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STATE OF MICHIGAN
COURT OF APPEALS


DIXIE LEE ANDERSON, Plaintiff-Appellant/Cross-Appellee, v DOYLE ANTHONY HAYES, SR., Defendant-Appellee/CrossAppellant.

UNPUBLISHED July 1, 2008

No. 273914 Kent Circuit Court LC No. 273914

Before: Donofrio, P.J., and Sawyer and Murphy, JJ. PER CURIAM. In this divorce action, plaintiff appeals as of right from a judgment of divorce and defendant cross appeals. On direct appeal, plaintiff challenges the award of spousal support, the division of property, and the failure of the trial court to award her attorney fees. On cross appeal, all of defendant's issues concerns the valuation of the parties' business asset, Pyper Products. We affirm in part, vacate in part, and remand. I The parties were married on September 30, 1989 when each was approximately 39 years old. Each party was previously married and this marriage produced no children. At the time of the marriage, plaintiff, an MBA, was doing consulting work out of her home. At the time of the marriage, defendant, an executive, had been employed at General Motors but was transitioning to Diesel Technologies. After they were married, defendant moved into plaintiff's house on Byron Street in the Easttown section of Grand Rapids, Michigan. Initially, the parties lived a very modest lifestyle because plaintiff's income from her private consulting was small and defendant had spousal and child support obligations as a result of his previous divorce. The parties grew more financially stable and purchased a cottage in Pentwater, Michigan in 1992. Five years into their marriage defendant became unhappy with his job and began interviewing, but instead decided he wanted to start his own company. To prepare for the startup of the business, reduce their liabilities and increase their chances of obtaining financing, the parties sold their Pentwater cottage for a $4,000 profit. They then took out a $111,000 loan to secure the necessary start-up capital. Together with plaintiff's encouragement, defendant formed Pyper Products Corporation (Pyper Products) on December 14, 1994 with several other corporate entities. Pyper Products was organized as a Minority Business Enterprise (MBE) in Michigan -1-


based on defendant's African-American race. To satisfy the MBE requirements all corporate constituents granted defendant 55% of the stock in the company. Pyper Products is located in Battle Creek and manufactures plastic automotive parts including fans and fan shrouds. In 1995, plaintiff became employed with the World Affairs Council of Western Michigan, and, at the time of the divorce, she was the Executive Director of the Council. In 1996, the parties sold the house on Byron Street and used the $50,000 profit on the sale as a down payment on a new home on Robinson Road in Grand Rapids, Michigan. The parties financed the remainder of the purchase price through a $120,000 mortgage. Later, in 1998, the parties refinanced the primary mortgage increasing it to $150,000. The parties also opened a home equity line of credit on the house, which at the time of the divorce, amounted to nearly $66,000. The parties used the line of credit to make home repairs, purchase an automobile, and finance various other expenses. Over time, the parties began to have arguments over finances and personal disagreements. In July 2000, defendant began having an extramarital affair. In 2003, defendant and other parties and entities began a staffing company called Talent Trax, LLC. Defendant was credited with a 40% interest in Talent Trax, LLC. In order to finance defendant's capital contribution, a second line of credit was established on the parties' home on Robinson Road in the amount of $10,000. In early 2003, plaintiff began to suspect that defendant was having affairs and had a gambling problem. Plaintiff confronted defendant and he agreed to attend Gamblers Anonymous meetings. By October 2003 plaintiff suspected defendant was not attending his meetings and hired a private detective to follow defendant. Plaintiff filed for divorce on March 25, 2004 after nearly fifteen years of marriage. After lengthy divorce proceedings, the parties were divorced on October 4, 2006. After hearing testimony in the matter, the trial court made the following findings of fact on the record: This is a marriage of approximately fifteen years. The parties were married in September of 1989. The past relations and conduct of the parties have been testified to at length. Both parties work. As the record indicates, [plaintiff] is the executive director of the World Affairs Counsel where she earns approximately $50,000.00 per year. And, [defendant] is the head of Pyper Products, where he earns $150,000.00, approximately. He also earns funds from Talent Trax, and funds as a bank director for Mercantile Bank, for an approximate yearly wage of somewhere between $185,000.00 to $200,000.00 per year. Both parties have the ability to work, and continue to be employed throughout the pendency of these proceedings. The Court in its discretion with regard to spousal support has considered the significant asset of Pyper Products in the award that I've just stated that will be made to [plaintiff.]

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Both parties are approximately 55 years of age. The Court does find that [defendant] has the ability to pay spousal support based upon his significant income being much more than [plaintiff's.] Currently, as the Court evaluates the present situation of the parties, both parties have independent living situations. Again, both parties are employed. And, both parties have presented budgets to the Court that are included in the file. The needs of the parties, as I've indicated, are set forth on their respective budgets. Neither parties' needs are significantly higher than the others. The parties each enjoy relatively fine health. The prior standard of living of the parties and whether either is responsible for the support of the other. The parties lived a relatively middle class lifestyle until [defendant] moved in

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