NHC LLC v. Centaur Construction Company Inc.
1:19-cv-06332
N.D. Ill.May 30, 2025Background
- NHC LLC obtained a $22+ million judgment against Centaur Construction Co., Inc. and two principals (Tsaparas and Alexopoulos), who did not post a bond or obtain a stay pending appeal.
- To collect on the judgment, NHC served a citation requiring Centaur to produce financial documents from the past five years.
- Centaur produced no post-2019 documents, asserting it ceased operations in 2019 and lacked access to relevant servers and emails.
- New evidence revealed Centaur continued bank activities and construction projects post-2019, contradicting earlier representations.
- NHC moved for a contempt ruling, citing nonproduction, and the court granted NHC’s motion based on clear evidence Centaur withheld responsive records.
- The court ordered coercive remedies, including document/server turnover, a financial accounting, possible recovery of dissipated funds, attorneys' fees, and a $1,000/day penalty for continued noncompliance.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Centaur disobeyed a court order to produce docs | Centaur withheld responsive post-2019 documents | Produced everything in possession; no post-2019 docs | Centaur violated an unambiguous court command |
| Sufficiency of Centaur’s effort to locate/produce records | Centaur had the ability to access further records | Lost access to servers/emails, business ceased 2019 | Centaur failed to make reasonable efforts |
| Whether monetary contempt sanctions are proper | Sanctions, incl. daily monetary fine, are needed | Additional money won't coerce compliance | Monetary fine appropriate to coerce compliance |
| Need for further relief (access, accounting, fees) | Authority to server access, accounting, and fees | No specific argument offered | Relief granted as necessary for enforcement |
Key Cases Cited
- FTC v. Trudeau, 579 F.3d 754 (7th Cir. 2009) (describes requirements for a successful motion for civil contempt)
- SEC v. Hyatt, 621 F.3d 687 (7th Cir. 2010) (sets out clear elements required to establish contempt)
- United States v. United Mine Workers of Am., 330 U.S. 258 (1947) (financial penalties as coercive measures for contempt)
- Jones v. Lincoln Elec. Co., 188 F.3d 709 (7th Cir. 1999) (perjury alone does not support civil contempt without obstruction)