Lewis v. Lewis
54 So. 3d 216
| Miss. | 2011Background
- This case concerns equitable distribution of a sizable marital estate with a business Legacy formed during marriage.
- The trial court valued Legacy using limited data, awarding most ownership to Drake; Tonia challenged the valuation.
- Court of Appeals partially affirmed and reversed, ordering remand for reevaluation of Legacy including goodwill.
- This Court holds that Mississippi law prohibits including goodwill in valuing the business for marital distribution.
- The opinion discusses the potential use of a special master for complex valuations and remands for proper valuation consistent with this opinion.
- Legacy’s corporate history and asset transfers occurred amid post-separation conduct affecting valuation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| May goodwill be included in valuing a marital business? | Lewis argues goodwill should be considered in valuation. | Lewis contends goodwill is not marital property for such valuation. | Goodwill must not be included in valuation. |
| Whether remand instructions should exclude goodwill and conform to Mississippi law | Lewis seeks full inclusion of assets per appellate guidance. | Drake argues against including goodwill per precedent. | Remand must value Legacy without goodwill; estate revaluation ordered. |
| Should a special master be used for complex valuation on remand? | Special master could assist due to complex, dubious evidence. | Use of a master is exceptional and costly; consent may be required. | Appointment of a special master is permitted where exceptional conditions exist; court may consider on remand. |
Key Cases Cited
- Singley v. Singley, 846 So.2d 1004 (Miss. 2002) (prohibits goodwill inclusion in marital valuation for professional practice context)
- Watson v. Watson, 882 So.2d 95 (Miss. 2004) (limits goodwill consideration in professional practice; allows enterprise goodwill as business asset in some contexts)
- Yelverton v. Yelverton, 961 So.2d 19 (Miss. 2007) (limits goodwill use when asset is a dealership; supports non-inclusion in certain cases)
- Mace v. Mace, 818 So.2d 1130 (Miss. 2002) (recognizes professional license not marital property; contextual relevance to goodwill discussion)
- Dodson v. McElreath, 48 So.2d 861 (Miss. 1950) (definition of goodwill in traditional sense)
- Lewis v. Lewis, 54 So.3d 233 (Miss. Ct. App. 2009) (appellate opinion on valuation/remand and manifest error context)