BLACKWELL, Judge.
Following a hearing on August 2, 2010, the court below adjudged Salina Newton, a court-appointed receiver, guilty of criminal contempt, a judgment based on findings that Newton, several months before the August hearing, exercised her authority as receiver in a way that was contrary to the known directions of the court and that she and her lawyer, in the course of the August 2 proceedings, engaged in contemptuous conduct. Newton appeals from this judgment of contempt.
Pursuant to the forfeiture provisions of the Georgia Racketeer Influenced and Corrupt Organizations Act, OCGA § 16-14-7, prosecutors commenced civil proceedings in September 2009 to forfeit certain properties owned by Michael K. and Phyllis M. Bleckley, which were located in Stewart and Webster Counties. In their civil filings, the prosecutors alleged that the Bleckleys obtained approximately $3.4 million from investors by means of fraud and then used the money to purchase the properties that are the subject of the forfeiture proceedings. The prosecutors also asked the court below to appoint a receiver for these properties while the forfeiture proceedings were pending, and the court below agreed, appointing Newton. Under the terms of the receivership order, Newton was authorized to take possession and control of the properties in Stewart and Webster Counties, which included two pecan orchards, a funeral home, and several automobiles. Newton also was expressly authorized to, if appropriate, "file for relief and protection under the Federal Bankruptcy Code on behalf of [the properties]."
After Newton was appointed as receiver, Central Bank of Georgia, which claimed to have a valid security interest in some of the properties, asked the court below for a "status hearing," and the court convened such a hearing on April 13, 2010. At this status hearing, the court below apparently gave some direction about the receivership—the alleged disregard of which is the basis for some of the contempt findings—but we do not know exactly what was said at this hearing because it was not transcribed. We do know that Newton attended the April 13 hearing, as did her lawyers, lawyers representing Central Bank and the Bleckleys, a prosecuting attorney, a police detective, and a lawyer representing the alleged victims of the investment fraud that gave rise to the forfeiture proceedings. When, several months later, the court below tried to ascertain what had occurred at the April 13 hearing, these attendees had varying recollections of what had transpired, some recalling that the court indicated on April 13 that it intended to dissolve the receivership altogether, and others recalling that the court indicated that it would modify the receivership by removing certain properties from it.
On April 30, Newton filed several petitions under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Middle District of Georgia, and the various properties of the Bleckleys that originally had been put into receivership, both in Stewart and Webster Counties and elsewhere, became part of the bankruptcy estates. Newton ostensibly filed these bankruptcy petitions because she thought it was impractical and inefficient to manage the various properties in receivership under the supervision of superior courts in five different counties and because she thought that she could better manage the properties through a unified custodianship under the supervision of a single bankruptcy court. Newton apparently did not seek guidance from the court below at
On June 15, 2010, the Bleckleys sought an injunction from the court below that would prohibit Newton from disposing of certain properties that originally had been a part of the receivership, and on the same day, the court below entered a temporary restraining order that purported to enjoin Newton from doing just that. Newton responded to this order six days later, when she filed a plea of stay, in which she notified the court below of the earlier filing of the bankruptcy petitions and noted that, absent an order of the bankruptcy court allowing relief from the automatic stay, the court below was without jurisdiction to make orders concerning the property of a bankruptcy estate. Apparently in response to the plea of stay, the court below issued an order on June 24, nunc pro tunc
Nearly a month later, the court below entered a notice, which was served on both Newton and her lawyer, that the court would hold a "status conference" on August 2, 2010. Nothing was mentioned in the notice about contempt, and nothing in the record indicates that the court below gave any other notice of the purpose of this "conference" prior to its commencement. But at some point during the "conference," the court below raised the possibility that, in light of the direction that was given at the April 13 hearing, Newton might have acted contemptuously.
The court adjudged Newton guilty of "direct, indirect, [and] summary contempt." Neither at the hearing nor in its later written order did the court specifically identify the conduct that it found to be direct contempt, the conduct that it found to be indirect contempt, or the conduct it found to be "summary" contempt, but we nevertheless think that we understand in general terms
1. We turn first to whether the court below erred when it summarily adjudged Newton guilty of contempt based upon her conduct prior to the August 2 hearing, namely the preparation and filing of bankruptcy petitions in April. We note that there is some doubt about whether the contemptuous conduct of a court-appointed receiver in her capacity as receiver is properly characterized as direct or indirect contempt.
