Mohrman, Kaardal & Erickson, P. A., f/k/a Mohrman & Kaardal, P. A. v. Gene Rechtzigel, Gene Rechtzigel as Personal Representative for Estate of Frank H. Rechtzigel and as Trustee of any Trust thereunder
A15-1886
| Minn. Ct. App. | Aug 22, 2016Background
- Mohrman, Kaardal & Erickson (respondent) obtained summary-judgment money judgments against Gene Rechtzigel (appellant) in May 2014 for unpaid attorney fees; appeals and petitions for review were denied.
- Respondent served post-judgment discovery on Rechtzigel (Jan 2015) seeking full disclosure of assets to aid collection; Rechtzigel did not timely comply.
- The district court granted respondent’s motion to compel (May 11, 2015) and later found Rechtzigel in contempt for failing to respond (Aug 20, 2015); $1,500 in fees were awarded in connection with the discovery motion and contempt enforcement.
- Rechtzigel served objections asserting the Fifth Amendment after the contempt order and did not substantiate how responses would be incriminating; respondent moved to enforce the contempt order.
- After an order-to-show-cause hearing, the district court entered a final civil-contempt order (Oct 21, 2015) authorizing up to 180 days incarceration with purge options (producing discovery, posting bond/cashier’s check or satisfying the judgment).
- Rechtzigel appealed solely the contempt proceedings; the district court later recorded that he posted funds to purge the contempt and the funds were released to satisfy the judgments.
Issues
| Issue | Plaintiff's Argument (Mohrman) | Defendant's Argument (Rechtzigel) | Held |
|---|---|---|---|
| Subject-matter jurisdiction for post-judgment discovery | District court had jurisdiction to compel post-judgment discovery to aid enforcement of its money judgment | Post-judgment discovery was void because it was served before judgments were docketed; court lacked jurisdiction | Court: district court had jurisdiction; serving discovery pre-docketing did not void discovery; rejection of jurisdiction challenge |
| Validity of Fifth Amendment objections to discovery | Discovery seeks only financial records/assets; no real danger of criminal self-incrimination | Invoked Fifth Amendment generally to avoid producing discovery | Court: blanket Fifth Amendment assertion was insufficient; no showing responses would tend to incriminate; contempt finding sustained |
| Use of contempt (civil) vs. execution or criminal punishment | Contempt is appropriate civil remedy to compel discovery; purge clause makes sanction civil | Contempt amounted to imprisonment for debt or criminal contempt | Court: sanction was civil (prospective, purge conditions); contempt was appropriate to secure compliance |
| Attorney-fee awards tied to discovery/contempt | Fees reasonably incurred for motion to compel and enforcement; permitted under Minn. R. Civ. P. 37 and Minn. Stat. § 588.11 | Fees excessive/abuse of discretion | Court: awarded $750 for motion to compel and $750 under contempt statute were reasonable and not punitive; no abuse of discretion |
Key Cases Cited
- Mower Cty. Human Servs. v. Swancutt, 551 N.W.2d 219 (Minn. 1996) (lists minimum requirements for civil contempt and explains purge-clause significance)
- Parker v. Hennepin Cty. Dist. Court, 285 N.W.2d 81 (Minn. 1979) (Fifth Amendment in civil cases must be tied to reasonable fear of criminal incrimination)
- Prod. Credit Ass’n of Redwood Falls v. Good, 228 N.W.2d 574 (Minn. 1975) (court determines whether privilege applies; witness’s conclusory claim is insufficient)
- Erickson v. Erickson, 385 N.W.2d 301 (Minn. 1986) (purpose of contempt power is to enforce court orders; contempt is an inherent judicial power)
- Hanson v. Thom, 636 N.W.2d 591 (Minn. App. 2001) (factors for attorney-fee awards under contempt statute require proof of actual damages, non-penal award, and that fees were incurred)
