Cunningham v. Sams

605 S.E.2d 741, 167 N.C. App. 653, 2004 N.C. App. LEXIS 2409
CourtCourt of Appeals of North Carolina
DecidedDecember 21, 2004
DocketNo. COA03-1719
StatusPublished

This text of 605 S.E.2d 741 (Cunningham v. Sams) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cunningham v. Sams, 605 S.E.2d 741, 167 N.C. App. 653, 2004 N.C. App. LEXIS 2409 (N.C. Ct. App. 2004).

Opinion

WYNN, Judge.

Defendant appeals a default judgment entered 29 July 2003 after the trial court struck her Answer and Counterclaim and all other pleadings as sanctions for failure to comply with a discovery order and failure to appear at a show cause hearing. For the reasons stated herein, we affirm.

The plaintiff-attorneys in this case, J. Calvin Cunningham and Lori Watson Berger, represented Cynthia Sams (now O'Malley) in a domestic action that ultimately was resolved under the representation of Ms. Sams's current attorney, William J. O'Malley. The matter arose when Mr. Cunningham and Ms. Berger brought legal proceedings against Ms. Sams to recover their unpaid legal fees. The trial court entered partial summary judgment in favor of Mr.Cunningham and Ms. Berger, leaving only the issue of the "reasonableness of the time for which Ms. Sams was billed by Mr. Cunningham and Ms. Berger." Ms. Sams appealed the order on summary judgment, but this Court dismissed the appeal as being interlocutory on 26 February 2003.

Under The North Carolina State Bar's Revised Rule of Professional Conduct 3.7, Mr. Cunningham and Ms. Berger moved to have Mr. O'Malley disqualified as Ms. Sams's attorney because they intended to call him as a witness during the jury trial on the reasonableness of attorney fees. After the trial court entered an order disqualifying Mr. O'Malley and his firm, Hahn & Chastain, P.A., from any further representation in any capacity in the matter, Ms. Sams appealed. Ms. Sams filed a Petition for Writ of Supesedeas and Motion for Temporary Stay on 21 March 2003 to stay all further proceedings in the trial court pending review of the order disqualifying counsel. This Court initially denied the motion for temporary stay on 24 March 2003, but then rescinded that order ex mero motu on 4 April 2003 and allowed the temporary stay for the "limited purpose of staying further proceedings in the district court related to or affected by Judge Mark Culler's 2 July 2002 order disqualifying defendant's counsel." Then, on 22 April 2003, this Court entered an Order allowing Defendant's petition for writ of supersedeas and stayed "proceedings in the district court related to or affected by Judge Mark Culler's 2 July 2002 order disqualifying defendant's counsel . . . pending disposition of defendant's appeal." This Court upheld the trial court's orderdisqualifying defense counsel from representing Defendant at trial, but reversed the trial court's order disqualifying defense counsel from representing Defendant in any other capacity in this matter and the order disqualifying defense counsel's law firm. Cunningham v. Sams, No. COA02-1623, 2003 N.C. App. LEXIS 2347 (Nov. 18, 2003).

Thereafter this case came before Judge James M. Honeycutt, for a hearing upon Defendant's Motion for Protective Order and Application for Stay Order. Judge Honeycutt denied Ms. Sams's motions in an order entered 27 March 2003. On 23 April 2003 Judge Honeycutt entered an Order Compelling Discovery after Ms. Sams failed to show for a scheduled deposition. At this time, the trial court permitted Mr. O'Malley to act as Ms. Sams's attorney.

On 24 April 2003 Plaintiffs gave Ms. Sams notice for her deposition to occur at the offices of Cunningham & Crump in Davidson County, North Carolina. However, Ms. Sams failed to appear for this deposition, did not file a motion for a protective order, and did not give Plaintiffs any reason for her lack of attendance.

On 28 May 2003 Plaintiffs moved for sanctions against Ms. Sams for her failure to comply with previous discovery orders. The sanctions requested included striking Ms. Sams's Answer and Counterclaim and an entry of Judgment for Plaintiffs for the relief sought in their Complaint. On 9 June 2003 Judge Theodore S. Royster, Jr. held a hearing regarding the motion for sanctions, along with other matters, at which both Ms. Sams and her attorney failed to appear. On 23 June 2003 Judge Royster entered an Orderto Show Cause and an Order to Appear, ordering Ms. Sams to appear. On 1 July 2003 Judge Royster held the hearing on Plaintiffs' Motion for Sanctions and Defendant again failed to appear, despite the Order to Appear. Ms. Sams's attorney appeared at the hearing, and the trial court gave Ms. Sams's attorney forty minutes to get Ms. Sams to the hearing. During this break, Ms. Sams's attorney left the courthouse and did not return for the remainder of the hearing.

The trial court granted Plaintiffs' motion for sanctions and the Answer and Counterclaims and all other pleadings were stricken pursuant to Rule 37(b)(2) of the North Carolina Rules of Civil Procedure. On 29 July 2003 Judge Royster entered a judgment by default in favor of Plaintiffs in the amount prayed for in their Complaint, along with attorney fees for the preparation of the 21 May 2003 deposition. Ms. Sams appealed.

On appeal, Defendant argues that the trial court erred and abused its discretion in striking its Answer and Counterclaim and in entering judgment by default. We disagree.

Rule 37(b)(2) of the North Carolina Rules of Civil Procedure authorizes a trial court to sanction a party for failure to comply with a court order compelling discovery. The trial court is given broad discretion to "make such orders in regard to the failure as are just" and authorized to, among other things, prohibit the introduction of certain evidence, strike pleadings, dismiss the action, or render judgment against the disobedient party. N.C. Gen. Stat. § 1A-1, Rule 37(b)(2) (2003). The trial judge has broad discretion in imposing sanctions under Rule 37. F. E. Davis Plumbing Co., Inc. v. Ingleside W. Assocs., 37 N.C. App. 149, 153, 245 S.E.2d 555, 557, cert. denied, 295 N.C. 648, 248 S.E.2d 250 (1978). This Court will not overturn a sanctions ruling pursuant to Rule 37 absent a showing of abuse of that discretion. Brooks v. Giesey, 106 N.C. App. 586, 592, 418 S.E.2d 236, 239 (1992), aff'd, 334 N.C. 303, 432 S.E.2d 339 (1993). The test for abuse of discretion is whether a decision is manifestly unsupported by reason, or so arbitrary that it could not have been the result of a reasoned decision. Frost v. Mazda Motor of Am., Inc., 353 N.C. 188, 199, 540 S.E.2d 324, 331 (2000).

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Related

Goss v. Battle
432 S.E.2d 156 (Court of Appeals of North Carolina, 1993)
Brooks v. Giesey
432 S.E.2d 339 (Supreme Court of North Carolina, 1993)
F. E. Davis Plumbing Co. v. Ingleside West Associates
245 S.E.2d 555 (Court of Appeals of North Carolina, 1978)
Cunningham v. Sams
588 S.E.2d 484 (Court of Appeals of North Carolina, 2003)
Hursey v. Homes by Design, Inc.
464 S.E.2d 504 (Court of Appeals of North Carolina, 1995)
Brooks v. Giesey
418 S.E.2d 236 (Court of Appeals of North Carolina, 1992)
Frost v. Mazda Motor of America, Inc.
540 S.E.2d 324 (Supreme Court of North Carolina, 2000)
O'Neal v. Murray
411 S.E.2d 628 (Court of Appeals of North Carolina, 1992)

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Bluebook (online)
605 S.E.2d 741, 167 N.C. App. 653, 2004 N.C. App. LEXIS 2409, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cunningham-v-sams-ncctapp-2004.