Holloway v. Holloway

Docket: No. 2008-CA-00676-COA

Court: Court of Appeals of Mississippi; October 27, 2009; Mississippi; State Appellate Court

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Twyla Holloway successfully counterclaimed for divorce from Joel Holloway due to his uncondoned adultery. On appeal, Joel contests the Jones County Chancery Court's orders for him to pay $1,400 monthly in child support and approximately $11,000 in attorneys' fees. The couple, married since August 26, 1988, separated in June 2006. Joel initially sought a divorce citing Twyla's alleged cruel treatment or irreconcilable differences. In response, Twyla counterclaimed, citing Joel’s adultery and also requested a divorce based on irreconcilable differences.

During a bifurcated trial, the chancellor ruled that Twyla was entitled to a divorce due to Joel’s adultery, rejecting Joel’s claims against Twyla. By August 2007, they agreed on the division of marital property, and the chancellor later addressed child support and attorneys' fees. The chancellor calculated Joel’s gross monthly income at $6,403.41, requiring him to pay 22% for child support. Given the special educational needs of one child diagnosed with Attention Deficit Disorder and the family's decision to enroll all children in a private school, the chancellor deemed it reasonable to deviate from standard child support guidelines. 

Regarding attorneys' fees, Joel did not object to the amount requested by Twyla’s attorneys, leading the chancellor to order him to pay $11,071.72. Joel appealed the decision. The Court reviews a chancellor’s factual findings for substantial evidence and legal standards de novo, reversing only for abuse of discretion or manifest error.

Joel challenges the chancellor’s child support ruling on two grounds: the calculation of his adjusted gross income and the factual findings underlying that determination. The Mississippi Code outlines the methodology for calculating adjusted gross income, requiring inclusion of all potential income sources and a subtraction of legally mandated deductions such as taxes and social security contributions.

The chancellor based Joel's income on a pay stub from early June 2007, projecting an annual adjusted gross income of $76,840.92, which translates to a monthly income of $6,403.41. This figure resulted in a child support obligation of $1,408.75 for three children, calculated at 22%. However, the chancellor did not provide a clear explanation for how he derived this annual income, which appears to stem from an incorrect extrapolation of Joel’s year-to-date earnings. The recalculated projected gross annual income is $75,428.36.

Furthermore, Joel's year-to-date gross earnings did not account for mandatory deductions totaling $6,904.65 in taxes and other contributions, which the chancellor failed to subtract from the gross income. This omission constitutes a clear error, as required by the statutory guidelines.

A calculation error similar to that in *Lee v. Stewart* was identified, where the chancellor failed to subtract mandatory deductions from a non-custodial parent's gross income, leading to a reversal of the child support award and a remand for recalculation. The court emphasized that the remand does not limit the chancellor's consideration of Joel’s income sources beyond his primary employment. Joel contested the chancellor's deviation from statutory child support guidelines, questioning the necessity for his children to attend Heidelberg Academy and disputing certain factual findings. He argued for clarity in the application of guidelines concerning non-custodial parents with adjusted gross incomes over $50,000, highlighting inconsistencies in court practices. However, the court declined to establish a definitive rule, deeming the issue moot due to the remand. Furthermore, the court refrained from addressing Joel's arguments about school attendance and factual disputes to avoid influencing the chancellor's decisions on remand.

Regarding attorneys' fees, the chancellor's order for Joel to pay Twyla $11,071.72 was challenged by Joel, who contended that Twyla had adequate financial resources, as evidenced by her receiving the full balance of her retirement account, to cover her legal fees. He referenced *Crowe v. Crowe* to support his assertion that an award for attorneys' fees is unwarranted when a party can financially afford to pay their attorney.

The trial court has discretion in awarding attorney's fees in divorce cases, as established in Cheatham v. Cheatham. The chancellor did not abuse this discretion in awarding fees to Twyla, who demonstrated financial inability to pay her attorney and had to borrow money for fees. Joel's deceptive conduct during the proceedings led to Twyla incurring additional legal expenses. He made unsubstantiated claims of cruel and inhuman treatment against Twyla, which did not meet the legal threshold and were contradicted by her testimony. Furthermore, Twyla accused Joel of infidelity, which he denied, but evidence and testimonies confirmed his affair with Tracy Pryor. Joel's evasiveness extended to questions about his alcoholism; despite denying it, he acknowledged frequent drinking and past incidents of driving under the influence. The chancellor noted that dishonesty in court incurs consequences. Ultimately, the court found no error in the award of attorney’s fees, as Twyla's financial constraints and the additional costs incurred due to Joel's lack of truthfulness justified the decision. Joel did not contest the amount of fees requested, and his claims were dismissed after he rested his case, leading to the conclusion that his appeal lacked merit.

Twyla successfully filed a motion for attorneys’ fees on appeal, with the Court typically awarding fees amounting to half of the lower court's award. In this case, the Court awarded Twyla $5,535.86, which is half of the previous award of $11,071.72. The Court affirmed in part and reversed and remanded in part the judgment from the Jones County Chancery Court for further proceedings. All costs of the appeal are equally divided between the parties. 

Additionally, a temporary order granted Twyla primary physical custody of the children and mandated Joel to pay temporary child support. Joel testified about his off-shore work and side earnings from his brother-in-law's metal roofing business, claiming he earned $350 for a week’s work, which he insisted was solely for his personal benefit. He expressed reluctance to report this income on his tax returns and dismissed inquiries about his ongoing side work, indicating that it was not others' business.