CLAUDE R. ELLIS v. MELISA JANE GODFREY ELLIS
CourtCourt of Appeals of Tennessee
Date FiledJune 5, 2026
DocketE2024-01735-COA-R3-CV
JudgeJudge Kristi M. Davis
StatusPublished
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Full Opinion
06/05/2026
IN THE COURT OF APPEALS OF TENNESSEE
AT KNOXVILLE
February 25, 2026 Session
CLAUDE R. ELLIS v. MELISA JANE GODFREY ELLIS
Appeal from the Chancery Court for Bradley County
No. 2011-CV-148 Jerri Bryant, Chancellor
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No. E2024-01735-COA-R3-CV
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This is a long-running divorce case on appeal to this Court for the third time. The husband
raises several issues concerning the trial court’s classification of the parties’ interests and
award of attorney’s fees to the wife. We affirm.
Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Chancery Court Affirmed;
Case Remanded
KRISTI M. DAVIS, J., delivered the opinion of the Court, in which JOHN W. MCCLARTY,
P.J., E.S., and D. KELLY THOMAS, JR., SP.J., joined.
Donald Capparella and Jacob A. Vanzin, Nashville, Tennessee, for the appellant, Claude
R. Ellis.
Daniel A. Herrera and Sarah Emily Still, Knoxville, Tennessee, for the appellee, Melisa
Jane Godfrey Ellis.
OPINION
BACKGROUND
Claude R. Ellis (“Husband”) and Melisa Jane Godfrey Ellis (“Wife”) married in
1996. During the parties’ marriage, Husband was a successful businessman and Wife was
a homemaker. In June 2011, Husband sued Wife for divorce. Since then, this matter has
been before us three times. In the first appeal—an interlocutory appeal filed by Husband—
we affirmed the trial court’s invalidation of the parties’ prenuptial agreement, holding that
Husband did not fully disclose his assets to Wife before executing the agreement. Ellis v.
Ellis, No. E2013-02408-COA-R9-CV, 2014 WL 6662466, at *7, 11 (Tenn. Ct. App. Nov.
25, 2014) (hereinafter, “Ellis I”). Because Husband has successful businesses and
substantial separate assets, the invalidation of the prenuptial agreement significantly
changed the value of the marital estate. The parties engaged in protracted litigation until
trial in 2019, which resulted in the second appeal of this matter. See Ellis v. Ellis, No.
E2020-00869-COA-R3-CV, 2022 WL 3724768, at *1 (Tenn. Ct. App. Aug. 29, 2022)
(hereinafter, “Ellis II”). As explained in Ellis II,
Following remand from the first appeal, Wife’s first counsel, Martha
Meares and Paul R. Dillard, filed a motion to withdraw, which was granted.
Meares and Dillard then filed a notice of attorney’s charging lien against
Wife’s property in the amount of $368,259.95 for unpaid attorney’s fees and
expenses. Wife’s new counsel filed an objection to the attorney’s charging
lien, requesting “a hearing to determine the reasonableness of the unpaid
legal fees and expenses.” This issue was reserved until after the conclusion
of trial.
The divorce trial took place on February 19-21, 2019. The trial court
heard the testimony of the parties, two of Husband’s business associates, and
Husband’s accountant. Husband was a successful businessman, so there
were numerous assets in contention that the trial court was required to
classify and divide, which it did in detail in an extensive order and chart
captioned “Master Asset List.”
Ellis II, 2022 WL 3724768, at *1.
The main assets in dispute were Husband’s businesses and real property.
Wedgecorp is a Tennessee corporation dealing in real estate development. Husband started
Wedgecorp before the marriage, and his interest in it is undisputedly a separate asset.
Wedgecorp also owns 51% of another business, Quality Machining Service, LLC
(“QMS”), which Husband started during the marriage. The other 49% of QMS is owned
by David Triplett (“Mr. Triplett”), Husband’s business partner. The real property at issue,
which is located on Blythe Ferry Road in Cleveland, Tennessee (the “BFR Property”), is
where QMS operates.
The trial court ultimately found that Husband dissipated marital assets. In addition,
the trial court classified and divided the marital estate; awarded Wife alimony in futuro of
$3,600.00 per month; and awarded Wife attorney’s fees as alimony in solido. In Ellis II,
we affirmed among other things the trial court’s findings with respect to Husband’s
dissipation of marital assets and the award of alimony in futuro to Wife. 2022 WL
3724768, at *14, 17. On the other hand, we vacated the trial court’s findings that
Husband’s interests in QMS and the BFR Property were marital assets subject to division.
