AJ Energy LLC v. Woori America Bank
- Jesse Furman
- 1:18-cv-03735
- U.S. District Court · Southern District of New York
- 2
In AJ Energy LLC v. Woori Bank, Judge Furman extended the sanctions-payment deadline and imposed contempt and daily penalties for further nonpayment.
AJ Energy LLC and its counsel were required to pay $156,155.85 to Woori Bank and faced contempt and additional daily sanctions for nonpayment; Woori Bank was entitled to receive the payment.
What happened
In AJ Energy LLC v. Woori Bank, the court had ordered AJ Energy LLC and its counsel to jointly pay Woori Bank $156,155.85 in sanctions by November 30, 2019. They had not paid, and AJ Energy LLC had appealed the judgment that dismissed its claims and imposed sanctions.
The court explained that filing an appeal did not automatically pause the sanctions order. As a courtesy, it gave AJ Energy LLC and its counsel a one-time extension to pay in full. The opinion states that the new deadline was January 2, 2019, even though the order is dated December 17, 2019.
Judge Furman ordered that failure to pay by the stated deadline would result in contempt, with an additional $100 sanction payable to the Clerk of Court for each business day of continued nonpayment. Defense counsel was directed to promptly report whether payment was made.
The detailed version
- AJ Energy LLC v. Woori America Bank · No. 1:18-cv-03735
- Jesse Furman
- Dec. 17, 2019
Background
In an earlier opinion and order, the court granted Woori Bank’s motion for sanctions under Rule 11 of the Federal Rules of Civil Procedure. The sanctions equaled the attorney’s fees and costs Woori Bank incurred in connection with its motions under Rule 12(b)(6) and Rule 11. On October 31, 2019, the court set the sanctions at $156,155.85 and ordered AJ Energy LLC and its counsel to pay Woori Bank that amount jointly and severally by November 30, 2019. Joint and several liability means each responsible party can be required to pay the full amount.
The court stated that neither Woori Bank nor its counsel had received payment. AJ Energy LLC had filed a notice of appeal from the judgment dismissing its claims and imposing sanctions. The court explained that a notice of appeal does not automatically stay, or pause, an order requiring payment of sanctions. The opinion does not state that AJ Energy LLC or its counsel filed a request for a stay or posted a bond.
Ruling
The court granted a one-time extension of the payment deadline as a courtesy, stating that AJ Energy LLC and its counsel might have mistakenly believed that the appeal relieved them of the obligation to pay. The order states that the deadline was extended, retroactively, to January 2, 2019. Because that date precedes both the October 31 sanctions order and the December 17 order, the date appears internally inconsistent; the opinion does not correct or explain it.
The court further ordered that failure to pay the full amount by the stated deadline would result in AJ Energy LLC and its counsel being held in contempt. For each business day after the deadline that the payment remained incomplete, they would be sanctioned an additional $100 payable to the Clerk of Court. The court directed defense counsel to immediately advise it whether, and when, the sanctions were paid.
Disposition and significance
This order addressed enforcement of previously imposed sanctions and did not reconsider the earlier dismissal or sanctions ruling. It extended the payment deadline and established additional consequences for nonpayment. The order did not state that the sanctions were stayed during the appeal.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.