Financial dispute between lesbians reaches appeals court

A protracted financial dispute between two women who were domestic partners for many years has reached the Third Circuit Court of Appeals.

Susan Simmons claims that Gretchen Winterbottom owes her about $350,000 stemming from financial obligations incurred during their former domestic partnership.

Winterbottom denies that she owes Simmons any money. Instead, she claims Simmons owes her money from the sale of a condo the women jointly owned in Old City.

Simmons’ federal complaint against Winterbottom was filed in May 2015. Simmons alleges breach of contract, unjust enrichment and related claims against Winterbottom.

The women were in a relationship for about 18 years and purchased a condo in December 2002 for $829,000. In June 2015, the women’s condo was sold, with the net proceeds totaling $526,691.30.

Simmons contends she made a down payment of $554,696.96 for the condo from her own funds. She claims she should receive all proceeds from the condo sale currently held in escrow: $526,691.30.

Additionally, Simmons claims Winterbottom owes her about $350,000, due to a business loan Simmons allegedly made to Winterbottom that wasn’t repaid, along with other obligations incurred by Winterbottom.

For her part, Winterbottom claimed she should receive from the condo sale about $159,555, plus interest. Additionally, Winterbottom argued she doesn’t owe any money to Simmons. Moreover, she said Simmons should pay Winterbottom’s legal fees due to the litigation.

A two-day bench trial was held before U.S. District Judge Wendy Beetlestone on May 23-24.

On May 24, Beetlestone ruled that Winterbottom didn’t owe Simmons any money. Regarding the $526,691.30 currently held in escrow from the condo sale, Beetlestone ruled that $316,014.78 should go to Simmons and $210,676.52 should go to Winterbottom.

Beetlestone also ruled that any accrued interest from the condo sale should be split 60-40, with 60 percent for Simmons and 40 percent for Winterbottom.

Beetlestone didn’t award any legal fees to either party.

Simmons recently appealed Beetlestone’s ruling in the Third Circuit Court of Appeals, where the matter remains pending.

Tiffany Palmer, an attorney for Winterbottom, issued this statement:

“This case involves a financial dispute between two former domestic partners as to how to divide the proceeds of the sale of a condominium they jointly owned in Philadelphia and disputed issues regarding a business loan made by Ms. Simmons to a New Jersey corporation where Ms. Winterbottom is the CEO.”

Palmer said the spring decision by Beetlestone “in favor of our client, Ms. Winterbottom, was fair and well-reasoned and based in the law and the facts of the case. We firmly believe this decision will be upheld by the Third Circuit.”

An attorney for Simmons had no comment. 

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Tim Cwiek
Tim Cwiek has been writing for PGN since the 1970s. He holds a bachelor's degree in history from West Chester State University. In 2013, he received a Sigma Delta Chi Investigative Reporting Award from the Society of Professional Journalists for his reporting on the Nizah Morris case. Cwiek was the first reporter for an LGBT media outlet to win an award from that national organization. He's also received awards from the National Lesbian and Gay Journalists Association, the National Newspaper Association, the Keystone Press and the Pennsylvania Press Club.