Id. at *8–9. Regarding QMS, we explained as follows:
QMS is a corporate entity separate from Wedgecorp. It is not owned by
Husband and consequently cannot be classified as marital property. To
consider QMS as merely an increase in the value of Wedgecorp would be to
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improperly disregard the corporate forms of these entities. Wife did not
argue at the trial level that the corporate veil of either Wedgecorp or QMS
should be pierced on equitable grounds.
Id. at *8. Accordingly, we reversed the trial court’s finding that QMS was a marital asset.
It was owned by Wedgecorp and Mr. Triplett, not Husband. Regarding the BFR Property,
the trial court found that Husband held a 50% ownership interest as a tenant in common
with Mr. Triplett. We also reversed this finding:
Husband testified that his brother transferred 1455 Blythe Ferry to him “in
probably” 1995, before the marriage in 1996. On January 14, 2005, both
Husband and Wife signed a quitclaim deed transferring an undivided
one-half interest in the property to Husband and David Triplett as tenants in
common. Mr. Triplett testified that 1455 Blythe Ferry is owned by him and
Husband, and the title reflects this ownership. Because the trial court’s
classification of the real property at 1455 Blythe Ferry is based on the
misconception that it was owned by Wedgecorp or QMS, we vacate the
court’s ruling in this regard for reconsideration of the proper disposition of
this asset.
Id. at *9.
Because the classification of major assets changed following Ellis II, this case was
remanded to the trial court for a re-division of the marital estate. Because the property
division affected Husband’s ability to pay alimony, as well as Wife’s need, we noted that
the trial court could reconsider its award of alimony in solido to Wife. Id. at *17. We also
instructed the trial court to consider the effect of the quitclaim deed found in the record in
which Husband and Wife conveyed their interest in the BFR Property to Husband and Mr.
Triplett as tenants in common. We instructed the trial court to “consider and address the
effect of the quitclaim deed on the classification of” the BFR Property, as well as the effect
on the overall division of property. Id. at *9. While Ellis II was pending, the parties
engaged in a post-trial discovery dispute. Wife incurred additional attorney’s fees that
were placed at issue on remand.
The parties agreed not to put on new proof at the hearing on remand, which the trial
court held on April 11, 2024. On May 3, 2024, the trial court entered its second order
dividing the marital estate. As to the BFR Property, the trial court found that Husband’s
interest is a marital asset subject to division. Regarding the quitclaim deed in which Wife
purportedly signed away her interest in the BFR Property, the trial court found, in relevant
part:
While Husband testified his brother transferred 1455 Blythe Ferry Road to
him “in probably 1995” the Court did not credit that testimony. Husband did
not produce a deed to that property, except a quitclaim deed where both Wife
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and Husband signed transferring an undivided 1/2 interest in the property to
Husband and Triplett. . . .While the law under Davis v. Davis, 223 SW3d
233, 238 (Tenn. Ct. App. 2006) appears to say that a conveyance of property
from one spouse to another creates the rebuttable presumption of a gift, there
is other law that indicates a quitclaim deed does not prove a gift. See Abney
v. Abney, No 181, 1991 WL 16255 @3 (Tenn. Ct. App. Feb. 12, 1991). In
Abney the Court found the deed did not have the effect of conveying property
to wife as her separate property. It is clear in this case, from the transcript[],
Wife did not understand the quitclaim deed. As Wife stated, Husband told
her that David Triplett did not have any “borrowing power” and the burden
was on him and if she wanted to help the company grow, David Triplett
needed more borrowing power. So, Husband said “Lisa, you need to sign
this on the property, so we can grow this company. And David Triplett is
going to give it back to you.” Continuing, Wife testified that Husband said
“—this is just for a short period so we can grow the company and David
Triplett can have some of the burden of borrowing the money”. Wife
complied and did what Husband told her to do. She further testified she
signed the quitclaim deed because Husband told her she should and he was
very upset. She testified she felt forced to sign it, but was assured David
Triplett would give it back to them after a short period of time. She trusted
her husband. It is clear she received nothing for signing this document. She
did not understand what she was signing. The Court credits her testimony
on this issue. . . . Husband points to no testimony suggesting Wife intended
to give her presumptive marital interest in the 1455 Blythe Ferry Road to
Husband. Husband did not testify that he received a gift from Wife of this
property. After review of Altman v. Altman, 181 SW3d 676 (Tenn. Ct. App.
