Twin City Pipe Trades Service Association, Inc. v. Franke Mechanical LLC

Filing 27

ORDER granting 20 Motion for Contempt (Written Opinion). Signed by Senior Judge David S. Doty on 1/25/2013. (PJM)

UNITED STATES DISTRICT COURT
DISTRICT OF MINNESOTA
Civil No. 12-1328(DSD/AJB)
Twin City Pipe Trades Service
Association, Inc., a Minnesota
non-profit corporation,
Plaintiff,
ORDER

v.
Franke Mechanical LLC, a
Minnesota limited liability
company,
Defendant.

This matter is before the court upon the motion for contempt
sanctions by plaintiff Twin City Pipe Trades Service Association,
Inc. (Twin City Pipe).

Based on a review of the file, record and

proceedings herein, and for the following reasons, the court grants
the motion.

BACKGROUND
This matter arises out of the nonpayment of employee benefits
under the Employee Retirement Income Security Act by defendant
Franke Mechanical LLC.

On June 6, 2012, Twin City Pipe filed suit,

alleging that Franke Mechanical failed to submit fringe benefit
contributions.

The summons and complaint were served on Nicole

Franke, a co-owner of Franke Mechanical, on June 8, 2012.
No. 2.

See ECF

Franke Mechanical did not answer the complaint, and Twin

City Pipe filed an Application for Entry of Default on July, 10,

2012.

See ECF No. 3.

Thereafter, on September 28, 2012, the court

entered a default judgment in favor of Twin City Pipe, ordering,
among other things, that Franke Mechanical produce business records
that reflect the work performed by its employees for calendar years
2011 and 2012.

See ECF No. 13, at ¶ 5.

The September 28, 2012,

order was served on Joel Franke, a co-owner of Franke Mechanical,
on October 5, 2012.

See ECF No. 15.

Franke Mechanical failed to comply with the September 28,
2012, order, and the court issued an order to show cause as to why
Franke Mechanical, Nicole Franke and Joel Franke should not be held
in

contempt

of

court.

See

ECF

No.

19.

Twin

City

contemporaneously filed a motion for contempt sanctions.
No. 20.

Pipe

See ECF

A hearing was set for January 25, 2013, and Franke

Mechanical failed to appear.

DISCUSSION
“[I]t is firmly established that the power to punish for
contempt[] is inherent in all courts.”

Chambers v. NASCO, Inc.,

501 U.S. 32, 44 (1991) (citation and internal quotation marks
omitted).

“One of the overarching goals of a court’s contempt

power is to ensure that litigants do not anoint themselves with the
power to adjudge the validity of orders to which they are subject.”
Chi. Truck Drivers v. Bhd. Labor Leasing, 207 F.3d 500, 504 (8th
Cir. 2000) (citation omitted).

Civil contempt charges, either by

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way of incarceration or fine, may be employed to coerce compliance
with a court order.

Id.

Moreover, “[i]t is well-settled that a

court’s contempt power extends to non-parties who have notice of
the court’s order and the responsibility to comply with it.”

Id.

at 507.
“A party seeking civil contempt bears the initial burden of
proving,

by

clear

and

convincing

evidence,

that

the

alleged

contemnors violated a court order.” Id. at 505 (citation omitted).
“At that point, the burden ... shift[s] to the [defendant] to show
an inability to comply.”

Id. (citation omitted).

In the present action, Twin City Pipe has proven that Franke
Mechanical violated the September 28, 2012, order by not producing
documents relating to the work performed by its employees in 2011
and 2012.

Twin City Pipe has also shown that Nicole and Joel

Franke, as owners and officers of Franke Mechanical, had notice of,
and thus, a responsibility to comply with the court’s September 28,
2012, order.

See Cumming Aff. ¶ 10.

As a result, the burden

shifted to Franke Mechanical to show an inability to comply with
the order.

Franke Mechanical did not enter an appearance, submit

any materials to the court or appear at oral argument.

Therefore,

Franke Mechanical has not met its burden, and the court holds it,
Nicole Franke and Joel Franke in contempt of court.

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CONCLUSION
Accordingly, based on the above, IT IS HEREBY ORDERED that:
1.

Plaintiff’s motion for contempt sanctions [ECF No. 20] is

granted;
2.

The United States Marshal shall serve this order on

nonparties Nicole and Joel Franke, at their principal place of
business at 1472 Oakdale Avenue, West St. Paul, MN 55118, as soon
as practicable;
3.

Defendant Franke Mechanical and nonparties Nicole and

Joel Franke have until 10:00 am on February 4, 2013, to purge
themselves of this contempt order, by producing for plaintiff all
business records that reflect work performed by Franke Mechanical
employees in 2011 and 2012;
4.

If defendant Franke Mechanical and nonparties Nicole and

Joel Franke fail to purge themselves of contempt as ordered herein:
a.

The Clerk of Court for the District of Minnesota

shall issue a bench warrant for the immediate arrest of
Nicole and Joel Franke; and
b.

The United States Marshal shall forthwith attempt to

execute the said warrant and shall as soon as practicable
deliver up Nicole and Joel Franke before the undersigned;
and

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5.

Plaintiffs shall be entitled to an award of attorneys’

fees incurred in connection with this motion.
Dated:

January 25, 2013
s/David S. Doty
David S. Doty, Judge
United States District Court

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