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1. Civil Procedure_Rule 60_not an alternative to appellate review
Rule 60(b)(6) may not be used as an alternative to appellate review. The trial court here
properly denied defendants' Rule 60 motion for relief where defendants had not perfected a prior
appeal; they may not now seek a second bite at the apple through Rule 60.
2. Contempt_settlement agreement_specific performance order
The trial court did not err by finding defendants in contempt in an action arising from the
settlement of a dispute from the construction and sale of a house. The court was not holding
defendants in contempt for breach of the settlement agreement as defendants contended, but for
failure to comply with an order of specific performance.
3. Appeal and Error_preservation of issues_constitutional argument_
failure to raise at
trial
A constitutional argument not raised at trial could not be raised on appeal.
4. Costs; Contempt_attorney fees_contempt proceeding--incorrectly allowed as
sanction
The trial court erred by awarding attorney fees in a civil contempt proceeding arising
from a settlement agreement and an order of specific performance in a dispute over the
construction of a house. There are no cases approving attorney fees in civil contempt
proceedings that do not involve child support or equitable distribution, the court's orders do not
refer to any contractual agreement authorizing attorney fees, and there is no statutory authority
allowing the trial court to award attorney fees as a sanction in this case.
The Yarborough Law Firm, by Garris Neil Yarborough, for
plaintiff-appellee.
McCoy Weaver Wiggins Cleveland Rose Ray, PLLC, by Richard M.
Wiggins and James A. McLean, III, for defendant-appellants.
HUNTER, Judge.
Timothy O. Jackson, Leisa S. Jackson, and Rosewood
Investments, L.L.C. (collectively defendants) appeal from orders
of the trial court finding them in civil contempt and awarding
plaintiff attorneys' fees. We affirm in part the order of the
trial court finding defendants in civil contempt but vacate that
portion of the order awarding attorneys' fees, as well as the order
entered 14 June 2005 awarding attorneys' fees.
The procedural history of the instant case is a long and
complicated one. On 21 December 2000, Rudolph Leonard Baxley, Jr.
(plaintiff) filed a complaint against defendants in Cumberland
County Superior Court setting forth claims of breach of contract,
breach of fiduciary duty, fraud, unfair and deceptive trade
practices, and quantum meruit, arising from the construction and
sale of a residential home. During trial of the case, defendants
agreed to settle the matter for the sum of $87,500.00, and the
trial court approved the settlement. The trial court noted that
the settlement agreement was enforceable by order of the Court.
When defendants subsequently failed to pay plaintiff the
agreed-upon sum, the trial court issued an order on 10 January 2003
for defendants to appear and show cause for failure to comply with
the consent order.
(See footnote 1)
Following the show cause hearing, the trialcourt issued an order of specific performance, dated 16 June 2003,
requiring defendants to comply with the terms of the settlement
agreement. Defendants gave notice of appeal to this Court. Pending
appeal of the order, a dispute arose over the issue of an
appropriate security deposit to stay the lower court proceedings.
Plaintiff filed yet another motion to show cause. On 25 August
2003, the trial court issued a second order for defendants to appear
and show cause for failure to comply with the order and to address
other possible sanctions[.] Upon consideration of the motion,
however, the trial court determined it did not have jurisdiction to
hear the contempt matter, as the earlier 16 June 2003 order was
still pending appeal, and accordingly dismissed the show cause
order. This Court subsequently dismissed defendants' appeal due to
their failure to properly assign error to the order from which they
appealed. Our Supreme Court denied discretionary review of the
dismissal 6 April 2005.
Following dismissal of defendants' appeal, plaintiff renewed
his motion for a show cause order. On 27 April 2005, the trial
court once again issued an order for defendants to appear and showcause for failure to comply with the earlier 16 June 2003 order
requiring specific performance. On 10 May 2005, defendants filed
a Motion to Reconsider Pursuant to N.C.R.C.P. 60(b) requesting the
trial court to vacate the 16 June 2003 order on the grounds that it
was contrary to established law. The trial court heard the motions
the same day. Upon consideration of the matter, the trial court
rejected defendants' legal arguments, finding instead that the 16
June 2003 order of specific performance remained in effect, that
defendants had the means to comply with the order, and that
defendants' failure to comply with the order was willful.
Accordingly, in an order entitled Memorandum Decision dated 14
June 2005, the trial court denied defendants' motion for appropriate
relief and found defendants to be in civil contempt of the 16 June
2003 order. The trial court ordered defendants into the custody of
the sheriff's department unless they chose to purge the contempt
through appropriate payment to plaintiff. The trial court entered
a separate order ordering defendants to pay attorneys' fees to
plaintiff's counsel as a sanction for delaying the trial court in
the administration of justice through the use of their dilatory
acts. Defendants now appeal from the trial court's orders finding
them in civil contempt and ordering them to pay attorneys' fees.
