McGee v. Morris
1 CA-CV 15-0843-FC
| Ariz. Ct. App. | Mar 14, 2017Background
- Parties divorced by 2009 consent decree and property settlement agreement (PSA); Husband obligated to pay $2,500/month spousal maintenance and the parties to split net recovery from a malpractice ("Cadence") settlement.
- Wife filed multiple contempt petitions after Husband failed to pay spousal maintenance and attorneys’ fees; the court found Husband in contempt, issued an arrest warrant, and ordered financial discovery and other sanctions.
- Husband filed for bankruptcy which stayed family proceedings; after the stay lifted he petitioned to modify spousal maintenance. Wife opposed, noting the contempt finding remained unpurged, and sought enforcement of PSA disbursement for the malpractice settlement.
- At the September 21, 2015 hearing Husband did not appear; the court denied his modification petition and awarded Wife $97,727.50 in attorneys’ fees plus costs, under A.R.S. § 25-324.
- Husband timely appealed. Wife moved to dismiss the appeal based on Husband’s contempt/unclean-hands; both parties sought appellate fees. The Court of Appeals dismissed the appeal and awarded Wife appellate fees and costs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the appeal should be dismissed because Husband’s contumacious conduct (failure to comply with trial-court orders, outstanding contempt and arrest warrant) disentitles him to appellate relief | McGee: dismiss the appeal under the court’s equitable/contumacious-disentitlement powers; Husband’s misconduct is directly connected to the litigation | Morris: dismissal improper where appellant could not in good faith comply with orders or compliance would prejudice rights; challenges to fee award should be heard on the merits | Court: Dismissed appeal. Husband’s persistent contempt and failure to purge it meant he came to appellate court with unclean hands; dismissal was an appropriate exercise of discretion and contempt-related power |
| Whether the trial court erred in awarding attorneys’ fees (including fees for related bankruptcy proceedings and unresolved malpractice disbursement issues) under A.R.S. § 25-324 | McGee: fees were appropriate for post-decree litigation intrinsically related to enforcement and modification matters | Morris: trial court improperly awarded fees for bankruptcy and unresolved disbursement proceedings beyond the family court’s adjudication | Court: Did not reach merits due to dismissal; also awarded Wife appellate attorneys’ fees as sanctions for the unreasonable appeal in light of Husband’s contumacious conduct |
Key Cases Cited
- Stewart v. Stewart, 372 P.2d 697 (Ariz. 1962) (upholding discretionary dismissal of appeal where appellant flagrantly disregarded trial-court orders)
- In re Marriage of Margain & Ruiz-Bours, 372 P.3d 313 (Ariz. Ct. App. 2016) (discretion to dismiss appeal for unclean hands; equitable considerations required)
- Thompson v. Corry, 291 P.3d 358 (Ariz. Ct. App. 2012) (standard of review: statutory interpretation de novo; fee-amount discretionary)
- Smith v. Neely, 380 P.2d 148 (Ariz. 1963) (unclean-hands doctrine requires misconduct be related to the claim barred)
- Nat’l Union of Marine Cooks & Stewards v. Arnold, 348 U.S. 37 (U.S. 1954) (discussing appellate discretion to refuse relief to litigants who defy judicial process)