1 Cons o l i d a t i on Co a l Co m p a ny wa s m

a d e a pa r t y i n t h e pet i t i on now on a ppe a l t o enj o i n t h e t r a n s f e r of any f unds or as s e t s hel d f o r t h e bene f i t of M r . Ch a d w

e l l and t o r e qui r e a f u l l ac c ount i ng of s u c h f unds .



# FILED October 1, 1996 Cecil Crowson, Jr. App ellate C ou rt Clerk I N THECOUR

TOFAPPEALSOFTENNES SEE EA STER N SEC TI O N

FAYE LOUI SETAYLOR

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AM PBELLCOUNTY ) 03A 01- 9601- G

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) ) v. ) HON. BI LLY J OEW HI TE, ) C HANC ELLOR ) ( Si t t i ng by I nt e r c ha nge ) A LBER T C H A D W ELL a n d ) CONSOLI DATI ON C

OAL COM PANY

1 ) ) D e f e nda nt s - A

ppe l l a nt s ) AFFI R M ED AND R

EM ANDED

J ER R OLD L. BECKER

a n dLUC

I NDA M . ALBI STON OFKNOXVI LLEFOR A PPELLA N TS J OHNNY V. DUNAW

AY OFLa FOLLETTEOFKNOXVI LLEFOR APPELLEE

O PI N I O N

G odda r d, P. J .

I n t hi s pos t - di vor c e pr oc e e di ng, t he C ha nc e l l or f ound t h a t c e r t a i na s s e t s o w ne db yA

l b e r t C

h a dw e ll a t the tim

e o f the p a r t i e s ’ di v or ce w e r e m a r i t a l as s e t s andt h a t hi s f or m e r w i f e ,2

Fa ye Loui s e Ta yl or C ha dw e l l , w a s e nt i t l e d t o a j udgm e nt a ga i ns t hi m of $94, 320 w

hi c h i nc l ude d i nt e r e s t f r om t he da t e of t he di v or ce. The C

h a ncel l or al s oi m pr e s s e da l i e nag a i n s t cer t a i n r e a l e s t a t e or i gi na l l y ow ne d by M

r . C ha dw e l l , w ho l a t e r pur por t e d t otr a n s f e r a nint e r e s t tohi s pr e s e nt w i f e . Bo t hthe r e a l e s t a t e andt he ho m e M r . C h a dw e l l er ect e dt he r e o nw e r e p a i df or i n p a r t w iththe a s s e t s indi s put e inthi s a pp e a l .

The pr i nc i pa l que s t i on t o be de c i de d i n t hi s a ppe a l i s w he t he r a n or de r e nt e r e d i n a pr e vi ous pr oc e e di ng be t w e e n t he p a r tie s f oun dth a t M r s . Ch a dw

e ll w a s n o t e ntitle dtothe s e s pe c i f i c f unds , t hus ba r r i ng he r c l a i m unde r t he t he or y or r e s j u di c a t a .
The pa r t i e s w e r e m a r r i e d on O

c t obe r 8, 1966. Thr oughout t he i r 18- ye a r m a r r i a ge , M

r . C ha dw e l l w a s e m pl oye d by C ons ol i da t i on C

oa l C om pa ny. By 1984, M r . C ha dw e l l ha d t hr e e a c c ount s t hr ough hi s e m pl oym e nt a t C

ons ol i da t i on C

oa l C om pa ny: a n Em pl oye e R

e t i r e m e nt of C

ons ol I nc . ( r e t i r e m e nt pl a n) w

hi c h be c a m

e ve s t e d J une 1, 1983; a C onoc o Em

pl oye e s St oc k O

w ne r s hi p Pl a n ( C ES O P) c om pos e d e nt i r e l y of D uPont s t oc k; a nd a n I nve s t m e nt Pl a n f or S a l a r i e d Em

pl oye e s of C

ons ol ( i nve s t m

e nt pl a n) .
The m a r r i a g e w

a s t e r m

i n a t e db ya Fi n a l D ecr ee o f D i vor c e e nt e r e d on J une 11, 1984. The Fi na l D e c r e e pr ovi de d i n pa r t :3

