Argudo v. Rugo, LLC

Background

Benigno Argudo moved to require Mario Rugova to attend an in-person deposition and to require the defendants to pay a $500 stenographer’s fee arising from Rugova’s failure to attend. The court granted that request and ordered Rugova to attend the deposition and pay the fee by January 17, 2024. The court later reiterated the payment requirement and warned that noncompliance could lead to contempt sanctions.

Argudo reported that the fee remained unpaid. The defendants did not oppose the contempt request, and neither the defendants nor their counsel appeared at the February 21, 2024 hearing, even though the court had specifically ordered Rugova to attend in person.

Civil Contempt

Civil contempt is a court’s power to compel compliance with its orders or compensate for losses caused by noncompliance. The court explained that contempt requires proof that the order was clear and unambiguous, clear and convincing evidence of noncompliance, and a failure by the alleged contemnor to make a reasonable effort to comply.

The court found all three requirements satisfied. It determined that the January 3 and January 25 orders clearly required payment of the invoice. Argudo’s counsel stated under penalty of perjury that no payment had been received, which the court found was clear and convincing evidence of noncompliance. The court also found that the defendants had taken no meaningful steps toward compliance despite repeated opportunities and deadlines.

The court therefore held Mario Rugova in civil contempt for violating the January 3 and January 25 orders.

Sanctions

The court imposed a coercive monetary sanction designed to encourage compliance rather than punish past conduct. If Rugova did not pay the $500 stenographer’s fee to Argudo’s counsel by March 21, 2024, he was ordered to pay the court $50 for each later day of noncompliance, increasing to $100 per day after 21 days. The court stated that it would reevaluate the fines around April 11, 2024, if the defendants had not fully complied.

The court also granted Argudo’s request for reasonable attorneys’ fees and costs incurred in seeking compliance and bringing the contempt motion. It directed Argudo to submit supporting documentation by February 28, 2024, after which the amount would be determined.

Disposition

The court held Mario Rugova in civil contempt, ordered payment of the $500 fee and the coercive fines described above if payment was not timely made, and ordered the defendants to pay Argudo’s reasonable attorneys’ fees and costs in an amount to be determined. The opinion contains an inconsistency: its discussion refers once to escalation after 14 days, while the conclusion states that escalation occurs after 21 days; the conclusion and operative order use 21 days.