In Re Contempt of Rochlin

465 N.W.2d 388, 186 Mich. App. 639
CourtMichigan Court of Appeals
DecidedDecember 17, 1990
Docket114828
StatusPublished
Cited by31 cases

This text of 465 N.W.2d 388 (In Re Contempt of Rochlin) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Contempt of Rochlin, 465 N.W.2d 388, 186 Mich. App. 639 (Mich. Ct. App. 1990).

Opinion

186 Mich. App. 639 (1990)
465 N.W.2d 388

In re CONTEMPT OF ROCHLIN
KANE
v.
ROCHLIN

Docket No. 114828.

Michigan Court of Appeals.

Decided December 17, 1990, at 9:10 A.M.

Heck & Webb (by William W. Webb), for the plaintiff.

Bassey & Selesko, P.C. (by Kieran F. Cunningham), for the defendant.

Before: DANHOF, C.J., and CAVANAGH and W.R. BEASLEY,[*] JJ.

PER CURIAM.

Defendant appeals as of right from the trial court's order finding him guilty of three acts of criminal contempt, including perjury, the failure to produce records, and the disbursement of *642 funds, the latter two in violation of an earlier court order. Defendant contends on appeal that his failure to produce records constituted civil, not criminal, contempt, that he was not given adequate notice of two of the contempt charges, and that the trial court could not properly require him to pay damages in the absence of plaintiff showing an actual loss. We affirm in part and reverse in part.

On March 14, 1986, plaintiff obtained a default judgment against defendant, a physician, in the amount of $90,771.36, for monies due, with interest and costs, on a $50,000 promissory note executed by defendant in May 1980. On March 20, 1986, the trial court issued an order (1) requiring defendant to produce certain records for inspection and copying at a specified location on April 10, 1986, (2) requiring defendant to be examined under oath concerning those records on April 21, 1986, (3) restraining defendant from transferring or disposing of his property until further court order, and (4) restraining Hewitt Road, P.C., defendant's clinic, from transferring or disposing of any of defendant's property or paying any money "not exempted by law from application to the satisfaction" of the default judgment. On April 4, 1986, defendant moved to set aside the default judgment. On April 10, 1986, the trial court ordered defendant and Hewitt Road, P.C., to show cause why they should not be "punished for contempt of court in the disobedience" of the court's March 20, 1986, order. On April 30, 1986, the trial court denied defendant's motion to set aside the default judgment without prejudice and modified its March 20, 1986, order to require defendant and his clinic to produce the specified documents, but to allow deletion of those portions of the documents protected by the physician-patient privilege. An *643 evidentiary hearing was held, and on June 26, 1986, the trial court denied defendant's motion to set aside the default judgment and amended the amount of the judgment to $84,506.04. On October 29, 1986, the trial court issued an order directing defendant to appear on November 12, 1986, and show cause why he should not be held "in criminal contempt of court" for:

1. Failure to produce the books and records set forth in this Court's order for examination and restraining transfer of property dated March 20, 1986; and this Court's Order dated April 30, 1986;
2. Hewitt Road P.C.'s disbursement of over $9,000.00 to defendant Rochlin in further violation of this Court's order for examination and restraining transfer of property dated March 20, 1986;
3. Failure to disclose, through purjury [sic], ownership interests in a Mercedes Benz & BMW while testifying at the May 7, 1986 creditor's examination.

On the date scheduled for the show cause hearing, defendant filed a bankruptcy petition in federal court. As a result of the automatic bankruptcy stay, the trial court issued an order for administrative closing of the case.

Trial was held in bankruptcy court in June 1987, and the bankruptcy judge directed a verdict for defendant, finding no basis for plaintiff's objection to discharge of the debt. Defendant was adjudicated bankrupt, and the federal district court affirmed the bankruptcy court's determination of bankruptcy. Although plaintiff's appeal of that determination was pending in the United States Court of Appeals for the Sixth Circuit, the federal district court judge ruled that criminal contempt proceedings would not interfere with the federal appeal and that the bankruptcy stay was terminated upon discharge of defendant.

*644 The trial court reopened the case and refused to consider defendant's failure to produce records as civil contempt. At the conclusion of a bench trial, the court found defendant guilty of the criminal contempts of perjury, failure to produce records, and disbursement of money in violation of a court order, pursuant to MCL 600.1701; MSA 27A.1701. The court ordered defendant to pay a total fine of $750 and to serve a total term of ninety days in jail for the three acts of criminal contempt, and provided that the jail term was to be suspended upon defendant's payment of $66,556 in restitution to plaintiff.

First, defendant contends that his failure to produce records was an act of civil, not criminal, contempt. We disagree.

In Gompers v Bucks Stove & Range Co, 221 US 418, 441; 31 S Ct 492; 55 L Ed 797 (1911), the United States Supreme Court distinguished between criminal and civil contempt by focusing on the character and purpose of the punishment imposed upon the contemnor:

It is not the fact of punishment but rather its character and purpose that often serve to distinguish between [criminal and civil contempt] cases. If it is for civil contempt the punishment is remedial, and for the benefit of the complainant. But if it is for criminal contempt the sentence is punitive, to vindicate the authority of the court.

The Court offered the following test for determining the character of the punishment:

The distinction between refusing to do an act commanded, — remedied by imprisonment until the party performs the required act; and doing an act forbidden, — punished by imprisonment for a definite term; is sound in principle, and generally, if *645 not universally, affords a test by which to determine the character of the punishment. [Id. at 443.]

Recently, in In re Contempt of Dougherty, 429 Mich 81, 95-96; 413 NW2d 392 (1987), our Supreme Court addressed the nature of contempt proceedings and acknowledged that it had, in the past, recognized essentially the same distinction advanced in Gompers. As the Court stated in People ex rel Attorney General v Yarowsky, 236 Mich 169, 171-172; 210 NW 246 (1926), quoting State v Knight, 3 SD 509; 54 NW 412 (1893):

"If the contempt consists in the refusal of a party to do something which he is ordered to do for the benefit or advantage of the opposite party, the process is civil, and he stands committed till he complies with the order. The order in such a case is not in the nature of a punishment, but is coercive, to compel him to act in accordance with the order of the court. If, on the other hand, the contempt consists in the doing of a forbidden act, injurious to the opposite party, the process is criminal, and conviction is followed by fine or imprisonment, or both; and this is by way of punishment. In one case the private party is interested in the enforcement of the order, and, the moment he is satisfied, the imprisonment ceases. On the other hand, the State alone is interested, in the enforcement of the penalty, it being a punishment which operates in terrorem, and by that means has a tendency to prevent a repetition of the offense in other similar cases."

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Cite This Page — Counsel Stack

Bluebook (online)
465 N.W.2d 388, 186 Mich. App. 639, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-contempt-of-rochlin-michctapp-1990.