Faye Louise Taylor Chadwell v. Albert Chadwell and Consolidation Coal Company

• Court: Court of Appeals of Tennessee
• Decided: October 1, 1996
• Docket: 03A01-9601-GS-00007
• Status: Published

Opinion

I N THE COURT OF APPEALS OF TENNESSEE

EASTERN SECTI ON FILED October 1, 1996

Cecil Crowson, Jr. Appellate C ourt Clerk

FAYE LOUI SE TAYLOR CHADWELL ) CAMPBELL COUNTY ) 03A01- 9601- GS- 00007 Pl a i nt i f f - Appe l l e e ) ) ) v. ) HON. BI LLY J OE W TE, HI ) CHANCELLOR ) ( Si t t i ng by I nt e r c ha nge ) ALBERT CHADW ELL a nd ) CONSOLI DATI ON COAL COMPANY1 ) ) De f e nda nt s - Appe l l a nt s ) AFFI RMED AND REMANDED

J ERROLD L. BECKER a nd LUCI NDA M ALBI STON OF KNOXVI LLE FOR . APPELLANTS

J OHNNY V. DUNAW OF La FOLLETTE OF KNOXVI LLE FOR APPELLEE AY

O P I N I O N

Godda r d, P. J .

I n t hi s pos t - di v or c e pr oc e e di ng, t he Cha nc e l l or f oun d

t ha t c e r t a i n a s s e t s o wne d by Al be r t Cha dwe l l a t t he t i me of t he

p a r t i e s ’ d i vor c e we r e ma r i t a l a s s e t s a nd t ha t hi s f or me r wi f e ,

1 Co n s o l i d a t i o n Co a l Co mp a n y wa s ma d e a p a r t y i n t h e p e t i t i o n n o w o n a ppe a l t o enj oi n t he t r a ns f e r of any f unds or as s e t s hel d f or t he bene f i t of M . Ch a d we l l a n d t o r e q u i r e a f u l l a c c o u n t i n g o f s u c h f u n d s . r Fa y e Lo u i s e Ta yl or Cha dwe l l , wa s e nt i t l e d t o a j udgme nt a ga i ns t

h i m o f $94, 320 whi c h i nc l ude d i nt e r e s t f r om t he da t e of t he

di vor c e . The Cha nc e l l or a l s o i mpr e s s e d a l i e n a ga i ns t c e r t a i n

r e a l e s t a t e or i gi na l l y owne d by M . Cha dwe l l , who l a t e r pur por t e d r

t o t r a n s f e r a n i nt e r e s t t o hi s pr e s e nt wi f e . Bot h t he r e a l

e s t a t e a nd t he home M . Cha dwe l l e r e c t e d t he r e on we r e pa i d f or i n r

p a r t wi t h t he a s s e t s i n d i s put e i n t hi s a ppe a l .

The pr i nc i pa l que s t i on t o be de c i de d i n t hi s a ppe a l i s

wh e t h e r a n or de r e nt e r e d i n a pr e vi ous pr oc e e di ng be t we e n t he

p a r t i e s f ound t ha t M s . Cha dwe l l wa s not e nt i t l e d t o t he s e r

s p e c i f i c f unds , t hus ba r r i ng he r c l a i m unde r t he t he or y or r e s

j ud i c a t a .

The pa r t i e s we r e ma r r i e d on Oc t obe r 8, 1966.

Th r o u g h out t he i r 18- ye a r ma r r i a ge , M . Cha dwe l l wa s e mpl oye d by r

Co n s o l i da t i on Coa l Compa ny. By 1984, M . Cha dwe l l ha d t hr e e r

a c c o u n t s t hr ough hi s e mpl oyme nt a t Cons ol i da t i on Coa l Compa ny: a n

Emp l o y e e Re t i r e me nt of Con s ol I nc . ( r e t i r e me nt pl a n) whi c h be c a me

v e s t e d J une 1, 1983; a Conoc o Empl oye e s St oc k Owne r s hi p Pl a n

( CESOP) c ompos e d e nt i r e l y of DuPont s t oc k; a nd a n I nve s t me nt Pl a n

f o r Sa l a r i e d Empl oye e s of Cons ol ( i nve s t me nt pl a n) .

