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RRW Legacy Management Group, Inc. v. Walker

United States District Court, W.D. Washington, Seattle

April 6, 2017

RRW LEGACY MANAGEMENT GROUP, INC., et al, Plaintiffs,
v.
CAMPBELL WALKER, Defendant.

          ON MOTIONS FOR SANCTION AND FOR BOND

          Marsha J. Pechman United States District Judge.

         The above-entitled Court, having received and reviewed:

         1. Plaintiff Campbell Investment Company's Motion for Sanctions and for Bond (Dkt. No. 245), 2. Defendant's Limited Response to Motion for Sanctions and for Bond (Dkt. No. 247), 3. Plaintiff Campbell Investment Company's Reply in Support of Motion for Sanctions and for Bond (Dkt. No. 248), and all attachments, exhibits, declarations and other relevant portions of the record, rules as follows:

         IT IS ORDERED that Plaintiffs motion that Defendant Campbell Walker be held in contempt is GRANTED; as a sanction for his contempt, Defendant is hereby assessed a penalty of $1000 per day until he responds to Plaintiffs post-judgment discovery and appears for a post-judgment deposition/financial examination.

         IT IS FURTHER ORDERED that Plaintiffs motion for award of its fees and costs incurred in enforcing its judgment is GRANTED; Plaintiff shall submit its request for reasonable costs and attorney fees within 14 days of the entry of this order.

         IT IS FURTHER ORDERED that Plaintiffs motion to require Defendant to post a bond on appeal is DENIED.

         Discussion

         Following a bench trial, Defendant Campbell Walker was adjudged liable for breaches of fiduciary duty. In January 2016, the Court awarded Plaintiff Campbell Investment Company ("CIC") damages in the amount of $6, 271, 645.68; in September 2016, the Court added $580, 776.94 in attorneys' fees and taxable costs. (Dkt. Nos. 223, 228.) On September 26, 2016, CIC served post-judgment interrogatories and requests for production to Defendant and noted his deposition as part of its effort to collect on the judgment. (Dkt. No. 246, Declaration of Eaton, ¶ 2.) Defendant failed to respond to the discovery requests or appear at his deposition. (Id. at ¶ 4.)

         In response, CIC filed a Motion to Compel and/or for Sanctions (Dkt. No. 233) and this Court granted the motion, ordering Defendant to pay the reasonable costs and fees associated with CIC's filing of the motion. (Dkt. No. 240.) CIC re-noted Defendant's deposition; Defendant's counsel confirmed that the Court's order and the notice of deposition were transmitted to Defendant. (Decl. of Eaton, Exs. A, B.) The day before the deposition was noted, CIC's counsel received an email from Defendant himself advising he would "not be able to attend the deposition" (Id., Ex. C), confirming that he had received the notice transmitted by his counsel.

         Fed.R.Civ.P. 37(d)(3) fees and costs

         CIC makes a number of requests in response to Defendant's refusal to participate in the orderly and legitimate process of finalizing the judgment of a federal court. Plaintiff has moved this Court to order that Defendant pay its reasonable attorneys' fees and costs in bringing this motion. Fed.R.Civ.P. 37(d)(3) mandates the court to "require the party failing to act... to pay the reasonable expenses, including attorneys' fees, caused by the failure, unless the failure was substantially justified." Lacking any evidence of justification, the Court will order that Defendant be assessed the reasonable fees and costs associated with prosecuting this motion.

         Contempt

         CIC has also requested that the Court hold Defendant in contempt for his failure to accede to this Court's direction that he participate in post-judgment discovery. The Court

... has the inherent power to hold a party in civil contempt in order to enforce compliance with an order of the court or to ...

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