Evans-Freke v. Evans-Freke

CourtSupreme Court of The Virgin Islands
DecidedOctober 13, 2023
DocketSCT-CIV-2022-0046
StatusPublished

This text of Evans-Freke v. Evans-Freke (Evans-Freke v. Evans-Freke) is published on Counsel Stack Legal Research, covering Supreme Court of The Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Evans-Freke v. Evans-Freke, (virginislands 2023).

Opinion

For Publication IN THE SUPREME COURT OF THE VIRGIN ISLANDS STEPHEN EVANS-FREKE, ) S. Ct. Civ. No. 2022-0046 Appellant/Petitioner, ) Re: Super. Ct. Cs. No. 166/2016 (STT) ) v. ) ) VALERIE EVANS-FREKE, ) Appellee/Respondent. ) ) )

On Appeal from the Superior Court of the Virgin Islands District of St. Thomas/St. John Superior Court Judge: Hon. Debra S. Watlington

Argued: June 13, 2023 Filed: October 13. 2023

Cite as 2023 VI 12

BEFORE: RHYS S. HODGE, Chief Justice; MARIA M. CABRET, Associate Justice, and IVE ARLINGTON SWAN, Associate Justice.

ATTORNEYS:

Andrew L. Capdeville, Esq. (argued) Law Offices of Andrew L. Capdeville P.C. St. Thomas, U.S.V.I.

Justin K. Holcombe, Esq. Dudley Newman Feuerzeig, LLP St. Thomas, U.S.V.I. Attorneys for Appellant,

Julie German Evert, Esq. (argued) Law Offices of Julie German Evert St. Thomas, U.S.V.I.

Laura C. Nagi, Esq. Laura Castillo Nagi, Attorney & Counselor at Law, PLLC St. Thomas, U.S.V.I. Attorneys for Appellee. Evans-Freke v. Evans-Freke 2023 VI 12 S. Ct. Civ. No. 2022-0046 Opinion of the Court Page 2 of 20

OPINION OF THE COURT HODGE, Chief Justice.

¶1 Appellant Stephen Evans-Freke appeals from the Superior Court’s August 23, 2022 order,

which directed Stephen to pay his former spouse Valerie pendente lite support in the form of $7,500

in cash monthly, $5,000 credit card access per month with unused funds to rollover to the next

month amounting to no more than $60,000 per year, and a one-time sum of $350,000 for legal

expenses as Valerie’s counsel determines. For the reasons that follow, we reverse the Superior

Court’s August 23, 2022 order and remand the case to the Superior Court so that it may promptly

deal with the only issue remaining in this case—the distribution of marital property.

I. BACKGROUND

¶2 The parties met in 1984 when Valerie was 29 years old.1 At that time, Valerie was working

as a model, but stopped working in 1989 and has not worked since then. The parties were married

on December 27, 1990 in Norfolk, Connecticut. They had two children, both of whom are now

adults. In 1999, the parties purchased a 37-acre estate in Tuxedo Park, New York, which remains

Valerie’s residence to date. They acquired several other properties during the time they were

married. Stephen provided for Valerie throughout the marriage and has always managed the

finances. In 2008, Stephen moved to the U.S. Virgin Islands to form businesses, at which time he

began renting a home in St. Thomas, while Valerie remained in New York. Stephen has resided in

the Virgin Islands since moving to St. Thomas in 2008 and has continued to be Valerie’s only

source of financial support.

1 Because both parties possess the same last name, they are herein referred to by their first names to minimize confusion. Evans-Freke v. Evans-Freke 2023 VI 12 S. Ct. Civ. No. 2022-0046 Opinion of the Court Page 3 of 20

¶3 On November 14, 2016, Stephen filed a petition for divorce in the Virgin Islands Superior

Court seeking dissolution of his marriage to Valerie. While Stephen’s petition was pending, Valerie

filed a separate petition for divorce in New York on February 17, 2017. However, on February 21,

2017, Valerie also filed an answer to the divorce petition Stephen filed with the Virgin Islands

Superior Court, which admitted the irreconcilable breakdown of the marriage, but asserted lack of

personal jurisdiction and forum non conveniens as affirmative defenses. Valerie did not request

any affirmative relief from the Superior Court in her answer, such as a request for an alimony

award, nor did she move for an order of pendente lite support in accordance with section 108, title

16 of the Virgin Islands Code.