[1] Defendants first argue the trial court erred by denying
their motion for relief pursuant to Rule 60(b)(6) from the 16 June
2003 order of specific performance. This argument has no merit.
Under section 1A-1, Rule 60(b)(6) of our Rules of Civil
Procedure, a judgment may be set aside for any reason justifyingrelief from the operation of the judgment. N.C. Gen. Stat. § 1A-1,
Rule 60(b)(6) (2005). Rule 60(b)(6) is equitable in nature and
permits a trial judge to exercise his discretion in granting or
withholding the desired relief. Piedmont Rebar, Inc. v. Sun
Constr., Inc., 150 N.C. App. 573, 575, 564 S.E.2d 281, 283 (2002).
Accordingly, the trial court's ruling may be reversed on appeal
only upon a showing that the decision results in a substantial
miscarriage of justice. Id. Moreover, it is well settled that
Rule 60(b)(6) does not include relief from errors of law or
erroneous judgments. Garrison ex rel. Chavis v. Barnes, 117 N.C.
App. 206, 210, 450 S.E.2d 554, 557 (1994). 'The appropriate remedy
for errors of law committed by the court is either appeal or a
timely motion for relief under N.C.G.S. Sec. 1A-1, Rule 59(a)(8).'
Id. (quoting Hagwood v. Odom, 88 N.C. App. 513, 519, 364 S.E.2d 190,
193 (1988)).
In the present case, defendants based their Rule 60(b)(6)
motion for relief on alleged errors of law. Rule 60(b)(6) may not
be used as an alternative to appellate review, however. See id.
Although defendants properly appealed the 16 June 2003 order to this
Court, they failed to perfect such appeal, leading to dismissal.
Our Supreme Court denied defendants' petition for discretionary
review. Defendants may not now seek a second bite at the apple
through Rule 60(b)(6). As such, the trial court properly denied
defendants' Rule 60 motion for relief.
[2] By their second assignment of error, defendants argue the
trial court erred in finding them in contempt of the 16 June 2003order of specific performance. This Court's review of a trial
court's finding of contempt is limited to a consideration of
'whether the findings of fact by the trial judge are supported by
competent evidence and whether those factual findings are sufficient
to support the judgment.' General Motors Acceptance Corp. v.
Wright, 154 N.C. App. 672, 677, 573 S.E.2d 226, 229 (2002) (quoting
McMiller v. McMiller, 77 N.C. App. 808, 810, 336 S.E.2d 134, 136
(1985)). Defendants argue that breach of a settlement agreement is
not subject to the contempt power of the court. Defendants further
argue the 16 June 2003 order is unconstitutional and that their
failure to comply with the order cannot properly support a finding
of contempt. We do not agree.
The trial court did not hold defendants in contempt for breach
of the parties' settlement agreement. It held them in contempt for
failure to comply with the order of specific performance issued by
the court. It is well established that a party seeking enforcement
of a settlement agreement may petition the court for an order of
specific performance. See State ex rel. Howes v. Ormond Oil & Gas
Co., 128 N.C. App. 130, 136, 493 S.E.2d 793, 797 (1997) (noting that
a settlement agreement may be enforced by filing a new action or by
filing a motion in the cause). An order of specific performance,
in turn, is enforceable through the contempt powers of the court.
See N.C. Gen. Stat. § 5A-21 (2005); General Motors Acceptance Corp.,
154 N.C. App. at 676, 573 S.E.2d at 228 (stating that [t]he
parties' consent judgment was, in essence, a decree of specific
performance and legally enforceable through contempt proceedings ifit was adopted by the court). Defendants' argument to the contrary
is without merit.
[3] Defendants contend that the earlier 16 June 2003 order was
unconstitutional and may not properly form the basis for a contempt
charge. Defendants never made this argument to the trial court,
however, and may not raise it for the first time on appeal.
Anderson v. Assimos, 356 N.C. 415, 416, 572 S.E.2d 101, 102 (2002).
We therefore dismiss this argument, and overrule defendants' second
assignment of error.
[4] Finally, defendants argue the trial court erred in awarding
attorneys' fees as a sanction in its orders. We agree.
It is settled law in North Carolina that ordinarily attorneys
fees are not recoverable either as an item of damages or of costs,
absent express statutory authority for fixing and awarding them.
Records v. Tape Corp. and Broadcasting System v. Tape Corp., 18 N.C.
App. 183, 187, 196 S.E.2d 598, 602 (1973); see also Nohejl v. First
Homes of Craven County, Inc., 120 N.C. App. 188, 191, 461 S.E.2d 10,
12 (1995) ([a]bsent express statutory authority for doing so,
attorney fees are not recoverable as an item of damages or costs).
