AngioDynamics, Inc. v. Biolitec AG
946 F. Supp. 2d 205
D. Mass.2013Background
- Civil contempt motion arising from Defendants’ completion of a downstream merger in defiance of a preliminary injunction.
- Injunction prohibited the downstream merger and related transfers of assets; Defendants assured compliance.
- Defendants completed the downstream merger on March 15, 2013; First Circuit affirmed the injunction on April 1, 2013.
- Court found Defendants’ conduct satisfied the four-contumacy elements: notice, unambiguous order, ability to comply, violation.
- Court imposed coercive sanctions (arrest warrant for Neuberger and escalating fines) and referred criminal contempt).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether civil contempt findings were proper. | ADI argues text of order forbids the merger; clear violation. | Biolitec argues no harm or misalignment with purpose absolves violation. | Civil contempt affirmed; sanctions imposed. |
| Whether relief from contempt under Rule 60/59 is warranted. | N/A | Relief sought due to asserted impossibility and German law considerations. | Relief denied; contempt order remains in effect. |
| Whether the preliminary injunction should be vacated based on First Circuit reasoning. | N/A | New evidence warrants vacatur under First Circuit decision. | Vacatur denied. |
| Whether recusal of the judge was warranted. | N/A | Potential partiality due to comments during proceedings. | Recusal denied. |
Key Cases Cited
- Hawkins v. Dept. of Health & Human Servs., 665 F.3d 25 (1st Cir.2012) (elements for civil contempt)
- Goya Foods, Inc. v. Wallack Mgmt. Co., 290 F.3d 63 (1st Cir.2002) (text of order governs forbidden conduct; no inquiry into purpose)
- United Mine Workers of Am. v. U.S., 330 U.S. 258 (1947) (court can impose coercive sanctions to secure compliance)
- Gompers v. Buck’s Stove & Range Co., 221 U.S. 418 (1911) (contempt power to enforce court orders)