5. Tha t Fa ye Loui s e Ta yl or C ha dw e l l i s a w

a r de d t he 1974 G r a nd Pr i x a ut om

obi l e a nd a l l ot he r pe r s ona l pr ope r t y a c qui r e d by t he pa r t i e s , e xc e pt t he s t oc k accum ul a t e db yA

l b e r t C

h a dw e l l at hi s p l ace of e m pl oym e nt , w hi c h s t oc k i s a w

a r de d 50%

t o A l be r t C ha dw e l l a nd 50%

t o Fa ye Loui s e Ta yl or C ha dw e l l , w i t h e a c h pa r t y t o be r e s pons i bl e f or hi s r e s pe c t i ve s ha r e o f i nc o m

e t a xdu e at s u c ht i m e as anyt a x e s ar e du e o n t he s a i dr e s p ect i v e p a r t y ’ s s t o c k . The s t oc k m

e nt i one d i n t he D e c r e e w

a s not f ur t he r i de nt i f i e d or de f i ne d by t he D e c r e e . The r e w

a s no va l ua t i on of t he s t oc k a t t he t i m e of t he di vor c e . H ow e ve r , M

s . C ha dw e l l a ve r r e d i n he r or i gi na l c om pl a i nt f or di vor c e t ha t t he s t oc k w a s w or t h a ppr oxi m

a t e l y $50, 000. The r e w a s no di s t r i but i on of t he s t oc k or t he pr oc e e ds t he r e of t o M s . C ha dw e l l .
A he a r i ng w

a s c onduc t e d on J une 4, 1986, i n t he G e ne r a l Se s s i ons C

our t f or Ca m

pbe l l C

ount y. The C

our t f ound t ha t M r . C h a dw e l l "ow

n s ani nt e r e s t i na r e t i r e m e nt i nv e s t m

e nt account or s t oc k a c c ount i n hi s e m pl oye r , " a nd t ha t t he a c c ount ha d dr a w n a m i ni m a l of 10 pe r c e nt i nt e r e s t s i nc e t he e nt r y of t he Fi na l D e c r e e . The C

our t or de r e d hi m

t o pr ovi de ve r i f i c a t i on of t he a m ount s i n t he i nve s t m e nt a c c ount s , t o de t e r m i ne t he pr e s e nt va l ue of t he a c c ount s , a nd t o pr ovi de M s . C ha dw e l l w i t h a c c e s s t o t he r e c or ds pe r t a i ni ng t o t he a c c ount s .

O n Fe br ua r y 19, 1988, t he C our t a t t e m

pt e d t o de t e r m

i ne M s . Ch a dw

e ll’ s int e r e s t inthe r e tir e m e nt p l a nun de r the Fi n a l D e c r e e . The C

our t f ound t ha t " [ t ] he r e t i r e m e nt pl a n f unds w

hi c h a r e a t i s s ue i n t hi s a c t i on a r e not m e nt i one d pe r s e i n t he de c r e e . . . . G

i ve n t he di s t i nc t i ve na t ur e a nd l a r ge a m ount of4

t he r e t i r e m

e nt pl a n i n 1984 i t w oul d s e e m

l ogi c a l t ha t i t w oul d be a ddr e s s e d i n i t s ow n t e r m s r a t he r t ha n l um pe d i n w

i t h t he t e r m s t o c k . " The C

h a ncel l or s t a t e dt h a t t he i s s u e o f M s . C h a dw e l l ’ s i nt e r e s t i n t he r e t i r e m e nt a c c ount c oul d a nd s houl d ha ve be e n l i t i ga t e d i n 1984 a t w hi c h t i m

e t he pa r t i e s ha d know l e dge of i t but di d not i nc l ude i t i n a di vi s i on of t he i r m a r i t a l pr ope r t y. Thus , t he C

ha nc e l l or he l d t ha t unde r t he Fi na l D e c r e e , M

s . C ha dw e l l ha d no i nt e r e s t i n t he r e t i r e m e nt a c c ount . M

