TK Towing, Inc. v. Construction Solutions, LLC
2:22-cv-01047
E.D. La.May 15, 2023Background
- TK Towing, Inc. sued Construction Solutions, L.L.C. (principal: Daniel Baker) on April 19, 2022; Defendant did not appear or defend.
- Clerk entered default on August 29, 2022; the District Court later entered a default judgment for TK Towing for $425,303.94 plus interest.
- Defendant did not satisfy the judgment. TK Towing moved for judgment-debtor examinations; Baker was served but failed to appear at the January 23, 2023 and April 5, 2023 examinations.
- TK Towing moved to hold Baker in contempt after the April absence; the Court set a show-cause hearing for May 10, 2023, which Baker also failed to attend.
- Magistrate Judge Michael B. North found clear and convincing evidence that court orders were in effect and Baker disobeyed them, certified the facts to the District Judge, and recommended Baker be adjudged in civil contempt.
- The Magistrate recommended issuance of a warrant for Baker's arrest to compel his appearance before Judge Susie Morgan on June 20, 2023, to show cause why he should not be held in civil contempt.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Baker should be held in civil contempt for failing to appear at judgment-debtor examinations and the show-cause hearing | Baker willfully disobeyed court orders to appear; contempt appropriate to enforce orders and compensate/prevent prejudice | No opposition or explanation offered (Baker did not appear or contest) | Magistrate found clear and convincing evidence of contempt, certified facts to District Judge and recommended civil contempt adjudication |
| Whether an arrest warrant should issue to compel Baker's appearance | Warrant necessary to secure Baker's presence for hearing and enforcement of the judgment | No opposition presented | Magistrate recommended issuing a warrant for Baker's arrest to compel appearance on the scheduled show-cause date |
Key Cases Cited
- Smith & Fuller, P.A. v. Cooper Tire & Rubber Co., 685 F.3d 486 (5th Cir. 2012) (Rule 37(b)(2)(C) authorizes awarding reasonable expenses for disobedience of court orders)
- United Mine Workers of Am. v. Bagwell, 512 U.S. 821 (1994) (distinguishes civil and criminal contempt and sets procedural protections for criminal contempt)
- In re Bradley, 588 F.3d 254 (5th Cir. 2009) (characterizes punitive nature of criminal contempt and contrasts with civil contempt remedies)
- FDIC v. LeGrand, 43 F.3d 163 (5th Cir. 1995) (sets forth elements required to establish civil contempt: existence of order, required conduct, and noncompliance)