Citigroup Inc. v. Seade
- John Cronan
- 1:21-cv-10413
- U.S. District Court · Southern District of New York
- 2
In Citigroup Inc. v. Seade, Judge Cronan ordered Citigroup to seek another contempt ruling over alleged violations of court orders.
Citigroup Inc. and Luis Sebastian Sayeg Seade
What happened
Citigroup Inc. v. Luis Sebastian Sayeg Seade followed the Court’s February 28, 2022 finding that Mr. Seade was in contempt for violating a preliminary injunction. The Court had imposed escalating monetary sanctions, and Citigroup later told the Court that Mr. Seade still had not complied.
The Court directed Citigroup to file, by April 11, a motion seeking another contempt ruling. Citigroup’s motion must explain how continued or increased fines would encourage compliance or repair harm, rather than serve only as punishment. Mr. Seade’s opposition is due April 18, and Citigroup’s reply is due April 20.
Judge Cronan also ordered Citigroup to immediately serve the order on Mr. Seade and file proof of service by April 5. The order did not itself increase the fine or hold Mr. Seade in contempt again; it set a schedule for Citigroup’s requested motion.
The detailed version
- Citigroup Inc. v. Seade · No. 1:21-cv-10413
- John Cronan
- Apr. 4, 2022
Background
On February 28, 2022, the Court held Respondent Luis Sebastian Sayeg Seade in contempt for violating a preliminary injunction. The Court imposed escalating monetary sanctions that were to continue until no later than April 2, 2022. The order states that $300,000 in contempt-related fines had already been imposed.
On April 1, 2022, Citigroup Inc. filed a letter asserting that Mr. Seade had refused to comply with the Court’s contempt order and preliminary injunction. Citigroup asked the Court either to increase the coercive fine to $20,000 per day, with additional increases after each 30 days of noncompliance, or to allow Citigroup to make that request by motion.
Court’s Order
The Court directed Citigroup to move by April 11, 2022, for an order holding Mr. Seade in contempt for violating the Court’s orders. The Court instructed Citigroup to explain how continuing to impose fines, including increasing the daily fine, would coerce compliance or remedy harm caused by noncompliance. The Court cited the rule that civil contempt sanctions may be used to secure future compliance or compensate an injured party, but not as purely punitive punishment.
Mr. Seade’s opposition to Citigroup’s motion is due April 18, 2022, and Citigroup’s reply is due April 20, 2022. The Court also ordered Citigroup to immediately serve the order on Mr. Seade and file proof of service by April 5, 2022.
Judge John P. Cronan’s order did not itself increase the fine or make a new contempt finding. It directed Citigroup to file the requested motion and established the schedule for responding to it.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.