s . C ha dw e l l di d not a ppe a l t he C our t ’ s f i ndi ngs .
I n t he f ol l ow

i ng ye a r s , M

r . C ha dw e l l f a i l e d t o pr ovi de ve r i f i c a t i on of t he s t oc k or i nve s t m e nt a c c ount s a nd he f a i l e d t o m a ke a ny di s t r i but i ons t o M s . C ha dw e l l a s or de r e d by t he c our t i n 1984 a nd 1986. M s . C ha dw e l l f i l e d a pe t i t i on f or c ont e m pt on N ove m be r 23, 1993, s e e ki ng va l ua t i on of t he he r i nt e r e s t i n M r . C ha dw e l l ’ s hol di ngs w

i t h hi s e m

pl oye r a nd a j udgm e nt f or he r one - h a l f int e r e s t. The C our t he l dth a t M

r . Ch a dw

e ll w a s inc o nt e m

p t f or f a i l i ng t o pr ovi de ve r i f i c a t i on of t he a c c ount s a nd f or f a i l i ng t o di s t r i but e 50 pe r c e nt of t he va l ue of t he a c c ount s a s he w a s or de r e d t o do by t he C our t i n 1984 a nd 1986. The C our t a l s o m a de a f i ndi ng t ha t t he va l ue of t he a c c ount s w a s no l e s s t ha n $84, 927. 99, one ha l f of w hi c h w a s ow e d t o M

s . C ha dw e l l . O n M a r c h 9, 1995, M

s . C ha dw e l l f i l e d a n a m

e nde d pe t i t i on f or c ont e m pt a ddi ng M

r . C ha dw e l l ’ s c ur r e nt w

i f e , D onna M a r i e C h a dw e ll. M

s . Ch a dw

e ll c o m

p l a i ne dth a t M

r . Ch a dw

e ll a n d hi s pr e s e nt w

i f e ha d us e d M

s . C ha dw e l l ’ s por t i on of t he s t oc k5

f unds t o pur c ha s e r e a l pr ope r t y a nd c ons t r uc t a hous e . The p e titiona lle g e dth a t M r . Ch a dw

e ll h a da tte m

p t e dtoa v o i dM

s . C ha dw e l l ’ s c l a i m

s a s a j udgm

e nt c r e di t or by c onve yi ng t he r e a l pr ope r t y a nd t he hous e t o hi s c ur r e nt w i f e . M

r . C ha dw e l l r e s ponde d t o t he pe t i t i on by a n a ns w e r i n t he f or m

of a ge ne r a l de ni a l a l l e gi ng no a f f i r m a t i ve de f e ns e s .
A t t r i a l on J ul y 12, 1995, M r . C ha dw e l l ’ s r e t i r e m

e nt pl a n, t he i nve s t m e nt pl a n a nd t he C ES O Pw e r e i de nt i f i e d t hr ough t he t e s t i m

ony of t he s upe r vi s or of qua l i f i e d be ne f i t s a t C ons ol i da t i on C

oa l C om pa ny. I t w

a s e s t a bl i s he d t ha t a l l t hr e e account s w

e r e i nexi s t e nce at t he t i m e o f t he Fi n a l D

ecr ee i n 1984. The r e t i r e m e nt pl a n be c a m

e ve s t e d a s of 1983 a nd M r . C ha dw e l l w oul d be a bl e t o dr a w be ne f i t s f r om

i t i n 1998. M

r . C ha dw e l l ’ s i nve s t m

e nt pl a n w

a s m a de up e nt i r e l y of s t oc k unt i l 1981 a t w

hi c h t i m

e i t w a s c onve r t e d i nt o a de pos i t s a vi ngs a c c ount . The pl a n a l l ow e d f or up t o t hr e e pa r t i a l w i t hdr a w

a l s p e r y ear anda t o t a l w i t hdr a w

a l at anyt i m

e . The C

ES O Pw a s c om pos e d e nt i r e l y of D uPont s t oc k a nd c oul d not be w i t hdr a w

n until M

r . Ch a dw

e ll te r m

i n a t e dhi s e m

p l o y m e nt .

