United States District Court, N.D. Illinois, Eastern Division
CENTRAL STATES, SOUTHEAST AND SOUTHWEST AREAS PENSION FUND; and ARTHUR H. BUNTE, Jr., as Trustee, Plaintiffs,
DOUBLE M TRUCKING OF THE ILLINOIS, VALLEY, INC., an Illinois corporation, Defendant.
I. Falkof Attorney for Plaintiffs
MOTION FOR AN ORDER OF CONTEMPT
L. ELLIS JUDGE
COME the Plaintiffs, Central States, Southeast and Southwest
Areas Pension Fund and Arthur H. Bunte, Jr., trustee
(collectively, “Central States”), and
respectfully request that this Court grant their Motion for
an Order of Contempt against Michael Mrowicki
(“Mrowicki”), and enter a judgment against him.
In support of this Motion, Central States submits the
May 4, 2016, this Court entered a Judgment Order in the
amount of $906, 290.80 (“Judgment”) in favor of
Central States and against Double M Trucking of the Illinois
Valley, Inc. (“Double M”). (Exhibit 1 of
Memorandum in Support of Plaintiffs' Motion for an Order
of Contempt (hereinafter, “Memorandum in Support, Ex.
May 16, 2016, the Clerk of Court issued a Citation in
Supplemental Proceedings to Discover Assets against Double M
(“Citation”). (Memorandum in Support, Ex. 2-A.)
The Citation was personally served upon Mrowicki, president
of Double M, on May 20, 2016. (Memorandum in Support, Ex. 3.)
Citation contained the following provision prohibiting Double
M from transferring assets:
YOU ARE PROHIBITED from making or allowing any transfer or
other disposition of, or interfering with, any property not
exempt from enforcement of a judgment, a deduction or der or
garnishment belonging to the judgment debtor or to which he
or she or it may be entitled or which may hereafter be
acquired by or become due to him or her or it, and from
paying over or otherwise disposing of any moneys not so
exempt which are due or to become due to the judgment debtor,
until further order of the Court or termination of these
proceedings, whichever occurs first.
response to the Citation, Double M produced its bank
statements from February 2015 through September 2016.
bank statements produced by Double M show an approximately
eleven week period of time from May 21, 2016 through August
9, 2016, during which Mrowicki had notice of the Citation
and, nevertheless, caused or permitted Double M to transfer
at least $1, 390, 986.43 to third parties in violation of the
prohibition against transfer contained in the Citation:
$1, 390, 986.43
in Support, Exs. 2-G-2-J.)
Pursuant to Federal Rule of Civil Procedure 69, Illinois law
governs supplementary proceedings to enforce a judgment. See
735 ILCS 5/2-140.
Under Illinois law, the proper service of a citation in
supplemental proceedings to discover assets creates a lien on
all personal property belonging to the judgment debtor,
whether in the judgment debtor's possession and control
or in the possession of a third-party. Laborers'
Pension Fund v. A & C Envtl., Inc., No. 99 C 8300,
2005 WL 994525, at *2 (N.D. Ill. Apr. 19, 2005); City of
Chi. v. Air Auto Leasing Co., 297 Ill.App.3d 873, 878
(1st Dist. 1998). The lien is considered perfected on the
date of service. Mendez v. Republic Bank, 725 F.3d
657, 653 (7th Cir. 2013).
There are only two exceptions to the prohibition against
transfer, neither of which applies in the instant case.
First, there is an exception for transfers of property exempt
from the enforcement of a judgment. 735 ILCS 5/2-1402(f)(1);
Air Auto Leasing Co., 297 Ill.App.3d at 878. The
second exception applies with respect to property of the
judgment debtor that is in the hands of third parties and
which is in excess of twice the amount of the balance the
judgment creditor seeks to enforce. Id. However,
there is no statutory exception to the prohibition against
transfer with respect to ordinary business expenses.
Cent. States, Se. and Sw. Areas Pension Fund v. Wintz
Props., Inc., 155 F.3d 868 (7th Cir. 1998); Air Auto