Sidebottom v. Watershed Equine, LLC

564 S.W.3d 331
CourtCourt of Appeals of Kentucky
DecidedOctober 26, 2018
DocketNO. 2016-CA-000268-MR
StatusPublished
Cited by3 cases

This text of 564 S.W.3d 331 (Sidebottom v. Watershed Equine, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sidebottom v. Watershed Equine, LLC, 564 S.W.3d 331 (Ky. Ct. App. 2018).

Opinion

LAMBERT, D. JUDGE:

This is an appeal from a Fayette Circuit Court order holding Michael Sidebottom (hereafter, Sidebottom), in contempt. Sidebottom settled a dispute with Watershed Equine, LLC, (hereafter, Watershed), wherein he agreed to pay $18,000, plus post-judgment interest. When Sidebottom failed to pay, Watershed sought post-judgment discovery regarding the amount owed. When Sidebottom did not attend a scheduled deposition, the circuit court held him in contempt. Sidebottom was given thirty days to pay the entire amount owed to Watershed in lieu of immediate remand. After review, we vacate and remand for a new hearing.

I. BACKGROUND

In April 2015, Sidebottom and Watershed settled a civil dispute arising from unpaid horse boarding fees. By the terms of the settlement, Sidebottom agreed to pay Watershed $18,000, plus post-judgment interest. The settlement also included an agreed payment plan.

Despite the payment plan, Sidebottom failed to pay the full amount owed. In fact, he only tendered $1,046 of the $18,000 total. Watershed subsequently sought discovery regarding Sidebottom's ability to pay the debt. Watershed's counsel emailed Sidebottom on November 5, 2016, regarding a deposition to be taken later that month. Moreover, Watershed served Sidebottom with a subpoena on November 9, 2015, notifying him that his deposition would be taken on November 24, 2015.

These notifications notwithstanding, Sidebottom did not attend the scheduled deposition. Instead, he sent Watershed an email reply on November 23, 2016, explaining his unavailability. Watershed filed a show cause motion with the circuit court, and a hearing was held on that motion.

During the hearing, Sidebottom testified as to his financial situation and his assets. He also admitted his failure to make payments in accordance with the payment schedule outlined in the settlement agreement. The circuit court orally determined Sidebottom had sufficient assets to pay the amount of the original settlement. There was also an oral finding that Sidebottom could pay the respective fees and costs for Watershed to bring the show cause motion. The circuit court entered a written order finding Sidebottom in contempt of court, but allowed him to avoid imprisonment if he paid $22,013.12, the total amount owed, within thirty days. This appeal followed.

II. STANDARD OF REVIEW

A trial court has broad discretion to find individuals in contempt when they willfully disobey or openly disrespect the rules or orders of a court. Crowder v. Rearden , 296 S.W.3d 445, 450 (Ky. App. 2009). Appellate courts therefore review a finding of contempt under the abuse of discretion standard, which means the order must be reasonable and legally sound. Id. As for a contemnor's ability to satisfy a judgment, and thereby purge a contempt amount, this is a finding of fact to be made by the trial court. Clay v. Winn , 434 S.W.2d 650, 654 (Ky. 1968). Trial court factual findings are reviewed on appeal for clear error. Com., Cabinet for Health and Family Servs. v. Ivy , 353 S.W.3d 324, 332 (Ky. 2011). In other words, the findings will not be disturbed if supported by substantial evidence.

*334Owens-Corning Fiberglas Corp. v. Golightly , 976 S.W.2d 409, 414 (Ky. 1998).

III. DISCUSSION

On appeal, Sidebottom alleges numerous errors by the circuit court. He starts by claiming he was wrongly held in contempt for failing to attend the deposition. He then claims his constitutional rights were violated because he faced incarceration for failing to pay a debt. For the following reasons, we agree.

Our law recognizes both civil and criminal contempt. Civil contempt occurs when one fails to comply with a court order. Criminal contempt, on the other hand, occurs when one engages in conduct that "tends to bring the court into disrepute." Commonwealth v. Burge , 947 S.W.2d 805, 808 (Ky. 1996) (quoting Gordon v. Commonwealth , 141 Ky. 461, 133 S.W. 206, 208 (1911) ). "If the court's purpose is to punish, the sanction is criminal contempt." Id. However, if the purpose is merely to coerce, in that the contemnor "carr[ies] the keys of [his] prison in [his] own pockets," then the contempt is civil. Campbell v. Schroering , 763 S.W.2d 145, 148 (Ky. App. 1988) (quoting Shillitani v. United States , 384 U.S. 364, 368, 86 S.Ct. 1531, 1534, 16 L.Ed.2d 622 (1966) ). The contemnor's ability to pay must be properly found and "clearly set forth in a finding of fact." Blakeman v. Schneider , 864 S.W.2d 903, 906 (Ky. 1993). Moreover, if the court finds the contemnor unable to purge the contempt with one payment, it may authorize periodic payments. Id.

Here, the circuit court's order suffers from an important deficiency, as its language muddles whether the contempt was merely coercive, rather than punitive. A court speaks only through its written orders, see Kindred Nursing Centers Ltd. Partnership v. Sloan ,

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Bluebook (online)
564 S.W.3d 331, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sidebottom-v-watershed-equine-llc-kyctapp-2018.