M r . Ch a dw

e ll te r m

i n a t e dhi s e m

p l o y m e nt w ith C ons ol i da t i on C

oa l C om pa ny on D

e c e m be r 31, 1990. H

e l i qui da t e d hi s C ES O Pa c c ount on N

ove m be r 19, 1992, f or t he s um of $14, 648. 37. H

e m a de no di s t r i but i on t o M s . C ha dw e l l a f t e r t he l i qui da t i on. The r e w a s e vi de nc e s ubm

i t t e d t ha t M

r . C ha dw e l l w i t hdr e w

a t ot a l of $187, 044. 16 f r om t he i nve s t m

e nt pl a n a f t e r6

t he Fi n a l D

e c r e e . Fr o m

thi s a c c ount, M

r . Ch a dw

e ll di s t r i but e d $1, 245 t o M

s . C ha dw e l l i n Fe br ua r y of 1986.

The r e w

a s evi de nce at t r i a l t h a t M s . C h a dw e l l w a s a hom e m a ke r t hr oughout t he m a r r i a ge a nd di d not de a l w i t h t he a c c ount s i n a ny w a y. M s . C ha dw e l l t e s t i f i e d t ha t he r hus ba nd a l w a ys r efer r e dt ot he a c c ount s g e neri c al l yas "st o c k. " A l s o , t he r e w

a s t e s t i m

ony t ha t M

r . C ha dw e l l a dm

i t t e d i n 1984 t ha t M s . C ha dw e l l ’ s s ha r e of t he a c c ount s he he l d w i t h hi s e m

pl oye r w

a s $26, 000 a nd t ha t he pe r s ua de d he r t o l e a ve t he s t oc k i n t he a c c ount s on t he r e pr e s e nt a t i on t he s t oc k w oul d e a r n m

or e i nt e r e s t i f it w

a s le f t w

ithM r . Ch a dw

e ll. M

s . Ch a dw

e ll c h o s e n o t to l i qui da t e or w

i t hdr a w

he r s h a r e a t t h a t t i m e .
M r . Ch a dw

e ll a s s e r t e da t tr i a l th a t he w a s o nl y r e qui r e d t o s ha r e w i t h M s . C ha dw e l l t he hol di ngs i n t he C ES O P w hi c h , at t he t i m

e o f t he Fi n a l D

ecr ee, he s t a t e dw a s w or t h $2, 000. M

r . C ha dw e l l a s s e r t e d t ha t he pa i d M s . C ha dw e l l a l l f unds due t o he r f r om t he C ES O Pi n 1986 by c he c k. M s . C ha dw e l l t e s t i f i e d t ha t t he c he c k w a s f r om

t he i nve s t m

e nt pl a n a nd w

a s f or t he i r c hi l dr e n. M r . C ha dw e l l a dm

i t t e d dur i ng c r os s - e xa m i na t i on t h a t he al t e r e dt he checkaf t e r i t w a s r e t ur ne dt ohi m s ot h a t i t w oul d e r r one ous l y i ndi c a t e t ha t i t c a m e f r om t he C ES O Pr a t he r t ha n t he i nve s t m

e nt a c c ount .
M r . Ch a dw

e ll te s tif i e dth a t the inv e s t m e nt p l a nw

a s pa r t of hi s r e t i r e m e nt pl a n. H

ow e ve r , t he r e w

a s t e s t i m

ony f r om7

t he s upe r vi s or of qua l i f i e d be ne f i t s a t C ons ol i da t i on C

oa l C om pa ny t ha t t he i nve s t m e nt pl a n a nd t he r e t i r e m e nt pl a n w

e r e t w o s e p a r a t e anddi s t i nc t account s .

