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Ann Elizabeth Llewellyn v. Ann Michelle White
2091232
| Va. Ct. App. | Jul 22, 2025
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Background

  • David and Ann Llewellyn divorced after financial struggles, including business losses and property division.
  • They initially agreed in 2012 that Ann would receive the marital residence, but by 2015, renegotiated so Brad would instead, reflecting the changed value of their assets.
  • In 2015, Ann was facing a personal injury lawsuit by White, who was injured in a car accident involving Ann.
  • The conveyance of the marital residence to Brad took place after litigation began, leading White to claim it was done to hinder her ability to collect on a potential judgment.
  • At trial, both Ann and Brad testified unequivocally that the property transfer was for equitable distribution reasons, not to avoid White's claim.
  • The trial court found fraud based on badges of fraud, but the appellate court reversed, holding their adverse witness testimony was uncontested and binding.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Was the conveyance of the marital home fraudulent under Code § 55.1-400? The transfer was to avoid liability in the personal injury suit. The transfer reflected a fair asset division unrelated to the lawsuit. No fraud; court bound by uncontested testimony denying fraudulent intent.
Does evidence of badges of fraud shift the burden to defendants? Badges sufficed to create presumption of fraud. Gave bona fide explanation through testimony; badges only shift burden temporarily. Burden shifts, but is rebutted by clear, unopposed testimony.
Can inferences and expert opinions contradict adverse party witness testimony? Robson’s expert testimony and circumstantial evidence contradicted intent. Only direct contradiction works; inferences/negative evidence insufficient. Inferences and expert analysis cannot contradict specific, uncontested testimony.
Should attorney fees be awarded based on fraudulent conveyance? Yes, transfer should be voided and fees imposed. No fraud, so no basis for fee award. No fees; no fraudulent conveyance was proved.

Key Cases Cited

  • White v. Llewellyn, 299 Va. 658 (Va. 2021) (standards for fraudulent conveyance and burden shifting when badges of fraud exist)
  • Grayson v. Westwood Bldgs. L.P., 300 Va. 25 (Va. 2021) (burden of proof shifting and review of factual findings on appeal)
  • Colas v. Tyree, 302 Va. 17 (Va. 2023) (adverse party witness rule: binding effect of uncontested testimony)
  • Economopoulos v. Kolaitis, 259 Va. 806 (Va. 2000) (adverse witness testimony must be accepted if uncontradicted and not inherently improbable)
  • Evans v. Evans, 290 Va. 176 (Va. 2015) (creditor cannot attach property held as tenants by the entirety)
  • Vasilion v. Vasilion, 192 Va. 735 (Va. 1951) (even intentional transfer to evade creditor of one spouse does not defeat entirety property rules)
Read the full case

Case Details

Case Name: Ann Elizabeth Llewellyn v. Ann Michelle White
Court Name: Court of Appeals of Virginia
Date Published: Jul 22, 2025
Docket Number: 2091232
Court Abbreviation: Va. Ct. App.