Record contained sufficient evidence to support Dist. Ct.’s imposition of discovery sanctions against plaintiff, where defendant presented evidence that plaintiff had withdrawn more than $300,000 in funds from account in period of time both before and after show-cause hearing in which plaintiff claimed he had no funds to pay prior sanctions award of $261,025.11 that had been entered jointly and severally against plaintiff and two other individuals. Ct. rejected plaintiff’s claim that defendant should have submitted said evidence at earlier hearing, where record showed that plaintiff had taken steps to hamper defendant’s ability to obtain said evidence. Moreover, amount of discovery sanction ($47,000+) was not unreasonable, where award was related to defendant’s overall attempt to collect on $261,025.11 sanctions order and to plaintiff’s attempts to hide his assets. Dist. Ct. erred, though, in entering additional $65,263 sanctions order arising out of Dist. Ct.’s finding that plaintiff was in civil contempt arising out of plaintiff’s failure to pay $261,025.11 sanctions order. Instant $65,263 sanction should have been viewed as criminal contempt, where it was issued to punish plaintiff, rather than to compensate defendant, and Dist. Ct.’s failure to use procedures required to impose criminal contempt required that matter be remanded for new hearing.
Federal 7th Circuit Court
Civil Court
Sanctions