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