The Tr i a l C

our t f ound t ha t M s . C ha dw e l l ha d a one - ha l f i nt e r e s t i n t he C ES O Pa nd i n t he i nve s t m e nt pl a n. The C

our t f ound t ha t l i t i ga t i on of t he r e t i r e m e nt a c c ount w

a s ba r r e d by r e s j u di c a t a a r i s i ng f r om t he 1986 he a r i ng. The Tr i a l C our t a w

a r de d M s . C ha dw e l l a j udgm

e nt of $94, 320 r e pr e s e nt i ng he r s ha r e of t he C ES O Pa nd t he i nve s t m e nt pl a n a nd i m

pos e d a l i e n upon M r . C ha dw e l l ’ s r e a l pr ope r t y t o s e c ur e pa ym e nt of t he j udgm

e nt . A f t e r t r i a l , t he C h a ncel l or s e t as i de t he deedf r o m M r . C h a dw e l l t o hi s c ur r e nt w

i f e a s a f r a udul e nt c onve ya nc e .
I nt hi s app eal , M r . C h a dw e l l h a s r a i s e ds e v e r a l i s s u e s , a l l of w

hi c h a r e ba s e d on t he doc t r i ne of r e s j u di c a t a . Ho we v e r , M s . C h a dw e l l as s e r t s t h a t b ecau s e M r . C h a dw e l l f a i l e dt o a f f i r m a t i v e l yp l eadt he de f e n s e o f r e s j u di cat a hi s access t o t hi s de f e ns e ha s be e n w a i ve d. M

r . C ha dw e l l ’ s onl y r e s pons i ve pl e a di ng w

a s i n t he f or m

of a ge ne r a l de ni a l a nd he f a i l e d t o s t a t e anyaf f i r m

a t i v e de f e n s e s .
R ul e 8. 3 of t he Te nne s s e e R ul e s of C

i vi l Pr oc e dur e r e qui r e s th a t a p a r t ya f f i r m a tiv e l ys e t f or t hf a c t s r e lie dup o n t o e s t a bl i s h a n a f f i r m a t i ve de f e ns e i n a r e s pons i ve pl e a di ng. The r ul e e xp lic itlym e ntion s r e s j u di c a t a as s u c hanaf f i r m a t i v e de f e n s e . R

ul e 12. 08 of t he Te nne s s e e R ul e s of C

i vi l Pr oc e dur e8

pr ovi de s t ha t de f e ns e s not pr ope r l y r a i s e d a r e w a i ve d. Thus , f a i l ur e t or a i s e t he de f e n s e o f r e s j u di c a t a i n a r e s pons i ve p l e a di ngw

ill a c t a s a w

a i v e r o f a p a r t y ’ s a b ilitytor a i s e th a t de f e n s e .

H

ow e ve r , R

ul e 15. 02 of t he Te nne s s e e R ul e s of C

i vi l Pr oc e dur e s t a t e s " [ w ] he n i s s ue s not r a i s e d by t he pl e a di ngs a r e t r i e d by e xpr e s s or i m pl i e d c ons e nt of t he pa r t i e s , t he y s ha l l be t r eat e di nal l r e s p ect s as i f t he yh a db eenr a i s e di nt he pl e a di ngs . " The R ul e s t a t e s t ha t t he pl e a di ngs m a y be a m

e nde d a t a ny t i m

e s o a s t o c onf or m t o t he e vi de nc e pr e s e nt e d a t t r i a l but f a ilur e toa m

e n dthe p l e a di ng s w ill no t a f f e c t the r e s ult o f the t r i a l o f the is s u e s . A nis s u e is tr i e db yim p lie dc o n s e nt w

he n t he pa r t y oppos i ng t he i s s ue kne w or s houl d r e a s ona bl y ha ve know n of t he e vi de nc e r e l a t i ng t o t he ne w i s s ue , di d not obj e c t t o t he e vi de nc e , a nd w

a s not pr ej udi c e d by t he i nc l us i on of t he e vi de nce. ZackC heekBui l de r s , I nc . v . M c Le o d , 597 S . W

