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 its principals, Spiro Tsaparas and Peter Alexopoulos; the judgment is under appeal but not stayed.
- NHC served asset discovery citations on Tsaparas, including a restraining provision prohibiting transfer of non-exempt assets.
- NHC discovered, through US Bank records and other evidence, that Tsaparas repeatedly transferred significant sums in violation of the citation and failed to disclose these in required court filings.
- The court had previously ordered Tsaparas to make installment payments and file monthly accountings under penalty of perjury.
- Tsaparas repeatedly failed to provide timely, complete accountings and did not disclose substantial transfers.
- NHC moved for contempt; Tsaparas did not dispute the key transfers but challenged the appropriateness and procedure behind contempt remedies.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether undisclosed transfers in violation of citation constitute contempt | Tsaparas violated explicit court orders by transferring/withdrawing assets and failing to disclose transactions | Contempt is not proper; NHC should have pursued further discovery or a hearing first | Tsaparas is in civil contempt for repeated violations |
| Whether the court should require payments and freeze accounts as remedies | Financial penalties and asset freezes are appropriate to remedy and prevent future violations | Lacks ability to pay and has conflicting tax liens; remedies are improper | Remedies are proper; prior disclosures not credible given evidence of undisclosed assets |
| Whether further hearings or opportunities to comply are required before contempt | Multiple opportunities already provided; sufficient notice and chance to be heard | Additional hearings/opportunities required before contempt finding | No further hearing required; due process satisfied |
| Whether non-compliance was significant or isolated | Pattern of significant, undisclosed transfers indicates willful misconduct | Some transfers were small and court excused past isolated/miscellaneous ones | Violations are substantial and part of a pattern, not excusable as isolated |
Key Cases Cited
- FTC v. Trudeau, 579 F.3d 754 (7th Cir. 2009) (establishes standard for contempt—clear and convincing evidence of violation of unequivocal court order)
- SEC v. Hyatt, 621 F.3d 687 (7th Cir. 2010) (elements for civil contempt; no requirement for a special contempt hearing when notice/opportunity met)
- Shales v. T. Manning Concrete, Inc., 847 F. Supp. 2d 1102 (N.D. Ill. 2012) (explains Illinois asset discovery and citation proceedings)
- Gibbons v. Kowal, 2024 IL App (1st) 232124 (Ill. App. Ct. 2024) (Illinois law on citations to discover assets and restraining provisions)