¶4 The New York court dismissed Valerie’s divorce petition on forum non conveniens grounds,

finding that the Virgin Islands was a more appropriate forum. The Superior Court of the Virgin

Islands later dismissed Stephen’s petition, finding that it did not have personal jurisdiction over

Valerie. On appeal, this Court determined that the Superior Court erred in its dismissal and ordered

the Superior Court to assume jurisdiction, immediately enter a decree of divorce, and exercise

jurisdiction over all outstanding issues that remained between the parties. Evans-Freke v. Evans-

Freke, 75 V.I. 407, 423 (V.I. 2021).

¶5 The Superior Court ultimately issued a divorce decree on February 14, 2022. In its divorce

decree, the Superior Court dissolved the marriage between Stephen and Valerie, and stated that it

would defer distribution of the parties’ jointly-owned real and personal property for a later

determination. In the findings of fact and conclusions of law accompanying the February 14, 2022

divorce decree, the Superior Court further found that “[t]he parties have neither waived nor

asserted their right to alimony.” (J.A. 39.) Evans-Freke v. Evans-Freke 2023 VI 12 S. Ct. Civ. No. 2022-0046 Opinion of the Court Page 4 of 20

¶6 On March 11, 2022, Valerie filed an emergency motion for pendente lite support, payment

of expert forensic accountant fees and costs, and attorney’s fees and costs pendente lite. The

Superior Court held an emergency hearing on the motion on June 2 and June 3, 2022. The Superior

Court heard testimony from Valerie, Stephen, Daniella Kauffman—the comptroller for Auven

Therapeutics Management Company, Stephen’s primary company in the Virgin Islands, and

Gregory Cowhey—Valerie’s expert forensic accountant witness. The parties submitted various

exhibits including Stephen’s financial affidavits, Valerie’s financial affidavit (testified to at the

hearing but not included in the record), and photographs of repairs needed for the Tuxedo Park

home.

¶7 At the emergency motion hearing, Valerie testified to having savings in the approximate

amount of $176,300; however, her only source of income was the $5,000 cash paid to her monthly

by Stephen and access to $5,000 per month on his American Express credit account. Stephen also

paid for Valerie’s household expenses including mortgage payments, utility fees, electricity, social

club membership, cell phone expenses, and home entertainment allowance, among other things.

Valerie testified that her monthly expenses included food, gas, entertainment, monthly tolls,

parking, dry cleaning, and travel, asserting that her monthly expenses were upwards of $26,217.

¶8 Stephen testified that his current net worth, as of March 31, 2022, was approximately $25

million and that he earns between $50,000 to $70,000 from his companies’ monthly distributions,

which income he uses to support his three sons, two of whom are adults,2 and Valerie. Stephen

currently lives in a five-bedroom house located in Estate Nazareth, St. Thomas, Virgin Islands,

2 Stephen explained that he supports one of his adult sons because of his health issues which Stephen covers as needed, and to the other son Stephen gives over $100,000 annually to help him with his two startup companies. Evans-Freke v. Evans-Freke 2023 VI 12 S. Ct. Civ. No. 2022-0046 Opinion of the Court Page 5 of 20

with his current wife, and the monthly rent is $12,000. Stephen testified that he is currently in the

midst of financial hardship due to his Virgin Islands company, Auven Therapeutics, being in breach

of its loan covenant and the fact that most of his wealth is in assets which are not currently liquid.

He stated that he is struggling to pay his bills which include $35,000-$40,000 monthly in support

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