Ernest White Patton, III v. Linda Harvey Patton

CourtCourt of Appeals of Tennessee
DecidedJuly 3, 1996
Docket03A01-9601-CH-00001
StatusPublished

This text of Ernest White Patton, III v. Linda Harvey Patton (Ernest White Patton, III v. Linda Harvey Patton) 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
Ernest White Patton, III v. Linda Harvey Patton, (Tenn. Ct. App. 1996).

Opinion

I N THE COURT OF APPEALS OF TENNESSEE

EASTERN SECTI ON FILED July 3, 1996

Cecil Crowson, Jr. ERNEST W TE PATTON, I I I , HI ) C/ A NO. 03A01-Appellate C ourt Clerk 9601- CH- 00001 ) Pl a i nt i f f , ) HAM LTON CHANCERY I ) v. ) HON. R. VANN OWENS, ) CHANCELLOR LI NDA HARVEY PATTON, ) ) MODI FI ED AND De f e nda nt . ) REMANDED

ALBERT L. WATSON, I I I , Cha t t a nooga , f or Pl a i nt i f f - Appe l l a nt .

ARTHUR C. GRI SHAM J R. , GRI SHAM KNI GHT & HOOPER, Cha t t a noo g a , , , f o r De f e nda nt - Appe l l e e .

O P I N I O N

Fr a nks . J .

I n t hi s di vor c e a c t i on, t he hus ba nd a ppe a l s f r om t h e

Tr i a l Cour t ’ s de t e r mi na t i on of t he c l a s s i f i c a t i on of pr ope r t y

a s ma r i t a l pr ope r t y a nd t he di vi s i on of t he ma r i t a l e s t a t e .

The pa r t i e s we r e ma r r i e d i n 1984, a nd r e s i de d

t o g e t h e r f or a ppr oxi ma t e l y ni ne ye a r s . Pr i or t o t he i r

ma r r i a ge , t he hus ba nd ha d pur c ha s e d a hous e a nd l a nd a t 260 6

Cr e s c e nt Cl ub Dr i ve ( ?Cr e s c e nt Cl ub pr ope r t y?) , a nd t he wi f e h a d p ur c ha s e d 2. 5 a c r e s of uni mpr ove d l a nd on Sc e ni c Hi ghwa y

i n Ha mi l t on Count y. Ti t l e t o t he Cr e s c e nt Cl ub pr ope r t y i s

h e l d s ol e l y by t he hus ba nd, a nd t he t i t l e t o t he Sc e ni c

Hi gh wa y p r ope r t y i s t i t l e d s ol e l y t o t he wi f e . Howe ve r , t h e

Tr i a l J udge de c l a r e d bot h pr ope r t i e s t o be ma r i t a l pr ope r t y

a n d a wa r de d t he Sc e ni c Hi ghwa y pr ope r t y t o t he hus ba nd, a nd

t h e Cr e s c e nt Cl ub pr ope r t y t o t he wi f e . The Cour t di d not

p l a c e a va l ue on t he Cr e s c e nt Cl ub pr ope r t y, but c onc l ude d

t h e r e wa s a ppr oxi ma t e l y $74, 000. 00 i n e qui t y i n t ha t pr ope r t y ,

b u t h e di d f i nd t ha t t he Sc e ni c Hi ghwa y pr ope r t y wa s va l ue d a t

$ 3 0 , 0 00. 00.

W n t he hus ba nd pur c ha s e d t he Cr e s c e nt Cl ub he

p r o p e r t y he ma de a downpa yme nt of $73, 000. 00, a nd bor r owe d

$ 9 , 5 0 0. 00 f r om hi s s oon- t o- be wi f e , a nd ga ve he r a pr omi s s or y

n o t e i n r e t ur n, whi c h wa s a ppl i e d a s a n a ddi t i ona l downpa yme n t

o n t h e pr ope r t y, a s we l l . W n t he wi f e pur c ha s e d t he Sc e n i c he

Hi g h wa y pr ope r t y, whi c h wa s a l s o be f or e t he pa r t i e s ma r r i e d,

t h e h u s ba nd pa i d $10, 000. 00 t owa r d t he pur c ha s e of t ha t

p r o p e r t y.

Thi s c a s e i s be f or e us de nov o wi t h a pr e s umpt i on o f

c o r r e c t ne s s a s t o f a c t ua l i s s ue s . T. R. A. P. Rul e 13. The

e v i d e n c e e s t a bl i s he s t ha t t he hus ba nd, i n a ddi t i on t o ma ki n g

t h e d o wnpa yme nt on t he Cr e s c e nt Cl ub pr ope r t y, pa i d t he

mo n t h l y mor t ga ge pa yme nt s out of hi s moni e s , a nd t he

d o wn p a yme nt , wi t h t he e xc e pt i on of t he l oa n f r om t he wi f e ,

c a me f r om t he hus ba nd’ s i nhe r i t a nc e .

