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Floyd v. Floyd6/13/2005
rty taxes thereon, expenses of maintaining the residence in suitable repair and condition and hazard insurance premiums on the residence; provided, however, the Trustee shall not exercise this power in any way which would deprive the Settlor's wife under Trust A of the beneficial enjoyment of Trust A and the Settlor's wife shall have the right to limit, restrict, or terminate Trustee's exercises of this power if it interferes with the beneficial enjoyment.
The trust property belongs to the trust. Pursuant to paragraph 26, the trustees may permit Anne or any other beneficiary to occupy rent free a residence owned by the trust. However, nothing in the trust agreement authorizes the trust to require a beneficiary to pay the taxes, insurance, and maintenance expenses of a trust-owned house. The trust, as owner, carries the responsibility for these items.
Employing a tortured interpretation of the trust agreement, Laurens breached his duties to Anne, neglected to pay expenses of Trust A, and ignored a court order. The trial judge did not abuse his discretion in finding Laurens in contempt.
3. Sanctions
Laurens argues that even if he was properly found in contempt, the trial judge erred in awarding sanctions in disproportion to his contempt. He asserts the amount of attorney's fees is excessive and some of the charges awarded relate to matters other than his contempt. However, because the trial judge awarded the fees both as sanctions and damages, we affirm.
Laurens correctly recognizes compensatory contempt is intended to restore the injured party to his original position prior to the contemnor's action and, therefore, is limited to the party's actual damages. See Whetstone v. Whetstone, 309 S.C. 227, 235, 420 S.E.2d 877, 881 (Ct. App. 1992) ("Compensatory contempt is money awarded to a party who is injured by a contemnor's action to restore the party to his original position. The award should be limited to the party's actual loss.") (citations omitted).
Curlee v. Howle, 277 S.C. 377, 287 S.E.2d 915 (1982), explains the law of compensatory contempt with exactitude:
Compensatory contempt is a money award for the plaintiff when the defendant has injured the plaintiff by violating a previous court order. The goal is to indemnify the plaintiff directly for harm the contemnor caused by breaching the injunction. Rendleman, Compensatory Contempt: Plaintiff's Remedy When A Defendant Violates An Injunction, 1980 Ill.L.F. 971. Courts utilize compensatory contempt to restore the plaintiff as nearly as possible to his original position. Therefore it is remedial.
We have recognized compensatory contempt in at least two cases. In Ex Parte Thurmond, 1 Bailey 605 (1830), we stated that when an individual right is directly involved in a contempt proceeding, the court has the power to order the contemnor to place the injured party in as good a situation as he would have been if the contempt had not been committed, or to suffer imprisonment. In Lorick & Lowrance v. Motley, 69 S.C. 567, 48 S.E. 614 (1904), we held that a contemnor may be required to pay damages suffered by reason of his contemptuous action or suffer imprisonment. The defendant was ordered to pay to the plaintiff the value of the trees he had destroyed in disregard of the court's order.
When . . . property of an individual is taken or destroyed in contempt of the court's order, those interested have a right to ask of the court its restoration or payment of its value at the hands of the offender, and the court requires such restoration as part of the punishment. 49 S.E. at page 615.
Compensatory contempt awards have been affirmed also by t
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