Dee v. Sweet

480 S.E.2d 316, 224 Ga. App. 285, 97 Fulton County D. Rep. 142, 1997 Ga. App. LEXIS 44
Court of Appeals of Georgia·Decided January 17, 1997·No. A96A2508·Published·Cited by 5 cases

Opinion

Birdsong, Presiding Judge.

Appellants/defendants William V. Dee and Arthur H. McMahon appeal from the order granting appellees/plaintiffs’ motion to execute judgment against registry funds and denying appellant Dee’s motion for appointment of .guardian ad litem.

*286 In January 1992, following the acrimonious termination of the parties’ business relationship, appellees sued appellants seeking damages for various business-related tortious conduct (Civil Action Case No. D-96405). A temporary restraining order (TRO) was granted preventing destruction of evidence by appellants; subsequently, another TRO was granted restraining appellants from disposing of certain corporate and personal assets of appellants. Expedited discovery commenced. During the taking of the deposition of appellant Dee’s wife, Janet, it was discovered she had transferred $142,000 in her own name into out-of-state banks. At trial of Case No. 96405, Mrs. Dee testified that appellant Dee had directed her to transfer these funds. Mrs. Dee’s actions caused appellees to file suit (Civil Action Case No. D-96953) against her requesting a TRO. In February 1992, in Case No. D-96953, Mrs. Dee was ordered to transfer instanter into the superior court registry the $142,000 she had transferred to out-of-state bank accounts. Mrs. Dee complied and transferred the monies into the court registry in Case No. D-96953.

Mrs. Dee subsequently filed for divorce. In June 1993, in Civil Action Case No. D-98878, the trial court entered a final judgment and decree of divorce between appellant Dee and his wife. The funds transferred by Mrs. Dee were to be held in the registry pending the outcome of the “ ‘Sweet and Wright’ ” tort litigation (Case No. 96405), and were to be given to appellant Dee only to the extent that any of said funds, plus any accrued interest, were thereafter awarded to appellant in Case No. 96405. The decree also ordered appellant Dee to pay certain debts and obligations of the parties, including any debts arising out of final litigation in Case No. 96405. Further, pursuant to the decree, appellant Dee was required to pay child support, all medical, psychological, and dental (including orthodontic) expenditures, and one-half of certain tuition costs for his minor children.

In July 1993, in Case No. D-96405, appellant Dee filed a motion for withdrawal of the funds which had been transferred to the registry pursuant to the February 1992 order entered in Case No. D-96953. The trial court denied the motion without prejudice. On October 8, 1993, the trial court entered an order dismissing the complaint against Mrs. Dee in Case No. D-96953, and transferring the funds being held pursuant to the February 1992 order in Case No. D-96953 to Case No. D-96405.

In March 1994, after a jury trial in Case No. D-96405, a special verdict was returned against appellants as to appellees’ claims of fraud and Georgia RICO; the special verdict also found against appellant McMahon on the claim of libel and in favor of appellee Wright on the claim of tortious interference with commissions. Dee v. Sweet, 218 Ga. App. 18, 19 (460 SE2d 110). The jury awarded appellees a judgment of $724,776 and appellants appealed. (In July 1994, *287 fi. fas. were issued showing appellant Dee’s joint and several liability in the amount of $339,363 principal as to appellee Sweet and $305,413 principal as to Wright.)

The issue of entitlement to the registry money was not expressly adjudicated during the trial of Case No. D-96405, notwithstanding the order of the superior court, filed on October 8, 1993 in Case No. D-96953, which transferred the registry funds to Case No. D-96405 to be “held there until the issue of entitlement to the funds is decided in that case.”

In August 1994, the trial court ordered appellants to post a joint supersedeas bond, reduced (by the amount of all principal and interest then in the court’s registry) to an amount of $517,087.27. The order placed appellants on notice that if the bond was not timely posted, the notice of appeal filed by appellants in Case No. D-96405 would not serve as supersedeas with respect to their adjudged joint and several liability to appellees. Appellant Dee failed to post the required bond. The appeal proceeded and in July 1995, judgment was affirmed by this Court in Dee v. Sweet, supra.

In September 1994, while the tort suit appeal was still pending, appellees filed a motion to execute their judgment against the registry funds due to appellant Dee’s failure to post supersedeas bond. This motion was the first claim made by any creditor of appellant Dee to levy upon the registry funds. In response, appellant Dee moved for the appointment of a guardian ad litem for his children and opposed appellee’s motion to execute. Appellant Dee basically contends that the registry funds constitute marital assets which should be used to satisfy the arrearage of his prior court-imposed child support obligation and that his children have a paramount claim over the funds in the registry. In February 1996 a hearing was held on appellees’ motion; the trial court granted appellees’ motion to withdraw and pay registry funds to the appellees and denied appellant Dee’s motion for appointment of a guardian ad litem. Held:

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Dee v. Sweet, 480 S.E.2d 316, 224 Ga. App. 285, 97 Fulton County D. Rep. 142, 1997 Ga. App. LEXIS 44 (Ga. Ct. App. 1997).

480 S.E.2d 316 (Dee v. Sweet) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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