v.
Nehad Abdelnabi
01/13/2021 IN THE COURT OF APPEALS OF TENNESSEE AT KNOXVILLE July 21, 2020 Session
FATMA ADEL SEKIK v. NEHAD ABDELNABI ET AL.
Appeal from the Circuit Court for Knox County No. 126002 Gregory S. McMillan, Judge ___________________________________
No. E2019-01302-COA-R3-CV ___________________________________
In this divorce appeal, Husband challenges the court’s failure to grant a continuance, the child support and alimony obligation imposed, and certain provisions of the parenting plan prohibiting contact with his children and revoking the parental rights set forth in Tennessee Code Annotated section 36-6-101(a)(3)(B). This proceeding also involved allegations of a conspiracy to defraud Wife of funds resulting from a sale of marital property in Gaza during the pendency of the divorce by Husband, his brother, and his brother’s wife; those non- spousal parties challenge the court’s jurisdiction over them and over the property in Gaza, as well as the court’s valuation of that property. They also challenge the court’s rulings that they engaged in a civil conspiracy and whether the judgment imposed against them is supported by the pleadings and the evidence. Upon our review of the issues raised, we discern no reversible error in the rulings of the court and accordingly affirm it in all respects.
Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Circuit Court Affirmed
J. STEVEN STAFFORD, P.J. W.S., delivered the opinion of the court, in which ARNOLD B. GOLDIN and CARMA DENNIS MCGEE, JJ., joined.
Matthew D. Barocas, Knoxville, Tennessee, for the appellants, Nahed Abdulnabi and Rewa Gharbawe.
Nehad Abdelnabi, Only, Tennessee, Pro Se.
Wanda G. Sobieski, Diane M. Messer, Caitlin Elledge, Zachary T. Powers, and Laura E. Wyrick, Knoxville, Tennessee, for the appellee, Fatma Adel Sekik.
OPINION
FACTUAL AND PROCEDURAL HISTORY
This appeal arises out of a divorce proceeding. Fatma Adel Sekik (“Wife” or “Mother”) and Nehad Abdelnabi (“Husband” or “Father”) are from the Middle East; Wife is from Cairo, Egypt, and Husband is from Palestine. The parties were married in 1996 in Egypt and moved to the United States shortly thereafter, where they resided in Knoxville, Tennessee. The parties have four children. Their third child, Hamza, was born in 2002 and has special needs. Husband is an “electronics technician” and owned an electronics business in Knoxville. He also oversaw the financial aspects of family life, including the buying and selling of real property during the marriage, such as the real property located in the Gaza Strip that is the subject of many issues raised in this appeal. Wife primarily took care of the parties’ home and four children. Wife also works part-time from home, translating Arabic conversations by phone, for which she is paid by the minute.
Their home was not entirely a happy one, as Wife and her two daughters testified about the emotional and physical abuse Husband inflicted on the family members. The breakdown of the marital relationship accelerated in February 2012, when Husband kidnapped and assaulted a man named Naser Ferwanah, with whom he believed Wife was having an affair. He was indicted for these offenses on September 18, 2012, and in 2016, he was tried, convicted, and sentenced to 17 years in the Tennessee Department of Correction for the felony offenses of aggravated kidnapping, especially aggravated kidnapping, and two counts of aggravated assault.[1]
Wife filed a complaint for divorce on September 7, 2012, on the basis of irreconcilable differences and Husband’s inappropriate marital conduct. She sought to be named primary residential parent of the parties’ children and sought “reasonable spousal support,” both during the pendency of the divorce and after entry of the decree. The complaint contained the automatic mandatory injunctions set forth at Tennessee Code Annotated section 36-4-106(d).2 On September 8, a temporary parenting plan was entered, granting Husband weekend visitation every week, setting his child support obligation at $2,000 per month, and requiring him to pay the premiums of health, dental, and life insurance policies for Wife and the children, as well as “for all Hamza’s medical, dental, visual [expenses] and all Hamza’s therapy[.]”
[*2]On September 27, 2012, Wife filed a Notice of Filing of Related Order to which she attached an order of protection that had been entered by agreement of Husband and Wife in Knox County Circuit Court case number 126003. In that order, Husband agreed to not come about Wife or contact her, directly or indirectly. He also agreed to pay for the household expenses, including the mortgage, utilities, phone and internet, credit cards, health insurance, medical bills, automobile insurance, and others, as well as $2,000 per month in child support. Husband and Wife subsequently reconciled, and by an agreed Amended Order of Protection entered December 5, 2012, they were permitted to have contact. All other terms of the prior agreed order of protection pertaining to Husband’s payments of household expenses and child support remained in effect.
