Almeida v. Metal Studs, Inc.
2016 Ark. App. 602
| Ark. Ct. App. | 2016Background:
- DCI sued Almeida in July 2013, alleging violations of a confidentiality/noncompetition agreement; a preliminary injunction was entered on Aug. 15, 2013, effective immediately and lasting until July 15, 2015 unless superseded.
- Little activity occurred until discovery in 2014–2015; DCI moved for contempt on Jan. 26, 2015, alleging willful violation of the injunction.
- The court ordered additional discovery and set a July 16, 2015 hearing; the court continued unresolved matters and announced in open court a follow-up hearing for Aug. 28, 2015, and extended the injunction to Aug. 31.
- Almeida’s counsel moved to continue the Aug. 28 hearing, arguing no written order memorialized the July 16 docket-call setting and that they first learned of the hearing late.
- Almeida did not appear on Aug. 28; the court orally sanctioned him $3,500 in attorney’s fees and awarded travel/hotel costs for a witness; a written order memorializing the monetary sanctions was entered Sept. 9, 2015.
- Almeida appealed the sanctions; the Court of Appeals raised sua sponte the threshold issue of appealability (final, appealable contempt order) and dismissed the appeal without prejudice because the sanctions order did not constitute a contempt order or a final appealable decision.
Issues:
| Issue | Almeida's Argument | DCI's Argument | Held |
|---|---|---|---|
| Whether the monetary sanction constitutes an appealable civil or criminal contempt order under Ark. R. App. P.–Civ. 2(a)(13) | The July 16 setting was not reduced to a written order; Rule 58 requires a written order to be effective, so he cannot be sanctioned on an unwritten docket-call setting | The court’s oral docket-call continuance was sufficient; Almeida heard the court set the date and therefore was properly sanctioned for failing to appear | Court: No actual finding of contempt was made; the sanction is not a contempt order and thus not a final, appealable order; appeal dismissed without prejudice |
| Whether the court’s sanction—though monetary—amounts to a final disposition of a contempt matter | The lack of explicit contempt finding means there is no appealable contempt disposition | The sanction/punishment can be justified by the court’s oral directive and transcript evidence | Court: Because the record contains no contempt finding, the monetary award is analogous to a noncontempt sanction (not final/appealable) |
Key Cases Cited
- Kowalski v. Rose Drugs of Dardanelle, Inc., 357 S.W.3d 432 (Ark. 2009) (court may raise sua sponte whether an order is final and appealable)
