Diane Spreadbury v. Peter E. Spreadbury

CourtCourt of Appeals of Virginia
DecidedApril 20, 2010
Docket1053094
StatusUnpublished

This text of Diane Spreadbury v. Peter E. Spreadbury (Diane Spreadbury v. Peter E. Spreadbury) is published on Counsel Stack Legal Research, covering Court of Appeals of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Diane Spreadbury v. Peter E. Spreadbury, (Va. Ct. App. 2010).

Opinion

COURT OF APPEALS OF VIRGINIA

Present: Judges Beales, Alston and Senior Judge Annunziata Argued at Alexandria, Virginia

DIANE SPREADBURY MEMORANDUM OPINION * BY v. Record No. 1053-09-4 JUDGE ROSSIE D. ALSTON, JR. APRIL 20, 2010 PETER E. SPREADBURY

FROM THE CIRCUIT COURT OF FAUQUIER COUNTY Jeffrey W. Parker, Judge

James Ray Cottrell (John K. Cottrell; Kyle F. Bartol; Cottrell, Fletcher, Schinstock, Bartol & Cottrell, P.C., on briefs), for appellant.

Julia S. Savage (Walker Jones, PC, on brief), for appellee.

Diane Spreadbury (wife) appeals from a final decree of divorce (final decree), terminating

the marriage between wife and Peter E. Spreadbury (husband). Wife argues the trial court erred in

several respects. First, wife contends the trial court erred in granting and refusing to lift or modify a

sanctions order that prohibited wife from presenting evidence at trial. Second, wife contends the

trial court erred in adjudicating the parties’ real property, which wife argues is subject to unresolved

third-party ownership claims. Third, wife contends the trial court erred in granting husband half of

the rental income received by wife during the parties’ separation. Fourth, wife contends the trial

court erred in classifying and awarding to husband certain property as his separate property. Fifth,

wife contends the trial court erred in granting husband’s motion in limine, which barred wife from

presenting evidence of her separate property at trial. Sixth, wife contends the trial court erred in

refusing to award spousal support. Seventh, wife contends the trial court erred in awarding husband

* Pursuant to Code § 17.1-413, this opinion is not designated for publication. $75,000 in attorney’s fees. Eighth, wife contends the trial court erred by making an unequal

distribution of the marital estate. Finally, wife seeks recovery of her attorney’s fees on appeal. For

the reasons that follow, we affirm the trial court’s decision as to each of the above issues and deny

wife’s request for attorney’s fees.

I. BACKGROUND1

“When reviewing a trial court’s decision on appeal, we view the evidence in the light

most favorable to the prevailing party, granting it the benefit of any reasonable inferences.”

Congdon v. Congdon, 40 Va. App. 255, 258, 578 S.E.2d 833, 835 (2003) (citations omitted).

“That principle requires us to ‘discard the evidence’ of the appellant which conflicts . . . with the

evidence presented by the [prevailing party] at trial.” Id. (quoting Wactor v. Commonwealth, 38

Va. App. 375, 380, 564 S.E.2d 160, 162 (2002)). Thus, a trial court’s judgment will not be

disturbed on appeal unless plainly wrong or without evidence to support it. Jennings v. Jennings,

12 Va. App. 1187, 1189, 409 S.E.2d 8, 10 (1991).

So viewed, the evidence established that the parties married in Connecticut in 1985, it

being each party’s second marriage. During the marriage, the parties established several trusts.

In 1986, the parties established the Peter E. Spreadbury and Diane C. Spreadbury trust

(Spreadbury I Trust), a revocable trust, of which the beneficiaries are the parties themselves. In

1990, the parties established an irrevocable family trust (Spreadbury II Trust), the beneficiaries

of which are the parties and their children from previous marriages. When the parties created the

Spreadbury II Trust, they also established the Spreadbury Realty Trust (Spreadbury Realty

Trust), the beneficiary of which is the Spreadbury II Trust.

1 The record and procedural history of this case can best be described as convoluted. However, as the parties are fully conversant with the record in this case, and because this memorandum opinion carries no precedential value, this opinion recites only those facts and incidents of the proceedings as are necessary to the parties’ understanding of this appeal. -2- In 1990, the Spreadbury II Trust purchased property (Westbury Farm) in Fauquier

County, Virginia. Husband and wife contributed $1,260,688, representing 88.16% of the

purchase price. The parties’ children contributed $169,312, representing the remaining 11.84%

of the purchase price. Westbury Farm was titled to the Spreadbury Realty Trust. Soon

thereafter, the parties renovated Westbury Farm, using the proceeds, at least in part, from the sale

of husband’s Smith Barney stock worth $1,875,866. In 1999, the Spreadbury II Trust conveyed

Westbury Farm to the Spreadbury I Trust in exchange for a $340,000 promissory note. The deed

conveying the property to the Spreadbury I Trust was executed in 2003.

In 1999, the parties built a house on Westbury Farm (the marital home) using the

proceeds from the sale of their Connecticut home. In 2003, the parties refinanced Westbury

Farm in order to purchase two adjacent rental homes (Goose Creek Properties). In 2004,

husband created Westbury Group, LLC, (Westbury Group) using $100,000 from the refinancing.

At the time of the parties’ separation, Westbury Group was not licensed to do business.

On March 28, 2004, the parties separated. Wife continued to live in and maintain the

marital home and Westbury Farm. She also collected rental income from the Goose Creek

Properties during the time of separation. On May 21, 2004, wife filed for divorce. On February

16, 2005, husband filed a cross-bill for divorce.

On December 8, 2005, the trial court, determining pendente lite spousal support, entered

an award, imputing income of $8,400 per month to wife based solely on rental income she

received from the Goose Creek Properties. Ultimately, the trial court ordered husband to pay

$3,000 per month toward the mortgage on the marital home and $350 per month in spousal

support for wife.

On September 4, 2007, husband propounded requests for discovery on wife, to which

wife failed to respond. On October 26, 2007, husband filed a motion to compel wife’s responses

-3- to discovery. The trial court orally ruled that wife was compelled to respond by November 20,

2007; however, no order reflecting the trial court’s oral ruling was ever entered. Instead, on

November 29, 2007, the parties notified the trial court that they had reached a settlement and the

case should be removed from the trial court’s docket. However, on January 15, 2008, husband

filed several motions in the trial court, asking the court to compel settlement, or in the

alternative, to schedule a trial date, compel discovery responses, and award his attorney’s fees.

On April 15, 2008, the trial court ordered wife to respond to husband’s interrogatory

requests. However, wife did not respond to any of husband’s discovery requests. On May 8,

2008, the trial court awarded husband sanctions against wife, barring her from: (1) opposing the

claims or defenses of husband; (2) introducing any evidence to support any claims she made or

intended to make against husband which were the subject of discovery requests; or

(3) introducing any matters into evidence which were the subject of discovery requests. The trial

court subsequently denied wife’s motion to modify or lift the sanctions order. The court also

continued the trial date set for June 18, 2008 to July 24, 2008.

On June 23, 2008, the parties’ children filed a motion to intervene in the divorce action,

arguing they held equitable title to Westbury Farm.

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