In September 2016, Wife moved for a default judgment due to Husband’s failure to answer the complaint for divorce. In that motion, she alleged that Husband’s “refusal to respond or cooperate with the process has left [Wife] and the parties’ four (4) children in desperate financial straits unable to make the arrangements necessary to keep their home or property.” She also alleged that Husband “has sent the largest share of the parties’ financial resources to the Gaza Strip where it is essentially beyond the reach of his wife and children for their support” and sought a default judgment “so that she can begin the process of making arrangements with the bank to possibly save the home from foreclosure for the children and herself.”
Husband responded by filing an answer as well as a Response to the motion for default judgment on October 6; in his response, Husband asserted:
The default judgment sought, in which Mr. Abdelnabi is deprived of all of his constitutional parental rights while being ordered to pay the extravagant sum of $3,200.00 per month in child support for life—unsupported by the Child Support Guidelines—and in which Plaintiff is awarded all of the marital estate and potential personal property, including unidentified, unspecified, and likely fictional property in the Gaza Strip, is unreasonable, inequitable, and unjust under the circumstances and should not be awarded to Plaintiff.
[*3]In his answer, Husband admitted that irreconcilable differences had arisen between the parties but denied that he was guilty of inappropriate marital conduct. He also admitted that Wife was a fit and proper person to be primary residential parent of the parties’ minor children but averred “that he is also a fit and proper person to be the primary residential parent for the parties’ minor children upon his release from incarceration.”
On December 8, 2016, Wife filed a Motion for Interim Relief in which she alleged details of Husband’s abusive and controlling behavior, reiterated her belief that he had “sent the largest share of the parties’ financial resources to the Gaza Strip where it is essentially beyond the reach of his wife and children for their support,” and that she feared Husband’s brother, who had “recently gone to the Gaza Strip,” “may be carrying with him a Power of Attorney to transfer the Gaza Strip property out of [Husband] and into his family over there.” On that basis, she asked the court to divest Husband of all real property he held in the United States and in the Gaza Strip and vest it in her “so that she may try to find a way to use it to support the children.” She also requested that the court grant her a divorce “now” and reserve any other issues.
The trial court held a hearing and granted Wife’s motion for relief by order entered March 20, 2017, in which it, inter alia, “ordered and empowered [Wife] to investigate all monies and properties in Defendant’s name or in which Defendant may have or has had an interest, wherever located, including, but not limited to, the Gaza Strip” as well as all debts, claims, liens, and contracts relating to those properties. The trial court also ordered Husband to instruct all persons receiving funds “from any property in which he has or had an interest (including, but not limited to the Gaza Strip properties) to pay only the reasonable and necessary expenses related to the property and forward to [Wife] all net revenues for the next sixty (60) days (starting February 22, 2017).” After that time, Wife was “empowered to take control of all properties to which [Husband] holds title or in which [he] has or has had an interest.” The order also provided that “[a]ll income related to the properties, including, but not limited to, the properties in the Gaza Strip, shall be paid to or retained by [Wife] to be used for the reasonable support of the family and the marital estate and for which [Wife] shall account to this Court.” She was also ordered to “collect, marshal, and take custody, control and possession of all funds, accounts, mail, and other assets of [Husband], or under the possession or control of [Husband] or assets traceable to assets owned or controlled by [him] wherever situated (except as set forth in Paragraph 4 regarding the sixty (60) day period for transfer of control in the Gaza Strip)” but that she was not to “alienate, transfer, sell or dispose of such property without court approval.” The trial court also ordered Husband to “execute any document, release, power of attorney or other required authorization to allow [Wife] to investigate the real property.”
Wife attempted to comply with the court’s order but filed a Motion for Emergency Relief on June 13, 2017, in which she alleged that Husband and his counsel had not responded to her requests to execute the power of attorney and release documents she needed in order to investigate Husband’s real property holdings. She also alleged that she had sent the court’s order to be “entered by the Palestinian Embassy and forwarded to Gaza.” In her motion, she alleged that Husband’s brother “is attempting the sale [of] 1 1/2 dunom (approximately 1 1/2 acre) of the subject property and has reportedly shown multiple people that he has a General Power of Attorney from Defendant which allows the sale and was signed by Defendant May 18 or 19, 2017,” and that she “fears that Defendant’s brother may succeed in transferring the property before she can get the Order enforced.”