2005) and Davis v. Davis, 223 SW3d 223 (Tenn. Ct. App. 2006), the Court
finds Wife did not intend to gift her marital interest in this property to both
Husband and Mr. Triplett, but was coerced into signing a deed which she did
not understand and under the belief it would be transferred back.
Regarding QMS, the trial court acknowledged this Court’s holding in Ellis II that it
is owned by Wedgecorp, not Husband, and thus found that QMS is not subject to equitable
division. By the same token, the trial court noted that any debt associated with QMS is
non-marital. This separate debt includes a large loan taken out by Husband and Mr.
Triplett, which is referred to by the parties as the “Campus Loan.” See Ellis II, 2022 WL
3724768, at *1. The trial court classified $718,561.63 of the Campus Loan as non-marital
debt.1
The trial court determined that the marital estate totaled $2,605,442.61, a figure
including $921,805.00 in assets dissipated by Husband. Using this figure, the trial court
1
There is a 19-cent discrepancy between this figure and the figure of $718,561.44 reached in the
first marital division. Both parties state on appeal that the 19-cent difference is immaterial.
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awarded Husband $2,537,867.61 in “marital value” and Wife $67,575.00 to be paid
outright. The trial court also ordered Husband to pay Wife $1,235,146.31 as part of the
division, resulting in an essentially 50/50 split of the marital estate.
The final issue for the trial court to consider on remand was the award of attorney’s
fees to Wife, which totaled $389,344.95. We vacated this award in Ellis II in light of the
issues with the property division but noted that “[t]he trial court has already twice heard
and ruled on the propriety and reasonableness of the attorney’s fees . . . so it is certainly
not required to reconsider these issues on remand. However . . . the trial court may
reconsider as it deems necessary.” 2022 WL 3724768, at *11. The trial court did not deem
it necessary to revisit the reasonableness of Wife’s attorney’s fees and affirmed its prior
award. In so doing, the trial court noted that it was primarily Husband’s fault that the case
had gone on so long.
On May 31, 2024, Wife filed a motion titled “Renewal of Motion for Award of
Post-Appeal Fees and Resolution of Miscellaneous Issues.” Wife asked the trial court to
award her attorney’s fees incurred after the notice of appeal for Ellis II was filed. Husband
filed a response in opposition to this motion, arguing, inter alia, that Wife had no need for
additional attorney’s fees considering the division of marital property. Husband asserted
that much of the post-appeal fees incurred by Wife were incurred in Wife’s attempt to
collect on a judgment that was ultimately vacated.
The trial court entered an order on October 21, 2024, finding that the original
alimony in solido award for the pre-appeal fees was reasonable and that Wife is entitled to
another $49,964.00 in fees accrued post-Ellis II. Husband filed a notice of appeal to this
Court on November 19, 2024. On January 30, 2025, the trial court entered an order
clarifying that Wife is also entitled to $3,735.00 in attorney’s fees stemming from a motion
to compel that the trial court granted in 2021.
ISSUES
Husband raises six issues on appeal, which we restate as follows:
1. Whether the trial court erred by not classifying the parties’ share of the Campus
Loan as marital debt and including it in the division of the marital estate, and whether the
resulting division of the marital estate was inequitable.
2. Whether the trial court erred by classifying Husband’s interest in the BFR
Property as marital property instead of Husband’s separate property.
3. Whether the trial court abused its discretion by re-awarding Wife the full amount
of her attorney’s fees incurred prior to the first appeal when the size of the marital estate
and the amount awarded to Wife had significantly decreased.
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4. Whether the trial court erred in awarding Wife as alimony in solido her attorney’s
fees incurred after the notice of appeal was filed for Ellis II.
5. Whether the trial court erred in awarding Wife attorney’s fees and expenses as a
discovery sanction when the discovery sought was post-judgment discovery related to a
judgment that was ultimately vacated by this Court.
6. Whether the trial court erred by permitting Wife’s former attorneys, the law firm
of Meares & Dillard, to participate in the proceedings on remand, and whether the order
submitted by Meares & Dillard and entered by the trial court on October 21, 2024 is void.
Wife responds to the issues raised by Husband on appeal but raises no additional
issues in her posture as appellee. Although not formally raised as an issue, Wife requests
her appellate attorney’s fees at the conclusion of her brief. In addition, the law firm of
Meares & Dillard filed a motion in this Court for permission to intervene.
