Irby C. Simpkins v. Peaches G. Blank

CourtCourt of Appeals of Tennessee
DecidedDecember 30, 2003
DocketM2002-02383-COA-R3-CV
StatusPublished

This text of Irby C. Simpkins v. Peaches G. Blank (Irby C. Simpkins v. Peaches G. Blank) 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
Irby C. Simpkins v. Peaches G. Blank, (Tenn. Ct. App. 2003).

Opinion

IN THE COURT OF APPEALS OF TENNESSEE AT NASHVILLE AUGUST 7, 2003 Session

IRBY C. SIMPKINS, JR. v. PEACHES G. BLANK, formerly Simpkins

Direct Appeal from the Circuit Court for Davidson County No. 00D - 156 Walter C. Kurtz, Judge

No. M2002-02383-COA-R3-CV - Filed December 30, 2003

This case involves an appeal from a grant of summary judgment equitably dividing a tax refund of the parties and refusing to reopen the parties’ marital dissolution agreement. In addition, appellant contends the trial court erred by awarding attorney’s fees to appellee for issues relating to child support litigated below. For the following reasons, this Court affirms the decision of the trial court.

Tenn. R. App. P. 3; Appeal as of Right; Judgment of the Circuit Court Affirmed

ALAN E. HIGHERS, J., delivered the opinion of the court, in which W. FRANK CRAWFORD , P.J., W.S., and DAVID R. FARMER , J., joined.

Rose Palermo, Denty Cheatham, Nashville, TN, for Appellant

Robert J. Walker, Clisby Hall Barrow, Nashville, TN, for Appellee

OPINION

Facts and Procedural History

On June 22, 2000, a divorce decree was entered by the circuit court of Davidson County dissolving the marriage of Irby Simpkins, Jr. (“Simpkins”) and Peaches G. Blank (formerly Simpkins but referred to herein as “Blank”). This decree approved the parties’ Marital Dissolution Agreement (“MDA”), settling property, alimony, child custody and child support issues between the parties.

At the time the parties reached a settlement on the terms of the MDA in June 2000, they had not yet filed their joint income tax return for 1999. However, the certified public accountant for the parties, Larry Carter (“Carter”), determined that the parties would have a loss, primarily caused by losses of Simpkins’ business, Hendersonville Marine, that could be carried back to a preceding year for a tax refund. Such procedure was not unfamiliar to either Simpkins or Blank because they had used the same method of carrying back losses from the previous year when they filed their 1998 tax return. For their 1998 return, the parties sustained a loss which was carried back to the taxes paid on the 1996 and 1997 tax returns resulting in a refund.

The joint 1999 tax return of the parties was prepared by Carter and filed on October 15, 2000, after the parties had already drafted their MDA. The parties did not elect to carry the loss forward, making the loss available to claim a refund for their 1997 tax return. Carter subsequently prepared a Form 1045 Application for Refund to amend the parties’ 1997 tax return. The refund on the application was $191,935 (“1997 Tax Refund”). Carter attempted to obtain Blank’s signature before the December 31, 2000, deadline but was unsuccessful. As a result, the Kraft Brothers accounting firm prepared a Form 1040X to obtain the refund and requests were made of Blank to sign this form to obtain the refund. Blank never signed the Form 1040X and left the issue with her attorneys and accountant.

Finally, Simpkins, believing the money to be his under the provisions of the MDA relating to tax refunds of the parties, directed one of his employees, Claudia Allison, who held a written authorization from Blank to use a stamp bearing Blank’s signature, to stamp the necessary form. A refund check was received by Simpkins and he again directed Allison to use Blank’s signature stamp to indorse the check. Simpkins deposited this refund check into his account in May 2001.

In addition, this case involves an investment Blank made during the course of the marriage in an entity known as Privatized Management Service Investors, LLC (“PMSI”).1 The cost of Blank’s investment in PMSI was $500,000. Blank, during the course of the divorce, produced a copy of the check dated December 16, 1998, in the amount of $500,000. This investment was sold for over two million dollars after the MDA was entered into and the divorce decree issued. Simpkins, however, testified under deposition that Blank made representations to him that the PMSI investment was worth only $50,000.

In addition to the events above, after the divorce, Simpkins became alienated from his adopted daughter, Raleigh Anne Simpkins (“Raleigh Anne”). Raleigh Anne is the natural daughter of Blank and her previous husband, Ed Blank, who died when Raleigh Anne was three years old.

In response to the above events, Simpkins filed a petition to enforce the final decree of divorce on July 17, 2001. In his petition, Simpkins asked the trial court to suspend his child support and private school obligations of the MDA until such time when Blank would encourage Raleigh Anne to have a relationship with him. Additionally, Simpkins asked the trial court to declare his entitlement to the entire 1997 Tax Refund. Finally, Simpkins requested the trial court to reopen the MDA’s property division based on allegations of fraud by Blank when she allegedly misrepresented the value of the PMSI stock investment. Simpkins later amended his petition, retracting his request for suspension of his child support obligations under the MDA during Raleigh Anne’s minority and requesting the trial court terminate his obligations to Raleigh Anne during her majority including

1 Appellant Simpkins also raises the fact that his adopted daughter, Raleigh Anne Simpkins, also made an investment in PMSI, however, this Court sees no reason to discuss this issue.

-2- expenses for her college education. A hearing was held on the child support and visitation issues on April 26, 2002, and the trial court ordered that Raleigh Anne would meet with Simpkins at least twice a month, while leaving the parties free to schedule any additional visitation.

On May 30, 2002, Blank filed a motion for summary judgment on the issues of the 1997 Tax Refund and the PMSI stock owned by Blank. The trial court granted Blank’s motion, refusing to reopen the MDA on the basis that Blank misrepresented the value of the PMSI stock and dividing the 1997 Tax Refund between the parties with Blank receiving 65% and Simpkins receiving 35% of the 1997 Tax Refund. On September 5, 2002, Blank filed a motion to recover the attorney’s fees she incurred in connection with Simpkins’ attempt to terminate his child support obligations, while Simpkins similarly filed a motion to recover his legal expenses in November 2002. After taking affidavits from both parties, the trial court issued an order granting Blank an award of attorney’s fees in the amount of $18,500 and denying Simpkins the recovery of any fees. Simpkins appealed both orders, which were consolidated in this appeal, and presents the following issues for this Court’s review:

I. Whether the trial court erred when it found the 1997 Tax Refund was outside of the parties’ MDA and, if not, whether it properly divided the refund awarding Blank 65% and Simpkins 35%; II. Whether the trial court erred in granting summary judgment on the issue of the PMSI stock despite the allegations that Blank misrepresented the value of the stock to Simpkins; III. Whether the trial court abused its discretion by awarding Blank $18,500 in attorney’s fees.

For the following reasons, we affirm the decision of the trial court.

Standard of Review

The standard of appellate review for a grant of summary judgment is de novo without a presumption that the trial court’s conclusions were correct. Webber v. State Farm Mut. Auto. Ins. Co., 49 S.W.3d 265, 269 (Tenn. 2001) (citing Mooney v. Sneed, 30 S.W.3d 304, 306 (Tenn. 2000)).

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Irby C. Simpkins v. Peaches G. Blank, Counsel Stack Legal Research, https://law.counselstack.com/opinion/irby-c-simpkins-v-peaches-g-blank-tennctapp-2003.