Marriage Of: Patricia A. Price v. Thomas W. Price

CourtCourt of Appeals of Washington
DecidedMarch 29, 2022
Docket55520-4
StatusUnpublished

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Marriage Of: Patricia A. Price v. Thomas W. Price, (Wash. Ct. App. 2022).

Opinion

Filed Washington State Court of Appeals Division Two

March 29, 2022

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II In the Matter of the Marriage of No. 55520-4-II

PATRICIA A. PRICE,

Respondent,

and UNPUBLISHED OPINION

THOMAS W. PRICE,

Appellant.

MAXA, J. – Tom Price appeals the trial court’s (1) orders striking his pleadings and

preventing him from presenting evidence at trial as sanctions for discovery violations after

considering the Burnet1 factors, and (2) award of lifetime maintenance of $13,000 per month to

his former wife, Patricia Price.

This appeal arises out of a dissolution proceeding in which the primary issue before the

trial court was the amount in maintenance to award Patricia 2 based on Tom’s income. Patricia

was a stay-at-home mother for the course of their nearly 30-year marriage, while Tom generated

extensive income to support the couple’s high standard of living. Throughout the course of the

proceeding, Tom failed to meaningfully respond to discovery requests seeking information about

1 Burnet v. Spokane Ambulance, 131 Wn.2d 484, 933 P.2d 1036 (1997). 2 The parties’ first names are used for clarity. We mean no disrespect. No. 55520-4-II

his income from various business ventures. And then he ignored court orders requiring him to

fully respond to those requests. He also disregarded court orders requiring him to pay spousal

support to Patricia and to reimburse her for attorney fees and was subject to two arrest warrants

for contempt.

We hold that (1) the trial court properly applied the Burnet factors and made adequate

findings regarding its consideration of those factors when imposing discovery sanctions against

Tom, (2) the trial court did not err in awarding lifetime maintenance of $13,000 per month to

Patricia, and (3) Patricia is entitled to her attorney fees on appeal based on Tom’s intransigence

at trial.

Accordingly, we affirm the trial court’s imposition of discovery sanctions and the spousal

maintenance award to Patricia and award her reasonable attorney fees on appeal.

FACTS

Background

Patricia and Tom met in college and were married shortly after graduation. They were

married for almost 30 years and had three children together. One child remains dependent on

Patricia and Tom. At the time of trial, Patricia was 57 years old and Tom was 56 years old.

After college, Patricia worked for two years, but then stayed home to raise their three

children. Tom had a lucrative career in real estate investing and was one of the founders for a

major commercial real estate company called Prium. Tom controlled all the finances and paid all

the bills for the family. Due to Tom’s financial success, Patricia and Tom enjoyed a high

standard of living, including living in an 11,000 square foot home; owning boats, jet skis, and

multiple expensive cars; and traveling around the world.

2 No. 55520-4-II

In 2010, Tom and Patricia declared bankruptcy after Prium encountered severe financial

trouble. However, Tom and Patricia continued to live comfortably, still taking extravagant

vacations such as traveling to Hawaii and going on cruises to Europe.

Tom began working for Radiance Capital Financial (RCF) in 2016, which involved

soliciting money from investors to purchase pools of distressed debt at a discount and then

collecting the debt and distributing the profits to the investors. Tom claimed that he was paid

only as an employee and had no ownership interest in RCF.

Ed LaCross owned RCF, but did not engage in any management activities. LaCross also

created another company called Sparan, LLC, which served as an investment vehicle for a

different company called Claire Technologies, LLC. Claire Technologies was a company that

produced novel water purification systems. Sparan’s purpose was to help Claire Technologies

expand its product and distribution. Tom traveled throughout the world to raise capital for Claire

Technologies through Sparan. Sparan often reimbursed Tom for his business expenses. Tom

claimed that he was paid only as a consultant for Sparan.

The parties disagree about the extent of Tom’s role at RCF, Sparan, and Claire

Technologies and his compensation from each company. Tom told Patricia that he was making

$10,000 a month plus quarterly $15,000 bonuses from RCF and $5,000 a month from Sparan.

Petition for Dissolution

In January 2018, Patricia discovered that Tom was having an affair. Based on credit card

statements, Patricia found out that Tom regularly traveled with his girlfriend and spent thousands

of dollars on her. In contemplation of separating, Tom and Patricia discussed what money would

be enough to support Patricia. Tom told Patricia that his net annual income was $210,000, and

he proposed a budget of $13,907 per month to be paid by RCF for Patricia’s spousal support.

3 No. 55520-4-II

In September, Patricia filed a petition for dissolution. Tom filed a response in which he

agreed with some of Patricia’s allegations and disagreed with others.

2018 Discovery Requests

Patricia’s and Tom’s dissolution proceedings were contentious from the start. Tom

remained adamant that he earned only $240,000 a year. Patricia believed that Tom was lying

about his income and that he was more than just an employee at RCF, Sparan, and Claire

Technologies. Patricia claimed that he was making more than $240,000 a year based on Tom’s

extravagant spending since working at RCF, such as repeatedly spending thousands of dollars on

dinners, up to $25,000 on family vacations, at least $64,000 on his girlfriend, and over $168,000

on other travel related and business expenses.

In September and November of 2018, Patricia sent Tom two sets of interrogatories and

requests for production seeking detailed information about Tom’s income, business dealings,

assets, and expenditures. In September and December, Tom provided responses but claimed he

did not have most of the documents requested.

Patricia determined that Tom’s discovery responses were inadequate, and she sent a

detailed deficiency letter to Tom in March 2019 requesting that he provide complete responses.

Her letter asked Tom to provide information regarding his bank accounts from January 2017

through the present; credit card statements from January 2017 through the present; checks

written from his father; documentation of any funds borrowed from any person, retirement

accounts; documentation related to RCF, Sparan, and Claire Technologies; all expenditures on

his girlfriend; and any travel expenses.

Tom provided additional responses, but Patricia determined that the responses still were

incomplete. Specifically, Tom produced incomplete bank and credit card statements and refused

4 No. 55520-4-II

to produce any documents related to his compensation from RCF, Sparan, and Claire

Technologies. When Patricia subpoenaed Tom’s credit card documents from American Express,

she discovered additional expenditures and credit cards that were not included in the documents

that Tom had provided.

In April, Patricia filed a motion to compel discovery and requested $10,000 in attorney

fees as a sanction against Tom. Patricia’s motion included a number of exhibits, including

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