KENNY ARMSTRONG, J.
This appeal originated from a boundary line dispute between adjacent landowners. In this boundary line dispute, the trial court: (1) determined the boundary line that divides the parties' properties; (2) awarded treble damages to Appellee for timber that had been removed from the disputed property by the Appellant; (3) set aside the quitclaim deed recorded the day before the trial by Appellant as a fraudulent conveyance; and (4) awarded attorney fees to Appellee for the expenses incurred in prosecuting the petition to set aside the quitclaim deed as a fraudulent conveyance. We affirm in part, reverse in part, and remand for further proceedings in accordance with this opinion.
On July 15, 2011, Appellee Emma Jean Anderson filed a complaint against the Appellant James Kenneth Lowry. In her complaint, Ms. Anderson sought a determination of the common boundary line between the parties' properties and to quiet title. In addition, Ms. Anderson sought damages for timber that Mr. Lowry had removed from the disputed 4.39 acre tract of land,
The trial court found, by clear and convincing evidence, that the survey commissioned by Ms. Anderson in 2010 contained the correct boundary line. The proof established that Mr. Lowry removed the boundary fence between the Anderson land and the Lowry land. The trial court found the removal of the fence to be a willful act and awarded Ms. Anderson $600 in damages for destruction of the fence. Regarding Mr. Lowry's decision to cut timber that belonged to Ms. Anderson, the trial court specifically held that "[t]his was not a negligent cutting of timber but a knowing and intentional cutting because the [Lowry's] deed described the boundary as the fence." The trial court also made a specific finding that Ms. Anderson's expert, who testified as to the value of the timber cut, was a credible witness. Accordingly, the trial court adopted Ms. Anderson's expert's value of $10,000 for the timber. Due to the knowing and intentional nature of Mr. Lowry's actions, the trial court awarded treble damages in accordance with Tennessee Code Annotated section 43-28-312 (b).
The trial court entered its order on August 28, 2013, and on September 11, 2013, Mr. and Mrs. Lowry filed a Tennessee Rule of Civil Procedure 59 motion to alter or amend judgment. In their motion, the Lowrys alleged that the trial court entered a judgment against Susan Lowry, even though she was not named as a party in Ms. Anderson's complaint. The Lowrys also alleged in their motion that Mr. Lowry did not "knowingly and intentionally" cut Ms. Anderson's timber, and, therefore, the trial court should not have awarded treble damages. The Lowrys further argued that the trial court should have placed some responsibility for damages on the woodcutter, as Tennessee Code Annotated section 43-28-312 provides for joint liability. Finally, the Lowrys argued that the trial court erred in valuing the timber and in awarding Ms. Anderson the replacement cost of the boundary fence. On November 4, 2013, before a hearing on the Rule 59 motion, the Lowrys filed a Tennessee Rule of Civil Procedure 60 motion for relief from judgment in which they reiterated their Rule 59 argument that the judgment was erroneously entered against Mrs. Lowry, who was not a party to the lawsuit.
On March 20, 2014, pursuant to Tennessee Rule of Civil Procedure 15.02, Ms. Anderson filed a motion to amend her pleadings to conform to the evidence and judgment of the court in an attempt to add Mrs. Lowry to her complaint. On April 17, 2014, the trial court entered an order denying Ms. Anderson's Rule 15 motion on grounds that rule 15.02 does not contemplate adding an individual as a party to a pleading following trial. The trial court granted the Lowrys' Rule 60 motion and Rule 59 motion as to the judgment against Mrs. Lowry. Specifically, the trial court amended its August 28, 2013 order to constitute a judgment against Mr. Lowry only. The trial court denied the Lowrys' motions in all other respects. Finally, the trial court issued a restraining order enjoining the Lowrys from transferring, encumbering, or perfecting a lien on their real property pending resolution of the fraudulent conveyance issue raised by Ms. Anderson during oral argument.
On August 20, 2013, one day before the trial of this case, Mr. Lowry recorded a quitclaim deed transferring his property to himself and his wife. On July 24, 2014, Ms. Anderson filed a petition against the Lowrys to set aside this quitclaim deed as a fraudulent conveyance. The petition alleged that the execution and recording of the quitclaim deed, conveying the subject property to James Kenneth Lowry and his wife Susan Lowry as an estate by the entireties, constituted a conveyance in fraud of creditors pursuant to Tennessee Code Annotated section 63-3-101.
On February 3, 2015, the trial court awarded a default judgment in favor of Ms. Anderson against the Lowrys for the fraudulent conveyance of the property at issue. The trial court specifically found that the quitclaim deed recorded the day prior to trial to be "clearly and utterly void." Additionally, the trial court awarded a judgment against Mr. and Mrs. Lowry in the amount of $8,200 for attorney's fees and expenses incurred by Ms. Anderson in the prosecution of the fraudulent conveyance petition.
