8.18.2003

Defendant Corporation’s Officer Not Sued Individually Could Be Liable for Contempt

After judgment was affirmed against Gary’s Electric Service Co. in a labor proceeding, plaintiff moved to hold the company’s owner in contempt for violation of the judgment. The district court denied the motion, citing the fact that the owner was not an actual party in the case. However, in Elec. Workers Local 58 Pension Tr. Fund v. Gary’s Elect. Serv. Co., 340 F.3d 373 (6th Cir. Aug. 18, 2003), the appellate court reversed. Because “a command to the corporation is in effect a command to those who are officially responsible for the conduct of its affairs,” Wilson v. United States, 221 U.S. 361, 376 (1911), a person intentionally causing the company to take specific actions to avoid compliance with the judgment (here, the company’s owner) could be held in contempt.

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