Murtagh v. Emory University

741 S.E.2d 212, 321 Ga. App. 411, 2013 Fulton County D. Rep. 1246, 2013 WL 1277780, 2013 Ga. App. LEXIS 324
CourtCourt of Appeals of Georgia
DecidedMarch 29, 2013
DocketA12A2127
StatusPublished
Cited by9 cases

This text of 741 S.E.2d 212 (Murtagh v. Emory University) 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
Murtagh v. Emory University, 741 S.E.2d 212, 321 Ga. App. 411, 2013 Fulton County D. Rep. 1246, 2013 WL 1277780, 2013 Ga. App. LEXIS 324 (Ga. Ct. App. 2013).

Opinion

Branch, Judge.

This appeal is the culmination of a series of lawsuits between James J. Murtagh, M.D., and Emory University dating from 1999, the first of which ended in a settlement agreement. In the course of this subsequent action, which Murtagh filed in 2004, an arbitrator sanctioned Murtagh for violating the settlement agreement, dismissed his remaining claims, and awarded Emory fees and costs. After sanctioning Murtagh for contempt, the trial court confirmed the arbitrator’s decision, issued a permanent injunction against Murtagh, and awarded Emory more than $1 million in damages, fees, and costs. On appeal from this judgment, Murtagh argues that the trial court erred when it confirmed the arbitrator’s award, when it sanctioned him for contempt, and when it awarded Emory its attorney fees. We find that the trial court erred when it imposed a fine of $15,000 for Murtagh’s three acts of contempt, but we affirm in all other respects.

The record shows that after Murtagh was relieved of his position on the Emory faculty in 1999, he filed a variety of actions and complaints in state and federal courts and agencies against Emory, several members of the Emory faculty, and the Fulton-DeKalb Hospital Authority raising claims ranging from misappropriation of grant funds to Irish ancestry discrimination. In 2001, the parties entered into a settlement agreement that included nondisparagement, confidentiality, and arbitration provisions. The arbitration provision provided that claims arising out of the subject matter of the settlement agreement would be governed by the Federal Arbitration Act (“FAA”), 9 USC § 1 et seq.

In September 2003, Murtagh demanded arbitration of disputes arising in the wake of the settlement agreement. In November 2004, however, Murtagh filed the instant action against Emory and its associated entities in Fulton County Superior Court for slander, defamation and other torts. Emory counterclaimed as to Murtagh’s ongoing breaches of the settlement agreement, including his posting of articles and documents on the Internet alleging that Emory officials and lawyers had committed crimes, poisoned him, suppressed evidence, and tampered with witnesses.

In an amended counterclaim, filed in June 2005, Emory moved for injunctive relief and to compel arbitration as to Murtagh’s violations of the settlement agreement. Emory also asserted that it was entitled to fees under OCGA § 13-6-11 because Murtagh had been “stubbornly litigious,” had acted “in bad faith,” and had caused Emory “unnecessary trouble and expense.” In June 2005, the trial [412]*412court issued a temporary injunction barring Murtagh from publishing “any defamatory or disparaging statements regarding Emory University.” In August 2005, the trial court also granted Emory’s motion to compel arbitration of all allegations contained in Murtagh’s complaint. As to Emory’s counterclaims, the trial court held that because these were specifically excluded by the terms of the settlement agreement, they would remain pending rather than proceed to arbitration.1

The 2005 and 2007 Contempt Proceedings. In light of Murtagh’s alleged continuing breaches of the settlement agreement, including his Internet activities, the trial court conducted a hearing in December 2005 and held Murtagh in contempt for violating the temporary injunction.2 The trial court found that Murtagh had deliberately violated the injunction and entered an order that any future violations would result in the dismissal with prejudice of and the issuance of a permanent injunction against all of Murtagh’s claims as well as a fine of $15,000 for each additional violation of the temporary injunction or the contempt order itself. The trial court also ruled that Emory was entitled to fees under OCGA § 13-6-11 for having to defend against Murtagh’s 2004 complaint and for Murtagh’s “bad faith conduct.”

After Emory again alleged violations by Murtagh, a second hearing was held on October 3, 2007, and the trial court found that Murtagh had knowingly and wilfully violated both the temporary injunction and the 2005 contempt order. The trial court then dismissed all of Murtagh’s claims with prejudice, enjoined him from pursuing any further claims, fined him $15,000, and threatened imprisonment and further fines should Murtagh again fail to comply with the court’s commands. The 2007 order also found that Murtagh had wilfully violated the 2005 order and authorized Emory to file evidence of its fees. Later in October 2007, Emory submitted voluminous evidence to show that from September 2003, when Murtagh demanded arbitration, Emory had incurred expenses of more than $1.8 million, with a net amount due to it (after the setoff of amounts still owed to Murtagh under the settlement agreement) of more than $1.25 million.

[413]*413The Arbitration. As we have noted, the trial court ordered Murtagh’s claims, but not Emory’s counterclaims, into arbitration in August 2005. In a decision issued in June 2008, the arbitrator concluded that Murtagh had engaged in “multiple discovery abuses including intentionally withholding . . . multiple responsive and material documents, even after being ordered to do so by the Arbitrator, and committing perjury during discovery.” On the basis of these findings, and under authority of OCGA §§ 9-11-37 and 9-15-14 (b), the arbitrator dismissed Murtagh’s claims, struck his defenses to Emory’s counterclaims, entered a default judgment in favor of Emory, and ordered Murtagh to pay attorney fees. In a second decision rendered in February 2009, the arbitrator ruled that OCGA § 13-6-11 entitled Emory to recover only those fees and expenses incurred in prosecuting its counterclaim.3 After setting off more than $519,000 still owed by Emory to Murtagh under the settlement agreement, the arbitrator awarded Emory $147,597.83 in fees and expenses plus interest.

Confirmation of the Arbitrator’s Award and Final Judgment. After an unsuccessful attempt to remove the instant Georgia action to federal court, on September 30,2011, Murtagh moved to vacate the arbitrator’s 2008 and 2009 awards. In October 2011, Emory moved to confirm the arbitrator’s award.

In January 2012, after a hearing, the trial court confirmed the arbitrator’s award, granted preclusive effect to the default judgment enteredby the arbitrator, and granted a permanent injunction against Murtagh based on his “pattern of repeated, bad faith and surreptitious violations of the Settlement Agreement, and his repeated and willful violations of the Court’s orders.” On the matter of fees, the trial court found that Emory’s fees as submitted in 2007 were “reasonable, properly documented, and awardable,” and awarded Emory $1,101,912.13 in damages, fees, and expenses.4 This appeal followed.

1. Murtagh argues that the trial court erred when it confirmed the arbitrator’s award, including the arbitrator’s sanctions and his dismissal of Murtagh’s claims. We disagree.

(a) As an initial matter, Murtagh’s motion to vacate the arbitrator’s award was not timely. The FAA— which the parties agreed and [414]

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Bluebook (online)
741 S.E.2d 212, 321 Ga. App. 411, 2013 Fulton County D. Rep. 1246, 2013 WL 1277780, 2013 Ga. App. LEXIS 324, Counsel Stack Legal Research, https://law.counselstack.com/opinion/murtagh-v-emory-university-gactapp-2013.