Cash Flow Resources, LLC v. Horizon Consulting, Inc.

Summary

This Report and Recommendation, Certification of Facts, and Order and Reasons addresses Horizon Consulting, Inc.'s failures to appear for a post-judgment judgment debtor examination and a related show cause hearing. The court orders Horizon to pay Cash Flow Resources, LLC's reasonable expenses, including attorneys' fees, and recommends civil contempt sanctions under Federal Rule of Civil Procedure 37(b)(2), including a $250 daily fine that may be purged through compliance. The document certifies facts to the district judge under 28 U.S.C. § 636(e)(6)(B)(iii).

Holdings

1. Rule 37(b)(2) sanctions are available when a party fails to obey a post-judgment discovery order entered under Rule 69(a)(2), even if the judgment creditor proceeded under state-law post-judgment discovery procedures.
2. Defendant must pay Plaintiff’s reasonable expenses, including attorneys’ fees, incurred for the December 3, 2025, examination and January 14, 2026, show-cause hearing.
3. The facts should be certified to the district judge under 28 U.S.C. § 636(e)(6), with a recommendation that Defendant be held in civil contempt and pay a coercive fine of $250 per day until it complies with the judgment-debtor examination order.

Questions Presented

1. Whether Rule 37(b)(2) authorizes sanctions for failure to comply with a post-judgment discovery order entered under Rule 69(a)(2), including when the judgment creditor relied on state-law post-judgment procedures.
2. Whether Plaintiff was entitled to reasonable expenses and attorneys’ fees caused by Defendant’s failure to attend the ordered judgment-debtor examination and show-cause hearing.
3. Whether the record supported certification of facts for civil contempt under 28 U.S.C. § 636(e)(6) and recommendation of a coercive daily fine.

Disposition

other