STANDARD OF REVIEW
Because this is an appeal from a bench trial, we review the trial court’s factual
findings de novo, presuming their correctness unless the evidence preponderates otherwise.
See Boote v. Shivers, 198 S.W.3d 732, 740 (Tenn. Ct. App. 2005); Tenn. R. App. P. 13(d).
“[F]or the evidence to preponderate against a trial court’s finding of fact, it must support
another finding of fact with greater convincing effect.” Boote, 198 S.W.3d at 741. The
presumption of correctness does not apply to the trial court’s conclusions of law. Id. We
ascribe great weight to the trial court’s credibility determinations and will not re-evaluate
those determinations absent clear and convincing evidence. Id. at 740 (citing Est. of Walton
v. Young, 950 S.W.2d 956, 959 (Tenn. 1997)); see also Kelly v. Kelly, 445 S.W.3d 685,
692 (Tenn. 2014). To meet the clear and convincing standard, the evidence must eliminate
“serious or substantial doubt about the correctness of the conclusions drawn from the
evidence.” Hodges v. S.C. Toof & Co., 833 S.W.2d 896, 901 n.3 (Tenn. 1992).
Several of the issues on appeal implicate the trial court’s discretion. The abuse of
discretion standard of review “reflects an awareness that the decision being reviewed
involved a choice among several acceptable alternatives.” Harmon v. Hickman Cmty.
Healthcare Servs., Inc., 594 S.W.3d 297, 305 (Tenn. 2020) (quoting Lee Med., Inc. v.
Beecher, 312 S.W.3d 515, 524 (Tenn. 2010)). Accordingly, “[u]nder the abuse of
discretion standard, a trial court’s ruling ‘will be upheld so long as reasonable minds can
disagree as to propriety of the decision made.’” Eldridge v. Eldridge, 42 S.W.3d 82, 85
(Tenn. 2001) (citing State v. Scott, 33 S.W.3d 746, 752 (Tenn. 2000); State v. Gilliland, 22
S.W.3d 266, 273 (Tenn. 2000)). “Indeed, when reviewing a discretionary decision by the
trial court, the ‘appellate courts should begin with the presumption that the decision is
correct and should review the evidence in the light most favorable to the decision.’”
Henderson v. SAIA, Inc., 318 S.W.3d 328, 335 (Tenn. 2010) (quoting Overstreet v.
Shoney’s, Inc., 4 S.W.3d 694, 709 (Tenn. Ct. App. 1999)). This presumption
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notwithstanding, “[a] trial court abuses its discretion when it causes an injustice by
applying an incorrect legal standard, reaching an illogical decision, or by resolving the case
‘on a clearly erroneous assessment of the evidence.’” Id. (quoting Lee Med., 312 S.W.3d
at 524).
DISCUSSION
I. Classification of the Campus Loan
Husband first addresses the trial court’s ruling that the Campus Loan is a
$718,561.63 debt owed by QMS. Husband contends that the proof in the record
preponderates against this finding because the accounting for QMS does not show that
QMS owes the full balance of the loan, which the trial court found to be approximately
$1.4 million. Rather, the QMS accounting shows the business’s debts as being much lower
than the balance of the Campus Loan. Therefore, according to Husband, the loan cannot
be attributed to QMS. Husband cites the Fair Market Value Analysis performed by Pugh
CPAs in November 2017, which does not appear to include the Campus Loan, as well as
the Single Ledger Balance Report from the loan closing, which showed that “Excess Cash
to Close” went to Husband and Mr. Triplett rather than QMS. Relatedly, Husband and Mr.
Triplett were issued checks in October 2016. Additionally, Husband asserts that the loan
was taken out during the parties’ marriage and therefore is presumptive marital property.
Husband also states that the fact that QMS pays on the loan is not dispositive. Husband
says in his brief that “failure to include the Campus Loan indebtedness in its division of
the marital estate resulted in the distribution being manifestly inequitable,” resulting in
Wife effectively receiving 69% of the marital estate rather than the 50% originally intended
by the trial court.2
“Trial courts are vested with a great deal of discretion when classifying and dividing
the marital estate, and their decisions are entitled to great weight on appeal.” Eldridge v.
