City of Gatlinburg v. Maury R. Greenstein
E2016-01739-COA-R3-CV
| Tenn. Ct. App. | Jun 29, 2017Background
- City of Gatlinburg obtained a final judgment of $45,175 against Maury and Joan Greenstein for unpaid maintenance fees on commercial rental properties in Gatlinburg; the Greensteins did not appeal the final judgment.
- After the appeal period lapsed, the Greensteins moved under Tenn. Code Ann. § 26-2-216 to pay the judgment in monthly installments of $1,250, supported by an affidavit claiming recent rental losses.
- City opposed, submitting testimony from the Greensteins’ lessee that the 175 units produced significant weekly income and deeds showing the Greensteins owned additional properties in Tennessee, Ohio, and Florida.
- The Greensteins’ affidavit omitted ownership of out-of-state properties and did not explain how other properties were maintained, insured, or taxed; they later asserted post-judgment wildfire damage to their Tennessee properties.
- The trial court held a hearing (no transcript available) and overruled the slow-pay motion; the Greensteins timely appealed the denial.
Issues
| Issue | Greensteins' Argument | City of Gatlinburg's Argument | Held |
|---|---|---|---|
| Whether trial court erred by denying motion to pay judgment by installments under Tenn. Code Ann. § 26-2-216 | Court should have followed Supreme Court guidance and include findings of fact and conclusions of law; denial was improper | Statute requires debtor affidavit showing inability to pay from other assets; record shows other assets and contradictory evidence | Affirmed — trial court did not abuse discretion in denying installment payments |
| Whether trial court erred based on the evidentiary record | Affidavit (and later wildfire assertion) showed inability to pay and changed circumstances warranting installment plan | City presented evidence of substantial rental income and undisclosed property ownership undermining affidavit | Affirmed — Greensteins failed to show lack of other available assets and record supports denial |
Key Cases Cited
- Eldridge v. Eldridge, 42 S.W.3d 82 (Tenn. 2001) (abuse-of-discretion standard for appellate review of discretionary trial-court rulings)
- Wright v. Wright, 337 S.W.3d 166 (Tenn. 2011) (definition of abuse of discretion includes application of incorrect legal standard or illogical decision)
- Harrington v. Harrington, 759 S.W.2d 664 (Tenn. 1988) (interpretation of statute requiring debtor affidavit that no other assets are available for payment)
- Jackson v. Smith, 387 S.W.3d 486 (Tenn. 2012) (burden on appellant to provide record showing trial court abused its discretion)