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THE PARTY SEEKING A CONTEMPT FINDING DID NOT DEMONSTRATE PREJUDICE FROM THE FAILURE TO COMPLY WITH ONE COURT ORDER AND THE OTHER COURT ORDER DID NOT EXPRESS AN UNEQUIVOCAL MANDATE; CONTEMPT FINDING REVERSED (SECOND DEPT).

The Second Department, reversing (modifying) Supreme Court, determined the evidence did not support a contempt finding against the trustee of a special needs trust (Wiltshire). The guardian of the incapacitated person (Daniels) demonstrated that Wiltshire failed to provide an accounting and failed to promptly pay certain expenses, but the proof of Wiltshire’s alleged failure to comply with a court order was not sufficient to support a contempt finding. For instance, it was not demonstrated that Daniels was prejudiced by Wiltshire’s inaction:

“In order to find that contempt has occurred in a given case, it must be determined that a lawful order of the court, clearly expressing an unequivocal mandate, was in effect. It must appear, with reasonable certainty, that the order has been disobeyed. Moreover, the party to be held in contempt must have had knowledge of the court’s order. . . . Finally, prejudice to the right of a party to the litigation must be demonstrated” . “The burden of proof is on the proponent of a contempt motion, and the contempt must be established by clear and convincing evidence” … .

Here, Daniels did not establish that she was prejudiced in any way by Wiltshire’s failure to furnish an accounting of the SNT in violation of the … so-ordered stipulation … . Moreover, the [other] order directed Wiltshire to pay Daniels’s guardianship fees from the SNT, but did not provide a deadline for the payment. That order thus did not clearly express an unequivocal mandate which would support holding Wiltshire in contempt of court … . Matter of Serena W., 2023 NY Slip Op 03797, Second Dept 7-12-23

Practice Point: A party seeking a contempt finding must demonstrate prejudice from the failure to comply with a court order.

Practice Point: In order to support a contempt finding, the subject order must include an unequivocal mandate which was not obeyed.

 

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