Opinion ID: 853860
Heading Depth: 2
Heading Rank: 2

Heading: The Contempt Power of the Trial Court

Text: Cowart contends that the trial court's 1997 order finding him in contempt constituted an impermissible modification of the 1996 decree. Cowart is correct that finality is an important value of our legal system. See McIntosh v. Monroe, 232 Ind. 60, 111 N.E.2d 658 (1953). However, in significant part, the contempt consisted of activities that in one way or another frustrated the court's directive to sell the two remaining properties and divide the proceeds. Except as it purports to transfer the marital residence to White the 1997 order does not modify the 1996 decree. Rather, in holding Cowart in contempt for post dissolution actions, the 1997 order arose from a separate contempt proceeding in which each party complained of the other's failure to comply with the 1996 decree. Thus the issue becomes first whether the finding of contempt was proper and if so, whether an appropriate remedy was ordered by the court. Contempt is for the benefit of the party who has been injured or damaged by the failure of another to conform to a court order issued for the private benefit of the aggrieved party. Duemling v. Fort Wayne Community Concerts, Inc., 243 Ind. 521, 524-25, 188 N.E.2d 274, 276 (1963); see also 17 C.J.S. Contempt § 6 (1963) (civil contempt is failing to do something ordered to be done by a Court in a civil action for the benefit of an opposing party). [3] Whether a party is in contempt is a matter left to the discretion of the trial court. Crowl v. Berryhill, 678 N.E.2d 828, 830 (Ind.Ct.App.1997); State ex rel. Prosser v. Indiana Waste Sys. Inc., 603 N.E.2d 181, 185 (Ind.Ct.App.1992). We reverse a trial court's finding of contempt only if there is no evidence or inferences drawn therefrom that support it. Shively v. Shively, 680 N.E.2d 877, 882 (Ind.Ct.App.1997); Meade v. Levett, 671 N.E.2d 1172, 1181 (Ind. Ct.App.1996). Cowart, citing Pettit v. Pettit, 626 N.E.2d 444 (Ind.1993), argues that money judgments may not be enforced through contempt proceedings. Pettit held that child support obligations may be enforced through contempt. Many cases state that contempt may not be used to enforce a decree ordering one party to pay the other a fixed sum of money. See, e.g., State ex rel. Shaunki v. Endsley, 266 Ind. 267, 362 N.E.2d 153 (1977) (alimony judgment); Bahre v. Bahre, 248 Ind. 656, 230 N.E.2d 411 (1967) (attorney fees). However, in each case the issue was not whether contempt was available as a sanction for failing to pay a fixed amount. Rather, they deal with the constitutional prohibition against imprisonment for debt. Civil sanctions, including additional civil damages, are not prohibited by Article I, § 22 of the Indiana Constitution. Nonetheless, because parties may enforce obligations to pay a fixed sum of money through execution as provided in Trial Rule 69, all forms of contempt are generally unavailable to enforce an obligation to pay money. Pettit, 626 N.E.2d at 447; Marsh v. Marsh, 162 Ind. 210, 212, 70 N.E. 154, 155 (1904) (fact that a judgment may be enforced by execution creates strong implication against more drastic remedy of contempt). More importantly to this case, contempt may be used to enforce a court's decree that a party transfer property to the other. State ex rel. Dale v. Superior Court of Boone County, 260 Ind. 661, 299 N.E.2d 611 (1973) (court may enforce decree ordering transfer of property by contempt). Indiana Code § 31-15-7-10 explicitly provides that Notwithstanding any other law, all orders and awards contained in a dissolution of marriage decree ... may be enforced by: contempt.... This statute is certainly subject to the constitutional prohibition on imprisonment for debt. But Cowart points to no other bar, and we find none, to a court's use of contempt to enforce an order that requires performance instead of payment or to the use of sanctions other than imprisonment. The 1996 decree's directive to sell and divide property is therefore enforceable by contempt. As explained further below, the trial court's finding of contempt was based on Cowart's actions and failures to act resulting in lost property value, not on his failure to pay financial obligations. Accordingly, the trial court's use of contempt power to compensate White for Cowart's actions was not prohibited.
