THI RD DI VI SI ON

M C FA DDEN, C. J.

, D OYLE, P. J.

, and HODGES, J.

N O T IC E : M otions for r e c ons i de r a tion m us t be ph y sic a l ly r e ce iv ed i n our c le r k ’s offic e w ithin te n da y s of the da te of de c is ion to be de e m ed tim e ly file d.

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. ga a ppe a ls .us /r ule s

D E A D LIN E S A R E N O LO N G E R TO LLE D IN T

H I S

C O U R T. A LL FILIN G S M U ST B E S U B M I TTE D WITH IN

TH E TIM E S S E T B Y

O U R C O U R T R U LE S

.

June 23, 2020



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A2 0 A0 77 0 . NADAL v . NADAL. D0 -0 2 7

D O Y LE , Pres i d i n g J u d g e.

Gu i l lerm o Nad al ap p eal s fro m an o rd er fi n d i n g hi m i n co nt em p t fo r vi o l at i n g

t h e t erm s o f a s et t l em en t ag reem en t i n co rp o rat ed i n t o h is d i v o rce d ecree. He co n t en d s

t h at t h e s u peri o r co u rt erred b ecau s e (1 ) n o ru l e n i si was i ss u ed p ro v id in g n o t i ce o f

t h e co n t em

p t h eari n g , an d (2 ) t h e j u d gm en t i s b as ed o n an u n en fo rceab le li q u i d at ed

d am ag es p ro v is i o n du e t o i t s p u n i t i v e n at u re. Becau s e n o ru l e n i s i was i s s u ed

i n d i cat i n g t h at t he co u rt wo ul d co n d u ct a fi n al h eari n g o n t h e m eri t s o f t h e co n t em pt

p et i t i o n , we v acat e t h e ju dg m en t an d rem an d

.

Th e rel ev an t reco rd i s un d i s p u ted

. Gu i l l erm o an d Nan cy Nad al w ere m arri ed

,

an d t o g et h er, th ey ran a us ed car d eal ers h i p , M ari et t a Car Cen t er (“ M CC”), an d

fi nan ce b u s i n es s , Al l Fam i l y Fi n an ce, LLC (co l lect i v el y , t h e “ Car Co m p an i es ”).

.M CC w as o wn ed b y Nan cy , an d Al l Fam i l y Fi n an ce (wh ich pro v i ded fi n an ci n g

s erv i ces t h ro u g h M CC) was o wn ed by Nan cy an d her b ro t h er; Gu i l l erm o was

p ri m ari l y res p o n s i b l e fo r b u s i n es s op erat i o ns fo r b o t h co m p an i es

. In D ecem

b er 2 0 1 8,

t h e co u p l e d i v o rced

, an d t h e fi n al d ecree i n c o r p o r a t e d a s et t l em en t ag reem en t

ex ecu t ed b y G u il l erm o an d Nan cy

. Th e s et tl em en t ag reem en t p ro vi d ed t h at Nan cy

wo u l d as s u m e t h e en t iret y o f t h e ex i st i n g b u s i nes s d eb t ($ 48 5 ,0 0 0 ) an d ret ai n h er

o wn ers hi p an d co n t ro l o f t h e b u s i n es ses ; i n ex ch an g e, a n o n -co m p et e ag reem en t

p ro h ib i t ed Gu i l l erm o fro m co m p et i n g wi t h th e Car Co m

p an i es fo r fi v e y ears wi t h in

a fo rt y -m i l e territor

y

. I f G u i l l erm o v i o l at ed t he n o n -co m p et e p ro vi s i o n , t h e ag reem en t

co n tai n ed a l i q u i d at ed d am ag es p ro v i s i o n s et t i n g d am ag es at h al f o f t h e t o t al

$ 4 8 5 ,0 0 0 d eb t o wed b y t h e Car Co m p an i es , i .e., $ 2 42 ,5 0 0

.

On Ap ri l 1 1

, 2 0 1 9

, N an cy fi led a “ Pet i t i o n fo r Ci t at i on o f Co nt em p t ,” al l eg i n g

t h at Gu i l l erm o was v i o l at i n g t h e n on -co m p et e ag reem en t

. Th e s am e d ay , Nan cy al s o

fi led a “ M o t i o n fo r Im

m ed i at e In

ju n ct i o n an d Tem

p o rary Res t rai ni n g Ord er,” s eek i n g

t o en jo i n Gu i l l erm o fro m

co m pet i n g

.