I n de f e ndi ng t he Tr i a l Cour t ’ s c l a s s i f i c a t i on of t h e

p r o p e r t y, t he wi f e a r gue s t ha t t he doc t r i ne of t r a ns mut a t i o n

i s a ppl i c a bl e he r e . W c a nnot a gr e e . e Bat s on v . Bat s on, 76 9

2 S. W 2 d 849 ( Te nn. App. 1988) i s i ns t r uc t i ve . . The Cour t f i r s t

o b s e r ve d:

Te nne s s e e i s a ?dua l pr ope r t y? j ur i s di c t i on be c a us e i t s d i vor c e s t a t ut e s dr a w a di s t i nc t i on be t we e n ma r i t a l a nd s e pa r a t e pr ope r t y. Si nc e Te nn. Code Ann. §36- 4- 121( a ) ( Supp. 1988) pr ovi de s onl y f or t h e di vi s i on o f ma r i t a l pr ope r t y, p r ope r c l a s s i f i c a t i on of a c oupl e ’ s pr ope r t y i s e s s e nt i a l . Se e 3 Fami l y Law and Pr ac t i c e §37. 08[ 1] ( 1988) . Thus , a s a f i r s t or de r of bus i n e s s , i t i s i nc umbe nt on t he t r i a l c our t t o c l a s s i f y t he pr ope r t y, t o gi ve e a c h pa r t y t he i r s e pa r a t e pr ope r t y, a nd t he n t o di vi de t he ma r i t a l pr ope r t y e qui t a bl y. Se e 2 h. Cl a r k, The Law of Dome s t i c Re l at i ons i n t he Uni t e d St at e s §16. 2, a t 183- 84 ( 2d e d. 1987) .

Te nn. Code Ann. §36- 4- 121( b) c ont a i ns t he gr ound r ul e s f or c l a s s i f yi ng pr ope r t y, a nd l i t t l e e l a bor a t i on i s ne e de d be yond t he s t a t ut e i t s e l f . Te nn. Code Ann. §36- 4- 121( b) ( 2) de f i ne s ?s e pa r a t e pr ope r t y? a s :

a l l r e a l a nd pe r s ona l pr ope r t y owne d by a s pous e be f or e ma r r i a ge ; pr ope r t y a c qui r e d i n e xc ha nge f or pr ope r t y a c qui r e d be f or e ma r r i a g e ; i nc ome f r om a nd a ppr e c i a t i on of pr ope r t y own e d by a s pous e be f or e ma r r i a ge e xc e pt whe n c ha r a c t e r i z e d a s ma r i t a l pr ope r t y unde r s ubdi vi s i on ( b) ( 1) ; a nd pr ope r t y a c qui r e d by a s pous e a t a ny t i me by gi f t , be que s t , de vi s e o r de s c e nt .

Thi s Cour t ha s c ons t r ue d t hi s s e c t i on t o me a n t ha t gi f t s by one s pous e t o a not he r of pr ope r t y t ha t woul d ot he r wi s e be c l a s s i f i e d a s ma r i t a l pr ope r t y a r e t he s e pa r a t e pr ope r t y of t he r e c i pi e nt s pous e . Thi s Cour t ha s a l s o f ound t ha t t he por t i on of a s pous e ’ s pe ns i on or ot he r r e t i r e me nt be ne f i t a t t r i but a bl e t o c r e di t a bl e s e r vi c e pr i or t o t he ma r r i a ge i s s e pa r a t e pr ope r t y.

Th e Co ur t t he n we nt a he a d t o di s c us s t he doc t r i ne of

t r a n s mut a t i on a nd s a i d:

[ s ] e pa r a t e pr ope r t y ma y be c ome pa r t of t he ma r i t a l es t at e i f i t s owne r t r e a t s i t a s i f i t we r e ma r i t a l pr ope r t y. Pr of e s s or Cl a r k de s c r i be s t he doc t r i ne o f t r a ns mut a t i on a s f ol l ows :

[ Tr a ns mut a t i on] oc c ur s whe n s e pa r a t e pr ope r t y i s t r e a t e d i n s uc h a wa y a s t o gi ve e vi de nc e of a n i nt e nt i on t ha t i t be c ome ma r i t a l pr ope r t y. One me t hod of c a us i ng t r a ns mut a t i on i s t o

3 pur c ha s e pr ope r t y wi t h s e pa r a t e f unds but t o t a ke t i t l e i n j oi nt t e na nc y. Thi s ma y a l s o b e done by pl a c i ng s e pa r a t e pr ope r t y i n t he na me s of bot h s pous e s . The r a t i ona l e unde r l yi ng bo t h t he s e doc t r i ne s i s t ha t de a l i ng wi t h pr ope r t y i n t he s e wa ys c r e a t e s a r e but t a bl e pr e s umpt i o n of a g i f t t o t he ma r i t a l e s t a t e . Thi s pr e s umpt i on i s ba s e d a l s o upon t he pr ovi s i on i n ma ny ma r i t a l pr ope r t y s t a t ut e s t ha t pr ope r t y a c qui r e d dur i ng t he ma r r i a ge i s pr e s ume d ma r i t a l . The pr e s umpt i on c a n be r e but t e d by e vi de nc e of c i r c ums t a nc e s or c ommuni c a t i ons c l e a r l y i ndi c a t i ng a n i nt e nt t ha t t he pr ope r t y r e ma i n s e pa r a t e .

1 H. Cl a r k, The Law of Dome s t i c Re l at i ons i n t he Uni t e d St at e s §16. 2, a t 185 ( 1987) .

Se ve r a l r e por t e d a nd unr e por t e d c a s e s ha ve di s c us s e d

a n d a ppl i e d t he doc t r i ne of t r a ns mut a t i on i n pr ope r t y

s e t t l e me nt s i t ua t i ons , b ut none i s a ppl i c a bl e t o t he f a c t s of

t hi s c a s e .

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