Graham v. Graham

Decision Date11 September 2020
Docket Number2180856
Citation326 So.3d 1046
Parties Barry A. GRAHAM v. Joy Vick GRAHAM
CourtAlabama Court of Civil Appeals

Robert E. Gibney, Mobile, for appellant.

Jene W. Owens, Jr., Mobile, for appellee.

MOORE, Judge.

Barry A. Graham ("the former husband") appeals from a judgment of the Mobile Circuit Court ("the trial court") to the extent it interprets and enforces certain provisions of a November 17, 2017, judgment divorcing the former husband from Joy Vick Graham ("the former wife"). We affirm the trial court's judgment.

Facts and Procedural History

On November 17, 2017, Judge Rosemary Chambers entered a judgment ("the divorce judgment") divorcing the parties. In the divorce judgment, the former wife was awarded, among other things, GTM Timber Management, LLC ("GTM"), a business created by the parties to manage certain property owned by the parties, which property included timberland and a cabin, as well as the real property managed by GTM ("the GTM property"). The parties agreed that the value of the GTM property was approximately $3,000,000 and that the balance owed on the GTM property was approximately $371,000. Additionally, the former wife was awarded 30% of the shares of Barry Graham Oil Services, LLC ("BGOS"), a company owned primarily by the former husband. With regard to the division of BGOS, the divorce judgment states:

"9. With respect to [BGOS], the [former] wife shall be awarded 30 percent of the shares of the company (from the shares that the [former] husband owns) and the [former] husband shall be awarded the remaining 67.36 percent of the shares. The [former] husband shall have the first right of refusal to buy the [former] wife out for same shares for $4.3 million within 90 days. Thereafter, the terms of sale shall be left up to the [former] wife regarding whether she wants to sell the shares.
"The Court does consider the voluntary and unnecessary change of the loan from Regions [Bank] to Servis[First Bank] and the removal of the [former] wife's name from the accounts to be an effort of the [former] husband to shelter assets from the [former] wife as a potential creditor in this divorce litigation. In the event the [former] husband does not buy the [former] wife's interest in the company, the parties are encouraged to immediately begin efforts to ask the bank for permission to sell boats in order to free up collateral."

The last paragraph quoted above spoke to the former husband's decision to move BGOS's banking business from Regions Bank to ServisFirst Bank, including paying off a loan of approximately $18 million that had been held by Regions Bank and had been secured by 5 vessels owned by BGOS by acquiring a new $18 million loan from ServisFirst Bank that was secured by all of BGOS's 19 vessels and other financial assets.

Notably, the divorce judgment did not award the former wife any properties that were encumbered by a lien other than the GTM property and the 30% of the shares of BGOS. The divorce judgment also stated:

"21. With respect to the $15 million policy with Prudential Life, the [former] wife shall remain the named ... owner of same policy and the [former] husband shall pay the premium thereon and shall name the [former] wife as beneficiary of 5 million dollars so long as there is a bank lien on any of the property to which she has been awarded. The [former] husband may name the beneficiary of the remaining 10 million dollars. Once there is no lien on the [former] wife's assets herein, the [former] husband shall be the named owner and may choose the beneficiary for the entire 15 million [dollars]."

Following the entry of the divorce judgment, the former husband filed a postjudgment motion requesting, among other things, clarification of the trial court's judgment with regard to paragraph 21. The former wife also filed a postjudgment motion. At the December 19, 2017, hearing on the parties’ postjudgment motions, the following colloquy occurred between the former husband's attorney and Judge Chambers, who rendered the divorce judgment, with regard to paragraph 21:

"[The former husband's attorney]: ... The threshold question that I have is what bank lien and what assets? To my knowledge, other than the [GTM property] having a mortgage on it, there are no bank liens against [the former wife's] assets. Thereafter -–
"[Judge Chambers]: That would be the 30 percent in the company would be the main item.
"[The former husband's attorney]: Membership interest, Your Honor, is not subject to any lien.
"[Judge Chambers]: The bank has used the shares and assets of the company as collateral for the loan as I recall.
"[The former husband's attorney]: Has used the assets, there is no question about that.
"[Judge Chambers]: That's what I'm talking about. All of the assets that make up the value of the shares is what we are talking about."1

The trial court entered an order on the parties’ postjudgment motions on December 20, 2017, addressing the parties’ arguments but declining to modify or otherwise amend paragraph 21 of the divorce judgment. Both parties appealed from the divorce judgment, and this court affirmed that judgment. See Graham v. Graham, No. 2170443, 292 So. 3d 331 (Ala. Civ. App. 2019) (table), and Graham v. Graham, No. 2170451, 292 So. 3d 332 (Ala. Civ. App. 2019) (table).