Ramirez v. State, 279 Ga. 13, 15(2), 608 S.E.2d 645 (2005) (citations and punctuation omitted); see also Dowdy v. Palmour, 251 Ga. 135, 142(2)(c), 304 S.E.2d 52 (1983) (holding that party sought to be held in contempt must be given "reasonable notice of the specific charges and [an] opportunity to be heard"). Here, the notice of hearing indicated only that the court intended to conduct a "status conference" on August 2, and no mention was made of contempt until the hearing was underway. See note 6, supra. Newton did not have time to employ a lawyer specifically to defend her against the contempt charges,
Even if the preparation and filing of the bankruptcy petitions by the receiver might be more properly characterized as direct contempt, we still think that the court below was not entitled to adjudicate it summarily and without advance notice. Although a direct contempt often may be addressed summarily, that is so only because, "[w]here misconduct occurs in open court, the affront to the court's dignity is more widely observed, justifying summary vindication." Ramirez, 279 Ga. at 15(2), 608 S.E.2d 645 (citation and punctuation omitted). That is, summary adjudication is warranted when a contempt "threaten[s] a court's immediate ability to conduct its proceedings." Id. at 16(3), 608 S.E.2d 645; (citations and punctuation omitted) see also Pounders v. Watson, 521 U.S. 982, 988, 117 S.Ct. 2359, 138 L.Ed.2d 976 (1997) (summary contempt exception to normal due process requirements applies only to conduct "actually observed by the court, and where immediate punishment is essential to prevent demoralization of the court's authority before the public") (citation and punctuation omitted). Here, the preparation and filing of bankruptcy petitions posed no such threat because the court did not adjudicate the alleged contempt until more than three months after it occurred and approximately two-and-a-half months after the court had notice of it as a result of Newton filing a plea of stay in which she represented that she had filed the bankruptcy petitions.
In these circumstances, even if the alleged contempt might be characterized as direct, there was no compelling interest in summary adjudication. Absent a strong interest in summary adjudication, we conclude that Newton was entitled to "more normal adversary procedures," including reasonable notice and a reasonable opportunity to prepare a defense. See Ramirez, 279 Ga. at 15(2), 608 S.E.2d 645. We must, therefore, vacate the judgment below to the extent it is based on a finding of contemptuous conduct before the August 2 hearing, and we remand for further proceedings consistent with this opinion.
2. We consider next whether the trial court erred when it summarily adjudged Newton guilty of direct contempt based on something that she or her lawyer said or did during the August 2 "status conference." If Newton herself did anything contemptuous during these proceedings that obstructed the proceedings and impaired their integrity, we harbor no doubt that it was proper for the court below to adjudicate the direct contempt summarily. As indicated in Division 1, supra, where contemptuous conduct occurs in open court,
Ramirez, 279 Ga. at 14(2), 608 S.E.2d 645 (citations and punctuation omitted).
With these principles in mind, we have parsed the record of the August 2 hearing, in search of some conduct that might properly form the basis for a summary finding of direct contempt, but we can find none. Indeed, the transcript of the August 2 proceedings indicates that Newton herself said nothing at all at the hearing, except to speak her name when the court asked her to identify herself for the record. There is no indication that she spoke her name in a disrespectful manner or that she personally did anything else during the hearing that might have tended to show disrespect to the court, that adversely affected the integrity of the proceedings, or that impaired the ability of the court to conduct them. In short, we find no indication of anything that Newton herself said or did in the August 2 hearing that might even
Consequently, and in light of the court below's comments about the arguments made by Newton's lawyer, we think that the finding of direct contempt must be based on something that Newton's lawyer did or said at the August 2 hearing. And we think the court below most likely based its finding of direct contempt on the lawyer's argument that Newton was authorized after the April 13 hearing to file bankruptcy petitions concerning the properties that originally had been made part of the receivership because the court, even if it indicated an intent to dissolve or modify the receivership at the April 13 hearing, had not entered a written order to that effect.
Our consideration of this issue is informed by In re Jefferson, 283 Ga. 216, 220, 657 S.E.2d 830 (2008), in which our Supreme Court held that an attorney may be held in contempt for statements made during courtroom proceedings only if the court finds beyond a reasonable doubt "(1) that the attorney's statements and attendant conduct either actually interfered with or posed an imminent threat of interfering with the administration of justice and (2) that the attorney knew or should have known that the statements and attendant conduct exceeded the outermost bounds of permissible advocacy."
3. Newton requests that, if she is retried for contempt based on her actions prior to the August 2 "status conference," her case be assigned to another judge.
Judgment reversed in part and vacated in part, and case remanded with direction.
SMITH, P.J., and MIKELL, J., concur.