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IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Before the Court are Defendants’ Motion for Contempt Sanctions (Doc. 50) and 

Defendants’ Motion for Appeal Bond (Doc. 51). The Plaintiff did not respond to either of 

the motions, and oral argument was not requested. The Court’s rulings are as follows. 

A. Motion for Contempt Sanctions

On January 22, 2019, the Court issued an Order (Doc. 42) awarding the Defendants 

attorneys’ fees and costs in the amount of $8,622.00. (Doc. 42 at 4) The Defendants argue 

that the Plaintiff has not complied with the Court’s Order to pay the Defendants’ attorneys’ 

fees and costs. (Doc. 50 at 2) The Defendants filed the Motion for Contempt Sanctions 

(Doc. 50) seeking (i) to hold the Plaintiff in contempt of Court, (ii) contempt sanctions 

imposed against the Plaintiff in the amount of $500.00 per day of noncompliance with the 

Court’s Order, and (iii) an order from the Court requiring the Plaintiff to pay the previously 

ordered costs and attorneys’ fees. 

Civil contempt sanctions are employed to coerce a party into compliance with a

court’s order and to compensate the opposing party for losses sustained. Whittaker Corp. 

Arizona Medical Billing Incorporated,

 

Plaintiff, 

vs. 

FSIX LLC, et al.,

Defendants. 

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No. CV-17-04742-PHX-SPL

ORDER
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v. Execuair Corp., 953 F.2d 510, 517 (9th Cir. 1992); Richmark Corp. v. Timber Falling 

Consultants, 959 F.2d 1468, 1481 (9th Cir. 1992) (stating civil contempt sanctions are used 

to coerce the contemnor to comply with the court’s orders in the future, and the sanction is 

conditioned upon continued noncompliance).

At this time, the Court finds that sanctions are appropriate to reward the Defendants 

for the harm caused by the Plaintiff’s non-compliance with the Court’s Order and to coerce 

the Plaintiff into compliance; however, the Court finds that the $500.00 per day sanction 

requested by the Defendants is excessive in this case. Approximately 230 days have passed 

since the date of the Court’s Order awarding attorneys’ fees, which means that the proposed 

sanction for the Plaintiff would total approximately $115,000.00. Instead, the Court finds 

it more appropriate to impose a sanction of $20.00 per day, retroactively imposed from the 

date of the Court’s Order on January 22, 2019. The sanction shall be imposed until the 

Plaintiff pays the attorneys’ fees and costs set forth by the Court’s Order (Doc. 42) to the 

Defendants, plus the additional costs of the sanction. Accordingly, the Motion for 

Contempt Sanctions will be granted in part. 

B. Motion for Appeal Bond 

On February 6, 2019, the Court issued an Order granting the Defendants’ motion to 

dismiss and terminating this case. (Doc. 46) On March 5, 2019, the Plaintiff appealed the 

Court’s Order dismissing the case. (Doc. 49) The Defendants filed the Motion for Appeal 

Bond, seeking an order from the Court requiring the Plaintiff to post an appeal bond in an 

amount of $25,000.00. (Doc. 51) On April 26, 2019, the United States Court of Appeals 

for the Ninth Circuit dismissed the Plaintiff’s appeal. (Doc. 53) The Ninth Circuit’s 

mandate stated that the appeal was voluntarily dismissed by the parties. (Doc. 53 at 1) 

Therefore, the Defendants’ Motion for Appeal Bond will be denied as moot. 

Accordingly,

IT IS ORDERED that Defendants’ Motion for Contempt Sanctions (Doc. 50) is 

granted in part;
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IT IS FURTHER ORDERED that Plaintiff Arizona Medical Billing Incorporated 

is found to be in contempt of violating the Court’s Order (Doc. 42);

IT IS FURTHER ORDERED that the Plaintiff shall comply with the Court’s 

Order (Doc. 42), and Defendants FSIX LLC, Cindy Funk, and Todd Funk collectively are 

awarded attorneys’ fees and costs incurred by their defense against Plaintiff’s claims in the 

requested amount of $ 8,622.00;

IT IS FURTHER ORDERED that Plaintiff Arizona Medical Billing Incorporated

is also ordered to pay $20.00 per day, starting from January 22, 2019, to Defendants FSIX 

LLC, Cindy Funk, and Todd Funk collectively as a sanction for noncompliance with the 

Court’s Order (Doc. 42); and

IT IS FURTHER ORDERED that the Defendants’ Motion for Appeal Bond (Doc. 

51) is denied as moot.

Dated this 9th day of September, 2019.

Honorable Steven P. Logan

United States District Judge