Appeal by defendants from order filed 13 November 2001 by
Judge Ronald E. Spivey in Yadkin County Superior Court. Heard in
the Court of Appeals 29 October 2002.
Finger, Parker, Avram & Roemer, L.L.P., by M. Neil Finger and
Raymond A. Parker, for plaintiff appellees.
Hendrick & Bryant, L.L.P., by Matthew H. Bryant, for defendant
appellants.
GREENE, Judge.
Donald and Betty Groce (Defendants) appeal an order filed 13
November 2001 denying (1) their Rule 60(b) motion for relief from
orders entered 29 September and 17 October 2000 (the contempt
orders) and (2) their motion for summary judgment with respect to
a separate damages action brought by Gilbert and Vann Hemric
(Plaintiffs).
(See footnote 1)
In 1997, Defendants leased their Yadkin County farm property
and the corresponding tobacco allotments to Plaintiffs. Under the
terms of the lease, Plaintiffs agreed to abide by all rules andregulations set forth by the CFSA office [(the County Farm Services
Agency)]. According to an affidavit by the CFSA Agricultural
Program Specialist for Tobacco, the rules and regulations provide
that [e]ach producer who has an interest in the crop produced in
the current year is entitled to use the marketing card issued for
the farm to market the producer's proportionate share of the crop,
not to exceed 103% of the farm's effective marketing quota. The
lease was to expire on 15 November 1997; however, the parties
extended their agreement for an additional year. Subsequently, a
dispute arose between the parties as to whether proper notice had
been given to terminate the lease for the 1999 crop year, and
Plaintiffs initiated an action (99 CVD 111) against Defendants in
the Yadkin County District Court (the consent judgment action).
This case was settled, resulting in a memorandum of judgment and a
subsequent consent judgment signed by the parties and the trial
court.
The consent judgment allowed Plaintiffs' year-to-year lease to
continue for the 1999 crop year, ending no later than 15 November
1999. The parties agreed that, on or before 15 November 1999,
Plaintiffs were to pay Defendants 52.5 cents per pound for all the
tobacco raised on Defendants' property and sold in 1999. In the
event some of the tobacco grown in 1999 was not sold before 15
November 1999, Plaintiffs were to pay this sum to Defendants when
they did sell the crop.
(See footnote 2)
In 1999, Plaintiffs produced tobacco on the leased property in
excess of 16,800 pounds above the amount permitted to be sold in
1999. Plaintiffs sought to sell their 1999 overproduction in 2000
and requested Defendants' 2000 tobacco marketing cards for this
purpose. Defendants refused to allow Plaintiffs the use of their
marketing cards because (1) the 1999 lease had ended on 15 November
1999, at which time Defendants leased their property to a new
tenant, and (2) Defendants had already granted Plaintiffs use of
the marketing cards to sell 103% of the property's tobacco
allotment in 1999.
On or about 17 August 2000, Plaintiffs initiated an
administrative hearing before the CFSA to obtain Defendants'
marketing cards for the 2000 crop year. The hearing was held on 8
September 2000. The CFSA's decision, announced by letter to the
parties, denied Plaintiffs' request because the agency's
regulations required issuance of marketing cards to the farm
operator, in this case Defendants, and stated Plaintiffs hadfifteen days to appeal the decision.
Plaintiffs did not appeal the agency's decision. On 14
September 2000, Plaintiffs instead filed a motion to show cause why
Defendants should not be held in contempt in the consent judgment
action. In its motion, Plaintiffs alleged Defendants had failed to
comply with the terms of the consent judgment by refusing to give
Plaintiffs the necessary 2000 marketing cards to sell their 1999
overproduction. In an order entered 29 September 2000, the
district court concluded a reasonable interpretation of [the
consent judgment was] that both parties contemplated there would be
tobacco sold after November 15, 1999. Because, as the district
court further concluded, the tobacco grown by Plaintiffs could not
be sold without Defendants' 2000 marketing cards and any refusal by
Defendants to allow Plaintiffs to use the cards would be in
violation of the consent judgment, the district court ordered
Defendants to turn over their marketing cards to Plaintiffs. In
the event Defendants refused to comply with the order, they were
directed to re-appear before the district court. Defendant Betty
Groce partially complied with the district court's order. When
defendant Donald Groce, however, refused to give Plaintiffs his
marketing card, the district court, in an order entered 17 October
2000, held Donald Groce in civil contempt, resulting in a
thirteen-day incarceration, at the end of which the 2000 tobacco
market closed and the district court ordered his release.
