DEBRA M. BROWN, District Judge.
Before the Court is Massachusetts Mutual Life Insurance Company's motion for civil contempt and for entry of judgment against Candace Williamson, attorney of record for the Estate of Purvis William Hill, Jr. Doc. #123.
On March 6, 2017, Massachusetts Mutual Life Insurance Company ("Mass Mutual"), invoking Federal Rules of Civil Procedure 17, 25, and 41, and the Court's inherent power to sanction, filed a "Motion for Entry of an Order to Show Cause," asking the Court to require Candace Williamson to show cause why these consolidated cases should not be dismissed for her failure to comply with various court orders. Doc. #69. United States Magistrate Judge Jane M. Virden noticed the show cause motion for a March 16, 2017, hearing. Doc. #70. Williamson did not appear for the hearing. See Doc. #71. The next day, Judge Virden issued an order awarding Mass Mutual attorney's fees and expenses associated with its show cause motion and the subsequent hearing. Doc. #72. Judge Virden found sanctions justified by Williamson's "unprofessional and reprehensible" "flagrant disregard of this court's orders ...." Id. at 2.
Mass Mutual submitted an itemization of fees on March 24, 2017, in the amount of $12,913.46. Doc. #73. On April 4, 2017, noting "the subject [of] the motions concerned was not complex, and the motions were granted only in part," Judge Virden approved a $3,000 fee award and directed Williamson to pay such amount by May 19, 2017. Doc. #74. Mass Mutual did not object to the reduced fee award.
When Williamson failed to pay the $3,000 fee award by the ordered date, Mass Mutual, on June 1, 2017, filed a motion to compel the payment or, in the alternative, to hold Williamson in contempt. Doc. #87. Judge Virden noticed the motion for a June 22, 2017, hearing. Doc. #88. Williamson did not appear for the hearing. See Doc. #90 at 4.
On June 26, 2017, Judge Virden issued an order stating:
Id. at 4.
The Estate's claims were subsequently dismissed by the undersigned as a sanction for Williamson engaging "in contumacious conduct by flagrantly disregarding numerous orders of the Court." Doc. #119 at 7-8. Mass Mutual's complaint for a declaratory judgment was dismissed as moot. Doc. #122. In the order of dismissal, this Court specifically noted that it retained jurisdiction over the ongoing sanctions issue. See id. at 2.
On April 10, 2019, Mass Mutual filed a motion asking the Court to hold Candace Williamson in civil contempt and to enter judgment against "Williamson in favor of MassMutual in the amount of $68,600.00," with such award to increase at a rate of a $100.00 per day.
Mass Mutual seeks two forms of relief—a finding that Williamson is in civil contempt for failing to comply with the June 26, 2017, order, and a judgment in its favor for outstanding sanctions.
"[I]t is firmly established that the power to punish for contempts is inherent in all courts." Chambers v. NASCO, Inc., 501 U.S. 32, 44 (1991) (quotation marks omitted). To justify a finding of civil contempt, a "movant must establish by clear and convincing evidence that (1) a court order was in effect, (2) the order required specified conduct by the respondent, and (3) the respondent failed to comply with the court's order." United States v. City of Jackson, 359 F.3d 727, 731 (5th Cir. 2004). "Once the movant has shown a prima facie case, the burden falls on the violating party to `show either mitigating circumstances that might cause the district court to withhold the exercise of its contempt power, or substantial compliance with the ... order.'" Little Tchefuncte River Assoc. v. Artesian Util. Co., Inc., 155 F.Supp.3d 637, 657 (E.D. La. 2015) (quoting Whitfield v. Pennington, 832 F.2d 909, 914 (5th Cir. 1987)). If a party is found to be in civil contempt, a court may sanction "to coerce compliance ... or to compensate ... for the ... violation." In re White-Robinson, 777 F.3d 792, 795 (5th Cir. 2015) (quoting In re Terrebonne Fuel & Lube, Inc., 108 F.3d 609, 612 (5th Cir. 1997)).
