Cessna Finance Corporation v. Al Ghaith Holding Company PJSC

Background

CesFin Ventures LLC asked the court to impose sanctions on Al Ghaith Holding Company PJSC (AGH) and three individuals—Ali Hamel Khadem Al Ghaith Al Qubaisi, Ghaith Hamel Khadem Al Ghaith Al Qubaisi, and Khalifa Hamel Khadem Al Ghaith Al Qubaisi—based on their alleged failure to comply with court orders requiring AGH to produce documents in response to a subpoena for post-judgment discovery. On May 3, 2022, the court granted in part and denied in part that sanctions motion. The court stated that it would address separately the request to hold AGH and the three individuals in civil contempt.

Notice and service requirement

The court explained that due process requires notice before a party may be held in contempt. Under the court's local rule, a civil-contempt proceeding must begin with service of a motion or an order to show cause. If the alleged contemnor has appeared through a lawyer, service may be made on that lawyer; otherwise, personal service is required under the federal rules for serving a summons.

Ruling

The court found that the docket did not show that AGH had been served with CesFin Ventures' sanctions motion. AGH was no longer represented by counsel when the motion was filed. The court therefore ordered that, if CesFin Ventures wished to seek contempt sanctions against AGH, it had to file an affidavit of service showing that the sanctions motion had been served on AGH no later than June 10, 2022. This order did not itself decide whether AGH or the three individuals were in contempt. Stewart D. Aaron, United States Magistrate Judge, entered the order.