Perez v. Sandpoint Gas N Go & Lube Center, Inc. et al

Filing 108

MEMORANDUM DECISION AND ORDER - IT IS HEREBY ORDERED: 1. Defendants Motion to Vacate (Dkt. 97 ) is DENIED. 2. Defendants Motion to Disqualify (Dkt. 105 ) is DENIED. 3. Plaintiffs Motion for Judgment Debtor Exam (Dkt. 103 ) is GRANTED. a. Sydney M. Oskoui shall appear for a judgment debtor examination in the Jury Assembly Room at the United States Courthouse for the District of Idaho, Coeur dAlene Office, 6450 North Mineral Drive, Coeur d'Alene ID 83815. b. Counsel for Plaintiff shall sub mit 2-3 proposed dates and times for the exam to the Court within 14 days of the date of this Order. The Court will choose one of those dates and times, and then issue a separate Order setting the date and time of the exam.... Signed by Judge B. Lynn Winmill. (caused to be mailed to non Registered Participants at the addresses listed on the Notice of Electronic Filing (NEF) by (cjs)

UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF IDAHO

THOMAS E PEREZ, SECRETARY OF
LABOR, UNITED STATES
DEPARTMENT OF LABOR,

Case No. 2:14-cv-00357-BLW
MEMORANDUM DECISION AND
ORDER

Plaintiff,
v.
SANDPOINT GAS N GO & LUBE
CENTER, INC., an Idaho corporation,
and SYDNEY M. OSKOUI,
Defendants.

INTRODUCTION
The Court has before it Defendant’s Motion to Vacate (Dkt. 97), Plaintiff’s
Motion for Judgment Debtor Exam (Dkt. 103), and Defendant’s Motion to Disqualify
(Dkt. 105).
ANALYSIS
1.

Motion to Vacate
Defendant Sydney Oskoui asks the Court to vacate the Court’s July 12, 2018

Order granting Plaintiff’s motion for an order to show cause. Oskoui asks to vacate the
Order as “void” under Federal Rule of Civil Procedure 60(b)(4). Rule 60(b)(4) allows the
MEMORANDUM DECISION AND ORDER - 1

Court to “relieve a party or its legal representative from a final judgment, order, or
proceeding” because “the judgment is void.” Fed. R.Civ. P. 60(b)(4). But Rule 60(b)
applies only to final, appealable orders. U.S. v. Martin, 226 F.3d 1042, 1048 n. 8 (9th Cir.
2000). The July 12 Order was simply an order to show cause, and therefore not subject to
Rule 60(b).
Moreover, the Court has already conducted the show cause hearing, but Oskoui
failed to appear. Therefore, the motion is moot. And even if the motion was properly
before the Court, the Ninth Circuit has already rejected Oskoui’s claim that Plaintiff’s
counsel is not authorized to represent the Secretary of Labor in this case. Dkt. 89 at 2-3.
Oskoui’s due process and bias arguments are also without merit because this Court has
given Oskoui more than a fair opportunity to be heard in this matter. As the Court has
noted on more than one occasion, Defendants have engaged in culpable conduct to avoid
litigation of the merits of this matter from the beginning. Defendants filed several
frivolous pleadings, tried to unilaterally set a hearing on the Court’s calendar, attempted
to be represented by a non-lawyer, disobeyed the Court’s rulings, and failed to show at
scheduled hearings. Finally, Oskoui’s assertion that the Court lacks authority to proceed
with post-judgment proceedings in light of his petition for a writ of certiorari to the
Supreme Court is meritless because the Supreme Court denied the petition. Dkt. 107.
Accordingly, the Motion to Vacate will be denied.
2.

Motion for Debtor’s Exam
As noted above, Oskoui failed to appear before the Court as ordered for an

examination of his assets and debts after he failed to pay the damages awarded. The
MEMORANDUM DECISION AND ORDER - 2

