THOMAS N. O'NEILL, District Judge.
Now before me are a motion by defendants Answernet, Inc. and Gary Pudles (Dkt. No. 240) seeking to hold plaintiff Barbara Robertshaw in contempt of court for her alleged failure to comply with the Court's Order of May 15, 2014 (Dkt. No. 236) and plaintiff's response and counter-motion seeking to clarify and revise the May 15 stay Order (Dkt. No. 241). I will deny the motions for the reasons that follow.
First, defendants ask that I hold plaintiff in contempt for having undertaken the following actions: (1) terminating Answernet's outside counsel Maurice Mitts and Mitts Law, LLC from representing Answernet in any matters other than the pending appeal of this action and prohibiting the firm's attorneys from being present at any meeting of Answernet's Board of Directors; (2) stripping Betty Babjak of her authority as general counsel of Answernet and prohibiting her from being present at any meeting of the Board; (3) appointing plaintiff's litigation counsel, F. Emmett Fitzpatrick, as counsel to the Board and directing him to act as recording secretary at meetings of the Board; (4) "mandating immediate private meetings with senior executives of AnswerNet to be held with the Robertshaws and their litigation counsel, to the exclusion of Mr. Pudles," Dkt. No. 240 at ECF p. 3 (emphasis in original); and (5) demanding production of Answernet documents and reports "without any coordination with AnswerNet's president to ensure that these demands could be met without undue adverse impact on the company's day-to-day operations and the involved senior personnel."
Civil contempt is a "severe remedy."
As I explained in my May 15 opinion granting defendants' motion for a stay, "[n]either defendants nor Cerida [] asked me to undo the actions taken by the Robertshaws subsequent to the entry of the May 6 Orders." Dkt. No. 235 at ECF p. 3. Accordingly, in deciding defendants' motion for a stay, I left in place the arrangement the parties had created for themselves at the time that defendants sought the stay: "with the Robertshaws as Answernet's sole directors and Pudles as its president," and giving "neither Pudles nor Robertshaw . . . complete control over Answernet."
Second, to the extent that plaintiff, in her response to defendants' motion, asks me to revise the stay order to provide "[a] clarification . . . in order to prevent Mr. Pudles from interfering with the Directors' work and to preserve corporate harmony during the period of the stay," Dkt. No. 241 at ECF p. 11, I decline to revise my prior order. As I explained in my May 15 opinion, "[a] declaratory judgment that merely adjudicates rights . . . falls within the Court's discretionary power to stay pending appeal."
Finally, in her response and counter-motion, plaintiff asks the Court to "require [Pudles] to post a bond to assure the faithful performance of his corporate duties and protect against unlawful disposition of corporate assets during the pendency of the Stay Order." Dkt. No. 241 at ECF p. 11. She asks for "a bond payable to Answernet, Inc., in the amount of $1,000,000 . . . ."
An appropriate Order follows.