Laura Stohl Halkiades v. David Allan Halkiades

CourtCourt of Appeals of Tennessee
DecidedDecember 29, 2004
DocketW2004-00226-COA-R3-CV
StatusPublished

This text of Laura Stohl Halkiades v. David Allan Halkiades (Laura Stohl Halkiades v. David Allan Halkiades) 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
Laura Stohl Halkiades v. David Allan Halkiades, (Tenn. Ct. App. 2004).

Opinion

IN THE COURT OF APPEALS OF TENNESSEE AT JACKSON November 17, 2004 Session

LAURA STOHL HALKIADES v. DAVID ALLAN HALKIADES, ET AL.

Direct Appeal from the Chancery Court for Shelby County No. CH-03-0743-3 D. J. Alissandratos, Chancellor

No. W2004-00226-COA-R3-CV - Filed December 29, 2004

This appeal arises from a divorce action. Defendant/Dr. Halkaides appeals the trial court’s order dividing the parties’ property and debt and awarding Wife/Ms. Stohl alimony. He also asserts the trial court erred in finding Dr. Halkaides had dissipated the parties’ marital assets. We affirm as modified.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Chancery Court Affirmed as Modified; and Remanded

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

Dan T. Bing, Memphis, Tennessee, for the appellant, David Allan Halkiades.

Amy J. Amundsen, Memphis, Tennessee, for the Appellee, Laura Stohl Halkiades.

OPINION

The parties to this divorce action, Dr. David Allan Halkaides (Dr. Halkaides) and Laura Stohl Halkiades (Ms. Stohl)1 were married in 1992. At the time of the marriage, Ms. Stohl was 41 years of age and Dr. Halkaides was 26 years of age. No children were born of the marriage. Ms. Stohl is a nurse; Dr. Halkiades is an optomistrist.

In April 2003, Ms. Stohl filed a complaint for divorce. In her complaint, Ms. Stohl alleged Dr. Halkaides had failed to discontinue an extra-marital relationship with an employee of his business, Dr. Halkiades Eyes for You. She further alleged that Dr. Halkaides’ paramour had threatened her. Ms. Stohl additionally alleged that Dr. Halkaides was misappropriating and dissipating funds from the Eyes for You business, a business in which Dr. Halkaides held fifty-one

1 Laura Stohl Halkaides was restored to her maiden name, Laura Stohl, by order of the trial court on December 4, 2003. percent of the stock and Ms. Stohl held forty-nine percent of the stock. She asserted Dr. Halkaides had used corporate funds to pay for non-business items such as motor vehicles and hotel bills. Ms. Stohl prayed for the court to enjoin Dr. Halkaides from spending monies not necessary for the operation of the business and to appoint a special master to review the corporate records. In his answer, Dr. Halkaides denied Ms. Stohl’s allegations and counter-claimed for divorce based on irreconcilable difference and inappropriate marital conduct.

The trial court entered a consent order appointing a special master in May 2003. On May 28, the general sessions court entered a judgment against Dr. Halkaides for past due rent at the business premises. In June 2003, Dr. Halkaides closed his business and posted a sign that Eyes for You was closed due to unforeseen circumstances. He vacated the Eyes for You premises, but left certain property behind. Dr. Halkaides asserts he lost control of his Eyes for You business in June 2003 due to (his own) bad management. He further asserts that, after June 2003, the business had a value of zero. Ms. Stohl submits Dr. Halkaides purchased the practice from a long-time friend and associate, Dr. David Goldstein (Dr. Goldstein) in 2001, and then turned his practice back over to Dr. Goldstein in June 2003. She asserts that after he hung a “CLOSED” sign on his business, Dr, Halkaides left town with a fully loaded vehicle and that for ten days no one knew his whereabouts.

In July 2003, the trial court entered an order granting the special master access to Dr. Halkaides’ Eyes for You. The court ordered the master to conduct a full inventory of the contents of the business. In its order, the court noted that Dr. Halkaides could not be located by counsel and had left the city (Memphis).

The special master reported that Dr. Halkaides had informed him that he planned to “voluntarily return” the business to Dr. Goldstein on June 21, 2003. Dr. Halkaides failed to inform the master, however, that he had been evicted from the premises pursuant to a detainer warrant for being over three months delinquent on his rent. The master further reported that he went to the Eyes for You office on June 24, 2003, to discuss the monitoring of the business, but when he arrived he found the business had been closed and that a “closed due to unforeseen circumstances” sign had been posted on the door.

As ordered by the court and with the consent of the landlord, the master inspected the Eyes for You premises on July 8, 2003. The master determined that key business records, computers, and videotapes from the security system were missing. The master also found that many pairs of eye glasses that had been paid for by patients remained in the office, and that patients were coming to the office to pick them up. Upon recommendation of the master, the business was re-opened with Dr. Goldstein executing a new lease, and the pre-paid orders were filled.

The special master reported that he received “minimal documentation” from Dr. Halkaides and his associates regarding the Eyes for You business. He reported that Dr. Halkaides did not have the usual accounting and filing systems expected of a medical practice, and that the business received a large portion of its payments in cash. The master reported, however, that he was unable to locate any cash. Additionally, the master reported that the “Day Sheets” used to keep track of the

-2- customers and which formed the basis of Dr. Halkaides accounting system were in complete disarray and did not include totals of the daily sales. The master also reported that there were no monthly or yearly ledgers.

The special master reported that, as a result of the scanty and disorganized documentation, he had to spend a considerable amount of time computing the probable worth of the Eyes for You business. He reported,

[t]he [s]pecial [m]aster’s determination of 50% of total gross revenue as the proper formula for valuing the business is corroborated by Dr. Halkaides . . . . Dr. Halkaides agreed to pay Dr. Goldstein $600,000 for the business, which is approximately 50% of the business’s annual gross revenue at the time of purchase. Dr. Halkaides, therefore, apparently believed that 50% gross annual sales was a fair value for this type of business because he agreed to pay that amount in 2001.

Working with the data provided to him by Dr. Halkaides, the master determined the annual gross revenue of Dr. Halkaides Eyes for You to be $1,300,442.56. Multiplying this by 50 percent, the master determined the fair market value of the business to be $650,221,28.

The trial court granted the parties a divorce on December 4, 2003. It awarded the parties’ residence to Ms. Stohl, finding Dr. Halkaides had waived all interests in the home at the time of purchase. The court awarded the furnishings of the home and personal property remaining in the residence to Ms. Stohl, and awarded Dr. Halkaides personal property in his possession. The trial court found the special master’s report to be credible and determined Dr. Halkaides had embezzled cash from his practice and dissipated assets of at least $100,000. The court awarded Ms. Stohl $50,000 of this amount, payable as alimony. It also awarded Ms. Stohl an additional $50,000 as transitional alimony and $12,500 as back alimony. By consent of the parties, the trial court ordered that Ms. Halkaides would receive title to one vehicle; the bank account in her name; her retirement fund; and debts and liabilities held in her name. Also by consent, the court awarded Dr. Halkaides bank accounts held in his name, and assigned him his school loans and liabilities held in his name. The court ordered Dr. Halkaides to transfer his life insurance policies to Ms. Stohl. The court ordered that all debts and obligations of Dr. Halkaides Eyes for You would be the responsibility of Dr. Halkaides.

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Laura Stohl Halkiades v. David Allan Halkiades, Counsel Stack Legal Research, https://law.counselstack.com/opinion/laura-stohl-halkiades-v-david-allan-halkiades-tennctapp-2004.