State Ex Rel. Payne v. Empire Life Ins. Co.

351 So. 2d 538
CourtSupreme Court of Alabama
DecidedAugust 19, 1977
StatusPublished
Cited by55 cases

This text of 351 So. 2d 538 (State Ex Rel. Payne v. Empire Life Ins. Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Payne v. Empire Life Ins. Co., 351 So. 2d 538 (Ala. 1977).

Opinion

351 So.2d 538 (1977)

In re Criminal Contempt Prosecution against Shearn Moody, Jr., arising out of STATE of Alabama ex rel. PAYNE, etc.
v.
EMPIRE LIFE INSURANCE CO. OF AMERICA, etc.
Ex parte Shearn MOODY, Jr.

SC 2336 to 2339.

Supreme Court of Alabama.

August 19, 1977.
Rehearing Denied September 30, 1977.

*540 William H. Mills for Rogers, Howard, Redden & Mills, Birmingham, for petitioner.

Drayton Nabers, Jr. and William A. Robinson, Birmingham, for respondent, Protective Life Ins. Co.

JONES, Justice.

These cases are before the Court upon writs of certiorari to review a decree of the Circuit Court of Jefferson County adjudging the petitioner, Shearn Moody, Jr., in criminal contempt for the violation of several injunctions and orders issued by that Court. Separate petitions, which had been consolidated on a single record, were filed in this Court to review four convictions.

Moody is the president, chairman of the board, and principal stockholder of the Empire Life Insurance Company of America. Respondents are The Honorable William C. Barber, Judge, Circuit Court of Jefferson County, before whom the contempt proceedings were heard, and Protective Life Insurance Company.

Receivership and Allmon

In order to understand the issues raised, it is necessary to set forth a brief summary of the receivership proceedings and other ancillary and related actions out of which this case arose.

On June 29, 1972, Empire was placed in receivership and ordered liquidated. Moody objected to this and was permitted to intervene as a defendant. Reinsurance was authorized through Protective on June 14, 1974. This reinsurance has been recently upheld by this Court. Moody v. State ex rel Payne, 344 So.2d 160 (Ala.1977).

The four criminal contempt judgments are based upon Moody's interference with the receivership proceedings and his involvement in the case of Allmon v. Bookout, Civil Act No. 74-377-N, United States District Court for the Middle District of Alabama.

*541 Subsequent to the receivership determination, Moody, through counsel, filed various suits and claims against the Receiver, in that capacity and individually. One such case, Allmon, was filed on November 22, 1974. Moody's involvement in Allmon is the basis of the first judgment of contempt. The trial Court held that an implied injunction prohibiting interference with the receivership arose after Empire was placed in receivership, and that Moody violated this implied injunction by filing Allmon.

On January 6, 1975, after Allmon was filed, the trial Court issued an injunction in an attempt to prevent Moody's further interference with the receivership. Thereby, Moody was enjoined from filing, financing or sponsoring any action, or amendment to any action, on behalf of any party, against the Receiver or others without prior approval of the Court. See Moody v. State ex rel. Payne, 295 Ala. 299, 329 So.2d 73 (1976). On January 28, 1975, without seeking approval from the Court, counsel for Moody filed an amended complaint in Allmon. It is the violation of this January 6, 1975, injunction which is the basis of the second contempt adjudication.

An order dated March 10, 1975 (as vacated and superseded by an order dated April 30, 1975), held Moody in civil contempt for violating the January 6 injunction, and specified eight requirements for Moody to purge himself. It is the failure to obey the April 30 order which is the basis of the third contempt adjudication.

On June 16, 1976, the Court ordered Moody to personally appear on July 19 and show that he had purged himself by complying with the April 30, 1975, order. Moody's failure to appear is the basis of the fourth adjudication of criminal contempt.

Criminal Contempt Proceedings

The criminal contempt proceedings against Moody were initiated on August 19, 1976. A petition was filed by Protective and served upon each of three attorneys of record for Moody. On the basis of the petition and supporting papers, the trial Court issued four orders requiring Moody to appear and show why he should not be held in criminal contempt. Moody was served, as directed by the Court, at his address in Galveston, Texas, by both registered and first class mail.

Prior to the scheduled hearing, counsel for Moody filed a motion seeking a continuance on the basis of Moody's health and alleged inability to travel. The Court directed Moody to submit to physical examination and to file medical records and reports concerning his health. After further hearings, the Court held that a general continuance was not warranted, but a conditional continuance was granted subject to a physical examination of Moody.

On September 2, 1976, Moody filed separate motions to quash service, to quash the orders to show cause, and to dismiss. All were subsequently overruled. Trial was commenced on September 13, 1976. The Court determined ex mero motu not to compel Moody's attendance, but to leave the decision whether to appear to Moody, himself. Further motions to continue and for Judge Barber to recuse himself were also denied.

The Court below considered voluminous documentary evidence and oral testimony. The evidence was left open, however, to permit Moody to submit to deposition testimony in explanation of his position and contentions. Because no such testimony was forthcoming, the Court treated the evidence as closed on November 1, 1976.

Pursuant to Tit. 13, § 9, Code, Moody was sentenced to confinement in the Jefferson County jail for four consecutive five-day terms and ordered to pay four fines of fifty dollars each. The Court also held that counsel for Protective was entitled to recover reasonable attorney's fees from Moody. The amount of such attorney's fees, however, was to be determined at a subsequent hearing. This review followed. We affirm in part, and reverse in part.

I.

Numerous issues have been raised by Moody, many of which can only be answered *542 by first resolving the basic questions of what is the nature of a criminal contempt proceeding and what are the requirements of due process of law in such actions.

If the purpose for which the court's contempt power is exercised is to coerce compliance with an order of the court, the action is one for "civil" contempt. If, however, the purpose is to preserve the authority and dignity of the court, and to punish the contemnor for noncompliance with an order of the court, the contempt is "criminal." 17 Am.Jur.2d, Contempt, § 4. If the act or omission is not done in the presence of the court, but at a distance, it is termed "constructive" contempt. Ex parte Seymore, 264 Ala. 689, 89 So.2d 83 (1956). Both statute and cases affirm the discretionary power of the court to enforce its orders and to punish recalcitrance. Tit. 13, § 5, Code, and Ex parte Hill, 229 Ala. 501, 158 So. 531 (1935).

A proceeding in contempt for noncompliance with a lawful court decree is sui generis and not a "criminal prosecution" as that term is commonly understood. Blackmer v. United States, 284 U.S. 421, 52 S.Ct. 252, 76 L.Ed. 375 (1932), and Robertson v. State, 20 Ala.App. 514, 104 So. 561 (1924). Because the sanctions employed by the court, pursuant to a criminal contempt adjudication, partake so heavily of a criminal nature (i.

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Bluebook (online)
351 So. 2d 538, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-payne-v-empire-life-ins-co-ala-1977.