Because contempt is considered an offense against the State, rather
than an individual party, damages may not be awarded to a private
party because of any contempt[.] M. G. Newell Co. v. Wyrick, 91
N.C. App. 98, 102, 370 S.E.2d 431, 434 (1988); see also Records, 18
N.C. App. at 187, 196 S.E.2d at 601-02 (holding that by virtue of
the criminal nature of contempt proceedings and the statutory
provisions for enforcement of the contempt power by punishment only,a trial judge in North Carolina has no authority to award
indemnifying fines or other compensation to a private plaintiff in
a contempt proceeding).
In Nohejl, the defendant appealed from an order of civil
contempt entered by the trial court after the defendant failed to
comply with a consent order agreed to by the parties. Upon review,
this Court determined that the trial court had no authority to award
attorneys' fees to the plaintiffs' attorney in connection with the
contempt order. Nohejl, 120 N.C. App. at 191-92, 461 S.E.2d at 12.
The Court acknowledged that attorneys' fees had been awarded in
limited types of civil contempt actions; specifically, those
involving child support and equitable distribution. Id. (citing
Blair v. Blair, 8 N.C. App. 61, 173 S.E.2d 513 (1970) (awarding
attorneys' fees in a contempt action to enforce child support); see
also Hartsell v. Hartsell, 99 N.C. App. 380, 393 S.E.2d 570 (1990)
(awarding attorneys' fees in a contempt action to enforce equitable
distribution award). However, as the plaintiffs' action did not
arise in the context of enforcement of a child support or equitable
distribution proceeding, and as there was no express contractual
provision or statutory authority permitting plaintiffs to recover
attorney fees, the trial court was without authority to award such.
Nohejl, 120 N.C. App. at 191-92, 461 S.E.2d at 12; see also Powers
v. Powers, 103 N.C. App. 697, 707, 407 S.E.2d 269, 276 (1991)
(declining to extend cases awarding attorneys' fees in contempt
actions beyond ones originating in child support or equitable
distribution). Plaintiff cites Few v. Hammack Enter., Inc., 132 N.C. App. 291,
298, 511 S.E.2d 665, 670 (1999), for the proposition that [e]ven
absent an express grant of authority . . . trial courts have
inherent authority to impose sanctions for wilful failure to comply
with the rules of court. However, Few concerned the authority of
the court to sanction a party by striking their answer and
counterclaim, not the imposition of attorneys' fees. Id. at 298-99,
511 S.E.2d at 670; see also Lomax v. Shaw, 101 N.C. App. 560, 563,
400 S.E.2d 97, 98 (1991) (holding that the trial court had the
inherent authority to strike the defendants' answer for failure to
execute a consent judgment). We have found no cases approving an
award of attorneys' fees in a civil contempt proceeding outside
those arising in the context of enforcement of a child support or
equitable distribution action. The orders entered by the trial
court in the instant case contain no reference to any contractual
agreement or statutory authority authorizing the imposition of
attorneys' fees. Rather, the 14 June 2005 order states that [t]he
dilatory acts of the Defendants ha[ve] hindered and delayed the
Court in the administration of justice and that [a]s a sanction,
the Defendants are ordered to pay to The Yarborough Law Firm the sum
of $10,557.00 within 10 (ten) days from [the] date of this Order.
Because there is no statutory authority allowing the trial court to
impose attorneys' fees as a sanction for defendants' failure to
comply with the order of specific performance, the trial court was
without authority to award attorneys' fees. Nohejl, 120 N.C. App.
at 191-92, 461 S.E.2d at 12; Powers, 103 N.C. App. at 707, 407S.E.2d at 276; Records, 18 N.C. App. at 187, 196 S.E.2d at 602. We
therefore vacate the 14 June 2005 order of the trial court imposing
attorneys' fees, as well as that portion of the trial court's 14
June 2005 memorandum decision awarding attorneys' fees.
We affirm in part the memorandum decision of the trial court
finding defendants in civil contempt but vacate that portion of the
order awarding attorneys' fees. We also vacate the order entered
14 June 2005 awarding attorneys' fees.
Affirmed in part, vacated in part.
Chief Judge MARTIN and Judge McCULLOUGH concur.
I do not . . . sanction [their actions] and
say that the actions of Tim and Leisa Jackson
and Rosewood w[ere] appropriate. I make no
statement to that effect. And [I] don't know
for what reason that this matter has gotten to
the place that it is. But for some reason,
whatever that reason was, they changed their
mind. Did not -- decided they did not want to
proceed along the lines of paying that money
as had been agreed to in that -- in the
settlement discussions.
The trial court found that defendants presented no evidence at the
contempt hearing regarding their reasons or inability to pay
plaintiff.
Rule 28(b)(5) of the Appellate Rules of Procedure requires the statement of the facts to be a non-argumentative summary of all material facts underlying the matter in controversy which are necessary to understand all questions presented for review, supported by references to pages in the transcript of proceedings, the record on appeal, or exhibits, as the case may be. N.C.R. App. P. 28(b)(5) (emphasis added). Defendants' inclusion of facts not supported by the record is inappropriate and we therefore give them no heed.
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