Eldridge, 137 S.W.3d 1, 12 (Tenn. Ct. App. 2002) (hereinafter, “Eldridge II”). As such,
this Court will not interfere “unless the [trial] court’s decision is contrary to the
preponderance of the evidence or is based on an error of law[.]” Id. “Property
classification is a question of fact.” Luplow v. Luplow, 450 S.W.3d 105, 109 (Tenn. Ct.
App. 2014).
As a “dual property” state, Tennessee distinguishes between separate property and
marital property. Eldridge II, 137 S.W.3d at 12 (citing Batson v. Batson, 769 S.W.2d 849,
856 (Tenn. Ct. App. 1988)). In a divorce action, only marital property is subject to division
between the parties. Id. at 12–13 (citing Tenn. Code Ann. § 36-4-121); see also Keyt v.
Keyt, 244 S.W.3d 321, 328 (Tenn. 2007) (“[C]ourts do not have the authority to make an
equitable distribution of separate property[.]” (citing Cutsinger v. Cutsinger, 917 S.W.2d
2
Husband states that his share of the marital estate, $1,302,721.30, is reduced to $584,159.86 to
account for the Campus Loan debt, while Wife still receives her share of $1,302,721.31.
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238, 241 (Tenn. Ct. App. 1995))). It is therefore “of primary importance for the trial court
to classify property as separate or marital” before it can equitably divide the property
between the parties. Eldridge II, 137 S.W.3d at 12–13 (citing Brock v. Brock, 941 S.W.2d
896, 900 (Tenn. Ct. App. 1996)). Notably, “Section 36-4-121(a)(1) requires an equitable
division of marital property, not an equal division.” Larsen-Ball v. Ball, 301 S.W.3d 228,
231 (Tenn. 2010) (emphasis in original). Generally, assets acquired prior to marriage are
presumed separate, and assets acquired during the marriage are presumed marital. Owens
v. Owens, 241 S.W.3d 478, 485 (Tenn. Ct. App. 2007). In turn, it is well-established that
“‘marital debts’ are all debts incurred by either or both spouses during the course of the
marriage up to the date of the final divorce hearing.” Alford v. Alford, 120 S.W.3d 810,
813 (Tenn. 2003).
Insofar as Husband’s arguments depend upon his testimony and explanations, we
note that the trial court found Husband non-credible. The trial court’s credibility
determinations, both implicit and explicit, are entitled to strong deference on appeal. See
Kautz v. Berberich, No. E2019-00796-COA-R3-CV, 2021 WL 1034987, at *7 (Tenn. Ct.
App. Mar. 18, 2021). When addressing the issue of alimony in futuro in Ellis II, we
affirmed the trial court’s findings regarding Husband’s concealment of the true state of his
finances. 2022 WL 3724768, at *17. We observed that “Husband’s efforts to obfuscate
his finances by creative accounting, and a simple lack of candor and honesty, have rendered
it impossible to say with certainty what his income is.” Id. Clearly, the trial court did not
assess Husband to be credible in his testimony concerning his financial affairs. We discern
no clear and convincing evidence in this record to overturn the trial court’s negative
assessment of Husband’s credibility.
While Husband points to the QMS accounting as evidence that the Campus Loan is
marital debt, the accounting is not dispositive. The Pugh CPAs report states that “[w]e
have not audited, reviewed, or compiled the financial statements . . . and we express no
assurance on them.” Thus, Pugh depended on information provided to it. Moreover, the
sources for the Pugh report are from prior to December 2016 when the Campus Loan was
acquired. Additionally, QMS pays on the loan debt. These facts undercut Husband’s
reliance on the documentation. In any case, the trial court was not obliged to take the
accounting or loan documents at face value. As we noted in Ellis II, “[t]he trial court found
that Husband engaged in a pattern of mingling business and personal assets and debts,
pulling out excess cash from various property transactions, and hiding assets in an attempt
to keep them from Wife after the divorce was filed.” 2022 WL 3724768, at *13. Beyond
the documents, it was proper for the trial court to consider the circumstances of the Campus
Loan debt—including how it was incurred and for what purpose—in determining its proper
classification in this divorce case.
In Ellis II, we vacated the classification of QMS as marital property in part based
on our recognition of corporate identity. Id. at *8 (“To consider QMS as merely an increase
in the value of Wedgecorp would be to improperly disregard the corporate forms of these
entities.”). We also noted that some of the QMS property was encumbered by debt and
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vacated the finding that the debt of QMS was marital. Id. at n.4. Based on this record, the
$718,561.63 debt is not marital; rather, it was incurred for the benefit of QMS and is paid
on by QMS. As found by the trial court, the debt belongs to “QMS and/or Wedgecorp and
Mr. Triplett.” The evidence does not preponderate against the trial court’s classification
of $718,561.63 of the Campus Loan as non-marital debt. We affirm the trial court on this
issue.
