Opinion ID: 3000965
Heading Depth: 2
Heading Rank: 3

Heading: Validity of the Contempt Judgment

Text: Integral also asserts that Autotech failed to carry its burden of proof to show that it was in contempt of the Agreed Order. We review a district court’s decision on a contempt motion for abuse of discretion and will not reverse “ ‘unless the result was clearly erroneous or unless we find an abuse of discretion by the district court.’ ” D. Patrick, Inc. v. Ford Motor Co., 8 F.3d 455, 460 (7th Cir. 1993) (quoting Laborers’ Pension Fund v. Dirty Work Unltd., Inc., 919 F.2d 491, 494 (7th Cir. 1990)). On this 24 No. 06-1718 point, too, we find that Integral has the better of the argument. “In order to prevail on a contempt petition, the complaining party must demonstrate by clear and convincing evidence that the respondent has violated the express and unequivocal command of a court order.” D. Patrick, 8 F.3d at 460 (emphasis in original). Autotech got off on the wrong foot by failing to comply with the requirements set in the Local Rules of the Northern District of Illinois for this type of motion. Those rules require that “[t]he affidavit upon which [the] notice of motion or order to show cause is based shall set out with particularity the misconduct complained of, the claim, if any, for damages occasioned thereby, and such evidence as to the amount of damages as may be available to the moving party.” N.D. ILL. LOCAL RULE 18(A) (1997). In so doing, the local rules not only notify the alleged contemnor of the charges against her but also ensure that the party alleging contempt has entered competent evidence into the record. Autotech did not submit the required affidavit with its motion for contempt. One consequence of this failure was that it neglected to provide enough information to carry its burden of proof. As we noted at the outset, the only proof Autotech submitted was the rather incoherent sentence in Vecher’s letter, which said “While have business with ordinary buyers (by the way, Mr. Scornavacca is one of them) making a buying/selling contract with them is sufficient, moreover that in this case the volumes of purchases ordered are scanty and do not influence the situation at the market.” No reasonable fact-finder could conclude that this statement clearly and convincingly showed that Integral was admitting that it was engaged in prohibited sales. It is impossible to know what the phrases “have business with ordinary buyers” or “making a buying/selling contract with them” mean and whether they refer to current or past behavior. No. 06-1718 25 While Vecher’s letter may be relevant to the question whether Integral violated its obligations under the Agreed Order, it is not sufficient on its own to sustain Autotech’s burden. Autotech also offered no evidence supporting any particular level for the contempt sanction. “Civil contempt sanctions are designed for the dual purpose of compelling compliance with a court order and compensating the complainant for losses caused by contemptuous actions.” Tranzact Tech., Inc. v. 1Source Worldsite, 406 F.3d 851, 856 (7th Cir. 2005). The sanctions must relate to one of these two purposes: When the purpose of sanctions in a civil contempt proceeding is compensatory, a fine, payable to the complainant, must be based on evidence of actual loss. When the purpose is to make the defendant comply, the court must consider the “character and magnitude of the harm threatened by continued contumacy, and the probable effectiveness of any suggested sanction in bringing about the result desired.” South Suburban Housing Center v. Berry, 186 F.3d 851, 854 (7th Cir. 1999) (quoting United Mine Workers v. Gibbs, 330 U.S. 258, 304 (1947)). The amount of the sanction must be supported in the record. See id. Here, the record was silent on this central point. Autotech asked for a sanction in the amount of $20,000 per day just because, as its lawyer put it, “in this original RICO [action] we had a complaint for $10 million which we dismissed . . . based upon this [global settlement] order. We’re talking about millions of dollars of goods.” The court reduced the fine to $5,000 per day because it thought that it would balloon out of control: “[a] hundred days and we’re up to $20 million.” Nowhere was there evidence of either the actual losses Autotech was suffering or what it might take to ensure Integral’s compliance. Under the circumstances, it was 26 No. 06-1718 an abuse of discretion to find Integral in contempt and to set a fine of $5,000 per day.