The ma r r i a ge wa s t e r mi na t e d by a Fi na l De c r e e of

Di v o r c e e nt e r e d on J une 11 , 1984. The Fi na l De c r e e pr ovi de d i n

pa r t :

2 5. Tha t Fa ye Loui s e Ta yl or Cha dwe l l i s a wa r de d t he 1 9 74 Gr a nd Pr i x a ut omobi l e a nd a l l ot he r pe r s ona l p r ope r t y a c qui r e d by t he pa r t i e s , e xc e pt t he s t oc k a c c umul a t e d b y Al be r t Cha dwe l l a t hi s pl a c e of e mpl oyme nt , whi c h s t oc k i s a wa r de d 50% t o Al be r t Ch a dwe l l a nd 50% t o Fa ye Loui s e Ta yl or Cha dwe l l , wi t h e a c h pa r t y t o be r e s p ons i bl e f or hi s r e s pe c t i ve s ha r e o f i nc ome t a x d ue a t s uc h t i me a s a ny t a xe s a r e due on t h e s a i d r e s pe c t i ve pa r t y’ s s t oc k.

The s t oc k me nt i one d i n t he De c r e e wa s not f ur t he r

i d e n t i f i e d or de f i ne d by t he De c r e e . The r e wa s no va l ua t i on o f

t h e s t o c k a t t he t i me of t he di vor c e . Howe ve r , M . Cha dwe l l s

a v e r r e d i n he r or i gi na l c ompl a i nt f or di vor c e t ha t t he s t oc k wa s

wo r t h a ppr oxi ma t e l y $50, 000. The r e wa s no di s t r i but i on of t he

s t o c k o r t he pr oc e e ds t he r e of t o M . Cha dwe l l . s

A he a r i ng wa s c onduc t e d on J une 4, 1986, i n t he Ge ne r a l

Se s s i o n s Cour t f or Ca mpbe l l Count y. The Cour t f ound t ha t M . r

Ch a dwe l l " o wns a n i nt e r e s t i n a r e t i r e me nt i nve s t me nt a c c ount o r

s t o c k a c c ount i n hi s e mpl oye r , " a nd t ha t t he a c c ount ha d dr a wn a

mi n i ma l of 10 pe r c e nt i nt e r e s t s i nc e t he e nt r y of t he Fi na l

De c r e e . The Cour t or de r e d hi m t o pr ovi de ve r i f i c a t i on of t he

a mo u n t s i n t he i nve s t me nt a c c ount s , t o de t e r mi ne t he pr e s e nt

v a l u e o f t he a c c ount s , a nd t o pr ovi de M . Cha dwe l l wi t h a c c e s s t o s

t h e r e c or ds pe r t a i ni ng t o t he a c c ount s .

On Fe br ua r y 19, 1988, t he Cour t a t t e mpt e d t o de t e r mi n e

M . Ch a dwe l l ’ s i nt e r e s t i n t he r e t i r e me nt pl a n unde r t he Fi na l s

De c r e e . The Cour t f ound t ha t " [ t ] he r e t i r e me nt pl a n f unds whi c h

a r e a t i s s ue i n t hi s a c t i on a r e not me nt i one d pe r s e i n t he

de c r e e . . . . Gi ve n t he di s t i nc t i ve na t ur e a nd l a r ge a mount o f

3 t h e r e t i r e me nt pl a n i n 1984 i t woul d s e e m l ogi c a l t ha t i t woul d

b e a d d r e s s e d i n i t s own t e r ms r a t he r t ha n l umpe d i n wi t h t he t e r m

s t o c k. " The Cha nc e l l or s t a t e d t ha t t he i s s ue of M . Cha dwe l l ’ s s

i n t e r e s t i n t he r e t i r e me nt a c c ount c oul d a nd s houl d ha ve be e n

l i t i g a t e d i n 1984 a t whi c h t i me t he pa r t i e s ha d knowl e dge of i t

b u t d i d not i nc l ude i t i n a di vi s i on of t he i r ma r i t a l pr ope r t y .