Having been unable to sell their overproduction in 2000,
Plaintiffs, on 10 January 2001, filed a damages action (01 CVS 22)against Defendants in superior court (the damages action). In
their complaint, Plaintiffs alleged Defendants had been previously
held in civil contempt for their failure to comply with the consent
judgment. Defendants filed an answer on 22 March 2001. On 3
August 2001, Defendants also filed a motion for relief from
judgment under Rule 60(b)(4) regarding the contempt orders in the
consent judgment action and a motion for summary judgment with
respect to the damages action. As grounds for their 60(b)(4)
motion, Defendants alleged in pertinent part that the district
court was without authority to enter the contempt orders and thus
enforce the consent judgment through contempt. In an order entered
13 November 2001, the superior court denied both Defendants'
60(b)(4) motion and their motion for summary judgment.
__________________________
The issues are whether: (I) the district court had the
authority to enforce the consent judgment through contempt; (II)
the contempt orders are void; and (III) the superior court erred in
denying Defendants' motion for summary judgment.
Consent Judgment Action
I
Contempt Orders
Defendants contend the district court lacked the authority to
enforce the parties' consent judgment through contempt. We agree.
A consent judgment is a contract between the parties entered
upon the record with the sanction of the trial court and is
enforceable by means of an action for breach of contract and notcontempt.
(See footnote 3)
Crane v. Green, 114 N.C. App. 105, 106, 441 S.E.2d 144,
144-45 (1994);
see Walton v. City of Raleigh, 342 N.C. 879, 881,
467 S.E.2d 410, 411 (1996) ([a] consent judgment is a
court-approved contract);
In re Will of Smith, 249 N.C. 563, 568-
69, 107 S.E.2d 89, 93-94 (1959) (a consent judgment is nothing more
than a contract between the parties, and a breach of contract is
not punishable for contempt)
. Plaintiffs' attempt to have
Defendants held in contempt for alleged noncompliance with the
consent judgment was thus prohibited by our case law, and the trial
court erred in entering the contempt orders. Although we recognize
that there is authority to suggest a party may file a motion in the
cause to seek specific performance of a non-domestic consent
judgment,
see Few v. Hammack Enter., Inc., 132 N.C. App. 291, 299,
511 S.E.2d 665, 671 (1999) (the trial court may order specific
performance of the terms of a mediated settlement agreement);
State
ex rel. Howes v. Ormond Oil & Gas Co., 128 N.C. App. 130, 136, 493
S.E.2d 793, 797 (1997) (a settlement agreement may be enforced by
petition or motion in the original action);
see also In re Will of
Smith, 249 N.C. at 568, 107 S.E.2d at 93 (a consent judgment will
support an order for specific performance in an action brought for
that purpose), or file an independent action for a declaratory
judgment regarding the parties' contract embodied in the consentjudgment,
see Home Health and Hospice Care, Inc. v. Meyer, 88 N.C.
App. 257, 262, 362 S.E.2d 870, 873 (1987) (while a party may, in a
separate and independent action, seek a declaratory judgment with
respect to a consent judgment, a declaratory judgment cannot be
commenced by a motion in the cause), Plaintiffs did not pursue
these avenues but restricted themselves to a motion to show cause
why Defendants were not in contempt.
(See footnote 4)
II
Void Orders under Rule 60(b)(4)
Plaintiffs argue in their brief to this Court that even if the
district court lacked authority to hear Plaintiffs' motion to show
cause, Defendants were prohibited from collaterally attacking the
contempt orders because these orders were not void but merely
voidable.
(See footnote 5)
See Worthington v. Wooten, 242 N.C. 88, 92, 86 S.E.2d
767, 770 (1955)
(only void judgments may be collaterally attacked).
In determining whether an order is void or voidable, our
courts have held:
If a judgment is void, it must be from one ormore of the following causes: 1. Want of
jurisdiction over the subject matter; 2. Want
of jurisdiction over the parties to the
action, or some of them; or 3. Want of power
to grant the relief contained in the judgment.
In pronouncing judgments of the first and
second classes, the court acts without
jurisdiction, while in those of the third
class, it acts in excess of jurisdiction.
Allred v. Tucci, 85 N.C. App. 138, 142, 354 S.E.2d 291, 294 (1987)
(quoting
Ellis v. Ellis, 190 N.C. 418, 421, 130 S.E. 7, 9 (1925)).
In this case, the district court's contempt orders were void
because a trial court clearly lacks the authority to find a party
in contempt for noncompliance with a non-domestic consent judgment.
See Crane, 114 N.C. App. at 106, 441 S.E.2d at 144-45. The
superior court therefore erred in denying Defendants' motion for
relief from judgment, and the contempt orders must be vacated.
(See footnote 6)
Damages Action
III
Summary Judgment
Defendants also appeal the superior court's denial of their
motion for summary judgment with respect to Plaintiffs' damages
claim.
A
Defendants first argue the superior court lacked subject
matter jurisdiction to hear Plaintiffs' damages action becausePlaintiffs failed to exhaust their administrative remedies before
the CFSA by not appealing the agency's decision. This Court has
held that an action is properly dismissed for lack of subject
matter jurisdiction where the plaintiff has failed to exhaust
administrative remedies.
Shell Island Homeowners Ass'n v.
