Karen H. Foster v. Douglas S. Foster
M2016-01749-COA-R3-CV
Tenn. Ct. App.Jul 14, 2017Background
- Parties divorced in 2006 after 13 years of marriage; Husband (Army) had 14 years’ service and rank of Captain at the divorce.
- Marital dissolution agreement, ¶6, awarded Wife “33% of the Husband’s disposable retirement pay at the grade of Captain” for 156 months, payable regardless of whether Husband later attained a higher rank; Wife released Husband from further payments after term.
- Husband retired in May 2015 as a Major with 23 years’ service; DFAS would not pay Wife without a clarifying court order stating a percentage of actual disposable retired pay or a fixed dollar amount.
- Wife sought court enforcement; Husband argued the award was calculable at divorce (33% of Captain pay based on 2006 accrued benefits = $465.86) and alternatively relied on emails where Wife earlier accepted $465.86.
- Trial court applied the retained-jurisdiction method, awarding Wife 33% of the actual disposable retirement pay a Captain retiring with Husband’s service would receive (33% of $3,844 = $1,281.33/month) for 156 months and judgment for past-due amounts; denied contempt and trial fees.
- On appeal, the Court of Appeals affirmed, held Husband violated the agreement, and remanded for award of Wife’s reasonable appellate attorney’s fees under the contract.
Issues
| Issue | Foster (Wife) Argument | Foster (Husband) Argument | Held |
|---|---|---|---|
| Proper valuation method for Wife’s 33% award | Use retained-jurisdiction: 33% of Captain’s actual disposable pay when Husband retired | Treat award as alimony in solido calculable at divorce; use 2006 accrued Captain pay (33% = $465.86) | Retained-jurisdiction appropriate; award is 33% of Captain’s actual disposable retirement pay at retirement (affirmed) |
| Effect of Wife’s pre-litigation emails acknowledging $465.86 | Emails not binding where agreement language is clear and unambiguous | Emails show parties’ intent to fix amount at $465.86 | Emails do not override clear contract language; Wife not bound by $465.86 acknowledgment |
| Whether Wife may recover appellate attorney’s fees | Contract authorizes fees for enforcement; prevailing party entitled to fees on appeal | No discretion to deny contractual fee provision | Wife entitled to reasonable appellate attorney’s fees; remanded to quantify amount |
Key Cases Cited
- Barnes v. Barnes, 193 S.W.3d 495 (Tenn. 2006) (marital dissolution agreements interpreted as contracts)
- Buettner v. Buettner, 183 S.W.3d 354 (Tenn. Ct. App. 2005) (contractual intent at execution governs interpretation)
- Cohen v. Cohen, 937 S.W.2d 823 (Tenn. 1996) (vested vs. unvested retirement rights; marital property includes both)
- Kendrick v. Kendrick, 902 S.W.2d 918 (Tenn. Ct. App. 1994) (present-value vs. retained-jurisdiction methods; retained jurisdiction appropriate for unvested rights)
- Long v. McAllister-Long, 221 S.W.3d 1 (Tenn. Ct. App. 2006) (marital dissolution provisions construed like other contracts)
- Honeycutt v. Honeycutt, 152 S.W.3d 556 (Tenn. Ct. App. 2003) (clear, unambiguous contract language must be enforced as written)
- Cracker Barrel Old Country Store, Inc. v. Emerson, 284 S.W.3d 303 (Tenn. 2009) (American Rule on attorney’s fees; fees recoverable only by contract or statute)