II. Classification of the BFR Property
Next, Husband challenges the trial court’s classification of the BFR Property.
Husband asserts that because this Court vacated the trial court’s original classification of
the BFR Property as marital property based on the trial court’s consideration of the 2005
quitclaim deed, the trial court erred by once again classifying the BFR Property as marital
property. Husband states that whatever interest Wife had in the property was gifted away
in 2005. Husband states further that the trial court improperly shifted the burden to him to
show that the BFR Property was not his separate property. Husband argues that the cases
relied on by the trial court in its order, Davis and Altman, are distinguishable from the case
at bar. While the trial court found that Wife was coerced into deeding away her interest in
the BFR Property, Husband cites the Tennessee Supreme Court for the proposition that the
deed speaks for itself and that, “[i]n general, the parol evidence rule provides that ‘a writing
intended by the parties to be a final embodiment of their agreement cannot be modified by
evidence of earlier or contemporaneous agreements that might add to, vary, or contradict
the writing.’” Individual Healthcare Specialists, Inc. v. BlueCross BlueShield of
Tennessee, Inc., 566 S.W.3d 671, 694–95 (Tenn. 2019) (quoting Black’s Law Dictionary
1292 (10th ed. 2014)).
In addition, Husband cites Strode v. Strode, a case in which a wife divested herself
of any interest in commercial property that was quitclaimed to her husband and his sister
by her husband’s parents during the parties’ marriage. No. M2007-00265-COA-R3-CV,
2008 WL 2229505 (Tenn. Ct. App. May 29, 2008) at *1–2. In that case, this Court noted
that the wife had “signed the Assumption and Modification of Note and Deed of Trust
Agreement specifically to divest herself of any marital rights in the property and to make
clear that she had no obligation on the promissory note.” Id. at *2. The Strode court
concluded that “[t]he language of the deed and the circumstances surrounding the transfer
provide support for the trial court’s classification of the Bailey Collins property as separate
property,” and the evidence did not preponderate against the trial court’s classification. Id.
Based on the foregoing, Husband argues that the trial court should have excluded
the BFR Property from the estate and classified it as Husband’s separate property. Husband
offers his own proposed division that this Court should adopt under which the value of the
marital estate is $1,239,181.17. After accounting for marital debt and dissipation, and a
proposed judgment of $552,015.59 to Wife, Husband suggests that this amount should be
split equally between the parties so that Husband and Wife receive $619,590.58 and
$619,590.59 respectively.
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Regarding spousal gifts, this Court has stated as follows:
The burden of proving a gift is normally on the donee. Pamplin v.
Satterfield, 196 Tenn. 297, 265 S.W.2d 886, 888 (Tenn. 1954). However, a
conveyance of property from one spouse to another creates the rebuttable
presumption of a gift. Denton v. Denton, 33 S.W.3d 229, 232 (Tenn. Ct.
App. 2000); Turner v. Turner, No. M1999-00482-COA-R3-CV, 2000 WL
1425285, at *7 (Tenn. Ct. App. Sept. 28, 2000). In Tennessee, two elements
must be present for a court to find that a valid gift has been made: (1) an
intention by the donor to make a present gift; and (2) delivery of the gift,
relinquishing the donor’s control and dominion over the property. Lowry v.
Lowry, 541 S.W.2d 128, 130 (Tenn. 1976); Dunlap v. Dunlap, 996 S.W.2d
803, 815 (Tenn. Ct. App. 1998).
Davis v. Davis, 223 S.W.3d 233, 238 (Tenn. Ct. App. 2006). Ultimately, however, “the
classification of property does not depend on the state of its record title but on the conduct
of the parties.” Altman v. Altman, 181 S.W.3d 676, 680–81 (Tenn. Ct. App. 2005).
Although in Ellis II we vacated the trial court’s finding that the BFR Property was
marital and remanded for the trial court to reconsider in light of the 2005 quitclaim deed,
we did not preclude the possibility that the trial court would once again classify the BFR
Property as a marital asset. 2022 WL 3724768, at *9. The history regarding how Husband
and/or his businesses acquired the BFR Property is murky. Although Husband stated at
trial that his brother transferred the BFR Property to him in 1995 before his marriage to
Wife, he never offered a deed to support this, and the trial court did not find him credible.
