An unpublished opinion of the North Carolina Court of Appeals does not constitute controlling legal authority. Citation is disfavored, but may be permitted in accordance with the provisions of Rule 30(e)(3) of the North Carolina Rules of Appellate Proced
ure.
NO. COA03-1034
NORTH CAROLINA COURT OF APPEALS
Filed: 3 August 2004
DAVID P. REYNOLDS,
Plaintiff,
v. Mecklenburg County
No. 92 CVD 9547
CYNTHIA W. REYNOLDS,
(now FLYNN),
Defendant.
CYNTHIA FLYNN,
(formerly REYNOLDS),
Plaintiff,
v
.
Mecklenburg County
No. 93 CVD 13114
DAVID P. REYNOLDS,
Defendant.
Appeal by David P. Reynolds from order entered 18 February
2003 by Judge Jane V. Harper in Mecklenburg County District Court.
Heard in the Court of Appeals 28 April 2004.
Horack, Talley, Pharr & Lowndes, P.A., by Thomas R. Cannon and
Kary C. Watson, for Reynolds appellant.
James, McElroy & Diehl, P.A., by William K. Diehl, Jr., and
Preston O. Odom, III, for Flynn appellee.
McCULLOUGH, Judge.
David P. Reynolds (Reynolds) appeals from an order which
found him in civil contempt, and called for his arrest and
incarceration pending the payment of past due child support and
attorney fees to his opponent's counsel.
This is the second time this case is before us. A detailedsummary of the facts giving rise to this appeal is set forth in our
first opinion, Reynolds v. Reynolds, 147 N.C. App. 566, 557 S.E.2d
126 (2001), rev'd per curiam, 356 N.C. 287, 569 S.E.2d 645 (2002).
However, a brief summary of the pertinent facts is necessary to
provide context for the issues now on appeal.
This litigation began after the marriage, separation, and
divorce of Reynolds and Cynthia Flynn (Flynn). On 30 August 1999,
the trial court issued an order finding Reynolds in criminal
contempt for failing to pay child support. The trial court also
ordered Reynolds to pay $65,000.00 in attorney fees to Flynn's
counsel. Both parties stipulated that of this award, $10,000.00
represents time related to the contempt portion of this case and
the remaining $55,000.00 to other issues (custody and visitation).
Reynolds appealed the August 1999 order to this Court, and
while that appeal was pending, Flynn obtained two additional orders
finding him in continuing civil contempt for failing to pay child
support.
In ruling on Reynolds' appeal, Judge John wrote a dissent that
our Supreme Court later adopted. Reynolds, 147 N.C. App. at 576-
81, 557 S.E.2d at 132-35. Judge John explained that this Court
lacked jurisdiction to consider Reynolds' appeal from the criminal
contempt portion of the August 1999 order. Id. at 581, 557 S.E.2d
at 135. Judge John also upheld the $10,000.00 fee award. Id. at
580, 557 S.E.2d at 135. He cited the May 1999 order's prevailing
party attorney fee provision and a consent order in which the
parties agreed that if a contempt citation is successfully broughtby either party against the other, the losing party shall be
required to pay the reasonable counsel fees of the prevailing
party. Id. at 580, 557 S.E.2d at 135.
On 12 November 2002, one month after our Supreme Court issued
its opinion, Flynn filed another motion for contempt. Flynn's
motion alleged that Reynolds was in contempt of several court
orders.
The trial court held a hearing on 7 January 2003; Reynolds did
not personally attend, but was represented by his counsel. During
the hearing, the trial court considered testimonial and documentary
evidence. On 18 February 2003, the trial court entered an order
holding Reynolds in civil contempt. The February 2003 order
noted that the August 1999 order remained in effect; this included
the provisions requiring Reynolds to pay legal fees of $65,000
plus interest to Mr. Diehl.
With regard to attorney fees, the February 2003 order
determined that the value of Flynn's counsel's services for the
period of time from July 1999 to the current dates is no less than
$100,000[,] including services performed during the appellate
proceedings directly related to the August 1999 order. The trial
court ordered Reynolds to pay Flynn $94,000.00 as a condition to
purge his civil contempt.
Reynolds appeals. On appeal, Reynolds argues that the trial
court erred in ordering him to reimburse Flynn for attorney fees.
Flynn has responded by filing a motion for sanctions against
Reynolds and his counsel. We affirm the decision of the trialcourt and deny the motion for sanctions.
