James Michael Pace v. Julie Pace

Court of Appeals of Mississippi·Decided July 27, 2021·No. 2019-CA-01377-COA·Published

Opinion

IN THE COURT OF APPEALS OF THE STATE OF MISSISSIPPI NO. 2019-CA-01377-COA

JAMES MICHAEL PACE APPELLANT/ CROSS-APPELLEE

v.

JULIE PACE APPELLEE/ CROSS-APPELLANT

DATE OF JUDGMENT: 08/02/2019 TRIAL JUDGE: HON. DEBORAH J. GAMBRELL COURT FROM WHICH APPEALED: FORREST COUNTY CHANCERY COURT ATTORNEY FOR APPELLANT: MARY LEE HOLMES ATTORNEY FOR APPELLEE: S. CHRISTOPHER FARRIS NATURE OF THE CASE: CIVIL - DOMESTIC RELATIONS DISPOSITION: ON DIRECT APPEAL: AFFIRMED.

ON CROSS-APPEAL: AFFIRMED -

07/27/2021

MOTION FOR REHEARING FILED: MANDATE ISSUED:

BEFORE WILSON, P.J., LAWRENCE AND McCARTY, JJ.

WILSON, P.J., FOR THE COURT:

¶1. The Forrest County Chancery Court granted Julie Pace a divorce from James Michael Pace (“Michael”) on the ground of adultery, granted Julie custody of the parties’ son, ordered Michael to pay child support, and divided the marital estate. On appeal, Michael argues that the chancellor erred by not compelling Julie to produce certain emails between her and her attorney, by ordering him to pay too much child support, by failing to distinguish marital property from separate property, by awarding Julie certain funds, and by giving Julie authority to sell the parties’ personal property and the marital home. On cross-appeal, Julie

argues that the chancellor should have awarded her alimony. We find no error and affirm.

FACTS AND PROCEDURAL HISTORY

¶2. Julie and Michael married in 2005. Julie was married previously and has a minor daughter from her first marriage. Michael also was married previously and has a son, who is now an adult, from his first marriage. Julie and Michael have one child together, a son, who was born in 2006. In 2018, Julie filed for divorce after she discovered that Michael, a doctor, was having an affair with a nurse who worked at his medical clinic.

¶3. Michael owned his own medical clinic in Richton. Earlier in his career, he struggled with drug use, and the Mississippi Physicians’ Health Program (MPHP) required him to undergo treatment for addiction.

¶4. In 2018, Michael began to smoke marijuana again. Julie disclosed Michael’s renewed drug use to Scott Hamilton, the director of the MPHP. Hamilton informed Michael that in order to keep his medical license, he needed to complete a treatment program and then participate in a monitoring program. Michael completed the treatment program, but he “retired” his medical license rather than participate in the monitoring program. He testified that the monitoring program, which would include semiannual polygraph testing and random drug testing, would cost around $14,000 per year. Michael claims that he could not afford the program because Julie had taken all their money. Julie alleges that Michael wanted to quit practicing medicine, move to California, and grow marijuana with his brothers.

¶5. During the parties’ marriage, Julie operated a business, Medical Nutrition Consultants, that provided administrative services to Michael’s clinic. At the time of trial, Julie was

unemployed and looking for work.

¶6. The parties’ relationship was tumultuous from the start. Michael alleges that Julie stole money from him even before they were married, although he chose to marry her anyway. At some point during the marriage, Michael began an affair with a nurse at his clinic. In June 2018, he admitted to the affair and told Julie that he wanted a divorce.

¶7. Michael claims that after the parties discussed divorce, Julie went to their bank and accessed a safe deposit box that held a significant amount of cash. He alleges that Julie took approximately $700,000 from the safe deposit box but then reconsidered and returned approximately half of the cash one hour later. Michael says that he then went to the bank and took the remaining $360,000. Michael put the $360,000 into the toolbox on his truck, but Julie later took the $360,000 from the toolbox.

¶8. Julie denied that she took any money from the safe deposit box. She testified that she went to the bank after Michael admitted to his affair, but “there was nothing left in [the box].” Julie admitted that she took approximately $350,000 from the toolbox on Michael’s truck. She testified that she did so because Michael was behaving erratically and had threatened to harm himself. Julie also believed that Michael had taken approximately $250,000 in cash that they kept in a safe in their home.

¶9. There is little in the record to support either party’s claims regarding their undocumented cash. Julie’s initial Uniform Chancery Court Rule 8.05 statement listed a safe deposit box containing $400,000. However, in a subsequent/updated Rule 8.05 statement, Julie represented that the box contained only $150,000. Bank records show only who

accessed the box and do not show what, if anything, was removed.

¶10. After telling Julie that he wanted a divorce, Michael entered an addiction treatment center in Tennessee. Julie provided him with funds for his treatment. He remained at the treatment center for three months before returning to Mississippi.

¶11. Shortly after Michael returned to Mississippi, Julie filed a complaint for divorce based on adultery and other grounds. Michael testified that Julie told him that he “had to find another place to live,” so he moved to California and applied for disability benefits based on his 2011 stroke and alleged back pain, anxiety, and insomnia.

¶12. In October 2018, Michael filed an emergency ex parte motion for an order directing Julie to return the funds from the safe deposit box or, in the alternative, deposit the funds in the court registry. Three days later, the first chancellor assigned to the case entered an ex parte order restraining Julie from using any of the funds from the safe deposit box. The case was reassigned due to the first chancellor’s retirement, and the new chancellor set a hearing on Michael’s motion for March 6, 2019. After listening to the parties’ arguments regarding who took what and when, the chancellor dissolved the restraining order, set a new hearing for April 11, and ordered the parties to create an accounting of the disputed funds.

¶13. Both parties testified at the April 11 hearing regarding the disputed cash, and Michael’s attorney examined Julie about the discrepancy between her initial Rule 8.05 statement and her updated Rule 8.05 statement. Julie testified that her initial statement that the safe deposit box contained $400,000 in cash was an error. She testified that she initially completed a Rule 8.05 statement, emailed it to her attorney, and then went to her attorney’s

office to discuss it with him. She further stated that she could not “testify as to how all of that got confused” because she “was even confused at that point at where all the money went.” Julie later testified that the $400,000 referenced in her initial statement was not all in a safe deposit box. Rather, that figure included $150,000 that she placed in a safe deposit box and $250,000 cash that she deposited in a bank account, which she accounted for. She testified that the $400,000 total derived from the money that she had removed from Michael’s toolbox and additional cash (approximately $50,000) that they kept in a safe in the marital home.

¶14. Following the hearing, Michael asked the court to order Julie to produce all emails between her and her attorney regarding the relevant parts of her Rule 8.05 statements. However, the chancellor later denied Michael’s request. Michael also asked the court to order Julie to share the remaining cash with him because he was “destitute.” The chancellor denied that request as well, reasoning that Julie needed the funds to repair and maintain the marital home for sale and because she had custody of the parties’ son.

¶15. The case proceeded to trial in June 2019. Michael admitted that he had committed adultery, and he did not oppose Julie’s request for a divorce on that ground. Accordingly, the chancellor granted Julie a divorce based on uncondoned adultery.

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