Th u s , t he Cha nc e l l or he l d t ha t unde r t he Fi na l De c r e e , M . s

Ch a d we l l ha d no i nt e r e s t i n t he r e t i r e me nt a c c ount . M . Cha dwe l l s

d i d n o t a ppe a l t he Cour t ’ s f i ndi ngs .

I n t he f ol l owi ng ye a r s , M . Cha dwe l l f a i l e d t o pr ovi d e r

v e r i f i c a t i on of t he s t oc k or i nve s t me nt a c c ount s a nd he f a i l e d t o

ma k e a n y di s t r i but i ons t o M . Cha dwe l l a s or de r e d by t he c our t i n s

1 9 8 4 a n d 1986. M . Cha dwe l l f i l e d a pe t i t i on f or c ont e mpt on s

No v e mb e r 23, 1993, s e e ki ng va l ua t i on of t he he r i nt e r e s t i n M . r

Ch a d we l l ’ s hol di ngs wi t h hi s e mpl oye r a nd a j udgme nt f or he r o n e -

h a l f i nt e r e s t . The Cour t he l d t ha t M . Cha dwe l l wa s i n c ont e mp t r

f o r f a i l i ng t o pr ovi de ve r i f i c a t i on of t he a c c ount s a nd f or

f a i l i n g t o di s t r i but e 50 p e r c e nt of t he va l ue of t he a c c ount s a s

h e wa s or de r e d t o do by t he Cour t i n 1984 a nd 1986. The Cour t

a l s o ma de a f i ndi ng t ha t t he va l ue of t he a c c ount s wa s no l e s s

t h a n $ 8 4, 927. 99, one ha l f of whi c h wa s owe d t o M . Cha dwe l l . s

On M r c h 9, 1995, M . Cha dwe l l f i l e d a n a me nde d a s

p e t i t i o n f or c ont e mpt a ddi ng M . Cha dwe l l ’ s c ur r e nt wi f e , Donn a r

M r i e Cha dwe l l . a M . Cha dwe l l c ompl a i ne d t ha t M . Cha dwe l l a nd s r

h i s p r e s e nt wi f e ha d us e d M . Cha dwe l l ’ s por t i on of t he s t oc k s

4 f u n d s t o pur c ha s e r e a l pr ope r t y a nd c ons t r uc t a hous e . The

p e t i t i on a l l e ge d t ha t M . Cha dwe l l ha d a t t e mpt e d t o a voi d M . r s

Ch a d we l l ’ s c l a i ms a s a j udgme nt c r e di t or by c onve yi ng t he r e a l

p r o p e r t y a nd t he hous e t o hi s c ur r e nt wi f e . M . Cha dwe l l r

r e s p o n d e d t o t he pe t i t i on by a n a ns we r i n t he f or m of a ge ne r a l

d e n i a l a l l e gi ng no a f f i r ma t i ve de f e ns e s .

At t r i a l on J ul y 12, 1995, M . Cha dwe l l ’ s r e t i r e me nt r

p l a n , t he i nve s t me nt pl a n a nd t he CESOP we r e i de nt i f i e d t hr ough

t h e t e s t i mony of t he s upe r vi s or of qua l i f i e d be ne f i t s a t

Co n s o l i da t i on Coa l Compa ny. I t wa s e s t a bl i s he d t ha t a l l t hr e e

a c c ou n t s we r e i n e xi s t e nc e a t t he t i me of t he Fi na l De c r e e i n

1984. The r e t i r e me nt pl a n be c a me ve s t e d a s of 1983 a nd M . r

Ch a d we l l woul d be a bl e t o dr a w be ne f i t s f r om i t i n 1998. M. r

Ch a d we l l ’ s i nve s t me nt pl a n wa s ma de up e nt i r e l y of s t oc k unt i l