Appellant presents the following issues on appeal as stated in his brief:
To the extent that these issues involve questions of fact, our review of the trial court's ruling is de novo with a presumption of correctness. Accordingly, we may not reverse these findings unless they are contrary to the preponderance of the evidence. See, e.g.,
Mr. Lowry argues that the trial court erred by assessing treble damages for cutting Ms. Anderson's timber. Tennessee Code Annotated section 43-28-312 governs wrongfully cutting the timber of another. The statute states as follows:
Tenn. Code Ann. § 43-28-312. Although Mr. Lowry concedes that he cut timber from land the trial court found belonged to Ms. Anderson, he argues that he had a valid survey indicating that the land in question belonged to him. Therefore, Mr. Lowry argues that he should only be liable for double the current market value of the timber pursuant to section 43-28-312(a)(1). In support of his contention, Mr. Lowry cites the case of
There are several factors that distinguish this case from the
Ms. Anderson hired Chris Vick to survey her property in April 2010. Mr. Vick testified that on April 13, 2010, while surveying the northwest portion of Ms. Anderson's property, he met Mrs. Lowry in the proximity of the disputed 4.39 acre tract. After exchanging introductions, Mrs. Lowry told Mr. Vick that the fence line was not the boundary line of the Anderson property and instructed him not to tie ribbons there. Mr. Vick noted the existence of a fence and did not see any evidence of logging in the disputed acreage. The next day when Mr. Vick came back to complete his survey, Mrs. Lowry asked him to leave and not come back. As a result, Mr. Vick was unable to complete his survey of the Anderson land until he obtained a court order in September of 2010. On September 23, 2010, Mr. Vick returned, escorted by sheriff's deputies, to complete his survey. At that time, Mr. Vick observed that the fence had been removed. Mr. Vick also observed evidence of logging and bulldozing in the area. Thus, it is undisputed that Mr. Lowry cut the trees from the Anderson property after receiving notice that there was a question regarding the ownership of the 4.39 acre tract of land adjacent to his property. Additionally, a deed on the Lowry property recorded in 2000 clearly describes the Anderson family as owners of the land east of the road and that the Anderson land includes the 4.39 acre tract in dispute. Thus, we conclude from our review of the record that the preponderance of the evidence supports the trial court's finding that Mr. Lowry knowingly and intentionally cut Ms. Anderson's timber. Therefore, pursuant to Tennessee Code Annotated section 43-28-312, the trial court did not err in awarding damages "in an amount treble that of the current market value of the timber."
Mr. Lowry also argues that he should only be jointly liable and not completely or severally liable for cutting Ms. Anderson's timber, noting that Ms. Anderson also sued his surveyor and his woodcutter.
Tenn. Code Ann. § 43-28-312(a)(2). This provision, however, is inapplicable here because it refers to the negligent cutting of timber from the property of another. Pursuant to our prior determination that Mr. Lowry knowingly and intentionally cut Ms. Anderson's timber, we conclude that his argument on this issue is without merit. Before contracting with his woodcutter and his surveyor, Mr. Lowry was on notice that Ms. Anderson was claiming ownership of the 4.39 acre tract and had hired a surveyor to establish the boundary lines of her property.
In determining the value of the timber cut from Ms. Anderson's property, Mr. Lowry argues that the trial court should have based damages on the net market value of the trees, deducting the cost of the woodcutting from the gross amount of the sale. Tennessee Code Annotated section 43-28-312 mandates that the damages must be based on current value. Ronnie Tucker, an expert logger for thirty-four years, testified on behalf of Ms. Anderson as to the value of the timber. Mr. Tucker contracts directly with landowners to buy timber. He then contracts with a saw mill to sell the timber. Typically, Mr. Tucker uses two methods to buy timber. In the first method, he makes a bid for the standing timber based on his estimate of the current market value. The second method involves harvesting the lumber, selling it to the mill, and dividing the gross proceeds with the landowner. Mr. Tucker determined the value of the timber cut from Ms. Anderson's land by surveying the stumps left and taking an inventory of the density of the trees. He used that information and applied the December 2010 market price in his determination that Ms. Anderson's timber had a market value of $10,000.
In support of its finding that Ms. Anderson's timber was valued at $10,000.00, the trial court made a specific finding that Mr. Tucker was a credible expert witness. When it comes to live, in-court witnesses, appellate courts should afford trial courts considerable deference when reviewing issues that hinge on the witnesses' credibility because trial courts are "uniquely positioned to observe the demeanor and conduct of witnesses."
Mr. Lowry argues that a value that does not include the cost of the wood cutter's services is a windfall to the landowner. However, in this case, the only evidence in the record is the undisputed testimony of Ronnie Tucker. Mr. Tucker specifically testified that in December 2010, a reasonable buyer would pay a reasonable seller $10,000 for Ms. Anderson's timber. Mr. Lowry argues in his Rule 59 motion that Mr. Tucker must have "misstated that amount of payment." However, there is nothing in the record to either refute Mr. Tucker's testimony or to support Mr. Lowry's argument that Mr. Tucker was mistaken. Therefore, we conclude that the findings of the trial court are supported by a preponderance of the evidence.
Mr. Lowry argues that the trial court erred in awarding Ms. Anderson a judgment in the amount of $8,200 for attorney fees and expenses incurred in prosecuting her petition to set aside Mr. Lowry's quitclaim deed as a fraudulent conveyance. Mr. Lowry argues that the trial court's award of attorney's fees must be vacated because there is no case authority supporting such an award.
Ms. Anderson responds that
In both
Tennessee, along with many other states, adheres to the "American rule" for award of attorney's fees.
Tennessee Code Annotated section 29-12-101 determines the proper procedure to rectify a fraudulent conveyance. The statute provides:
Tenn. Code Ann. § 29-12-101 (West). The statute does not contain any provision for recovery of attorney's fees. While we concede that the trial court was attempting to make an innocent party whole after a long and arduous litigation, this is insufficient, as a matter of law, to support the trial court's award of attorney's fees. Accordingly, we reverse the trial court's award of attorney's fees to Ms. Anderson.
For the foregoing reasons, we affirm trial court's order with regard to the amount of damages awarded to Ms. Anderson. We reverse the trial court's order requiring Mr. Lowry to pay Ms. Anderson's attorney's fees in the amount of $8,200. We remand the case for such further proceedings as may be necessary and are consistent with this opinion. Costs of the appeal are assessed against Appellant, James Kenneth Lowry and his surety, for all of which execution may issue if necessary.