On M ay 1 5

, 20 1 9

, Nan cy p rep ared an d fi led a “ N o t i ce o f Heari n g ” ad d res s ed

t o G u il l erm o , s t at i n g i n m at eri al p art : “ Pl eas e t ak e n ot i ce t h at Pl ai n t i ff h as s ch ed u l ed

a Tem p o rary Heari n g

. . . on Ju n e 2 4

, 20 1 9

, at 1 : 3 0 p.m

. . . . i n t h e Su p eri o r Co u rt o f

2Co b b Co u n t y

. . . .” Th e n o ti ce d i d n o t co n tai n an y o t h er d es cri p t i on o f t h e p ro ceed i n g.

An at t ach ed cert i fi cat e of serv i ce s t at ed t h at Nan cy ’ s co u n s el e-fi l ed t h e n o t ic e,

em ai l ed i t t o Gu il l erm o ’ s co u n s el , an d m ai l ed i t t o Gu i l l erm o ’ s h o m e ad d res s

.

On t h e s am e d ay , May 1 5

, Nan cy s erv ed a n o t i ce t o p r o d u ce, req u es t fo r

p ro d uct i o n o f d o cu m en t s , i n terro g a to ri es , req u es ts fo r ad m i s s i o n , an d a n o t i ce o f

d ep os i t i o n t o b e hel d o n Ju n e 1 9

, 2 0 1 9

. On Ju n e 1 7

, 2 0 1 9

, Gu il lerm o m o v ed t o q u as h

Nan cy ’ s d i sco v ery

req u es t s an d o b t ai n a p ro tect i v e o rd er.

O n J u n e 2 5

, 2 01 9

, 1 b o t h p art i es ap p eared an d were rep res en t ed b y co u ns el

b efo re t h e s u p eri o r co u rt

. At t h e o u t s et o f t he h eari n g , t h e co u rt as ked

, “ are w e d o wn

fo r a fi n al o r a t em

p o rary [? ] ” Nan cy rep l i ed t h at s he wo u l d p ro ceed w i th a f i n al

h eari n g if i t wo u ld be al l o wed

, bu t aft er Gu i l l erm o ob ject ed an d Nan cy co n ced ed t h at

t h e n o ti ce was fo r a t em

p o rary h eari n g , t h e co u rt o bs erv ed t h at “ [i ] f t hey h av e b een

n o t i ced wi t h a t em

p orary , w e can ’ t d o a fi n al u n les s th ey ag ree.” A co l l o q uy en s u ed

,

an d t h e co u rt st at ed i t s co n fu s i on as t o wh y t h e cas e h ad been d o ck et ed as a d i v o rce

cas e, b u t aft er Nan cy cl ari fi ed t h at i t was o n a co n t em p t m o ti o n fo l lo wi n g a fi n al

d i v o rce decree, t h e co u rt t h en st at ed

, “ [l ] et ’ s h av e a h eari n g

. . . an d i t wi ll b e a fi n al

h eari n g

. It ’ s a co n tem

p t heari n g .” Gu i l l erm o o b ject ed

, cl ari fy i n g t hat n o ru l e n i s i h ad

1 Nan cy ’ s n ot i ce l i s t ed J u n e 2 4 , 2 01 9 , b u t t h e h eari n g was h el d o n J u n e 2 5

.

3i s su ed s p eci fy i n g w h at wo u l d b e h eard

. 2 Ov er Gu i l l erm o ’ s o b ject i on , th e co u rt h el d

a fi n al h eari n g o n t h e m eri t s o f t h e co n t em p t p et i t i o n : “ I t h i n k th at n ot i ce o f h eari n g

i s go o d en o u g h. It ’ s a co n t em p t . . . h e ei th er d i d o r d i d n o t . W e’ re g oi n g t o h eari n g

[s i c] .”

Th e h eari n g pro ceed ed wi t h t es t i m o n y fro m Gu i l l e r m o an d Nan cy , b u t t h e

co u rt h ad t o cu t s h ort t he h e ari n g b ecau s e i t l as t ed l o n ger th an t he t wo -h o u r t i m e

al l o t t ed

. Th e co u rt t h en in vi t ed t h e p art i es t o s u b m it l et t er b ri efs o n th e l aw an d s t at ed

t h at an y di s co v ery d i s p u t es “ h av e b eco m e n on i ss u es , ” s o t h ey wo u l d n o t b e h eard in

t h e l et ter b ri efi n g

. Aft er th e p art i es s u b m i t t ed b ri efs

, t h e t ri al co u rt en t ered a fi n al

o rd er fi n d i n g Gu i l l erm o i n wi l l fu l co n t em p t an d req ui ri ng h i m t o p ay hal f o f t h e d eb t

o wn ed b y t h e b u si n es s , i .e., $ 2 4 2 ,5 0 0

, as l i q u i d at ed d am ag es

. Th e o rd er d i d n ot

ad d res s Gu i l l erm o ’ s ar g u m en t t h at t h e li q u i d at ed d am ag es were an u n en fo rceab l e

p en al t y

. Gu i l l erm o n o w ap p eal s

.