1 9 8 1 a t whi c h t i me i t wa s c onve r t e d i nt o a de pos i t s a vi ngs

a c c ount . The pl a n a l l owe d f or up t o t hr e e pa r t i a l wi t hdr a wa l s

p e r y e a r a nd a t ot a l wi t hdr a wa l a t a ny t i me . The CESOP wa s

c o mp o s e d e nt i r e l y of DuPont s t oc k a nd c oul d not be wi t hdr a wn

u n t i l M . Cha dwe l l t e r mi na t e d hi s e mpl oyme nt . r

M . Cha dwe l l t e r mi na t e d hi s e mpl oyme nt wi t h r

Co n s o l i da t i on Coa l Compa ny on De c e mbe r 31, 1990. He l i qui da t e d

h i s CESOP a c c ount on Nove mbe r 19, 1992, f or t he s um of

$ 1 4 , 6 4 8 . 37. He ma de no di s t r i but i on t o M . Cha dwe l l a f t e r t he s

l i q u i d a t i on. The r e wa s e vi de nc e s ubmi t t e d t ha t M . Cha dwe l l r

wi t h d r e w a t ot a l of $187, 044. 16 f r om t he i nve s t me nt pl a n a f t e r

5 t he Fi na l De c r e e . Fr om t hi s a c c ount , M . Cha dwe l l di s t r i but e d r

$ 1 , 2 4 5 t o M . Cha dwe l l i n Fe br ua r y of 1986. s

The r e wa s e vi de nc e a t t r i a l t ha t M . Cha dwe l l wa s a s

h o me ma k e r t hr oughout t he ma r r i a ge a nd di d not de a l wi t h t he

a c c o u n t s i n a ny wa y. M . Cha dwe l l t e s t i f i e d t ha t he r hus ba nd s

a l wa ys r e f e r r e d t o t he a c c ount s g e ne r i c a l l y a s " s t oc k. " Al s o ,

t h e r e wa s t e s t i mony t ha t M . Cha dwe l l a dmi t t e d i n 1984 t ha t M . r s

Ch a d we l l ’ s s ha r e of t he a c c ount s he he l d wi t h hi s e mpl oye r wa s

$ 2 6 , 0 0 0 a nd t ha t he pe r s ua de d he r t o l e a ve t he s t oc k i n t he

a c c o u n t s on t he r e pr e s e nt a t i on t he s t oc k woul d e a r n mor e i nt e r e s t

i f i t wa s l e f t wi t h M . Cha dwe l l . r M . Cha dwe l l c hos e not t o s

l i q u i da t e o r wi t hdr a w h e r s ha r e a t t ha t t i m . e

M . Cha dwe l l a s s e r t e d a t t r i a l t ha t he wa s onl y r

r e q u i r e d t o s ha r e wi t h M . Cha dwe l l t he hol di ngs i n t he CESOP s

wh i c h, a t t he t i me of t he Fi na l De c r e e , he s t a t e d wa s wor t h

$2, 000. M . Cha dwe l l a s s e r t e d t ha t he pa i d M . Cha dwe l l a l l r s

f u n d s d ue t o he r f r om t he CESOP i n 1986 by c he c k. M . Cha dwe l l s

t e s t i f i e d t ha t t he c he c k wa s f r om t he i nve s t me nt pl a n a nd wa s f o r

t h e i r c hi l dr e n. M . Cha dwe l l a dmi t t e d dur i ng c r os s - e xa mi na t i o n r

t h a t h e a l t e r e d t he c he c k a f t e r i t wa s r e t ur ne d t o hi m s o t ha t i t

wo u l d e r r one ous l y i ndi c a t e t ha t i t c a me f r om t he CESOP r a t he r

t h a n t h e i nve s t me nt a c c ount .

M . Cha dwe l l t e s t i f i e d t ha t t he i nve s t me nt pl a n wa s r

p a r t o f hi s r e t i r e me nt pl a n. Howe ve r , t he r e wa s t e s t i mony f r o m

6 t h e s u p e r vi s or of qua l i f i e d be ne f i t s a t Cons ol i da t i on Coa l

Co mp a n y t ha t t he i nve s t me n t pl a n a nd t he r e t i r e me nt pl a n we r e t wo

s e pa r a t e a nd d i s t i nc t a c c ount s .

