Lee v. Spoden

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When Paul Lee and Lisa Spoden divorced, Lisa held an ownership interest in Lee’s company, Strategic Health Care Company, Inc. (“SHC”). As part of the divorce proceeding, Lee and Spoden entered into a written agreement (the “Term Sheet”) that operated as a property settlement agreement. Spoden subsequently filed a breach of contract complaint against Lee and SHC claiming that they had violated the Term Sheet. Thereafter, Spoden filed a petition for a rule to show cause against both Lee and SHC. In the contempt proceeding, the trial court concluded that Lee had not violated the Term Sheet and that SHC was not bound by the Term Sheet. Thereafter, Lee and SHC unsuccessfully moved for summary judgment in the breach of contract action based on res judicata. The jury eventually returned a verdict for Spoden and awarded her $138,880 in damages. The Supreme Court reversed in part and remanded, holding that the trial court (1) erred in failing to dismiss Spoden’s claims that had already been decided in the contempt proceeding; (2) erred in excluding evidence related to the trial court’s ruling in the contempt proceeding as it related to the ownership of certain property; and (3) did not err in denying the defendants’ motion to vacate the judgment as excessive. View "Lee v. Spoden" on Justia Law