. 2d 888 ( Te nn. 1980) . Se e a l s o C hi s hol m

v. Boha nnon , 558 S . W . 2d 446 ( Te nn. A

pp. 1977) .
A l t hough M

r . C ha dw e l l di d not s pe c i f i c a l l y pl e a d r e s j u di c a t a a s r e qui r e d by R ul e 8. 3, t he i s s ue w a s r a i s e d t hr ough t e s t i m ony a t t r i a l . The r e w a s no obj e c t i on m a de on be ha l f of M s . C ha dw e l l t ha t t he e vi de nc e w a s be yond t he s c ope of t he pl e a di ngs . I n hi s opi ni on, t he C ha nc e l l or m

a de a s pe c i f i c r ul i ng a s t o t he i ssue o f r e s j u di c a t a . Fi na l l y, t he i s s ue w a s a r gue d on be ha l f2 W e ex p r ess n o o p i n i o n as t o w h e t h e r t h e i s s u e co u l d h a v e b een r a i s e d i n a m

o t i on f o r newt r i a l . Ra t h e r , w e m e r e l y r e c ogni z e t h a t t h e i s s u e was bef o r e t h e Co u r t b o t h d u r i n g t h e t r i a l st a g e an d p o s t - t r i a l . 9 of M r . C ha dw e l l i n a m

ot i on f or ne w

t r i a l . 2Thus , w

e f i nd t ha t t he i s s ue w

a s t r i e d by i m

pl i e d c ons e nt a nd M r . C ha dw e l l ha s not w a i ve d hi s r i ght t o a s s e r t t hi s de f e ns e .

M r . C h a dw e l l as s e r t s t h a t , b a s e do na r e s j u di c a t a t he or y, t he Tr i a l C our t s houl d ha ve be e n pr e c l ude d f r om litig a tingthe is s u e o f w he t he r M

s . Ch a dw

e ll h a dr i ght s inthe C ES O Pa nd t he i nve s t m e nt pl a n. H

e a r gue s t ha t t he i s s ue s w e r e pr e vi ous l y l i t i ga t e d i n 1984 a nd 1988.

The de f e n s e o f r e s j u di c a t a w ill b e a v a ila b l e if the pa r t y a s s e r t i ng t he de f e ns e c a n s how t ha t t he pr i or j udgm e nt w a s by a c our t of c om pe t e nt j ur i s di c t i on, t ha t t he s a m e pa r t i e s w

e r e i nvol ve d i n bot h s ui t s , t ha t t he s a m e c a us e of a c t i on w a s i nvol ve d i n bot h s ui t s , a nd t ha t t he unde r l yi ng j udgm e nt w a s on t he m e r i t s . Lee v . H

a l l , 790 S . W

. 2d 293 ( Te nn. A

pp. 1990) . A pr i or ju dg m

e nt w ill pr e c l u de o nl ym a tte r s th a t w

e r e a t is s u e in t he pr i or j udgm

e nt . " [ T] he a dj udi c a t i on, t o be c onc l us i ve , s houl d be upon t he ve r y poi nt br ought di r e c t l y i n i s s ue by t he pl e a di ngs . " W

hite v . W

hite , 876 S . W

. 2d 837 ( Te nn. 1994) .
A s s t a t e d a bove , t he C our t i n 1984 e nt e r e d a Fi na l D e c r e e s e t t i ng f or t h t he r i ght s a nd dut i e s of t he pa r t i e s . A s a l r eadyn o t e d , t he Fi n a l D ecr ee g e ne r i cal l ys t a t e dt h a t M s . C h a dw e l l w a s t or ecei v e 5 0p e r cent o f t he "s t o c k " t h a t M r .10

C ha dw e l l ha d i n C

ons ol i da t i on C

oa l C om pa ny. The r e w

a s e vi de nc e a t tr i a l th a t M

r . Ch a dw

e ll r e f e r r e dtoa ll inv e s t m e nt a n d r e t i r e m

e nt a c c ount s w

i t h hi s e m

pl oye r a s " s t oc k. " The de f i ni t i on a nd e xt e nt of t ha t t e r m w e r e not a t i s s ue a nd w e r e not l i t i ga t e d. I t s eem

s axi o m

a t i c t h a t t he i s s u a nce o f a di v or ce decr ee w i l l n o t be r e s j u di c a t a as t oani s s u e t h a t ar i s e s as t ot he i nt e r pr e t a tiono f the de c r e e its e l f . M r . Ch a dw

e ll a r gu e s th a t t he i s s ue c oul d ha ve a nd s houl d ha ve be e n l i t i ga t e d w he n t he decr ee w

a s i s s u e d . But , i t s eem s cl ear t h a t t he r e w a s n oi s s u e unt i l t he i nt e r pr e t a t i on of t he t e r m " s t oc k" be c a m

e di s put e d.

