MCCLOSKEY INT'L LIMITED v. GJ&L, INC DBA BORDER EQUIPMENT

CourtCourt of Appeals of Georgia
DecidedMarch 10, 2026
DocketA25A2148
StatusPublished

This text of MCCLOSKEY INT'L LIMITED v. GJ&L, INC DBA BORDER EQUIPMENT (MCCLOSKEY INT'L LIMITED v. GJ&L, INC DBA BORDER EQUIPMENT) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MCCLOSKEY INT'L LIMITED v. GJ&L, INC DBA BORDER EQUIPMENT, (Ga. Ct. App. 2026).

Opinion

FIFTH DIVISION MCFADDEN, P. J., HODGES and PIPKIN, JJ.

NOTICE: Motions for reconsideration must be physically received in our clerk’s office within ten days of the date of decision to be deemed timely filed. https://www.gaappeals.us/rules

March 10, 2026

In the Court of Appeals of Georgia A25A2148. MCCLOSKEY INTERNATIONAL LIMITED et al. v. GJ&L, INC.

MCFADDEN, Presiding Judge.

McCloskey International Limited and James Teague appeal from an order

holding them in contempt for the purported wilful violation of a prior court order and

requiring them to pay attorney fees. Because the trial court abused its discretion in

finding wilful contempt of the prior order, we reverse the judgment of contempt. We

also vacate the award of attorney fees because it failed to identify any legal authority

for such an award.

1. Facts and procedural posture

GJ&L, Inc., which does business as Border Equipment (“Border”), filed a

complaint in Columbia County Superior Court against McCloskey and Teague, alleging wrongful termination of a distributor agreement. McCloskey and Teague filed

a motion to compel arbitration pursuant to an arbitration clause in the distributor

agreement. The trial court subsequently entered a consent order, providing that

“[t]he parties have agreed to conduct an arbitration in Stockholm, Sweden, under

Georgia substantive law, and to stay this litigation pending the outcome of the

arbitration.”

The consent order directed that “[t]he parties shall jointly initiate an arbitration

proceeding in Stockholm with the Arbitration Institute of the Stockholm Chamber of

Commerce within seven (7) days of the date of this order.” The consent order further

provided that the parties had stipulated that the arbitration shall be conducted under

the rules of the Stockholm arbitration institute, “except that the arbitration shall be

governed by Georgia substantive law, including the Georgia Multiline Heavy

Equipment Dealer Act, OCGA § 10-1-731 et seq., and the arbitration should be

conducted pursuant to that stipulation.”

The parties did not jointly initiate an arbitration proceeding by the seven-day

deadline as ordered by the court. But three days after the deadline had expired, Border

unilaterally filed a request for arbitration in Stockholm, alleging that its arbitration

2 request should be governed by Georgia substantive law pursuant to the stipulation set

forth in the consent order. McCloskey and Teague answered the request, asserting

that because the consent order deadline for initiating arbitration had not been met, the

stipulation referenced in the consent order about Georgia law was no longer

controlling.

Border then filed a motion in superior court seeking to compel compliance with

the consent order, arguing that defendants McCloskey and Teague had violated the

consent order by contesting whether Georgia substantive law applied when they

answered Border’s unilateral request for arbitration in Stockholm. After a hearing on

Border’s motion to compel, the court entered an order holding McCloskey and

Teague in contempt of court for wilful violation of the consent order by contesting

whether Georgia substantive law governed the arbitration request filed by Border. As

contempt sanctions, the court struck the defendants’ arbitration defense, lifted the

stay of the lawsuit, and scheduled a trial at which Georgia substantive law would

apply. The court also ordered the defendants to pay attorney fees and expenses

incurred by Border “in opposing Defendants’ positions on the substantive law issue

after the entry of the consent order in the amount of $64,000.” This appeal followed.

3 2. Abuse of discretion

McCloskey and Teague assert that the trial court abused its discretion by

holding them in wilful contempt for purportedly violating the consent order. We

agree.

“The discretion of the judges of the superior courts in all matters pertaining to

contempt of their authority and mandates will never be controlled unless grossly

abused.” MTN Invs. v. D. Magen, LLC, 369 Ga. App. 576, 577 (1) (894 SE2d 149)

(2023) (citation and punctuation omitted). However,

[b]efore a person may be held in contempt for violating a court order, the order should inform him in definite terms as to the duties thereby imposed upon him, and the command must therefore be express rather than implied. Furthermore, the very nature of the proceeding in either civil or criminal contempt for an alleged disobedience of a court order requires that the language in the commands be clear and certain.

In re Syvertson, 368 Ga. App. 865, 867 (891 SE2d 424) (2023) (citation and

punctuation omitted). See also Alexander v. DeKalb County, 264 Ga. 362, 364 (1) (444

SE2d 743) (1994) (criminal contempt imposes unconditional punishment for prior acts

of contumacy, whereas civil contempt imposes conditional punishment as a means of

coercing future compliance with a prior court order).

4 Here, the consent order expressly informed the parties that they were required

to jointly initiate arbitration in Stockholm by a specific date and that they had

stipulated that Georgia substantive law should govern that arbitration. It is undisputed

that the parties did not jointly initiate arbitration by the specified deadline, although

the parties have not explained and the trial court did not determine why the deadline

was missed. The consent order did not address the effect of such a missed deadline

for initiating arbitration, and it clearly did not inform the parties in definite terms what

duties would be imposed upon them if they failed to jointly initiate arbitration by the

ordered deadline. Pertinently, the consent order did not expressly inform them that

under such circumstances, the stipulation regarding Georgia substantive law would

survive the expired deadline and automatically remain in effect for any subsequent

unilateral arbitration request, like the one filed by Border.

“While we review a trial court’s order for gross abuse of discretion, a party may

not be punished for failure to comply with the [terms of a consent] order unless those

[terms] are set forth in definite terms that are express rather than implied.” MTN

Invs., supra at 578 (1) (citation and punctuation omitted). “Because the [consent

order] did not clearly and definitely inform [the defendants] that [they were] barred

5 from [claiming that the stipulation regarding Georgia law was no longer in effect after

expiration of the filing deadline, they] cannot be [held in] contempt on this

basis. . . . Accordingly, the judgment of contempt must be reversed.” In re Syverston,

supra at 867 (citation omitted).

3. Attorney fees

McCloskey and Teague contend that the trial court erred in awarding attorney

fees. We agree.

As an initial matter, we note that an award of attorney fees is not a proper

sanction for either civil or criminal contempt. See City of Cumming v. Realty Dev.

Corp., 268 Ga. 461, 462 (2) (491 SE2d 60) (1997); J. Michael Vince, LLC v. SunTrust

Bank, 352 Ga. App. 791, 796 (2) (c) (835 SE2d 809) (2019). Here, it is not clear from

the trial court’s order if it imposed attorney fees as a contempt sanction. But at the

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Related

City of Cumming v. Realty Development Corp.
491 S.E.2d 60 (Supreme Court of Georgia, 1997)
Alexander v. DeKalb County
444 S.E.2d 743 (Supreme Court of Georgia, 1994)
Williams v. Becker
754 S.E.2d 11 (Supreme Court of Georgia, 2014)
Hall v. Hall
780 S.E.2d 787 (Court of Appeals of Georgia, 2015)

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