On October 22, 2018, the former husband filed in the trial court a "motion for rule nisi and related instanter relief," in which he asserted that the former wife had failed to comply with certain aspects of the divorce judgment. The former husband asserted, among other things, that the outstanding mortgage and associated debt owing on the GTM property had been paid and that, as a result, he was entitled to full ownership of the life-insurance policy referenced in paragraph 21 of the divorce judgment. He further asserted in his motion that the former wife had denied that the former husband was entitled to full ownership of the life-insurance policy and requested, among other things, an order directing the former wife to execute an assignment of ownership of the policy to the former husband. On February 11, 2019, the former wife filed a response to the former husband's motion, as well as a motion for a rule nisi and a finding of contempt against the former husband.

Judge Chambers had retired by the time the former husband filed his October 22, 2018, motion; thus, the hearing on the former husband's motion was conducted by Judge Michael Sherman on March 19, 2019. At that hearing, Alex Arendall, the senior vice president of commercial banking at ServisFirst Bank in Mobile, testified that ServisFirst Bank was not claiming any lien on or security interest in the former wife's membership interest in BGOS and that the various items of collateral and security in which ServisFirst Bank was claiming an interest were in the name of BGOS. The former wife testified that there was no mortgage or other indebtedness owed with regard to GTM or the GTM property. On April 10, 2019, Judge Sherman entered a judgment disposing of all the claims presented by both parties and finding, in pertinent part:

"With respect to the $15,000,000.00 life insurance policy with Prudential Life, Judge Chambers ordered the former husband to name the former wife as the owner of said policy and as beneficiary of $5,000,000.00 of that policy ‘so long as there is a bank lien on any of the property to which she has been awarded’ and that ownership and the former husband's ability to name the beneficiary on the entire policy would not occur until ‘there is no lien on the [former] wife's assets herein.’ In light of the specific findings of fact in paragraph 9 of the Judgment of Divorce, this Court finds that those conditions have not yet been met. Therefore, the terms of the Judgment of Divorce requiring the former husband to name the former wife as beneficiary of $5,000,000.00 and to be named owner of the policy still exists."

The former husband filed a "motion to amend, modify, alter and clarify order of court and related relief" on May 10, 2019; the trial court denied that motion on June 14, 2019.

On June 19, 2019, the former husband filed a "request for entry of specific findings of fact and conclusions of law," requesting that the trial court elaborate on its April 10, 2019, judgment with regard to the life-insurance policy. Specifically, the former husband requested the trial court "to factually identify (1) which ‘conditions’ have not been met, as set forth in the Court's referenced Order and particularly paragraph #3 thereof; (2) what ‘bank liens’ or ‘liens’ presently legally encumber the [former wife's] membership interest in [BGOS]; [and] (3) which person or entity holds a security interest in or upon the [former wife's] membership interest in [BGOS]." The trial court denied the former husband's June 19, 2019, motion on July 1, 2019. The former husband timely filed his notice of appeal to this court on July 22, 2019.

Analysis

The former husband first argues on appeal that the trial court erred by denying him full ownership of the life-insurance policy. He asserts that, because the evidence presented indicates that there was no mortgage or other lien on the GTM property, because ServisFirst Bank did not claim any lien on or security interest in the former wife's membership interest in BGOS, and because the remaining property awarded to the former wife in the divorce judgment was not encumbered by a lien, the former husband is entitled to full ownership of the insurance policy. We disagree.

Our supreme court has stated:

"Courts are to construe judgments as they construe written contracts, applying the same rules of construction they apply to written contracts. See Hanson v. Hearn, 521 So. 2d 953, 954 (Ala. 1988). Whether a judgment is ambiguous is a question of law to be determined by the court. See Chapman v. Chapman, 634 So. 2d 1024, 1025 (Ala. Civ. App. 1994) ; Grizzell v. Grizzell, 583 So. 2d 1349, 1350 (Ala. Civ. App. 1991). If the terms
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