The Tr i a l Cour t f ound t ha t M . Cha dwe l l ha d a one - ha l f s

i n t e r e s t i n t he CESOP a nd i n t he i nve s t me nt pl a n. The Cour t

f o u n d t ha t l i t i ga t i on of t he r e t i r e me nt a c c ount wa s ba r r e d by r e s

j ud i c a t a a r i s i ng f r om t he 1986 he a r i ng. The Tr i a l Cour t a wa r d e d

M . Ch a dwe l l a j udgme nt of $94, 320 r e pr e s e nt i ng he r s ha r e of t h e s

CESOP a nd t he i nve s t me nt pl a n a nd i mpos e d a l i e n upon M . r

Ch a d we l l ’ s r e a l pr ope r t y t o s e c ur e pa yme nt of t he j udgme nt .

Af t e r t r i a l , t he Cha nc e l l or s e t a s i de t he de e d f r om M . Cha dwe l l r

t o h i s c ur r e nt wi f e a s a f r a udul e nt c onve ya nc e .

I n t hi s a ppe a l , M . Cha dwe l l ha s r a i s e d s e ve r a l i s s u e s , r

a l l o f whi c h a r e ba s e d on t he doc t r i ne of r e s j udi c a t a . Howe ve r ,

M . Ch a dwe l l a s s e r t s t ha t be c a us e M . Cha dwe l l f a i l e d t o s r

a f f i r ma t i ve l y p l e a d t he de f e ns e of r e s j udi c a t a hi s a c c e s s t o

t h i s d e f e ns e ha s be e n wa i ve d. M . Cha dwe l l ’ s onl y r e s pons i ve r

p l e a d i n g wa s i n t he f or m of a ge ne r a l de ni a l a nd he f a i l e d t o

s t a t e a ny a f f i r ma t i ve de f e ns e s .

Rul e 8. 3 of t he Te nne s s e e Rul e s of Ci vi l Pr oc e dur e

r e q u i r e s t ha t a p a r t y a f f i r ma t i ve l y s e t f or t h f a c t s r e l i e d upo n

t o e s t a bl i s h a n a f f i r ma t i ve de f e ns e i n a r e s pons i ve pl e a di ng.

Th e r u l e e xpl i c i t l y me nt i ons r e s j udi c a t a a s s uc h a n a f f i r ma t i v e

d e f e ns e . Rul e 12. 08 of t h e Te nne s s e e Rul e s of Ci vi l Pr oc e dur e

7 p r o v i d e s t ha t de f e ns e s not pr ope r l y r a i s e d a r e wa i ve d. Thus ,

f a i l u r e t o r a i s e t he de f e ns e of r e s j udi c a t a i n a r e s pons i ve

p l e a d i ng wi l l a c t a s a wa i ve r of a pa r t y’ s a bi l i t y t o r a i s e t ha t

d e f e ns e .

Howe ve r , Rul e 15. 02 of t he Te nne s s e e Rul e s of Ci vi l

Pr o c e d u r e s t a t e s " [ w] he n i s s ue s not r a i s e d by t he pl e a di ngs a r e

t r i e d b y e xpr e s s or i mpl i e d c ons e nt of t he pa r t i e s , t he y s ha l l b e

t r e a t e d i n a l l r e s pe c t s a s i f t he y ha d be e n r a i s e d i n t he

p l e a d i n gs . " The Rul e s t a t e s t ha t t he pl e a di ngs ma y be a me nde d a t

a n y t i me s o a s t o c onf or m t o t he e vi de nc e pr e s e nt e d a t t r i a l bu t

f a i l ur e t o a me nd t he p l e a di ngs wi l l not a f f e c t t he r e s ul t of t he

t r i a l of t he i s s ue s . An i s s ue i s t r i e d by i mpl i e d c ons e nt whe n

t h e p a r t y oppos i ng t he i s s ue kne w or s houl d r e a s ona bl y ha ve kn o wn

o f t h e e vi de nc e r e l a t i ng t o t he ne w i s s ue , di d not obj e c t t o t h e

e v i d e n c e , a nd wa s not pr e j udi c e d by t he i nc l us i on of t he

e vi d e nc e . Za c k Che e k Bui l de r s , I nc . v. M Le od, 597 S. W 2d 888 c .

( Te n n . 1 980) . Se e a l s o Chi s hol m v. Boha nnon , 558 S. W 2d 446 .

( Te n n . App. 1977) .