A t is s u e inthe 1 9 8 8 litig a tionw a s , a s s t a t e db ythe C ha nc e l l or i n t ha t pr oc e e di ng, " w he t he r Fa ye C

ha dw e l l w a s e ntitle dtoa f ull or p a r tia l int e r e s t or s h a r e ina r e tir e m e nt pl a n of A

l be r t C

ha dw e l l . " The i s s ue of M s . C ha dw e l l ’ s i nt e r e s t i n t he C

ES O Pa nd t he i nve s t m e nt pl a n w

e r e not a ddr e s s e d. The Tr i a l C

our t inth a t a c tionhe l dth a t the is s u e o f M s . Ch a dw

e ll’ s i nt e r e s t i n t he r e t i r e m e nt a c c ount s houl d ha ve be e n l i t i ga t e d i n 1984 a nd he de c l i ne d t o r e a d t he Fi na l D e c r e e br oa dl y e nough t o i nc l ude t he r e t i r e m e nt pl a n. The Tr i a l C our t i n t he pr e s e nt c a s e a ppl i e d r e s j u di c a t a w i t hr e s p ect t ot he r e t i r e m e nt account a l t hough t he C

ha nc e l l or e xpr e s s e d doubt s a s t o t he s oundne s s of t he 1 9 8 6de c i s i o n . N e v e r t he l e s s , it is c l e a r th a t the is s u e o f t he e xt e nt o f M

s . Ch a dw

e ll’ s int e r e s t inthe C ES O Pa n dthe i nve s t m

e nt pl a n w

e r e not r a i s e d or de c i de d i n t he 1988 pr oc e e di ng.11 A l s o , th e litig a tionin1 9 8 8 a r o s e f r o m a p e tition f i l e d by M

s . C ha dw e l l s e e ki ng t o c om pe l M r . C ha dw e l l t o pr ovi de ve r i f i c a t i on of t he va l ue of t he " s t oc k" w hi c h he ha d f a i l e d t o do i n vi ol a t i on of a c our t or de r i s s ue d i n 1984 a nd 1986. A l l s ubs e que nt a c t i on be t w e e n t he pa r t i e s c ha r ge d M r . C ha dw e l l w i t h c ont e m pt f or f a i l ur e t o pr ovi de ve r i f i c a t i on of hi s hol di ngs w i t h C ons ol i da t i on C

oa l C om pa ny a nd f or f a i l ur e t o m a ke di s t r i but i ons f r om t hos e hol di ngs t o M s . C ha dw e l l . W

i t h t he e xc e pt i on of s e e ki ng t o c om

pe l M r . C ha dw e l l t o c om

pl y w i t h t he pr i or c our t or de r s , none of t he i s s ue s pr e s e nt e d i n t he 1995 l i t i ga t i on ha d be e n r a i s e d i n t he pr i or l i t i ga t i on, by t he pl e a di ngs or ot he r w i s e . Thus , w

e hol d t ha t t he pr i or l i t i ga t i on di d not ba r M s . C ha dw e l l f r om

s e e ki ng a c our t t o de c l a r e t he e xt e nt of he r i nt e r e s t i n t he C ES O Pa nd t he i nve s t m e nt pl a n.

N e xt , M r . C h a dw e l l as s e r t s t h a t t he C h a ncel l or er r e di n f i ndi ng t ha t t he i nve s t m e nt pl a n w

a s s e pa r a t e a nd di s t i nc t f r om t he r e tir e m

e nt p l a n . M

r . Ch a dw

e ll s e e k s toinc l u de the i nve s t m

e nt pl a n w

i t hi n t he r e t i r e m e nt pl a n be c a us e t he C our t be l ow ga ve r e s j u di c a t a ef f ect t ot he i s s u e o f t he r e t i r e m e nt pl a n.