Court directed Plaintiff to file a brief addressing the Court’s authority to impose
sanctions, including monetary fines or incarceration. Plaintiff has filed that brief, and the
Court has reviewed it.
“[C]ourts have inherent power to enforce compliance with their lawful orders
through civil contempt.” Shillitani v. U. S., 384 U.S. 364, 370 (1966). Civil contempt is
intended to coerce compliance with the Court’s order, rather than to punish as with
criminal contempt. U. S. v. Ayres, 166 F.3d 991, 995 (9th Cir. 1999). One civil contempt
sanction is a per diem fine imposed for each day a party fails to comply with a court
order. Id. Incarceration is an appropriate coercive sanction so long as “the contemnor can
avoid the sentence imposed on him, or purge himself of it, by complying with the terms
of the original order.” Hicks on Behalf of Feiock v. Feiock, 485 U.S. 624, 635 n.7 (1988).
In determining what sanction to impose, courts consider the “character and
magnitude of the harm threatened by continued contumacy, and the probable
effectiveness of any suggested sanction.” General Signal Corp. v. Donallco, Inc., 787
F.2d 1376, 1380 (9th Cir.1986). Typically, civil sanctions should be the least coercive
sanction reasonably calculated to win compliance with the Court’s orders. U. S. v. Flores,
628 F.2d 521, 527 (9th Cir. 1980).
Here, Plaintiff asks the Court to defer imposing civil contempt sanctions. Instead,
Plaintiff asks the Court to order Oskoui to appear and produce documents for a judgment
debtor examination pursuant to Federal Rule of Civil Procedure 69. Plaintiff further
requests that the Court notify Oskoui that if he fails to appear, he may be subject to arrest
for contempt of court and the Court may make an order requiring him to pay the
MEMORANDUM DECISION AND ORDER - 3

reasonable attorney’s fees incurred by the judgment creditor in this proceeding. The
Court agrees that such an order is the most efficient and appropriate course of action at
this time. Accordingly, the Court will issue such an order below.
3.

Motion to Disqualify
Oskoui asks the undersigned judge to disqualify himself because of bias. Oskoui

essentially bases his argument on his disagreement with the Court’s prior rulings.
However, disagreement with the Court’s prior rulings is not grounds for recusal. Liteky v.
United States, 510 U.S. 540, 555 (1994). Accordingly, the Court will deny the motion.
ORDER
IT IS HEREBY ORDERED:
1. Defendant’s Motion to Vacate (Dkt. 97) is DENIED.
2. Defendant’s Motion to Disqualify (Dkt. 105) is DENEID.
3. Plaintiff’s Motion for Judgment Debtor Exam (Dkt. 103) is GRANTED.
a. Sydney M. Oskoui shall appear for a judgment debtor examination in
the Jury Assembly Room at the United States Courthouse for the
District of Idaho, Coeur d’Alene Office, 6450 North Mineral Drive,
Coeur d'Alene ID 83815.
b. Counsel for Plaintiff shall submit 2-3 proposed dates and times for the
exam to the Court within 14 days of the date of this Order. The Court
will choose one of those dates and times, and then issue a separate
Order setting the date and time of the exam.
c. Oskoui shall bring to the examination the following documents:
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i. All state and federal tax returns, including all attachments, for
Sydney M. Oskoui from 2015 through the present;
ii. All state and federal tax returns, including all attachments, for
Sandpoint Gas N Go & Lube Center from 2015 through the
present;
iii. For each bank, brokerage firm, credit union, credit card, and any
other financial institution with which Sydney M. Oskoui has had
an account since October 1, 2015, all account statements from
October 2015 to the present;
iv. For each bank, brokerage firm, credit union, credit card, and any
other financial institution with which Sandpoint Gas N Go &
Lube has had an account since October 1, 2015, all account
statements from October 2015 to the present;
v. Documents sufficient to identify any ownership of stocks, bonds
or other securities by Sydney M. Oskoui;
vi. Documents sufficient to identify any insurance policies held by
Sydney M. Oskoui and Sandpoint Gas N Go & Lube Center;
vii. Documents sufficient to identify any ownership interest in any
business by Sydney M. Oskoui and Sandpoint Gas N Go & Lube
Center;
viii. Documents sufficient to identify any debts currently owed to
Sydney M. Oskoui and Sandpoint Gas N Go & Lube Center;
MEMORANDUM DECISION AND ORDER - 5

ix. Documents sufficient to identify any debts currently owed by
Sydney M. Oskoui and Sandpoint Gas N Go & Lube Center;
x. All financial statements for Sandpoint Gas N Go & Lube Center
from September 2015 through the present, including profit and
loss and balance and income statements.
4. Oskoui is ordered that if he fails to appear at the time and place specified in
this order and the Court’s forthcoming order setting the date and time, he may
be subject to arrest for contempt of court and the Court may issue an order
requiring him to pay the reasonable attorney’s fees incurred by the judgment
creditor in this proceeding.

DATED: December 3, 2018
_________________________
B. Lynn Winmill
Chief U.S. District Court Judge

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