Paula Harris, Conservator For Saundra Richey v. Reuben "Royce" Richey
M2021-00331-COA-R3-CV
| Tenn. Ct. App. | Dec 21, 2021Background
- In Sept. 2019 Paula Harris, as conservator for Saundra Richey, sued for legal separation alleging Husband Reuben Richey removed large sums from joint accounts and sold joint stock; the court entered a TRO and ordered an accounting.
- Husband produced an accounting and delivered $179,340.23, which the court placed in the clerk and master’s interest-bearing registry.
- Husband filed a counter-petition for divorce; Wife died on Oct. 24, 2020 before any final decree or property division.
- Husband moved to dismiss and to have the registry funds returned; Conservator argued portions belonged to Wife’s estate and urged the chancery court to retain the funds pending probate.
- The trial court dismissed the divorce/separation actions but kept jurisdiction over the registry funds, allowed limited disbursements (taxes and $4,000), and authorized attorneys’ fees from the funds; Husband appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the chancery court retained subject-matter jurisdiction to withhold/dispose of funds in its registry after Wife’s death and abatement of the divorce/separation actions | Conservator: Funds became individually owned marital funds when Husband moved them and a portion belongs to Wife’s estate; court should retain funds until probate | Husband: Actions abated on Wife’s death, court lost jurisdiction over ancillary matters and must return funds to him | Court: Actions abated on death; trial court lacked subject-matter jurisdiction to retain the registry funds. Reversed portion retaining funds and remanded for release to Husband; dismissal and fee awards otherwise unaffected. |
Key Cases Cited
- Blackburn v. Blackburn, 270 S.W.3d 42 (Tenn. 2008) (divorce actions abate upon death of a party)
- Steele v. Steele, 757 S.W.2d 340 (Tenn. Ct. App. 1988) (when a party dies before final decree the court’s jurisdiction to proceed terminates)
- Coleman v. Olson, 551 S.W.3d 686 (Tenn. 2018) (recognizes a limited equitable exception permitting remedy for statutory-injunction violations despite abatement)
- In re Estate of Fletcher, 538 S.W.3d 444 (Tenn. 2017) (funds withdrawn from a tenancy-by-the-entirety account cease to be held by the entirety)
- Word v. Metro Air Servs., Inc., 377 S.W.3d 671 (Tenn. 2012) (standard for assessing subject-matter jurisdiction)
- New v. Dumitrache, 604 S.W.3d 1 (Tenn. 2020) (court may award attorney’s fees even after dismissal for lack of subject-matter jurisdiction)
