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Montgomery v. Morris

The trial court lost jurisdiction to consider a contempt motion when it dismissed the underlying case without prejudice.

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Woodie M. Montgomery appeals from a trial court order holding her in contempt and from the order she allegedly violated, which served as the basis for the trial court’s contempt finding. Because the trial court lacked jurisdiction to enter the contempt order, we reverse.

The parties in the instant action, appellant Montgomery and her brother, appellee Walter S. Morris, are involved in long-running litigation over alleged improprieties in Montgomery’s handling of their late father’s estate, a trust, and a family limited partnership. After mediation, the parties agreed to settle the dispute, but when the parties’ attorneys attempted to draft a settlement agreement, another dispute arose over the scope of an indemnification provision. The parties in 2007 filed cross-motions to enforce the agreement. The trial court in 2010 granted both parties’ motions in part, and in two orders it attached copies of a written settlement agreement and a written indemnification agreement, ordering the parties to sign those agreements. Shortly after executing the agreements, the parties again cross-motioned for contempt. The trial court denied those motions in one of the orders appealed from, dated October 27, 2010, and imposed requirements on Montgomery to report on her progress in meeting the obligations under the court’s prior order directing execution of the settlement and indemnification agreement. Also on October 27, 2010, the trial court issued a second order sua sponte dismissing the case without prejudice and directing the clerk of court to close the case. However, this order also stated that the trial court “retains complete jurisdiction to vacate this Order and to re-open the action if necessary.” Neither party moved for reconsideration or objected to this order.

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