Welsh v. Martinez

CourtConnecticut Appellate Court
DecidedAugust 20, 2019
DocketAC41115
StatusPublished

This text of Welsh v. Martinez (Welsh v. Martinez) is published on Counsel Stack Legal Research, covering Connecticut Appellate Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Welsh v. Martinez, (Colo. Ct. App. 2019).

Opinion

*********************************************** The “officially released” date that appears near the be- ginning of each opinion is the date the opinion will be pub- lished in the Connecticut Law Journal or the date it was released as a slip opinion. The operative date for the be- ginning of all time periods for filing postopinion motions and petitions for certification is the “officially released” date appearing in the opinion.

All opinions are subject to modification and technical correction prior to official publication in the Connecticut Reports and Connecticut Appellate Reports. In the event of discrepancies between the advance release version of an opinion and the latest version appearing in the Connecticut Law Journal and subsequently in the Connecticut Reports or Connecticut Appellate Reports, the latest version is to be considered authoritative.

The syllabus and procedural history accompanying the opinion as it appears in the Connecticut Law Journal and bound volumes of official reports are copyrighted by the Secretary of the State, State of Connecticut, and may not be reproduced and distributed without the express written permission of the Commission on Official Legal Publica- tions, Judicial Branch, State of Connecticut. *********************************************** D’ANNA WELSH v. WILLIAM V. MARTINEZ (AC 41115) Lavine, Prescott and Elgo, Js.

Syllabus

The defendant, W, appeals from the judgment of the trial court holding him in contempt for violating the terms of an asset standstill order. The plaintiff had brought an action against W seeking to recover damages for, inter alia, tortious invasion of privacy. The matter was tried to a jury, which returned a verdict in favor of the plaintiff in the amount of $2 million, and the court awarded punitive damages in the amount of $360,000. Thereafter, the court ordered that W was enjoined from voluntarily transferring or encumbering any assets except business assets in the ordinary course of business and personal assets for ordinary living expenses, including court-ordered alimony and child support, and also granted the plaintiff’s application for a prejudgment remedy. The plaintiff subsequently filed a motion for contempt alleging that W trans- ferred more than $2 million to his then-wife, C, by depositing all of his wages directly into her bank account for the purpose of defeating the asset standstill order. The trial court granted the motion for contempt and imposed a compensatory fine of $2.2 million payable to the plaintiff in the amount of $25,000 per month. From the judgment rendered thereon, W appealed to this court. Held: 1. W’s claim that the trial court improperly found him in contempt because the asset standstill order lacked sufficient clarity and was ambiguous was unavailing: the plain language of the order prohibited W from depos- iting the entirety of his income to C’s bank account over several years, after his own bank account into which his wages previously were depos- ited was frozen, for the purpose of shielding those assets from the reach of a judgment creditor, the asset standstill order provided sufficient notice to a reasonable person that the wholesale transfer of wages to the account of a third party was not permitted, and evidence in the record supported the court’s determination that W wilfully had violated the order, including evidence that C’s bank account was opened for the express purpose of placing the entirety of W’s wages outside the reach of a judgment creditor; accordingly, the trial court did not abuse its discretion in holding W in contempt. 2. W could not prevail in his claim that the trial court failed to consider his ability to pay in imposing a compensatory fine: that court found that W had sufficient income and other assets that rendered him financially able to pay the monthly amount ordered, and that finding was substanti- ated by evidence in the record, which included W’s testimony that he earned a gross annual income of $1.2 million and that he had no other long-term debt aside from monthly mortgage payments and certain divorce related obligations, and statements from individual retirement accounts held by W were admitted into evidence as full exhibits, and, therefore, the court reasonably could have concluded that W had not proven a financial incapacity to comply with its fine, and its finding that W possessed sufficient income and other assets to pay that fine was not clearly erroneous. 3. Although the trial court properly concluded that the plaintiff was harmed by W’s contemptuous conduct, the court abused its discretion in impos- ing a compensatory fine without the necessary factual basis: even though the court properly found that the principal loss sustained by the plaintiff was the inability to employ statutory collection procedures against W, including the remedy of attachment as to the $2,220,400.67 in wages that W deposited into C’s bank account, compensatory fines must be confined to actual losses sustained as a result of noncompliance with a court order, the ability to attach an asset is distinct from the ability to execute on an attachment to satisfy an outstanding judgment, and the court failed to furnish an adequate factual basis to support its deter- mination that the plaintiff had proven $2.2 million in actual pecuniary losses, as an attachment merely provides security for a judgment credi- tor, who may execute on the attachment depending on a number of factors, including the extent to which the judgment has been satisfied and the existence of other attachments on the assets of the judgment debtor, the court made no findings, apart from finding that the plaintiff’s ability to attach such assets was impaired, to provide the requisite factual basis for its compensatory fine and, in the absence of such findings, could not ensure that the fine was confined to actual losses sustained; accordingly, the case was remanded to the trial court for a new hearing limited solely to the issue of damages to determine the measure of loss that occurred as a result of W’s contemptuous conduct in violation of the court’s order. Argued February 4—officially released August 20, 2019

Procedural History

Action to recover damages for, inter alia, the defen- dant’s alleged invasion of privacy, and for other relief, brought to the Superior Court in the judicial district of Hartford and tried to the jury before Robaina, J.; verdict and judgment for the plaintiff, from which the defendant appealed to this court, which affirmed the judgment; thereafter, the plaintiff filed a motion to prevent fraudu- lent transfer of property; subsequently, the court, Gra- ham, J., entered an order enjoining the defendant from transferring certain assets; thereafter, the court, Robaina, J., granted the plaintiff’s application for a prejudgment remedy; subsequently, the court, Moll, J., granted the plaintiff’s motion for contempt and ren- dered judgment thereon, from which the defendant appealed to this court; thereafter, the court, Moll, J., denied the defendant’s motion for articulation; subse- quently, the defendant filed a motion for review with this court, which granted the defendant’s motion for review but denied the relief requested. Reversed in part; further proceedings. Jeffrey J. Mirman, with whom were David A. DeBas- sio and, on the brief, Thomas J. Farrell, for the appel- lant (defendant). Irve J. Goldman, with whom, on the brief, was Timo- thy G. Ronan, for the appellee (plaintiff). Opinion

ELGO, J. The defendant, William V. Martinez, Jr.,1 appeals from the judgment of the trial court holding him in contempt for violating the terms of an asset standstill order.

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Welsh v. Martinez, Counsel Stack Legal Research, https://law.counselstack.com/opinion/welsh-v-martinez-connappct-2019.