1. Discovery--failure to comply--sanctions
The trial court did not abuse its discretion by dismissing defendant's answer for failing to
comply with discovery orders where there was no showing that defendant was ordered to
provide information which she could not reasonably produce; defendant continued to provide
evasive and incomplete answers, despite orders compelling discovery and continuances granted
to enable her to comply; and the court indicated in its order that it had considered less severe
sanctions. N.C.G.S. § 1A-1, Rule 37(d).
2. Damages--judgment--supported by evidence
There was no error in an action to recover money embezzled where the answer was
stricken for discovery violations, the court awarded damages in the amount of $250,000, and
defendant contended that the amount was not supported by the evidence. The answer having
been stricken, the allegations of the complaint are deemed to have been admitted and plaintiff's
evidence, the admitted allegations, and defendant's failure to testify or offer other evidence
combined to support the court's findings. Defendant will not be heard to argue on appeal that
plaintiff's evidence was insufficient, having failed to produce evidence to the contrary at trial or
in response to discovery orders.
3. Appeal and Error--facts not in record--arguments not supported by authority
Arguments which were based upon facts not contained in the record or which were
unsupported by authority were overruled. Appellate review is limited to those things which
appear in the record on appeal and assignments of error in support of which no reason or
argument is stated or authority cited are deemed abandoned.
4. Appeal and Error--cross-assignment of error--not an alternative legal ground
Cross-assignments of error relating to the amount of damages awarded by the trial court
were not considered where plaintiff sought to increase the damage awards rather than provide an
alternative legal ground supporting the judgment. N.C. R. App. P. 10(d).
Appeal by defendant from judgment entered 8 June 1998 by
Judge Russell J. Lanier, Jr., in Carteret County Superior Court.
Heard in the Court of Appeals 18 May 1999.
Mason & Mason, P.A., by L. Patten Mason, for plaintiff-
appellee.
Wheatly, Wheatly, Nobles & Weeks, P.A., by C.R. Wheatly,
III, for defendant-appellant.
MARTIN, Judge.
This case is before this Court for the third time.
Plaintiff, Atlantic Veneer Corp., brought this action on 2
February 1995 to recover money allegedly embezzled from it by
defendant's husband, a former employee, and subsequently
fraudulently transferred to defendant. Judge Ragan denied
defendant's motion to dismiss; upon defendant's appeal to this
Court, the order denying the motion to dismiss was affirmed.
Atlantic Veneer Corp. v. Robbins, COA95-906 (21 May 1996)
(unpublished).
Plaintiff subsequently moved for an order compelling
defendant to respond to previously served interrogatories and
requests for production of documents. By order dated 30
September 1996, Judge Ragan granted plaintiff's motion, finding,
inter alia:
11. The Court, having reviewed the
interrogatories and request for production of
documents and the defendant's response
thereto, finds in fact that the defendant's
answers are incomplete, evasive, and evidence
a disregard for the obligations required by
the North Carolina Rules of Civil Procedure
as the same relates to answering
interrogatories and producing documents.
Defendant was ordered to fully comply with discovery within
thirty days and was ordered to pay plaintiff's attorney's fees.
Upon defendant's failure to comply with the discovery order,
plaintiff moved for sanctions pursuant to G.S. § 1A-1, Rule
37(b)(2), requesting that the court strike the answer for the
continued failure to completely answer the discovery requests.
Judge Cobb heard the motions for sanctions at the 28 April
1997 session, found that defendant's responses to discovery didnot comply with the previous discovery order, and entered an
order providing:
The Court further determines that the answers
which have now been provided are still
evasive, incomplete, and the defendant has
not produced the documents required. The
Court further determines, in its discretion,
that the appropriate sanction to be applied
for the defendant's failure to comply is an
order striking out the defendant's answer and
rendering judgment by default against the
defendant.
The Court further in its discretion
delays implementation of this order until the
23rd day of June, 1997, at which time this
Order shall become final unless defendant
shall have provided the plaintiff the
following discovery: . . . .
Judge Cobb enumerated nine specific discovery requests to which
defendant was required to fully respond.
Defendant thereafter requested, and was granted, two
continuances in order to have additional time to comply with the
discovery orders. The matter was next heard on 18 August 1997 by
Judge DeRamus, who found that defendant still had not produced
the documents or completely answered the interrogatories. Judge
DeRamus noted that the defendant has filed no motion for
protective order and has not produced or provided any evidence
from which the Court can determine that the defendant's failure
to comply with Judge Ragan and Judge Cobb's orders has been
justified. In an order dated 21 August 1997, Judge DeRamus
concluded that:
2. The defendant's failure to comply with
the orders of Judge Ragan and Judge Cobb
shows a willful, intentional and egregious
abuse of the orders of this Court without any
justification being provided by defendant for
her conduct. 3. Judge Cobb, in his previous order had
indicated that it was his intention to strike
the defendant's answer and to enter judgment
by default.
4. The Court has considered lesser sanctions
but does not deem them appropriate in this
case.
5. The Court, having reviewed the entire
file and heard the arguments of counsel, is
of the opinion that it is appropriate in this
case to enter sanctions which strike the
defendant's answer and to enter default as to
the defendant . . . .
Defendant again appealed to this Court, challenging the
order striking her answer and entering default. By order dated
26 February 1998, her appeal was dismissed as interlocutory and
she was ordered to pay plaintiff's attorney's fees and the costs
of the appeal.
The matter was remanded to the superior court for a
determination of attorney's fees. Judge Ragan entered an order
on 24 March 1998 requiring defendant to pay $1,100 in attorney's
fees for the improper appeal.
On 8 June 1998, Judge Lanier entered a final judgment
against defendant in the amount of $250,000. The judgment
stated:
2. By entry of a default in this matter, the
Defendant has admitted the allegations as
contained in the complaint.
3. The failure of the defendant to take the
stand to testify as to facts particularly
within her knowledge and directly affecting
her is a pregnant circumstance from which
this court may consider such failure as a
basis for the conclusion that the Defendant
knowingly received money from her husband
which she knew he had embezzled from Atlantic
Veneer Corporation.
4. The Defendant's failure to produce
documents and evidence showing the source of
her funds is likewise considered by the court
as evidence of the fact that the Defendantknowingly received money from her husband
which she knew he had embezzled from Atlantic
Veneer Corporation.
Defendant again appeals, asserting the trial court erred by
striking her answer and by entering a judgment against her in the
amount of $250,000.
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