North Carolina Business Litigation Report

TelSouth Solutions, Inc. v.Voyss Liquidation Co., LLC, December 6, 2008 (Diaz)(unpublished)

The Court held that a party which failed to appear for a show cause hearing at the direction of the Court, having received notice of the hearing, would be held in contempt.  The Court determined that the non-appearance was a “[w]illful . . . failure to comply with schedules and practices of the court resulting in substantial interference with the business of the court.” N.C. Gen. Stat. § 5A-11(7) (2007).  Pursuant to N.C. Gen. Stat. § 5A-12(a) (2007), the Court fined the party $500, and further ruled that if the payment was not made by the date specified, that the failure would "subject its managing officers to additional criminal contempt penalties, including imprisonment for up to thirty (30) days," relying on State ex rel. Grimsley v. West Lake Dev., Inc., 71 N.C. App. 779, 782, 323 S.E.2d 448, 449 (1984) (a corporate officer may be punished for criminal contempt and imprisoned if that person fails to take appropriate action within his power to comply with a court order).

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Mack Sperling
Brooks Pierce, LLP
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