Elizabeth Leanne Hudson v. Larson Douglas Hudson

CourtCourt of Appeals of Tennessee
DecidedNovember 3, 2009
DocketM2008-01143-COA-R3-CV
StatusPublished

This text of Elizabeth Leanne Hudson v. Larson Douglas Hudson (Elizabeth Leanne Hudson v. Larson Douglas Hudson) 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
Elizabeth Leanne Hudson v. Larson Douglas Hudson, (Tenn. Ct. App. 2009).

Opinion

IN THE COURT OF APPEALS OF TENNESSEE AT NASHVILLE March 10, 2009 Session

ELIZABETH LEANNE HUDSON v. LARSON DOUGLAS HUDSON

Appeal from the Eighth Circuit Court for Davidson County No. 06D-533 Carol Soloman, Judge

No. M2008-01143-COA-R3-CV - Filed November 3, 2009

This case involves an appeal concerning the relocation of Elizabeth Leanne Hudson (“Mother”) and her two minor children from Nashville, Tennessee, to Hopkinsville, Kentucky. Larson Douglas Hudson (“Father”) opposed the relocation. After a three day bench trial, the trial court granted Mother’s request to relocate after finding, pursuant to Tenn. Code Ann. § 36-6-108, that the relocation was reasonable and not vindictive. The trial court also awarded Mother attorney’s fees. For the following reasons, we affirm the holding of the trial court regarding the relocation but reverse concerning the attorney’s fees.1

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Circuit Court Affirmed in Part, Reversed in Part; Case Remanded

JOHN W. MCCLARTY , J., delivered the opinion of the court, in which HERSCHEL P. FRANKS, P.J. joined. D. MICHAEL SWINEY , J. filed a dissenting opinion.

Helen S. Rogers and Lawrence J. Kamm, Nashville, Tennessee, for the Appellant, Larson Douglas Hudson.

Phillip Robinson and Philip E. Smith, Nashville, Tennessee, for the Appellee, Elizabeth Leanne Hudson.

1 Our first opinion in this case originally was filed on September 29, 2009. Father thereafter filed a petition to rehear. The petition to rehear contained a meritorious assertion. Accordingly, we granted the petition, withdrew our original Opinion, and now submit this substitute opinion. The dissenting opinion is also withdrawn, and a new dissenting opinion will be submitted. OPINION

I. Factual Background

The Divorce Settlement

Mother and Father were divorced on January 29, 2007, on the grounds of irreconcilable differences. The parties have two minor children, Sara (d.o.b. 9/15/99) and Emily (d.o.b. 4/24/2001) (“children”). Per the custody agreement, Father saw the children five out of every fourteen days, four of which he had 24-hour custody. He had custody every other Wednesday evening and every other Wednesday evening through Sunday.

Per a mediated divorce settlement, Mother received $38,400 in child support per year; the $600,000 home (not yet fully paid for); $1,033,686 in proceeds from the recent sale of Father’s company, Hearing Planet, Inc. (“Company”); alimony in the amount of $130,268; and $3000 for a country club membership. Father agreed to pay around $33,000 per year for the children to attend a prestigious private school in Nashville. Mother also was to receive half of any “earn-out” payments (“earn-outs”) – additional payments contingent on the post-sale performance of the Company.

The earn-out agreement set aside a potential $8,000,000 that would be paid out to several Company executives over a three-year period based upon the attainment of specified goals. The earn-outs were used by the buyer (“Buyer”) of the Company as an incentive to keep the experienced Father on as CEO for at least three years. However, the earn-outs were not guaranteed because the performance criteria were designed to become more difficult to achieve each year. In fact, the company barely met the criteria the first year; the standard was met only after Father forfeited his $108,000 yearly bonus in return for the more lucrative earn-out. As a result, Mother received an additional $625,000 in earn-outs for the fiscal year April 1, 2006 - March 31, 2007.

The divorce was contentious; the acrimony between Father and Mother continued after the divorce and eventually spilled over into the relocation dispute. For instance, on June 4, 2007, Father filed a Petition for Contempt against Mother for failing to remove his name from the mortgage as required under a previous agreement. Father also complained that Mother interfered with his custody time on one occasion and impeded his ability to contact the children by phone. Additionally, Father alleged, without any concrete proof, that Mother was having overnight male guests while the children were present. On August 13, 2007, Father amended the Petition for Contempt to include a charge that Mother failed to pay for the expenses for the copying of certain video tapes.

2 As a result of Father’s Petition for Contempt, Mother payed off the mortgage by borrowing against $300,000 of her investment portfolio. Subsequently, Father voluntarily withdrew his Petition for Contempt. Thus, as a result of the divorce, Mother owned the house free and clear and still had a net worth of approximately $1,570,000, not including the $300,000 debt. If invested conservatively, it was estimated that she would receive at least $50,000 per year in interest. Added to the $38,400 she receives for child support, Mother will make around $90,000 per year without working.

Father’s resignation and the Petition to Relocate

Around the end of the first earn-out period, March 2007, Father resigned from the Company, although he remained employed there in a limited capacity until June 30, 2007. Father did not immediately disclose his resignation to Mother. Father insisted the reason he did not immediately tell her was fear of her reaction because his resignation foreclosed any possibility of further earn- outs. Instead, Mother found out about the resignation from other sources sometime in April. On April 25, 2007, Mother called Father to confirm the resignation. That same day, she called her attorneys and began discussing relocation plans.

On June 21, 2007 - about four and a half months after the divorce was finalized - Mother filed a Petition to Relocate (“Petition”). The Petition contained the following reasons for the relocation:

1. Mother can no longer afford to stay in her home at 3600 Bowlingate Lane, Nashville, Tennessee, and has been forced to place this property for sale. 2. Mother must secure employment, and needs a flexible work schedule not available to her in the vicinity of Nashville, Tennessee. 3. The cost of living in Hopkinsville, Kentucky, is less than the cost of living in Nashville, Tennessee. 4. In Hopkinsville, Kentucky, Mother will have family members as an additional support system that is not available to her in Nashville, Tennessee. 5. Mother feels there is such hostility toward her in the community where she and the children reside that it is advisable for her and the children to relocate.

Father opposed the relocation and submitted Interrogatories and Document Requests on August 6, 2007, concerning the Petition. On September 5, 2007, Mother filed a Motion for a Protective Order based on what she considered to be inappropriate Interrogatory and Document Requests. The trial court granted the Motion on October 4, 2007, and, as a result, Father was only given access to Mother’s sworn financial statement.

During a deposition on March 6, 2008, Father produced an email that purported to contradict some of Mother’s deposition testimony regarding the quality of her relationship with her mother. Father obtained the email by accessing Mother’s email account without her knowledge. He had

3 previously set up the account, and Mother had failed to reset the password after the divorce. On March 17, 2008, the trial court granted Mother a Restraining Order against Father from accessing any of Mother’s electronic communications. The Order also prevented Father from using the email at trial. This court declined to hear Father’s interlocutory appeal on the matter.

Trial Proceedings

The relocation trial was held on April 14 - 15, 2008.

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Cite This Page — Counsel Stack

Bluebook (online)
Elizabeth Leanne Hudson v. Larson Douglas Hudson, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elizabeth-leanne-hudson-v-larson-douglas-hudson-tennctapp-2009.