2 See Br a d

en v. Br a d

en , 2 6 0 Ga. 2 6 9

, 27 0 (3 9 2 SE2 d 7 1 0) (1 9 90 ) (“ In a

co n tem p t act i o n

. . . , a ru l e n i si i s t h e s u m m o n s w h i ch is t o b e s erv ed o n t h e d efen d an t g iv in g h i m n o t i ce o f th e ch a r g e s a n d t h e o p p o rt u n i t y t o b e heard at a

s p eci fi ed t i m e an d p l ace.”).

41

. Gu i l l erm o co n t en d s t h at t he t ri al co u rt erred b y h o l d i n g a fi n al h eari n g o n

t h e m eri t s o f th e co n t em p t p et i t i o n o v er h is o b

j e c t i o n b as ed o n l ack of ad eq u at e

n o t i ce. W e ag ree.

In cas es o f co n s t ru ct i v e co n t em p t of co u rt

, [s u ch as t hi s ] , wh ere

t h e al l eg ed co nt u m aci ou s co n d u ct i s d is ob ed i en ce t o a m a n d at e o f th e

co u rt

, n o t an act i n th e p res en ce o f t h e co u rt o r s o near t h eret o as t o

o b s t ru ct th e ad m i n i s t rat i o n o f ju s t i ce, t h e l aw req u i r e s t h at a ru l e n i s i

i s su e an d b e s erv ed u p on t h e accu s ed , g iv i n g t h e accu s ed n o t i ce o f th e

ch arg es ag ai n s t [h i m ]

, an d t h at t h e accu s ed b e g i v en an o pp o rt u n i t y t o

b e h eard

. Th e n ot i ce g i v e n b y t h e ru l e ni s i i s to affo rd t h e accu s ed a

reas o n ab l e ti m e i n wh ich t o p rep are [h i s] d efen s e t o t h e ch arg e t h at [h e]

h ad v i o l at ed t h e co u rt ’ s o rd er. Th i s req ui rem en t o f reas on ab l e n ot i ce i n

a cas e i n vo l v i n g an al l eg ed i n d i rect co n t em p t i s n o t s at i s fi ed b y a

s h o wi n g th at t h e accu s ed was p re s e n t i n co u rt at t h e t i m e o f t ri al an d

ad ju di cat i o n an d h ad act ual n o t i ce t h en an d t h ere o f w h at was g o i n g o n , b u t rat h er co n t em

p l at es an d n eces s it at es a wri tt en n ot i ce fai rl y an d fu l l y

i n fo rm i n g t h e accu sed o f t h e sp eci fi c act s o f co n t em p t wi t h wh i ch [h e]

i s ch arg ed

, an d s o gi v en as t o affo rd a reas on ab l e t i m e t o m ak e [h i s ]

d efen s e. 3

H e r e, i t i s u n di s pu t ed th at t h e o n l y n ot i ce g i v en to Gu i ll erm o was t h e n o t i c e

m ai l ed b y Nan cy (n o t a ru l e n i s i i s s u ed b y t he su p eri o r co u rt ) i n d i cat i n g t h a t t h e

3 (Pu n ct u at i o n o m i t ted .) In r e Ha r r i s , 2 8 9 Ga. Ap p

. 3 3 4

, 33 7 -3 3 8 (2 ) (b ) (6 5 7

SE2 d 2 5 9) (2 0 0 8).

