Ketab Corp v. Mesriani and Associates, P.C. et al

Filing 290

ORDER re: Mesriani Defendants Motion for Civil Contempt Sanctions and Order Enforcing Compliance with Court's Previous Order of February 1, 2016 249 by Judge Ronald S.W. Lew. This Court finds that Plaintiff substantially complied with the Fe bruary 1, 2016 Order requiring Plaintiff to deposit 125% of the attorneys' fee award into an escrow account. Moreover, the IOTA account ending with 492 is not controlled by Plaintiff, but by Plaintiff's attorney, who is an officer of this Court. Accordingly, the Court DENIES Mesriani Defendants' Motion 249 . However, Mesriani Defendants' Motion was not frivolous, and the Court DENIES both parties' requests for attorneys' fees. IT IS FURTHER ORDERED THAT any withdrawal of the funds in Adli Law Group P.C.'s IOTA account ending with 492 is subject to Court order. (jre)

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UNITED STATES DISTRICT COURT

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CENTRAL DISTRICT OF CALIFORNIA

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12 KETAB CORP.,

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Plaintiff,
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v.
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16 MESRIANI LAW GROUP, et al., )
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Defendants.
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CV 14-07241-RSWL-MRWx
ORDER re: Mesriani
Defendants Motion for
Civil Contempt Sanctions
and Order Enforcing
Compliance with Court’s
Previous Order of
February 1, 2016 [249]

Currently before the Court is Defendants Mesriani &

21 Associates aka Mesriani Law Group and Rodney Mesriani
22 (collectively, “Mesriani Defendants”) Motion for Civil
23 Contempt Sanctions and Order Enforcing Compliance with
24 Court’s Previous Order of February 1, 2016 [249]
25 (“Motion”).

Having reviewed all papers submitted

26 pertaining to this Motion, the Court NOW FINDS AND
27 RULES AS FOLLOWS: the Court DENIES Mesriani Defendants’
28 Motion [249].
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I. BACKGROUND
Mesriani Defendants seek a contempt order against

3 Plaintiff Ketab Corporation (“Plaintiff”) for
4 Plaintiff’s alleged violation of this Court’s February
5 1, 2016 Order [194] directing Plaintiff to deposit into
6 escrow 125% of the $35,875 attorneys’ fee award granted
7 to Mesriani Defendants.

Mot. 8:17-22, ECF No. 249.

8 Mesriani Defendants seek (1) an order that Plaintiff
9 immediately deposit 125% of the attorneys’ fee award in
10 escrow, (2) $2,100.00 in attorneys’ fees for bringing
11 the instant Motion, and (3) an order that Plaintiff
12 withdraw its pending appeal in the Ninth Circuit until
13 the Court’s February 1, 2016 Order has been complied
14 with.
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Id. at 10:9-16.

Plaintiff argues that the Court’s February 1, 2016

16 Order did not state a deadline by which Plaintiff was
17 required to post a supersedeas bond or deposit the
18 funds in escrow.

Opp’n 2:17-18, ECF No. 252.

19 Plaintiff argues that it has not violated any court
20 order, and therefore, cannot be held in contempt.
21 at 3:4-6.

Id.

Plaintiff requests sanctions against

22 Mesriani Defendants in the amount of $1,300.

Opp’n

23 5:11-15.
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In their Reply, Mesriani Defendants argue that

25 Plaintiff represented that a Trust/Escrow Account was
26 opened at Citibank on April 7, 2016.

Decl. of Yolanda

27 A. Slaughter (“Slaughter Decl.”) ¶ 6, Ex. 2, ECF No.
28 258-1.

Mesriani Defendants argue that the Citibank
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1 account is not a sufficient escrow account.
2 11.

Reply 3:7-

Mesriani Defendants argue that the funds deposited

3 into the Citibank account provide no security to
4 Mesriani Defendants because Plaintiff failed to present
5 any bank and/or escrow instructions that would
6 demonstrate that the funds deposited with Citibank
7 cannot be withdrawn absent a court order.

Id. at 3:16-

8 19; Slaughter Decl. ¶ 6.
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On April 19, 2016, Plaintiff filed a document

10 titled Proof of Escrow Account [261], in which
11 Plaintiff provides the following:
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1.

Proof of cashier’s check for $44,843.75 payable

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to “Ketab Corp Trust/Escrow,” representing 125%

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of the fee award amount;

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2.

Reference letter from the Citibank branch at

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787 W. 5th St., Los Angeles, CA 90071, which

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certifies that Adli Law Group P.C. holds a “CE

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CLIENT IOTA” account ending with 492 (“IOTA

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account ending with 492"), with a balance of

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$44,843.75;

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3.

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Proof of deposit of said funds in the IOTA
account ending with 492; and

4.

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A true and correct copy of Citibank’s
description of its trust and escrow services.

25 Proof of Escrow Account 2:6-14, ECF No. 261.
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II. DISCUSSION
Civil contempt consists of a party’s disobedience

3 to a specific and definite court order by failure to
4 take all reasonable steps within the party’s power to
5 comply.

In re Dual-Deck Video Cassette Recorder

6 Antitrust Litig., 10 F.3d 693, 695 (9th Cir. 1993).

A

7 person should not be held in contempt if his action
8 “‘appears to be based on a good faith and reasonable
9 interpretation of the [court’s order].’” Id. (quoting
10 Vertex Distrib., Inc. v. Falcon Foam Plastics, Inc.,
11 689 F.2d 885, 889 (9th Cir. 1982)).

The party alleging

12 civil contempt must demonstrate that the other party
13 violated the court’s order by “clear and convincing
14 evidence.”
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Id.

This Court finds that Plaintiff substantially

16 complied with the February 1, 2016 Order requiring
17 Plaintiff to deposit 125% of the attorneys’ fee award
18 into an escrow account.

Moreover, the IOTA account

19 ending with 492 is not controlled by Plaintiff, but by
20 Plaintiff’s attorney, who is an officer of this Court.
21 Accordingly, the Court DENIES Mesriani Defendants’
22 Motion [249].

However, Mesriani Defendants’ Motion was

23 not frivolous, and the Court DENIES both parties’
24 requests for attorneys’ fees.
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IT IS FURTHER ORDERED THAT any withdrawal of the

2 funds in Adli Law Group P.C.’s IOTA account ending with
3 492 is subject to Court order.
4 IT IS SO ORDERED.
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6 DATED: May 18, 2016

s/ RONALD S.W. LEW

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HONORABLE RONALD S.W. LEW
Senior U.S. District Judge

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