The f i ndi ngs of f a c t of t he t r i a l c our t c om e s t o t hi s C our t a c c om

pa ni e d by a pr e s um pt i on of c or r e c t ne s s w hi c h m us t be honor e d unl e s s t he " pr e ponde r a nc e of t he e vi de nc e i s ot he r w i s e . " R ul e 13( d) , Te nne s s e e R ul e s of A

ppe l l a t e Pr oc e dur e ; U ni on Ca r bi de C or p. v. H

uddl e s t on , 854 S . W . 2d 87 ( Te nn. 1993) . W e f i nd t ha t t he12

C ha nc e l l or ha d a m

pl e e vi de nc e upon w hi c h t o ba s e a f i ndi ng t ha t t he p l a n s w

e r e s e p a r a t e . The r e w a s t e s t i m

o nyf r o m

t he s up e r vi s or of qua l i f i e d be ne f i t s of C ons ol i da t i on C

oa l C om pa ny a nd a n a c c ount a nt s t a tingth a t M r . Ch a dw

e ll h a da nint e r e s t inthe r e tir e m

e nt p l a n , th e inv e s t m e nt p l a n , a n dthe C ES O P. A l s o , a l t hough M

r . C ha dw e l l t e s t i f i e d t ha t he onl y ha d a n i nt e r e s t i n t he C ES O Pa nd t he r e t i r e m e nt pl a n hi s c r e di bi l i t y ha d be e n c a l l e d i nt o que s t i on w

he n he a dm

i t t e d t o a l t e r i ng a c he c k t o M s . C ha dw e l l t ha t w

a s pa i d w

i t h f unds f r om

t he i nve s t m

e nt a c c ount . The C ha nc e l l or m

a de a s pe c i f i c pos t - t r i a l r ul i ng t ha t M r . C ha dw e l l ha d e nga ge d i n f r a ud a nd pe r j ur y i n r e l a t i on t o t hi s l i t i ga t i on. Thus , t he f i ndi ngs of t he C ha nc e l l or di d not pr e ponde r a t e a ga i ns t t he e vi de nc e . C ons e que nt l y, w

e a f f i r m

t he c onc l us i on of t he C ha nc e l l or on t hi s i s s ue .
M r . Ch a dw

e ll’ s f i n a l is s u e a s s e r t s th a t the Tr i a l C our t e r r e d i n f i ndi ng t ha t M s . C ha dw e l l ha d a one - ha l f i nt e r e s t i n a l l a c c ount s be l ongi ng t o M r . C ha dw e l l a t t he t i m

e of t he di vor c e . Thi s a r gum

e nt i s w

i t hout m

e r i t be c a us e t he C ha nc e l l or di d not hol d t ha t M

s . C ha dw e l l ha d a one - ha l f i nt e r e s t i n a l l of M r . C ha dw e l l ’ s a c c ount s . R a t he r , t he C

ha nc e l l or e xpr e s s l y he l d t ha t M s . C ha dw e l l ha d a one - ha l f i nt e r e s t i n t he C ES O Pa nd t he i nv e s t m

e nt pl a n , b ut noint e r e s t i nthe r e t i r e m e nt pl a n .
For t he f or e goi ng r e a s ons t he j udgm e nt of t he Tr i a l C our t i s a f f i r m

e d a nd t he c a us e r e m a nde d f or s uc h f ur t he r pr oc e e di ngs , i f a ny, a s m a y be ne c e s s a r y a nd c ol l e c t i on of t he13

j udgm e nt a nd c os t s be l ow . C os t s of a ppe a l a r e a dj udge d a ga i ns t M r . C ha dw e l l a nd hi s s ur e t y.

_______________________________ H ous t on M

. G odda r d, P. J . CONC UR:

________________________________ H e r s c he l P. Fr a nk s , J .

________________________________ C l i f f or d E. S a nde r s , Sp. J .