Al t hough M . Cha dwe l l di d not s pe c i f i c a l l y pl e a d r e s r

j ud i c a t a a s r e qui r e d by Rul e 8. 3, t he i s s ue wa s r a i s e d t hr ough

t e s t i mo ny a t t r i a l . The r e wa s no obj e c t i on ma de on be ha l f of M . s

Ch a d we l l t ha t t he e vi de nc e wa s be yond t he s c ope of t he pl e a di n g s .

I n h i s opi ni on, t he Cha nc e l l or ma de a s pe c i f i c r ul i ng a s t o t he

i s s ue o f r e s j udi c a t a . Fi na l l y, t he i s s ue wa s a r gue d on be ha l f

8 2 o f M . Cha dwe l l i n a mot i o n f or ne w t r i a l . r Thus , we f i nd t ha t

t h e i s s ue wa s t r i e d by i mpl i e d c ons e nt a nd M . Cha dwe l l ha s no t r

wa i v e d hi s r i ght t o a s s e r t t hi s de f e ns e .

M . Cha dwe l l a s s e r t s t ha t , ba s e d on a r e s j udi c a t a r

t h e o r y , t he Tr i a l Cour t s houl d ha ve be e n pr e c l ude d f r om

l i t i ga t i ng t he i s s ue o f whe t he r M . Cha dwe l l ha d r i ght s i n t he s

CESOP a nd t he i nve s t me nt p l a n. He a r gue s t ha t t he i s s ue s we r e

p r e v i o u s l y l i t i ga t e d i n 19 84 a nd 1988.

The de f e ns e of r e s j udi c a t a wi l l be a va i l a bl e i f t he

p a r t y a s s e r t i ng t he de f e ns e c a n s how t ha t t he pr i or j udgme nt wa s

b y a c o ur t of c ompe t e nt j ur i s di c t i on, t ha t t he s a me pa r t i e s we r e

i n v o l v e d i n bot h s ui t s , t ha t t he s a me c a us e of a c t i on wa s

i n v o l v e d i n bot h s ui t s , a nd t ha t t he unde r l yi ng j udgme nt wa s on

t he me r i t s . Le e v. Ha l l , 790 S. W 2d 293 ( Te nn. App. 1990) . . A

p r i or j udgme nt wi l l pr e c l ude onl y ma t t e r s t ha t we r e a t i s s ue i n

t h e p r i or j udgme nt . " [ T] he a dj udi c a t i on, t o be c onc l us i ve ,

s h o u l d be upon t he ve r y po i nt br ought di r e c t l y i n i s s ue by t he

p l e a d i n gs . " W t e v . W t e , 876 S. W 2d 837 ( Te nn. 1994) . hi hi .

As s t a t e d a bove , t he Cour t i n 1984 e nt e r e d a Fi na l

De c r e e s e t t i ng f or t h t he r i ght s a nd dut i e s of t he pa r t i e s . As

a l r e a dy not e d, t he Fi na l De c r e e ge ne r i c a l l y s t a t e d t ha t M . s

Ch a dwe l l wa s t o r e c e i ve 50 pe r c e nt of t he " s t oc k" t ha t M . r

2 W e x p r e s s n o o p i n i o n a s t o wh e t h e r t h e i s s u e c o u l d h a v e b e e n e r a i s e d i n a mo t i o n f o r n e w t r i a l . Ra t h e r , we me r e l y r e c o g n i z e t h a t t h e i s s u e wa s b e f o r e t h e Co u r t b o t h d u r i n g t h e t r i a l s t a g e a n d p o s t - t r i a l .

9 Ch a d we l l ha d i n Cons ol i da t i on Coa l Compa ny. The r e wa s e vi de nc e

a t t r i a l t ha t M . Cha dwe l l r e f e r r e d t o a l l i nve s t me nt a nd r

r e t i r e me nt a c c ount s wi t h hi s e mpl oye r a s " s t oc k. " The de f i ni t i o n

a n d e x t e nt of t ha t t e r m we r e not a t i s s ue a nd we r e not l i t i ga t e d .

