Pearson v. Pearson
| Decision Date | 06 June 2019 |
| Docket Number | No. W2018-01188-COA-R3-CV,W2018-01188-COA-R3-CV |
| Parties | RICHARD ALAN PEARSON v. CHRISTEN CREIGHTON PEARSON |
| Court | Tennessee Court of Appeals |
Appeal from the Chancery Court for Shelby County
JoeDae L. Jenkins, Chancellor
This is a divorce case. Husband filed for divorce after 20 years of marriage. Following a three-day trial, the trial court determined Wife could not be rehabilitated and ordered Husband to pay $9,700 per month in alimony in futuro. We conclude that the trial court erred by failing to consider Wife's earning capacity in setting Husband's alimony obligation. Accordingly, we modify Husband's alimony obligation by the amount of Wife's earning capacity as determined by the trial court. Affirmed as modified.
Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Chancery Court is Affirmed as Modified and Remanded
KENNY ARMSTRONG, J., delivered the opinion of the court, in which JOHN W. MCCLARTY and ARNOLD B. GOLDIN, JJ., joined.
Donald Capparella and Kimberly Macdonald, Nashville, Tennessee, for the appellant, Richard Alan Pearson.
Leslie Gattas Coleman and Timothy M. Ginski, Memphis, Tennessee, for the appellee, Christen Creighton Pearson.
OPINIONAppellant Richard Alan Pearson ("Husband") and Appellee Christen Creighton Pearson ("Wife") were married on May 27, 1995. At the time of the divorce, Husband was 51 years old, and Wife was 58 years old. Wife has three children from a prior marriage, and the parties have two children, both of whom are now adults.
Although neither party graduated from college, Husband began working for his family business in 1985. The family business was eventually bought by Husband's current employer, Ram Tool & Supply. In 2013, Husband began travelling extensively for work managing multiple stores in Texas and a store in Memphis. In 2014, Husband leased an apartment in New Braunfels, Texas and travelled between Memphis and Texas. While in Texas, Husband began an affair with another woman.
On April 10, 2015, Husband filed a complaint for divorce alleging inappropriate marital conduct and irreconcilable differences as grounds. At or around the time he filed the complaint for divorce, Husband moved in with his paramour. On September 9, 2015, Wife filed an answer and counter-complaint for divorce. In her pleading, Wife denied inappropriate marital conduct on her part but alleged that irreconcilable differences existed and that Husband was guilty of inappropriate marital conduct. In August 2017, Wife filed an amended complaint for divorce alleging adultery as an additional ground for divorce.
The trial was held on November 1 and 2, 2017 and January 24, 2018. As this was a long term marriage, two of the major issues at trial were Wife's need for alimony and Husband's ability to pay it. Husband was the sole provider during the parties' marriage earning an average of $358,459.54 per year. His income was comprised of two components: (1) his base salary; and (2) his annual bonus. Typically, Husband took a monthly draw in anticipation of his annual bonus. To support his contention that his future bonuses would not be comparable to those received in years past, Husband introduced a letter from his employer ("Ram Letter"). As discussed below, the letter warned Husband that he should review his monthly draw amount so that he would not face a negative balance for his 2017 bonus. The trial court sustained a hearsay objection from Wife's attorney and refused to admit the letter into evidence.
Although she was a stay-at-home mother during the parties' marriage, at the time of the divorce, Wife was working part-time at Starbucks, where she earned $9.00 per hour. The trial court determined that due to Wife's advanced age, lack of professional experience, and prior academic record, Wife could not be rehabilitated. However, the trial court also determined that Wife had an earning capacity of $28,000.00 per year. According to the trial court's findings of fact and conclusions of law, which it filed on June 7, 2018, Wife needed $9,700.00 per month to sustain a lifestyle similar to that enjoyed during the marriage. The trial court ordered Husband to pay $9,700.00 per month in alimony in futuro. Husband appeals.