[*4]The trial court held a hearing on Wife’s motion for emergency relief and entered an order on June 30 “for the purpose of maintaining the status quo so far as possible as it relates to the parties’ marital property until final disposition can occur, based on the allegations in [Wife]’s Motion for Emergency Relief because of immediate risk of irreparable harm to the marital estate.” The order required Husband “to execute a Quitclaim Deed (or other such document as may be required in Gaza to transfer title) to the property or properties previously referred to by the parties and the court as the ‘chalet property’ and the adjoining tract(s) of land in which [Husband] has or has had an interest to [Wife],” who would have no power to transfer or sell the property or to grant a power of attorney to others, without further order of the court.
In July 2017, Wife sought to amend her complaint pursuant to Rules 15.01, 19 and 20 of the Tennessee Rules of Civil Procedure, to include additional grounds and to add two parties, Husband’s brother, Nahed Abdulnabi (“Brother”) and sister-in-law, Rewa Gharbawe (“Sister-in-Law”), as defendants. In the proposed amended complaint, Wife alleged that Husband “has knowingly worked with his brother, Nahed Abdulnabi . . . and sister-in-law, Rewa Gharbawe, to control the marital funds and to deprive [Wife] and the children of the funds and property” and that they “have conspired to defeat the orders of this Court and the rights of [Husband]’s wife and children.” The court held a hearing on August 11, and over Husband’s objection, granted Wife’s motion to amend the complaint; an order was subsequently entered memorializing the oral ruling and holding that joinder was appropriate “pursuant to Rules 19 and 20” of the Tennessee Rules of Civil Procedure because “Plaintiff cannot obtain complete relief without the two additional Defendants and because the conspiracy alleged presents common fact questions and questions of law.” The amended complaint was filed on August 15, 2017. Wife mailed copies of the Amended Complaint to Brother and Sister-in-Law at their Georgia address and also attempted to serve the complaint through the Tennessee Secretary of State as well as by personal service.
In April 2018, Wife sought a default judgment against Brother and Sister-in-Law for their failure to file an answer and sought a judgment “in the amount of cash they received from the illicit sale of a portion of the property in Gaza (Four Hundred Fifty Thousand Dollars ($450,000.00), and for any and all rents and receipts received from the maintenance and operation of Gaza property after February 22, 2017.”3 After a hearing at which both Brother and Sister-in-Law appeared and testified, the trial court stated on the record that Sister-in-Law attempted to evade service and orally granted a default judgment against her; an order memorializing the default judgment against Sister-in-Law was subsequently entered on August 7, 2018.
[*5]Brother had been served with the amended complaint while at the courthouse for the hearing during which the default judgment was entered against his wife. Despite the default judgment, Sister-in-Law joined in Brother’s answer, filed on June 11, 2018, in which they denied that they engaged in a civil conspiracy against Wife. In their answer, they admitted that “[Husband] has executed a power of attorney for [Brother] related to property in the Gaza Strip.” They also asserted a counter/cross-claim against Husband and Wife for Husband’s fraud, misrepresentation, constructive fraud, and unjust enrichment stemming from their business dealings “prior to the year 2000,” various real estate transfers, and expenses and losses incurred while acting as Husband’s agent in Gaza. Brother and Sister-in-Law sought “actual, compensatory, incidental damages, consequential damages, and/or punitive damages” from Husband and Wife. Wife duly filed an answer to the counter complaint raised against her; though Brother and Sister-in-Law filed a motion for default judgment against Husband, the record does not contain an answer to the cross-claims raised against him.
Wife filed a motion to bifurcate the issues of the grounds for the divorce from the remaining issues in the divorce; after a hearing, the trial court entered an order on January 31, 2019, awarding Wife a divorce on the basis of Husband’s inappropriate marital conduct “in the form of physical and emotional abuse” and his felony conviction, for which he had been sentenced to serve seventeen years in the penitentiary.
