Trade Well International v. United Central Bank
Federal 7th Circuit Court
Civil Court
Contempt
Dist. Ct. erred in finding plaintiff’s counsel in contempt of court, as well as fining him $500 and revoking his pro hac vice status, after counsel filed Notice of Lien on behalf of plaintiff in underlying lawsuit seeking return of plaintiff’s leased property in defendant’s hotel, even though Dist. Ct. believed that counsel had no good-faith basis for seeking either construction lien or filing lis pendens to protect said disputed property. Because counsel was punished for out-of-court conduct, any alleged contempt was indirect, and if instant sanctions were criminal in nature, they were improper since Dist. Ct.: (1) failed to give counsel notice that he was being charged with criminal contempt; and (2) failed to ask govt. to prosecute said contempt. Moreover, instant sanctions were also improper if classified as civil contempt because Dist. Ct. failed to point to any Order that counsel violated when he filed Notice of Lien. Also, instant lien could be viewed as proper construction lien to extent plaintiff sought return of hotel fixtures, and record suggested that counsel had followed appropriate procedures for filing lis pendens with County Register of Deeds.