This case was tried by the court sitting without a jury. As such, we review the trial court's findings of fact de novo on the record with the presumption that those findings are correct, "unless the preponderance of the evidence is otherwise." Tenn. R. App. P. 13(d). We review the trial court's conclusions of law de novo with no presumption of correctness. Gonsewski v. Gonsewski, 350 S.W.3d 99, 105-106 (Tenn. 2011); Hyneman v. Hyneman, 152 S.W.3d 549, 553 (Tenn. Ct. App. 2003).
In this case, the trial court made a specific finding that "Husband's testimony lacks credibility and is self-serving in nature." With regard to credibility determinations, this Court has stated:
When a trial court has seen and heard witnesses, especially where issues of credibility and weight of oral testimony are involved, considerable deference must be accorded to the trial court's factual findings. Further, "[o]n an issue which hinges on the credibility of witnesses, the trial court will not be reversed unless there is found in the record clear, concrete, and convincing evidence other than the oral testimony of witnesses which contradict the trial court's findings."
In re M.L.P., 228 S.W.3d 139, 143 (Tenn. Ct. App. 2007) (citing Seals v. England/Corsair Upholstery Mfg. Co., Inc., 984 S.W.2d 912, 915 (Tenn. 1999)); In re Estate of Leath, 294 S.W.3d 571, 574-75 (Tenn. Ct. App. 2008). Accordingly, where issues of credibility and weight of testimony are involved, this Court will accord considerable deference to the trial court's factual findings. In re M.L.P., 228 S.W.3d 139, 143 (Tenn. Ct. App. 2007) (citing Seals v. England/Corsair Upholstery Mfg. Co., 984 S.W.2d 912, 915 (Tenn. 1999)).
As noted above, during the trial, Husband introduced the Ram Letter, which the trial court refused to admit into evidence on the basis of hearsay. On appeal, Husband argues that the trial court erred in excluding the Ram Letter, which was sent to Husband from his personnel manager. The letter states as follows:
In presenting the letter, Husband testified that it was a "letter from the HR department requesting I take a look at my bonus." Wife's counsel objected to the letter on the ground of hearsay. Husband's counsel then asserted that the letter was a business record and, thus, fell within an exception to the hearsay rule. The trial court sustained Wife's objection and excluded the letter from evidence. On a subsequent attempt to enter the Ram Letter into evidence, Husband argued that the letter was introduced to show notice that he should review his draw, which is a "non-hearsay purpose." The trial court did not change its ruling regarding the Ram Letter despite two subsequent attempts by Husband's attorney to enter the letter into evidence.
"Hearsay" is defined as "a statement, other than one made by the declarant while testifying at the trial or hearing, offered in evidence to prove the truth of the matter asserted." Tenn. R. Evid. 801; Toms v. Toms, 98 S.W.3d 140, 144 (Tenn. 2003). To be admissible, evidence must conform to the Tennessee Rules of Evidence. However, if a hearsay statement fits under one of the exceptions, the trial court may not use the hearsay rule to suppress the statement. Kendrick v. State, 454 S.W.3d 450, 479 (Tenn. 2015). The trial court has wide discretion in admitting or excluding evidence and will be reversed on appeal only upon on showing of abuse of discretion. See Otis v. Cambridge Mut. Fire Ins. Co., 850 S.W.2d 439, 442 (Tenn.1992); Davis v. Hall, 920 S.W.2d 213, 217 (Tenn. App. 1995).
Husband's argument on appeal is two-fold. First, Husband argues that the letter is not hearsay. Second, Husband contends that if the letter is hearsay, it falls within the exception for business records. We will address each argument in turn.
Here, Husband testified that he stopped his monthly draw of $6,000.00 after receiving "a letter from the company stating that I need to closely review [my draw], and so I reviewed it." The Ram Letter is an out of court statement made by someone other than Husband, which is offered to prove the substance of its contents (i.e. that Husband should review his monthly draw so as not to overdraw his 2017 bonus). Typically, testimony received at trial is accompanied by the safeguards of cross-examination, oath, and the opportunity to observe the demeanor of the witness. Hearsay is inherently unreliable because it lacks these safeguards. The Ram Letter also lacks these safeguards as (1) the author of the letter was not present for cross-examination; (2) the author of the letter could not be observed by the trial court; and (3)...
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