On February 6, 2019, Husband’s counsel filed a motion to be relieved as counsel on the basis that Husband had filed a Petition for Post-Conviction Relief alleging ineffective assistance of counsel, and thus he could no longer effectively represent Husband in the divorce proceedings. The court granted the motion on February 8 permitting Husband’s counsel to withdraw and ordered that “[t]his matter continues to be set for trial on February 25–27, 2019, and March 4, 2019”; that “[t]he relieving of Mr. Jolley as counsel will not continue this trial date”; and that Husband “shall obtain new counsel or represent himself.”
Meanwhile, Brother and Sister-in-Law fired their attorney and hired another one, who filed a motion to continue the trial “until such time as the undersigned has adequate time to prepare the defense of his client”; that motion was denied. They also filed another motion seeking the trial court’s permission to appeal the court’s “subject matter jurisdiction over the plaintiff’s claims.”4 No order was entered on the motion for interlocutory appeal, and Brother and Sister-in-Law did not seek permission in this Court to pursue an extraordinary appeal pursuant to Rule 10 of the Tennessee Rules of Appellate Procedure.
[*6]A trial on the remaining issues, namely child support, the division of the marital property, alimony, and Brother’s cross/counter-claims, was held on February 25, 26, and 27, 2019. During the trial, Wife, the parties’ two daughters, Sister-in-Law, Husband, and Brother testified.
By order entered June 25, 2019 (“the June 25 order”), the trial court dismissed Brother’s claims as being “without merit and not supported by any competent evidence.” The trial court also made an adverse credibility finding: “Brother, [Husband], and [Sister- in-Law] have no credibility given their actions and testimony during this pendency of this case.”
The trial court set Husband’s child support obligation at $1,000 per month for the two children who were still under the age of majority and continued child support indefinitely for the couple’s youngest child, who is disabled, at a rate of $500 per month. The court also awarded Wife a $76,500.00 judgment for child support arrearages since February 2016, when the couple stopped living together due to Husband’s incarceration. The order stated that the Court adopted the residential, co-parenting, and decision making provisions of Wife’s proposed plan and that Wife’s counsel was to submit a parenting plan, containing Wife’s proposed provisions and the Court’s child support rulings, to the Court for entry.
[*7]The court also found that Wife was a candidate for alimony in futuro, given her need of $3,000.00 per month, lack of education and earning ability, and inability to work full time given her status as the sole caretaker for the parties’ severely disabled son, rendering her “not capable of pursuing the education and training necessary to use her foreign degree in education.” However, given Husband’s incarceration, the court found that he “has no ability to pay alimony at this time” and ordered alimony in futuro in the amount of $100.00 per month until he is released from incarceration and a determination could be made as to the parties’ circumstances. The court also awarded Wife her attorney’s fees incurred prior to trial, in the amount of $94,724.00. Wife was awarded a judgment of $131,472.00 for pendente lite expenses that Husband failed to pay.
The trial court adopted Wife’s valuations of the various marital assets and divided the marital assets and debts. Exhibit 1 to the final divorce contains the court’s assigned values and division of the marital assets and debts, which reflect that Husband received assets and debts amounting to a net total of $1,012,012.00 and Wife receiving $891,236.75. The trial court also found that Husband had dissipated the marital estate during the pendency of the divorce “through the sale of four apartments in Gaza,” by paying $45,000 to purchase a car wash, and by not accounting “for $46,000 that is missing from funds related to Brother’s sale of various pieces of Gaza property.” With respect to the conspiracy to dispose of marital property in Gaza by Husband, Brother, and Sister-in-Law, the court set forth in great specificity the property transfers and communications that took place and held:
7. Between the time of [Husband]’s arrest in February 2012 and his conviction in 2016, he engaged in a series of actions the Court finds are designed to prevent [Wife] from sharing in the marital estate and prevent this Court from exercising jurisdiction over it. . . .
* * *
[Husband], Brother, and [Sister-in-Law] jointly conspired to violate this Court’s orders, dispose of marital property in such a fashion as to defeat [Wife]’s rightful claim to an equitable division of the marital estate.