Tomlinson, 134 N.C. App. 217, 220, 517 S.E.2d 406, 410 (1999);
see
Swain v. Elfland, 145 N.C. App. 383, 388-89, 550 S.E.2d 530, 535
(dismissing the plaintiff's whistleblower claim in superior court
where plaintiff had previously elected to try this claim in the
Office of Administrative Hearings),
cert. denied, 354 N.C. 228, 554
S.E.2d 832 (2001). This doctrine, however, does not apply where
the judicial remedy sought is not available under the
administrative process.
See Guthrie v. Conroy, --- N.C. App. ---,
---, 567 S.E.2d 403, 407-08 (2002) (as the plaintiff's common law
tort claims for personal injury caused by intentional and negligent
infliction of emotional distress did not amount to a statutory
sexual harassment case, the plaintiff was not required to exhaust
administrative remedies before bringing her action in the trial
court);
Brooks v. Southern Nat'l Corp., 131 N.C. App. 80, 86, 505
S.E.2d 306, 310 (1998) (a plaintiff is not required to exhaust
administrative remedies where his common law claims were not
subject to administrative review).
In this case, Plaintiffs petitioned the CFSA for issuance of
Defendants' marketing cards pursuant to 7 C.F.R. § 723.305(a)(2) of
the Agricultural Code. This section allows a producer on a farm to
submit a request to the CFSA for direct issuance to him of the farmoperator's marketing cards.
See 7 C.F.R. § 723.305(a)(2) (2002).
Evaluation of the producer's request is based solely on whether the
producer is a producer in the current crop year, 7 C.F.R. §
723.305(a)(3) (2002), and whether he has been or likely will be
deprived [by the operator] of the right to use the marketing card
issued for the farm, 7 C.F.R. § 723.305(a)(1)(iii)-(2) (2002).
When Plaintiffs brought their separate action for money damages
based on a breach of the parties' consent judgment, they were
seeking a remedy under contract law not available under the
Agricultural Code. Accordingly, the exhaustion doctrine is
inapplicable to this case, and the superior court did not err in
denying Defendants' motion for summary judgment on this basis.
(See footnote 7)
B
Defendants next argue the superior court should have granted
their motion for summary judgment because Plaintiffs' damages claim
was barred by the doctrine of res judicata based on the CFSA's
ruling regarding the issuance of the marketing cards. We disagree.
The hearing before the CFSA simply involved an analysis of
sections 723.305(a)(2)-(3). The damages action, on the other hand,
turns on an interpretation of the parties' consent judgment, an
issue not before the CFSA. Accordingly, res judicata does not bar
Plaintiffs' damages action.
See Thomas M. McInnis & Assoc., Inc.
v. Hall, 318 N.C. 421, 428, 349 S.E.2d 552, 556 (1986)
(under thedoctrine of res judicata a final judgment on the merits in a prior
action will prevent a second suit based on the same cause of action
between the same parties or those in privity with them).
C
Defendants further assert because tobacco allotments run with
the land and the property had been leased to a new tenant for the
2000 crop year, [Defendants'] allotment and marketing cards for
2000 did not belong to [Defendants] and therefore Plaintiffs could
not seek any damages under the 1999 lease and the parties' consent
judgment. This argument has no merit because Defendants, as the
farm operators, had title to the 2000 marketing cards.
See 7
C.F.R. § 723.305(a)(1) (2002). Furthermore, even if the new tenant
could assert title to the cards, this would have no effect on
Plaintiffs' breach of contract action against Defendants because
Plaintiffs are no longer seeking specific performance by having the
marketing cards issued to them, as attempted in the CFSA hearing,
but have restricted their claim to monetary damages.
D
Finally, Defendants argue the 1997 written lease agreement
between the parties did not permit overproduction and thus their
obligations to Plaintiffs ended on 15 November 1999 when the lease
terminated.
Contrary to Defendants' contention, the 1997 lease only
contains language with respect to the applicability of CFSA rules
and regulations. While these rules permit Plaintiffs to sell 103%
of the tobacco allotment assigned to the leased property, they donot specifically prohibit overproduction but merely contain
provisions to penalize such overproduction.
See 7 U.S.C.A. §
1314e(i)(1) (1999). It is thus not clear whether the 1997 lease
sought to limit Plaintiffs' use of Defendants' marketing cards to
103% of the allotment or whether it sought to hold Plaintiffs
liable for the statutory penalties in the event Plaintiffs
overproduced. Accordingly, there are genuine issues of material
fact that must be determined by a fact-finder.
See N.C.G.S. § 1A-
1, Rule 56(c) (2001).
In conclusion, we affirm the superior court's denial of
Defendants' motion for summary judgment in the damages action but
reverse its denial of Defendants' 60(b)(4) motion and remand this
case with directions to vacate the contempt orders.
Affirmed in part and reversed and remanded in part.
Judges MARTIN and BRYANT concur.
Footnote: 1