5h eari n g wo u l d b e a “ Tem p o rary Heari n g ” an d n o t st at i n g t h e s u bject m at t e r. At t h e

t i m e Gu i l l erm o recei v ed t h e no t i ce, h e was a w a r e of t h e p et i t i o n fo r co n t em p t

, a

m o ti o n fo r a t em

po rary res t rai n ing or de r an d i m m ed i at e i n

ju n ct i ve rel ief, an d Nan cy ’ s

d i s co v ery req u es t s , wh i ch req u es ts h e o p po s ed b y fi l i n g a m o t io n t o q u as h an d fo r a

p ro t ect i v e o rd er. Th u s , b y t he ti m e o f t h e h eari n g, t h ere was p en d i n g : a p et i t i o n fo r

co n tem p t

, a m o t i o n f

o r a t em p o rary res t rai n i n g o rd er, a m o t i o n fo r i m m ed i at e

i n ju n ct i v e rel i ef, n ot i ces o f d i s co v ery , a m ot i on t o q u a s h

, a n d a m o t io n fo r a

p ro t ect i v e o rd er. W h en G u i l l erm o ap p eared fo r t h e “ t em p o rary h eari n g ,” h e

i m m ed i at el y o b

ject ed t o a fi nal heari n g o n t h e m eri ts

, ci t i n g h i s b el ief t h at t h e h eari n g

wo u l d b e fo r t em

p o rary p u rp o s es o r t o res o l v e t h e d i s co v ery d i sp u t es

. Th e t ri al co u rt

i n i t i al l y ap p reh en d ed t he pro bl em o f g oi n g fo rward o n a fi nal h eari n g wi t h o ut

ad eq uat e n ot i ce of th e su b j ect m at t er, b u t i t n ev ert h el es s el ect ed t o p ro ceed

. To ward

t h e en d o f t h e h eari n g , th e t ri al co u rt ag ai n v o iced i t s d o u b t a b o u t t h e s co p e an d

fi nal it y o f t h e h eari ng :

I d o n ’ t h o n es t l y s ee an y reas o n we’ re h ere. I’ m n o t cl ear i f t hi s i s a fi nal

o n a co n t em

p t o r a t em

p o rary o n a co n t em

pt

. I d o n’ t s ee an y r e a s o n t o

h av e a t em

po rary o n a co n t em

p t

. I d o t h i n k y o u n eed t o en g ag e i n

d i s co v ery , es p eci al ly w i t h th i s k i n d o f s t uff, an d I t h i n k y o u n eed t o

m ed i at e t h e cas e. It ’s a b u s i n e s s b at t l e at t h i s p o i n t

. It ’ s n o t a m ari t al

6b at t l e. I t h o u g h t we were d o i n g a fi n al o n t h e co n t em p t

. No w I’ m

h eari n g t em

p orary . W h i ch i s i t ?

W e n eed n o t deci d e wh et h er t he n o t i ce fro m Nan cy , as o pp o sed t o a fo rm al ru l e

n i s i fro m t h e co u rt

, w as su ffi ci en t t o p ro ceed wi t h a tem po rary h eari n g ; wh at en s u ed

was a fi n al h eari n g o n t h e m eri t s

. Gi v en t h i s s u b s t an t i al di s crep an cy b et ween t h e

n o t i ce s erv ed an d t he h ear i n g h e l d

, an d i n l i g h t o f G u i l l erm o ’ s ob ject io n , t h e t ri al

co u rt co rrect l y o b s erv ed t h at s o m et h i n g was am i s s

— ev en i f t h at o b s erv at io n wen t

u n h e e d ed

. W h at w as n o t i ced as a t em p orary h eari n g (p res u m ab l y o n a res t rai n i n g

o rd er o r o t h e r i n

j u n ct i v e rel i ef) q u i ck l y b ecam e a fi n al ev i d en t i ary h eari n g ab o u t a

b u s i n es s d i s pu te wi t h u n res o l v ed d i s co v ery is s u es m at eri al t o th e d is p u t e. A l t h o u g h

i n t h i s cas e Gu i l l erm o was p res en t an d rep res en t ed b y co u ns el at t h e heari n g , h e

i m m ed i at el y an d rep eat ed l y o b ject ed t o a fi n al h eari ng o n t h e m eri t s o f t he co n t em pt

p et i t i o n i n l i gh t o f t h e l ack o f a ru l e n is i i n fo rm in g h i m o f t h e i s s u es t o b e res o l v ed

.

“ [W ] h ere t h e no t i ce o f t he h eari n g i s u n reas on ab l e, t he fact t h at t he co n t em n o r

v o l u n t ari l y ap p ears an d d efen d s at th e h eari n g d o es n o t ex cu se t h e fai l u re t o co m p o rt

wi t h d u e p ro ces s .” 4 Acco rd i n g ly

, b as ed o n t h e ev en t s in t h is cas e, t he t ri al co u rt erred

4 Fo rd v. Fo r d

, 2 7 0 G a. 3 1 4

, 3 16 (5 0 9 SE2 d 6 1 2 ) (1 9 9 8 ). See al s o Hed q u i s t v. Hed qu i s t , 2 7 5 Ga. 1 8 8 , 1 89 (5 6 3 SE2 d 8 5 4 ) (2 0 0 2).