However, the record does contain the 2005 quitclaim deed in which Husband and Wife
transferred what interest they had in the BFR Property to Husband and Mr. Triplett as
tenants in common. The evidence therefore reflects that Husband acquired the BFR
Property in 2005, and it is presumptively marital property.
Apart from the dispute over when the BFR Property was acquired, Husband argues
that Wife gifted away by quitclaim deed whatever interest she may have once had in it.
Husband relies on Tennessee authorities providing that a conveyance from spouse to
spouse creates the rebuttable presumption of a gift. Nevertheless, a rebuttable presumption
is just that—a presumption that can be overcome. Otherwise, Tennessee law would simply
stand for the proposition that a conveyance from spouse to spouse is always a gift no matter
the circumstances. We discern no improper shifting of the burden on this issue to Husband;
the trial court made appropriate factual findings relevant to whether the rebuttable
presumption of a gift was overcome. The trial court found that Wife was coerced into
signing the deed and did not understand the meaning of the transaction. Specifically, as
found by the trial court, Wife was led to believe that her interest in the BFR Property would
be restored to her at a later date. The trial court clearly credited Wife’s version of events.
The evidence does not preponderate against the trial court’s factual findings, nor does clear
and convincing evidence exist to overturn the trial court’s credibility determinations.
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Wife’s conveyance to Husband of her interest in the BFR Property lacked the requisite
donative intent for a gift. Thus, the presumption that Wife’s conveyance to Husband was
a gift was successfully rebutted. We affirm the trial court’s classification of the BFR
Property as marital property.
In view of our affirmance of the trial court on Husband’s issues concerning
classification, there is no basis to modify the trial court’s division of the marital estate.
Husband states in his brief that the resulting division of the marital estate is a departure
from the trial court’s original division that led to an effective 50/50 split between him and
Wife. However, there is no requirement that the division of a marital estate be 50/50 to be
equitable. The fact of a non-equal split is not, on its own, grounds for tinkering with the
trial court’s division of the marital estate. We discern no abuse of discretion nor any
reversible error in the trial court’s classification and division of the marital estate. Thus,
we affirm the trial court’s division of the marital estate.
III. Attorney’s fees to Wife incurred prior to the first appeal
Husband next addresses the trial court’s rulings as to attorney’s fees. First, Husband
asserts that the trial court erred by re-affirming its previous ruling awarding Wife
$389,344.95 in fees as alimony in solido. According to Husband, the marital estate as
currently calculated is much less than the trial court valued it when including the Campus
Loan as a marital debt; thus, this attorney’s fees award is not proportional to his ability to
pay. Further, Husband argues that Wife is receiving a large sum of the marital estate and
has no need for this amount of alimony.
Concerning the award of attorney’s fees as alimony in solido in divorce cases, our
Supreme Court has stated as follows:
It is well-settled that an award of attorney’s fees in a divorce case
constitutes alimony in solido. See Tenn. Code Ann. § 36-5-121(h)(1)
(“alimony in solido may include attorney fees, where appropriate”); Herrera
v. Herrera, 944 S.W.2d 379, 390 (Tenn. Ct. App. 1996). The decision
whether to award attorney’s fees is within the sound discretion of the trial
court. Crabtree[ v. Crabtree], 16 S.W.3d [356,] 361 [(Tenn. 2000)]; Kincaid
v. Kincaid, 912 S.W.2d 140, 144 (Tenn. Ct. App. 1995). As with any
alimony award, in deciding whether to award attorney’s fees as alimony in
solido, the trial court should consider the factors enumerated in Tennessee
Code Annotated section 36-5-121(i). A spouse with adequate property and
income is not entitled to an award of alimony to pay attorney’s fees and
expenses. Umstot v. Umstot, 968 S.W.2d 819, 824 (Tenn. Ct. App. 1997).
Such awards are appropriate only when the spouse seeking them lacks
sufficient funds to pay his or her own legal expenses, see Houghland v.
Houghland, 844 S.W.2d 619, 623 (Tenn. Ct. App. 1992), or the spouse would
be required to deplete his or her resources in order to pay them, see Harwell
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v. Harwell, 612 S.W.2d 182, 185 (Tenn. Ct. App. 1980). Thus, where the
spouse seeking such an award has demonstrated that he or she is financially
unable to procure counsel, and where the other spouse has the ability to pay,
the court may properly grant an award of attorney’s fees as alimony. See id.
at 185.