I. Reynolds' Assignment of Error
According to the doctrine of the law of the case, once an
appellate court has ruled on a question, that decision becomes the
law of the case and governs the question both in subsequent
proceedings in a trial court and on subsequent appeal. Weston v.
Carolina Medicorp, Inc., 113 N.C. App. 415, 417, 438 S.E.2d 751,
753 (1994). Furthermore, under general rules of estoppel by
judgment, plaintiff is similarly precluded from relitigating an
issue adversely determined against him. Id. at 418, 438 S.E.2d at
753. In at least one case, our Supreme Court has noted that a
prior decision of the Court of Appeals was res judicata and the law
of the case, even though it had been overturned later. Save Our
Rivers, Inc. v. Town of Highlands, 341 N.C. 635, 638, 461 S.E.2d
333, 335 (1995).
Throughout his brief, Reynolds argues that awarding attorney
fees was improper because no statute authorized the taxing of such
fees. In making his argument, Reynolds relies heavily on M.G.
Newell Co. v. Wyrick, 91 N.C. App. 98, 370 S.E.2d 431 (1988). This
case determined that attorney fees were permitted only when
authorized by statute. Id. at 102, 370 S.E.2d at 434.
However, Judge John and our Supreme Court expressly rejected
this position in the first appeal. Their decision was based on
this Court's ruling in a case that was decided after Wyrick. In
PCI Energy Services v. Wachs Technical Services, 122 N.C. App. 436,
442, 470 S.E.2d 565, 568 (1996), attorney fees were properlyawarded in a contempt proceeding where an earlier consent judgment
contained an express provision allowing for the recovery of costs
associated with enforcing the judgment. As was the case in PCI,
the parties [in the first Reynolds appeal] had previously agreed
in the 5 May 1999 consent order that if a contempt citation is
successfully brought by either party against the other, the losing
party shall be required to pay the reasonable counsel fees of the
prevailing party. Reynolds, 147 N.C. App. at 580, 557 S.E.2d at
135.
We reject Reynolds' argument that Wyrick controls the outcome
of this case, because our appellate courts have already ruled that
PCI, not Wyrick, is controlling. Therefore, under the law of the
case doctrine, that decision is the law of the case and governs the
question in this subsequent appeal. For these reasons, we dismiss
this assignment of error and turn to consider Flynn's motion for
sanctions against Reynolds and his counsel.
II. Motion for Sanctions
Flynn has made a motion for sanctions requesting that Reynolds
and his counsel be held jointly and severally liable for reasonable
costs and attorney fees. Pursuant to N.C.R. App. P. 34(a) (2004),
this Court may impose sanctions against a party or attorney or
both when the court determines that an appeal or any proceeding in
an appeal was frivolous[.] There are three possible justifications
for imposing sanctions:
(1) the appeal was not well grounded in
fact and warranted by existing law or a good
faith argument for the extension,modification, or reversal of existing law;
(2) the appeal was taken or continued for
an improper purpose, such as to harass or to
cause unnecessary delay or needless increase
in the cost of litigation;
(3) a petition, motion, brief, record or
other paper filed in the appeal was so grossly
lacking in the requirements of propriety,
grossly violated appellate court rules, or
grossly disregarded the requirements of a fair
presentation of the issues to the appellate
court.
Id.
We decline to impose sanctions in this case because our review
of the appeal leads us to believe that it was not brought for an
improper purpose. Reynolds' actions in failing to pay child
support must be distinguished from the issues related to this
appeal. While we agree that failing to pay child support is
reprehensible, the parties were not debating
whether Reynolds
should pay child support. Instead, the parties' dispute dealt with
attorney fees and the law of contempt.
Our Supreme Court has described the law of contempt as hazy
at best.
O'Briant v. O'Briant, 313 N.C. 432, 434, 329 S.E.2d 370,
372 (1985). Moreover, the fact that there was a divided panel in
the first
Reynolds appeal reveals that this area of the law has
generated confusion and disagreement.
In this case, counsel for
Reynolds engaged in zealous representation and presented a good
faith argument to the Court. Although this argument was ultimately
rejected, counsel was not prohibited from offering it.
Accordingly, the motion for sanctions is denied. After carefully reviewing the record, briefs, and arguments of
the parties, we conclude that the trial court did not err in
ordering Reynolds to reimburse Flynn for attorney fees.
Furthermore, since we are not persuaded that the appeal was
frivolous, the motion for sanctions is denied.
Affirmed.
Judges McGEE and TIMMONS-GOODSON concur.
Report per Rule 30(e).
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