Dudley v. Light

586 So. 2d 155, 1991 WL 170245
CourtMississippi Supreme Court
DecidedAugust 28, 1991
Docket90-CA-0114
StatusPublished
Cited by25 cases

This text of 586 So. 2d 155 (Dudley v. Light) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dudley v. Light, 586 So. 2d 155, 1991 WL 170245 (Mich. 1991).

Opinion

586 So.2d 155 (1991)

David Edward DUDLEY
v.
Christine S. LIGHT and Crystal Light Dudley.

No. 90-CA-0114.

Supreme Court of Mississippi.

August 28, 1991.

James R. Hayden, Hattiesburg, for appellant.

Rex K. Jones, Hattiesburg, for appellee.

Samuel E. Farris, Hattiesburg, for appellee and cross-appellant.

Before ROY NOBLE LEE, C.J., and PITTMAN and BANKS, JJ.

PITTMAN, Justice, for the Court:

David Edward Dudley and Crystal Light Dudley were married on August 22, 1976, in Forrest County, Mississippi. The couple lived together as husband and wife until they were separated on January 15, 1988. While married, David and Crystal adopted a daughter, Krista Michelle Dudley, whose birth date is October 29, 1983.

During the couple's marriage, David and Crystal acquired various property such as a home, several automobiles, household furnishings and personal property. The real property, being the homestead, was acquired as joint tenants with right of survivorship. Other assets, however, were acquired solely in the name of David Dudley. Shortly after his marriage, David Dudley opened and maintained a business known as Square "D" Metal Company. This sheet-metal business was never incorporated and is claimed solely by the appellant, David Dudley. Also, Mr. Dudley purchased a retail business known as Circle "C" Western Store, Inc. This clothing *156 store, owned solely by David Dudley, was operated for the latter part of the marriage by the appellee, Crystal Light Dudley.

On July 8, 1988, Crystal Light Dudley filed a complaint for divorce in Forrest County Chancery Court. Subsequently, Ms. Dudley filed her First Amended Complaint on March 24, 1989, and her Second Amended Complaint for Divorce on April 3, 1989.

David Dudley answered the complaints for divorce and filed counter-claims on April 6, 1989 and April 13, 1989; Dudley filed an amended answer and cross-complaint on July 5, 1989.

Prior to trial, Christine S. Light, the mother of Crystal Dudley, filed a complaint against David and Crystal asking the court to find that a constructive trust had arisen in her favor in the sum of $50,000.00 and, further, requesting that an equitable lien be impressed upon the homestead of the parties to secure payment of the debt. After answer by both David and Crystal Dudley, the trial court granted Christine S. Light's motion to consolidate the two causes for trial.

After a trial on the merits, the chancellor rendered a final judgment divorcing David and Crystal Dudley and awarding the exclusive care and custody of Krista Dudley to her mother. Further, the court awarded Crystal Dudley the use and occupancy of the marital home as well as $270.00 per month in child support. Finally, Chancellor Taylor found that Christine S. Light was entitled to an equitable lien in the sum of $50,000.00 impressed against David and Crystal Dudley. The lien was also impressed against the homestead of the Dudley's to secure payment of the debt.

STATEMENT OF THE FACTS

David and Crystal Dudley were married on August 22, 1976. The Dudleys worked very hard and lived frugally to save money for their own home. David worked long days at his own business, Square "D" Metal, and Crystal worked full time as well. Through their efforts, David and Crystal were able to pay for and build their family home over a three year period. This home is now valued at $120,000.00.

In 1982, F.M. Smith, David Dudley's brother-in-law, approached him about becoming a partner in a western store in Laurel, Mississippi. Mr. Smith needed capital to begin the new venture and solicited David for his help. Believing the store to be a good idea, David Dudley borrowed more than $90,000.00, by placing a mortgage on his home, and became a fifty-percent partner in Circle "C" Western Store, Inc.

Circle "C" never became the money making venture that F.M. Smith had envisioned. As a result, Mr. Smith left the business and David Dudley became the full owner of the store. David lacked the retail experience to manage Circle "C" so he turned the day-to-day operations over to his wife, Crystal. As the store struggled to break even, David and Crystal found themselves having to repay the $90,000.00 bank loan out of their own pockets. In time, the Dudleys were only paying the interest on the loan. As the threat of foreclosure became more serious, Crystal Dudley's mother, Christine S. Light, helped the Dudleys by either: (1) investing $50,000.00 in the Circle "C" Western Store; or (2) loaning David and Crystal Dudley $50,000.00 for the specific purpose of saving the couple's home. In any event, David Dudley took the money from Christine Light and paid off the outstanding mortgage on his home.

Four years later, in July of 1988, Crystal Dudley filed a complaint for divorce. After answers and cross complaints by David Dudley, the matter came for trial before the Honorable William Taylor, Jr., on April 13, 1989. Chancellor Taylor, after hearing the evidence presented, ruled that the complaint for divorce should be dismissed but that a new trial was in order.

Prior to the first trial, Christine S. Light filed her complaint asking the lower court to impress an equitable lien against David and Crystal Dudley. The actions were consolidated and a second trial was held on October 18, 1989. The lower court then issued its written opinion on January 3, 1990.

*157 At the April 1989 trial, Mr. Dudley testified that he and his wife, Crystal, had been married almost thirteen years and that Crystal was a good wife and mother. Mr. Dudley testified that before he and Crystal were married, he had a net worth of less than $10,000.00. He stated that he now owns his own home and business and has a net worth of around $240,000.00. Mr. Dudley testified that he was able to build and pay for his $120,000.00 home by being cautious with his money. He stated that he and Crystal had retired an $80,000.00 mortgage on the residence within the last five years. Mr. Dudley testified that most of the funds to retire the mortgage came from the revenues of his sheet-metal business, Square "D" Metal.

Mr. Dudley testified he and his brother-in-law, F.M. Smith, purchased Circle "C" Western Store, Inc. Dudley stated that he had very little retail experience and that he purchased his interest in the store for his wife, Crystal. Dudley said that when Smith decided to "get out" of Circle "C", the business was $15,000.00 to $20,000.00 in the hole. Because of the store's poor performance, Dudley and Crystal decided to move Circle "C" from Laurel to Petal. He stated that at that time, Crystal's mother, Christine S. Light, decided to invest in the western store and that the investment transaction was handled strictly by Crystal.

Mr. Dudley stated that he was presently debt-free in that he owned his own business, Square "D" Metal, as well as all of the tools required by that business. He admitted that he had recently prepared a financial statement that showed his net worth at $240,000.00. David Dudley, however, was very reluctant to discuss the details of how he arrived at that figure and in response to those inquiries, asserted his Fifth Amendment rights when asked details about his operation of Square "D" Metal.

David Dudley filed a financial statement with the lower court that estimated his annual income to be $16,000.00. He stated that he averaged his incomes over a five year period to arrive at that particular amount. At that time, Dudley was reminded of his earlier testimony that he had discharged most of the $80,000.00 mortgage on his home from the revenues from Square "D" Metal.

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Cite This Page — Counsel Stack

Bluebook (online)
586 So. 2d 155, 1991 WL 170245, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dudley-v-light-miss-1991.