The opinion of the court was delivered by: Sue E. Myerscough United States District Judge
Thursday, 05 April, 2012 04:03:52 PM
Clerk, U.S. District Court, ILCD
This matter is before the Court on Plaintiffs' Motion for Sanctions (d/e 86) ("Motion") and Plaintiffs' Status Report (d/e 90). For the reasons set forth below, the Motion is GRANTED.
On April 29, 2008, Plaintiffs and Defendant Coit, Inc., d/b/a Coit Excavating, a/k/a Central Illinois Hardwood, entered into a Stipulated Judgment. See d/e 41. However, Defendant breached the terms of the Parties' Settlement Agreement and, following the breach, Plaintiffs pursued collection of the Judgment through supplemental proceedings under Federal Rule of Civil Procedure 69(a). As part of the Rule 69(a) proceedings, Plaintiffs requested the tax returns of Defendant and other corporations owned by Chad Coit, president of Defendant Coit, Inc., and an Interested Party in this case. Plaintiffs state that these requests have been akin to discovery proceedings authorized under Federal Rule of Civil Procedure 69(a)(2).
Defendant, through Mr. Coit, failed to comply with Plaintiffs' discovery requests. Subsequently, Plaintiffs sought orders from the Court to compel Mr. Coit to produce the requested documents. The Court issued orders on July 20, 2011 and August 15, 2011 ordering Mr. Coit to comply, but Mr. Coit failed to comply with the orders.
On September 8, 2011, the Court entered an Order that required Mr. Coit to produce to Plaintiffs: (1) the names and addresses of accountants or tax preparers who prepared (a) the last tax return for Coit Concrete, Inc., and (b) the tax returns for Coit, Inc., Coit Excavating, and Central Illinois Hardwoods; (2) the last tax return for Coit Concrete, Inc.; (3) all tax returns for Coit, Inc., Coit Excavating, and Central Illinois Hardwoods in the possession of Mr. Coit.
Mr. Coit failed to comply with the September 8, 2011 Order. On October 6, 2011, United States Magistrate Judge Byron Cudmore issued a Certificate determining that Mr. Coit had failed to comply with the orders of the Court. See d/e 80. Judge Cudmore issued an Order to Show Cause (d/e 81), directing Mr. Coit to appear before this Court to show cause why he should not be found in contempt for failure to comply with the Court's orders of July 20, 2011, August 15, 2011, and September 8, 2011.
On November 21, 2011, this Court held a Rule to Show Cause hearing to address Mr. Coit's failure to comply with the Court's orders. Mr. Coit failed to appear at the hearing. Instead, Mr. Coit telephoned the Court, and the hearing occurred by telephone. At the hearing, the Court ordered Mr. Coit to produce tax returns for the period from 2003 to 2010 by 4:00 p.m. on November 21, 2011. The Court additionally scheduled a status conference for November 28, 2011.
On November 28, 2011, this Court held a status conference. The Court ordered Mr. Coit's accountant to turn over income tax returns directly to Plaintiffs' attorney. The Court ordered Mr. Coit to provide all required documents to the Court by 4:00 p.m. on December 2, 2011.
On December 2, 2011, this Court held another status conference. Mr. Coit failed to appear and, again, was not in full compliance with the Court's previous orders. The Court ordered that an arrest warrant be issued for Mr. Coit due to his failure to appear and noncompliance with the orders of this Court.
On December 2, 2011, Plaintiffs also filed the instant Motion for Sanctions. In the Motion, Plaintiffs ask the Court to order Mr. Coit to pay attorney fees incurred by Plaintiffs from September 8, 2011 to December 2, 2011. Plaintiffs state that during this period, Plaintiffs incurred attorney's fees solely because Mr. Coit consciously ...