The trial court held Cowart in contempt for failure to abide by the Orders of this Court and for willfully and recklessly causing the real estate in this case to fall into a state of disrepair resulting in severe economic hardship to the Respondent. The trial court also found that Cowart refused to turn over the properties to White or permit the properties to be sold. These findings are supported by White's testimony that Cowart would not quitclaim the Cherry Street property to her or give her keys to that or other property. White also testified that Cowart prevented her access to the property by threatening her and calling the police when she did go on the property, denying access to the real estate agent appointed by the court to sell property, and taking down the for sale signs. Although Cowart denied much of White's testimony, the trial court credited White and we defer to the trial court's determination of the credibility of witnesses. Ind. Trial Rule 52. Cowart contends that he cannot be held in contempt because the 1996 decree did not order him to maintain the rental properties. It is true that the 1996 decree did not explicitly order Cowart to maintain the properties. However, it ordered the parties to carry out the terms of this Decree of Dissolution of Marriage and execute whatever documents are necessary to give full force and effect to the Judgment of the Court. Although the order does not specifically order Cowart to refrain from causing the properties to become devalued, that obligation is implied in the trial court's order to sell the property and divide the proceeds, which was based on the value of the property at the time of the decree. We conclude that the terms of the decree included taking reasonable steps to preserve the value of the property to adequately compensate both parties, and certainly precluded willful acts to devalue the property. Moreover, Cowart's post-decree actions created an obligation to preserve the value of the property. When Cowart prevented White from caring for the properties herself, he assumed complete control and a corresponding duty to maintain the property on her behalf. A tenant in common may be liable to his cotenant for waste. Wheeler & Another v. Me-Shing-Go-Me-Sia, 30 Ind. 402, 405 (1868). Cowart's actions amount to permissive waste which results from negligence or omission to do that which would prevent injury. See Finley v. Chain, 176 Ind.App. 66, 82, 374 N.E.2d 67, 79 (1978). In sum, Cowart's actions violated both the spirit and the letter of the dissolution decree and the trial court was within its discretion in finding Cowart in contempt.
Once a party has been found in contempt, monetary damages may be awarded to compensate the other party for injuries incurred as a result of the contempt. Thomas v. Woollen, 255 Ind. 612, 266 N.E.2d 20 (1971); Hancz v. City of South Bend, 691 N.E.2d 1322 (Ind.Ct.App.1998). In determining an amount of damages [t]he inconvenience and frustration suffered by the aggrieved party are to be taken into account. Thomas, 255 Ind. at 616, 266 N.E.2d at 22. The trial court's contempt remedy was aimed at compensating White both for the loss in value of the properties and for other debts she paid that Cowart was ordered to pay in the 1996 decree. The trial court found that the properties had been so devalued by Cowart's actions that there was not enough equity to provide White with the amount she would have received from the 1996 decree. The trial court then ordered Cowart to quitclaim the former marital home to White as a remedy for its contempt finding. The court also ordered Cowart to pay $21,162.60 to White for the balance of the property settlement due to her. As already noted, and as Cowart concedes, the property division set out in the 1996 decree is still valid. At the time the properties are sold, White will receive the first $35,000 and 60% of the remaining proceeds. In addition, Cowart can be held liable for the loss in value to the property. However, because Cowart's bankruptcy discharged all pre-petition debts, only Cowart's actions after the conversion date of November 5, 1996, are grounds for contempt damages. It is unclear from the record whether all of Cowart's actions that led to the reduced property value occurred after this date and thus we cannot conclude that the entire difference in value of the property from the time of the conversion to Chapter 7 to the contempt hearing is attributable to Cowart's post-petition behavior. Accordingly, we remand to the trial court for a factual determination on this issue. Once the trial court determines when Cowart's actions took place, it can calculate contempt damages based on the difference between the proceeds White would have received at the time of the conversion to Chapter 7 and those she will receive from the current value of the properties. Although we appreciate the trial court's frustration with Cowart and the court's ongoing struggle to obtain compliance with its orders, [4] the proper remedy for Cowart's contempt is a judgment for damages rather than an award of the marital property to White. See Thompson v. Thompson, 458 N.E.2d 298, 300-301 (Ind.Ct.App.1984) (court's shifting of property to compensate for contempt was improper, court should have ordered payment of fixed sum to compensate wife for loss caused by husband's failure to comply). White is of course free to pursue her remedies under Trial Rule 69 to enforce a money judgment against the property in Cowart's hands. The trial court also ordered Cowart to pay the appraisal fee incurred in the contempt proceeding. This fee was necessary because Cowart failed to maintain the property and is properly considered as part of White's special damages. See Clark v. Atkins, 489 N.E.2d 90, 98 (Ind.Ct.App.1986) (damages based on unnecessary expenses occasioned by action of party in contempt were proper); 6 I.L.E. Contempt § 8 (1958) (fine is proper in civil contempt so long as it compensates the complainant). The trial court did not abuse its discretion in ordering Cowart to reimburse White for this fee. In sum, we affirm the trial court's finding of contempt. We reverse the trial court's contempt damages award to the extent it includes the property taxes and the dissolution proceeding appraisal fee. We affirm the trial court's contempt damage award of the appraisal fee for the contempt proceeding. We remand for a determination of whether Cowart's actions took place after his conversion to Chapter 7, reconsideration of damages based on Cowart's actions that led to a devaluation of the property and a money judgment for the total contempt damages.