There is no question that the June 26, 2017, order represents a valid court order
A sanctions award may be reduced to a judgment if the sanctioned party has failed to pay the sanctions despite being provided the opportunity to do so. See Moore v. Harris, 600 F. App'x 201, 204-05 (5th Cir. 2015). Because, for the reasons below, the Court intends to order additional sanctions which Williamson has not had the opportunity to pay, reduction to judgment at this point is unwarranted. Accordingly, the request to reduce the sanctions to judgment will be denied without prejudice.
Mass Mutual's motion seeks reduction to judgment of (1) the $3,000 fee award approved by Judge Virden on April 4, 2017; (2) the additional $1,000 in fees awarded by Judge Virden in the June 26, 2017, order; and (3) the $100 per day of additional sanctions authorized by the June 26 order, calculated from July 4, 2017 (the date the sanctions began), until the date of judgment. Judge Virden's orders regarding fees did not specify the authority for the sanctions. However, given that magistrate judges ordinarily lack authority to enter civil contempt
In addition to the inherent power of contempt, federal courts retain the inherent power to sanction abuse of the judicial process. Manez v. Bridgestone Firestone N. Am. Tire, LLC, 533 F.3d 578, 591 (7th Cir. 2008) ("[C]ourts retain inherent power to punish the full range of litigation abuses. This power is distinct from the contempt power.") (citation omitted). While sanctions under this power do not require a violation of a court order (as would a sanction based on civil contempt),
When assessing fees to an opposing party, a court invoking its inherent power to sanction bad-faith conduct "may go no further than to redress the wronged party for losses sustained." Goodyear Tire & Rubber Co. v. Haeger, 137 S.Ct. 1178, 1186 (2017) (quotation marks omitted). However, a court may levy a fine to be paid to the Clerk of Court, to address misconduct. See Steeger v. JMS Cleaning Servs., LLC, No. 17cv8013, 2018 WL 1363497, at *2 (S.D.N.Y. Mar. 15, 2018) (Goodyear Tire did not prevent imposition of fine under court's inherent power).
Applying the above standard, the $3,000 initial fee assessment, which was indisputably tied to the actual loss suffered by Mass Mutual, was properly imposed. However, it is unclear from the record how Judge Virden reached the $1,000 fee imposed in her June 26, 2017, order. In the absence of any indication that the $1,000 represents the losses sustained by Mass Mutual, this Court finds the sanction inappropriate.
Having determined that the $1,000 in additional fees and the $100 per diem sanction were improper, the question becomes what sanctions are warranted here. In answering this question, the Court begins by noting that while it finds the sum of $1,000 to be unfounded, the Court agrees with Judge Virden that Mass Mutual is entitled to compensation for the losses it sustained in seeking to vindicate its rights to the $3,000 Judge Virden initially awarded on April 4, 2017. The Court also believes that, notwithstanding the lack of support for the specific sums awarded by the June 26, 2017, order, Mass Mutual is entitled to compensation for the losses it sustained in seeking to enforce such order. Necessarily, this includes the costs associated with filing this motion.
Mass Mutual will be provided an opportunity to supplement the record to establish the amount of its losses identified above. Williamson will be granted an opportunity to respond to such supplementation. Thereafter, the Court will issue an order and corresponding judgment setting forth the total amount of compensatory sanctions. Should Williamson fail to pay such sanctions, severe coercive sanctions will be imposed.
In the interim, Williamson is in contempt of court for her failure to pay the $3,000 fee award ordered by Judge Virden. Given this failure, the coercive sanctions detailed below will issue.
In accordance with the findings above:
1. Mass Mutual's motion for contempt and judgment [123] is
2. Candace Williamson is held in
3. Williamson is
4. Within seven (7) days of this order, Mass Mutual may submit additional documentation showing its actual losses caused by Williamson's misconduct. Williamson shall have seven (7) days to respond.