The judgment ultimately awarded to Wife reads:
10. Father, Brother and [Sister-in-Law] are hereby ordered to place for sale all of the Gaza property remaining titled in Father’s name. The parties shall use their best efforts to accomplish a commercially reasonable sale for a fair market price given the values the parties testified to in open court and the Court’s valuation found herein. In addition, they are ordered to place for sale the two pieces of property held in Brother’s name. From the proceeds of the sale, Mother shall be paid the sum of $690,357.00 (See Exhibit 1 Line 8). From Father’s portion of the proceeds, Mother shall be paid an additional $529,475.47 for the judgments awarded to her herein against Father, Brother, and [Sister-in-Law] jointly and severally. The judgment includes $76,500.00 for child support arrearages, $131,472.00 for pendente lite support arrearages, $110,443.37 for one-half of the amount due for the sale of 1,250 square meters of Gaza property, $116,336.00 for one-half of the 590 square meters of property Brother transferred to himself, and $94,724.00 for Wife’s pre-trial attorney’s fees. In the event that the sale does not suffice to pay the full amount awarded to Mother herein, the funds shall first be applied to Father’s outstanding obligations to Mother and then to the joint and several judgements against Father and his coconspirators. Any unpaid amount shall remain a judgment and earn interest at the maximum statutory rate for judgments commencing upon this Order becoming final.
[*8]Husband filed a motion for a new trial, asserting, inter alia, that the court abused its discretion by denying a “request for a continuance to allow him sufficient time in which to locate counsel to represent him.” Husband also asserted that the court “judicially interfered with the prenuptial agreement and erred in refusing to allow or even consider the prenuptial agreement to be entered into the record by the defendant.” He also contended that the court “erred in assessing an excessive amount of child support and alimony in light of the prenuptial agreement that the defendant was prevented from entering into evidence.” No exhibits, affidavits, or other materials were attached to the motion. The trial court construed the motion as one to alter or amend the judgment and denied it.
Meanwhile, Brother and Sister-in-Law had filed their notice of appeal. After entry of the court’s order denying Husband’s motion for a new trial, Husband also appealed.
On October 10, 2019, the court entered a permanent parenting plan naming Wife as primary residential parent and awarding Husband zero days of parenting time. The plan contained the following “special provisions” in section J:
There shall be no physical contact with the children due to [Husband]’s convictions for violent felonies and seventeen (17) year sentence, no visits at prison, no Facetime or its equivalent. [Husband] is hereby restrained and enjoined from giving personal information about his children to other prisoners and/or encouraging other inmates to contact the children now or upon release.
[*9]The order set Husband’s gross monthly income at $3,336.00 and Wife’s at $864.00. Husband’s child support order was set at $1,000 per month, which was to “change to $500.00 per month when Omar ages out or graduates from high school, whichever is last.” With respect to the parties’ other child, the order provided that a “500.00 child support [obligation] shall continue indefinitely because of Hamza’s special needs. This will be needed for Hamza’s lifetime, and shall be modifiable.” The order also struck through the boilerplate list of parents’ rights, as set forth at Tennessee Code Annotated section 36-6- 101, “[i]n light of Father’s history of violent felonies.”
With the entry of the parenting plan, this Court, by order entered October 22, 2019, deemed the premature notices of appeal filed by Brother and Sister-in-Law and Husband to be filed after entry of the parenting plan, which represented the final judgment.
ISSUES PRESENTED
This divorce appeal is unusual in that no party is challenging the court’s classification or division of marital assets or the designation of primary residential parent. Instead, Brother and Sister-in-Law challenge the court’s jurisdiction to adjudicate the conspiracy to defraud claim levied against them and the judgment it ultimately entered by raising the following issues:
1. Whether the trial court erred in asserting in rem subject matter jurisdiction over real property located in the Gaza Strip and assuming supplemental and/or pendent jurisdiction over non-spousal parties in a divorce case. [2]. Whether the trial court erred in imposing liability for damages against nonspousal parties for civil conspiracy to dissipate marital assets in a divorce case.[5] 3. Whether the trial court erred in assigning $1,380,714.00 as the value of marital property located in the Gaza Strip without competent and reliable testimony, and without explanation. [4]. Whether the trial court erred as a matter of law in finding that Defendants Nahed Abdulnabi and Rewa Gharbawe engaged in a civil conspiracy with Nehad Abdelnabi (Husband) to dissipate marital assets. [5]. Whether dissipation of marital assets sufficiently constitutes a predicate tort necessary for a plaintiff to sustain a claim for civil conspiracy where no predicate tort and requisite culpable mental state is pled or established by the evidence at trial. [6]. Whether the Court erred in awarding judgment for relief which was not