing on the fifth day of each month thereafter for fifteen years, or until the mortgage on the parties’ home, as it exists as of the time the [MDA] is signed, is paid off in full. These payments will terminate automatically upon the first to occur of Wife’s death or remarriage or Husband’s death. . . . This provision is not modifiable by the court. After the amount set out herein has been paid in full, Husband will have no further obligation to Wife for any spousal support, except as set out herein. . . .

(Emphasis added). It is undisputed that Husband’s alimony was intended to help Wife meet her mortgage obligation of $636 per month.2

Husband quickly fell behind in his alimony payments. On November 19, 2009, Wife filed her first petition for contempt against Husband for failure to make his alimony payments in October and November 2009. On July 8, 2010, the trial court entered an order holding Husband in contempt of court and finding that Husband owed Wife a total of $2,940.85, for alimony for October 2009 through June 2010 plus interest and $2,000 in attorney fees.

The trial court’s order apparently did not motivate Husband to stay current on the required alimony payments. On November 1, 2011, over a year after the trial court’s first contempt order, Wife filed a second petition for contempt against Husband. This second petition asserted that Husband had failed to pay eight months of alimony in 2011. The missed payments totaled $2,512.00. Wife’s contempt petition asserted that Husband “deliberately, willfully and wrongfully failed and refused to comply with” his alimony obligation.

Meanwhile, Wife fell behind on her mortgage payments. On January 6, 2012, Wife’s home was sold in a foreclosure sale to the lender. Documents filed in the appellate record indicate that, at the end of 2011, the county property assessor valued the marital home at about $111,900.3 At that time, Wife owed about $41,700 on the mortgage, so she had significant equity in the home. In the foreclosure, however, the lender purchased the home for only the amount remaining due on the mortgage. Thus, while the outstanding debt on the house was satisfied or “paid off,” Wife lost the substantial equity she had in the home.

On March 22, 2012, before the trial court held a hearing on Wife’s second contempt petition, Husband filed a petition to modify the final decree of divorce to terminate his alimony obligation. In the petition to modify, Husband acknowledged that the MDA stated that the

2 The mortgage amount was taken from Wife’s affidavit filed in the trial court. 3 This valuation is taken from the records of the Assessor of Property of Shelby County of Tennessee.

-3- alimony obligation was “not modifiable by the Court.” Husband asserted that, nevertheless, he was not represented by counsel during the divorce proceedings, and that the provision in the MDA making the alimony “not modifiable” was “unconscionable and unenforceable.” Husband asked the trial court to relieve him of his alimony obligation because he did not have the ability to pay it, noting that his only income was $1,342 per month in social security and retirement benefits. At the time he executed the MDA, Husband claimed, he was living with family members and had no rental or mortgage expense. In January 2011, Husband said, he moved into his own residence, thus increasing his expenses substantially.

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