Gonsewski v. Gonsewski, 350 S.W.3d 99, 113 (Tenn. 2011). When considering whether
an award of attorney’s fees is reasonable, courts must consider the factors set forth in
Tennessee Supreme Court Rule 8, RPC 1.5(a), including:
(1) the time and labor required, the novelty and difficulty of the questions
involved, and the skill requisite to perform the legal service properly;
(2) the likelihood, if apparent to the client, that the acceptance of the
particular employment will preclude other employment by the lawyer;
(3) the fee customarily charged in the locality for similar legal services;
(4) the amount involved and the results obtained;
(5) the time limitations imposed by the client or by the circumstances;
(6) the nature and length of the professional relationship with the client;
(7) the experience, reputation, and ability of the lawyer or lawyers
performing the services;
(8) whether the fee is fixed or contingent;
(9) prior advertisements or statements by the lawyer with respect to the fees
the lawyer charges; and
(10) whether the fee agreement is in writing.
While Husband emphasizes the factor concerning the amount involved and results
obtained, there are nine other factors to consider. In a May 2020 order, the trial court
analyzed the reasonableness of Wife’s attorney’s fees, finding in part that
Defendant’s attorney postponed her fees in an effort to continue to
represent a client who had no separate assets and whose husband said, after
many years of marriage, wife was entitled to only one-half interest in a
motorhome. Ms. Meares did good work on behalf of her client and while at
first blush the Court might find $360,000 in requested attorney fees to be
unreasonable, the Court has considered the time devoted to the legal services
in this case. The number of years this case has been pending, the novelty and
difficulty of the questions involved, the skill performed by the service, the
conduct of the Plaintiff, and the hourly rate in this case are not contested.
The Court has considered the other factors in Connors v. Connors, 594 SW2d
672 including the results obtained, the experience, reputation and ability of
the lawyer representing Defendant all appear to be reasonable.
The trial court later re-affirmed its findings. In an October 2024 order, the trial court
stated that “[t]he fact the size of the marital estate diminished, and the size of Husband’s
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separate property increased after remand from the Court of Appeals does not change the
other facts previously found by this Court.” The evidence does not preponderate against
the trial court’s findings. While $389,344.95 is, standing alone, a very large award of
attorney’s fees, we note the length of this case, as well as the major effort Wife had to
undergo to secure her share of property and support. We note further the disparity in
financial status between Husband and Wife, with Wife having a great need for the award
of fees and Husband the ability to pay. We discern no abuse of discretion in the trial court’s
award to Wife of $389,344.95 in pre-appeal attorney’s fees.
IV. Attorney’s fees to Wife incurred after the notice of appeal was filed for Ellis II
Husband makes similar arguments as to the additional $49,964.00 in post-appeal
fees incurred by Wife. Husband asserts that these fees should not be paid by him because
they were incurred by Wife trying to collect on a judgment that was ultimately vacated.
Husband says further that Wife has no need for these additional fees in light of the share
of the marital estate she will receive. Husband also argues that, insofar as Wife was
awarded attorney’s fees for trying to execute on the marital property division judgment,
the award of fees lacked any legal basis.3 According to Husband, these fees were incurred
after the final hearing and not in connection with a Tennessee Rule of Civil Procedure 59
motion and thus cannot serve as the basis for an award to Wife of alimony in solido. See
Tenn. Code Ann. § 36-5-121. The American Rule provides that “a party in a civil action
may recover attorney fees only if: (1) a contractual or statutory provision creates a right to
recover attorney fees; or (2) some other recognized exception to the American rule applies,
allowing for recovery of such fees in a particular case.” Cracker Barrel Old Country Store,
Inc. v. Epperson, 284 S.W.3d 303, 308 (Tenn. 2009) (citing Taylor v. Fezell, 158 S.W.3d
352, 359 (Tenn. 2005)).
Regarding Wife’s attorney’s fees incurred trying to execute on the judgment, we
observe that the final hearing in this matter took place on September 23, 2024. The
contested post-appeal attorney’s fees were incurred prior to this hearing. At the time of the
hearing, we had issued our Opinion in Ellis II on August 29, 2022, and remanded the case
to the trial court for further proceedings. Thus, the premise of Husband’s argument about
the timeline and the legal basis for these attorney’s fees is incorrect. We conclude that the
tri