I t s e e ms a xi oma t i c t ha t t he i s s ua nc e of a di vor c e de c r e e wi l l n o t

b e r e s j udi c a t a a s t o a n i s s ue t ha t a r i s e s a s t o t he

i nt e r p r e t a t i on o f t he d e c r e e i t s e l f . M . Cha dwe l l a r gue s t ha t r

t h e i s s ue c oul d ha ve a nd s houl d ha ve be e n l i t i ga t e d whe n t he

d e c r e e wa s i s s ue d. But , i t s e e ms c l e a r t ha t t he r e wa s no i s s ue

u n t i l t he i nt e r pr e t a t i on o f t he t e r m " s t oc k" be c a me di s put e d.

At i s s ue i n t he 1988 l i t i ga t i on wa s , a s s t a t e d by t he

Ch a n c e l l or i n t ha t pr oc e e di ng, " whe t he r Fa ye Cha dwe l l wa s

e n t i t l e d t o a f ul l or p a r t i a l i nt e r e s t or s ha r e i n a r e t i r e me nt

p l a n o f Al be r t Cha dwe l l . " The i s s ue of M . Cha dwe l l ’ s i nt e r e s t s

i n t h e CESOP a nd t he i nve s t me nt pl a n we r e not a ddr e s s e d. The

Tr i a l Cour t i n t ha t a c t i on he l d t ha t t he i s s ue of M . Cha dwe l l ’ s s

i n t e r e s t i n t he r e t i r e me nt a c c ount s houl d ha ve be e n l i t i ga t e d i n

1 9 8 4 a n d he de c l i ne d t o r e a d t he Fi na l De c r e e br oa dl y e nough t o

i n c l u d e t he r e t i r e me nt pl a n. The Tr i a l Cour t i n t he pr e s e nt c a s e

a p p l i e d r e s j udi c a t a wi t h r e s pe c t t o t he r e t i r e me nt a c c ount

a l t h o u g h t he Cha nc e l l or e xpr e s s e d doubt s a s t o t he s oundne s s o f

t he 1 9 8 6 d e c i s i on. Ne ve r t he l e s s , i t i s c l e a r t ha t t he i s s ue o f

t he e x t e nt of M . Cha dwe l l ’ s i nt e r e s t i n t he CESOP a nd t he s

i n v e s t me nt pl a n we r e not r a i s e d or de c i de d i n t he 1988

p r o c e e d i ng.

10 Al s o, t h e l i t i ga t i on i n 1988 a r os e f r om a pe t i t i on

f i l e d b y M . Cha dwe l l s e e ki ng t o c ompe l M . Cha dwe l l t o pr ovi de s r

v e r i f i c a t i on of t he va l ue of t he " s t oc k" whi c h he ha d f a i l e d t o

d o i n v i ol a t i on of a c our t or de r i s s ue d i n 1984 a nd 1986. Al l

s u b s e q u e nt a c t i on be t we e n t he pa r t i e s c ha r ge d M . Cha dwe l l wi t h r

c o n t e mp t f or f a i l ur e t o pr ovi de ve r i f i c a t i on of hi s hol di ngs wi t h

Co n s o l i da t i on Coa l Compa ny a nd f or f a i l ur e t o ma ke di s t r i but i o n s

f r o m t h os e hol di ngs t o M . Cha dwe l l . s W t h t he e xc e pt i on of i

s e e k i n g t o c ompe l M . Cha dwe l l t o c ompl y wi t h t he pr i or c our t r

o r d e r s , none of t he i s s ue s pr e s e nt e d i n t he 1995 l i t i ga t i on ha d

b e e n r a i s e d i n t he pr i or l i t i ga t i on, by t he pl e a di ngs or

o t h e r wi s e . Thus , we hol d t ha t t he pr i or l i t i ga t i on di d not ba r

M . Ch a dwe l l f r om s e e ki ng a c our t t o de c l a r e t he e xt e nt of he r s

i n t e r e s t i n t he CESOP a nd t he i nve s t me nt pl a n.

Ne xt , M . Cha dwe l l a s s e r t s t ha t t he Cha nc e l l or e r r e d i n r

f i n d i n g t ha t t he i nve s t me nt pl a n wa s s e pa r a t e a nd di s t i nc t f r om

t he r e t i r e me nt pl a n. M . Cha dwe l l s e e ks t o i nc l ude t he r

i n v e s t me nt pl a n wi t hi n t he r e t i r e me nt pl a n be c a us e t he Cour t

b e l o w g a ve r e s j udi c a t a e f f e c t t o t he i s s ue of t he r e t i r e me nt

pl a n.