7b y h o ld i n g a fi n al h eari n g o n t h e m eri t s of Nan cy ’ s co n t em p t p et i t io n , an d we v acat e

t h e fi nal ju dg m en t

.

2

. Gu i l l erm o al s o co nt en d s t ha t t h e t ri al co u rt erred b y m ak i n g a li q u i d at ed

d am ag es award b as ed o n an u n en fo rceab l e p en al t y p ro v i s i o n

. T h i s i s su e was n ot

reach ed b y

t h e s up eri o r co u rt

.

Geo rg i a l aw reco g n i zes t h at t h e p art i es m ay ag ree i n th ei r co n tract

t o a s u m to l i q ui d at e t h ei r d am ag es

. OCGA § 1 3 -6 -7 p ro v i d e s : “ If th e

p art i es ag ree i n t h ei r co n t ract wh at t he d am ag es fo r a b reach s h al l b e,

t h ey are s ai d t o b e l i q u i dat ed

, an d u n l es s t he ag reem en t vi o l at es s o m e

p ri n ci p l e o f law, t h e p art i es are b o u n d t h ereb y

. ” In d eci d i ng wh et h er a

co n t ract p ro v i s i o n i s en fo rceab l e as l i qu i d at ed d am ag es , t h e co u rt m ak es

a tri p art it e i nq u i r y t o d et erm i n e i f t h e fo l l owi n g fact o rs are pres en t :

Fi rs t

, t h e i n

ju ry cau s ed b y t he b reach m u s t b e d i ffi cu l t o r i m

p o s s i b l e o f

accu rat e es ti m a t i o n ; s eco n d

, t h e p art i es m u s t i n ten d t o p ro v id e fo r

d am ag es rat h er t h an fo r a p en al t y ; an d t h i rd

, th e s u m s t i p u l at ed m u s t be

a reas o n ab l e p re-es t i m at e o f t he p ro b ab l e l o ss

.

Of co u rs e, wh et her a p ro v i si o n rep res en t s l i q u id at ed dam ag es o r

a p e n a l t y d oes n o t d ep en d u p o n t h e l ab el t h e p art i es pl ace o n th e

p ay m en t b ut

, rat her, d ep en d s o n t h e effect i t was i n t en ded t o h av e an d

wh et h er i t w a s reas o nab l e. In cas es o f d o ub t

, t h e co urt s fav or th e

co n s t ru ct io n wh i ch h o ld s t he s t i p ul at ed s u m t o b e a p en al t y , an d l i m i t s

8t h e reco very t o t h e am o u n t o f d am a g e s a c t u a l l y s h own , rat h er t h an a

l i qu id at i o n o f t h e d am ag es

. 5

Here, th e t ri al co u rt ’ s o rd er m ad e n o i n q u iry in t o t hes e fact o rs , no r wh et h er t h e

p art i es ad eq u at el y ad d res sed t h e i s s u e a t t h e ev i den ti ary h eari n g

. Acco rd i n g l y , o n

rem an d, an y fi n al ju d g m en t s h o u l d i n cl u d e a d et erm i n at i o n as t o t he e n fo rceab i l i t y

o f t h e l i qu id at ed d am ag es p ro v i s i o n co n s i s t en t wi t h t h e ab o v e-s tat ed l aw.

Ju d g men t va ca t ed an d ca s e r ema n d ed wi th d ir ec t i o n

. McFa d d en

, C. J., a n d

Ho d g es , J., co n cu r

.

5 (Ci t at i o n s an d p u n ct u at i o n o m i t t ed .) S ext o n v. S ewel l

, 35 1 Ga. Ap p

. 2 7 3

, 2 8 4 (b ) (8 3 0 SE2 d 6 0 5 ) (2 0 1 9 ), q u o t i n g S o u th ea s ter n La n d

Fu n d v. Rea l E

s t at e W o rl d

, 2 3 7 Ga. 2 2 7

, 2 2 8

, 2 3 0 -2 3 1 (2 2 7 SE2 d 3 4 0) (1 9 76 ). Bu t s ee S e w e l l v

. S ext o n , Cas e No

. S1 9C1 5 1 3 (Feb

. 1 0

, 2 0 2 0 ) (g ran t i n g cert i o rari i n S ext o n a s t o t h e m eri t s o f t h e

an al y s i s i n t h e cas e).

9