The f i ndi ngs of f a c t of t he t r i a l c our t c ome s t o t hi s

Co u r t a c c ompa ni e d by a pr e s umpt i on of c or r e c t ne s s whi c h mus t b e

h o n o r e d unl e s s t he " pr e ponde r a nc e of t he e vi de nc e i s ot he r wi s e . "

Ru l e 1 3 ( d) , Te nne s s e e Rul e s of Appe l l a t e Pr oc e dur e ; Uni on Ca r b i d e

Co r p . v . Huddl e s t on , 854 S. W 2d 87 ( Te nn. 1993) . . W f i nd t ha t t h e e

11 Ch a n c e l l or ha d a mpl e e vi de nc e upon whi c h t o ba s e a f i ndi ng t ha t

t h e pl a ns we r e s e pa r a t e . The r e wa s t e s t i mony f r om t he s upe r vi s o r

o f q u a l i f i e d be ne f i t s of Cons ol i da t i on Coa l Compa ny a nd a n

a c c o u n t a nt s t a t i ng t ha t M . Cha dwe l l ha d a n i nt e r e s t i n t he r

r e t i r e me nt pl a n, t h e i nve s t me nt pl a n, a nd t he CESOP. Al s o,

a l t h o u g h M . Cha dwe l l t e s t i f i e d t ha t he onl y ha d a n i nt e r e s t i n r

t h e CESOP a nd t he r e t i r e me nt pl a n hi s c r e di bi l i t y ha d be e n c a l l e d

i n t o q u e s t i on whe n he a dmi t t e d t o a l t e r i ng a c he c k t o M . s

Ch a d we l l t ha t wa s pa i d wi t h f unds f r om t he i nve s t me nt a c c ount .

Th e Ch a nc e l l or ma de a s pe c i f i c pos t - t r i a l r ul i ng t ha t M . r

Ch a d we l l ha d e nga ge d i n f r a ud a nd pe r j ur y i n r e l a t i on t o t hi s

l i t i g a t i on. Thus , t he f i ndi ngs of t he Cha nc e l l or di d not

p r e p o n d e r a t e a ga i ns t t he e vi de nc e . Cons e que nt l y, we a f f i r m t h e

c o n c l u s i on of t he Cha nc e l l or on t hi s i s s ue .

M . Cha dwe l l ’ s f i na l i s s ue a s s e r t s t ha t t he Tr i a l Co u r t r

e r r e d i n f i ndi ng t ha t M . Cha dwe l l ha d a one - ha l f i nt e r e s t i n a l l s

a c c o u n t s be l ongi ng t o M . Cha dwe l l a t t he t i me of t he di vor c e . r

Th i s a r gume nt i s wi t hout me r i t be c a us e t he Cha nc e l l or di d not

h o l d t h a t M . Cha dwe l l ha d a one - ha l f i nt e r e s t i n a l l of M . s r

Ch a d we l l ’ s a c c ount s . Ra t he r , t he Cha nc e l l or e xpr e s s l y he l d t h a t

M . Ch a dwe l l ha d a one - ha l f i nt e r e s t i n t he CESOP a nd t he s

i nv e s t m nt pl a n, b ut no i nt e r e s t i n t he r e t i r e me nt pl a n. e

For t he f or e goi ng r e a s ons t he j udgme nt of t he Tr i a l

Co u r t i s a f f i r me d a nd t he c a us e r e ma nde d f or s uc h f ur t he r

p r o c e e d i ngs , i f a ny, a s ma y be ne c e s s a r y a nd c ol l e c t i on of t he

12 j u d g me n t a nd c os t s be l ow. Cos t s of a ppe a l a r e a dj udge d a ga i ns t

M . Ch a dwe l l a nd hi s s ur e t y. r

_______________________________ Hous t on M Godda r d, P. J . .

CONCUR:

_ _ _ _ _ _ _ _________________________ He r s c he l P. Fr a nks , J .

_ _ _ _ _ _ _ _________________________ Cl i f f o r d E. Sa nde r s , Sp. J .