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Strojnik v. Vill. 1017 Coronado, Inc.
ORDER: (1) GRANTING REQUEST TO RECONSIDER CONTEMPT RULINGS (ECF No. 51); (2) VACATING CONTEMPT RULINGS (ECF Nos 44, 45, 56); (3) TERMINATING AS MOOT MOTIONS TO STAY (ECF Nos. 50, 57); AND (4) TERMINATING AS MOOT SUPPLEMENTAL MOTION FOR CONTEMPT (ECF No. 61)
Presently before the Court are Plaintiff Peter Strojnik, Sr.'s request to reconsider the Court's contempt rulings (ECF No. 51) and the parties' other contempt-related motions (ECF Nos. 50, 57, 61). This action started as an unremarkable disability discrimination case. It took a turn when the Court ordered Mr. Strojnik to pay Defendant $21, 995 in attorney's fees under the Americans with Disabilities Act's fee-shifting provision for filing a frivolous lawsuit. Mr. Strojnik refused to comply, claiming an inability to pay.
Defendant moved for contempt, highlighting that Mr. Strojnik has received hundreds of thousands of dollars in settlement payments just in the past few years. Ultimately, the Court held an evidentiary hearing. The Court determined Mr Strojnik is not credible, is concealing his substantial income, and can pay the attorney's fee award. Consequently, the Court found Mr. Strojnik to be in civil contempt and ordered him to pay additional fees as compensatory damages.
Although Mr. Strojnik's lack of candor is repugnant, the Court erred in using civil contempt in these circumstances. The Court's fee award is a money judgment, not a sanction for misconduct. The proper recourse for Defendant was to execute on the final judgment, not seek civil contempt. Therefore for the following reasons, the Court grants Mr. Strojnik's motion for reconsideration, vacates the contempt rulings, and terminates as moot the parties' remaining motions.
Mr. Strojnik, proceeding pro se, [1] filed this Complaint against Defendant Village 1017 Coronado (“Defendant” or the “Hotel”) alleging three counts for violations of the Americans with Disabilities Act (“ADA”), the California Unruh Act and the California Disabled Persons Act (“DPA”), and one count of negligence. (Compl., ECF No. 1.)
Mr. Strojnik claimed he is disabled “by virtue of a severe right-sided neural foraminal stenosis with symptoms of femoral neuropathy, prostate . . . and renal cancer [and] missing part of a limb (prosthetic right knee).” (Compl. ¶¶ 2-3.) Mr. Strojnik said he “walks with difficulty and pain and requires compliant mobility accessible features at places of public accommodation.” (Id. ¶ 4.) Mr. Strojnik did provide greater detail as to the “mobility accessible features” he requires, but he claimed that “[b]y virtue of his disability, [he] requires an ADA compliant lodging facility particularly applicable to his mobility, both ambulatory and wheelchair assisted.” (Id. ¶ 14.) Mr. Strojnik alleged he visited the Hotel and “encountered barriers to accessibility documented in Addendum A” to the Complaint. (Id. ¶¶ 15-16.) Addendum A provides blurry photographs, presumably taken from Defendant's website purporting to show items like “improperly configured handrails.” (Id., Addendum A.) Notably, Mr. Strojnik did not allege that he personally encountered these barriers, visited the Hotel at 1017 Coronado, or called the facility to see if these barriers exist or if alternative options are available for those with Mr. Strojnik's disabilities.
Defendant moved to dismiss the Complaint for lack of standing. (Mot. to Dismiss, ECF No. 4.) The Court granted the request, reasoning:
(Order Granting Mot. to Dismiss 5:11-6:15 (footnote omitted).) Because Mr. Strojnik did not have a viable federal claim, the Court declined to exercise supplemental jurisdiction over the remaining state law claims and directed the Clerk to close the case. (Id. 8:6-14.) The Clerk entered an appropriate Clerk's Judgment. (ECF No. 16.)
Defendant later brought a motion for attorney's fees or sanctions. (ECF No. 17.) Defendant first requested fees under the ADA's fee-shifting provision-42 U.S.C. § 12205. Section 12205 allows a court to award a party who prevails in a lawsuit filed under the ADA “a reasonable attorney's fee, including litigation expenses and costs.” The purpose of awarding fees to a prevailing defendant is “to deter the bringing of lawsuits without foundation.” CRST Van Expedited, Inc., v. E.E.O.C., 578 U.S. 419, 432 (2016) (quoting Christiansburg Garment Co. v. E.E.O.C., 434 U.S. 412, 420 (1978)). The Supreme Court, therefore, has interpreted an analogous statute “to allow prevailing defendants to recover [only] when the Plaintiff's ‘claim was frivolous, unreasonable or groundless.'” Id. (quoting Christiansburg, 434 U.S. at 421). This standard “applies to the award of both fees and costs to a prevailing defendant under the ADA.” Green v. Mercy Hous., Inc., 991 F.3d 1056, 1057 (9th Cir. 2021).
The Court granted Defendant's motion. (Order Granting Mot. for Atty's Fees, ECF No. 22.) After concluding Defendant was the prevailing party, the Court addressed whether this lawsuit was “frivolous, unreasonable or groundless.” (Id. 5.) The Court explained that the lawsuit met this test because: (1) Mr. Strojnik has had numerous ADA cases dismissed for lack of standing on similar grounds; (2) Mr. Strojnik's lack of specificity in his many complaints allows him to avoid alleging the specifics of his disability and the impact of the alleged barriers he encountered; and (3) Mr. Strojnik's has a practice of filing lawsuits without apparently traveling to the defendant lodging facilities, tactics that led him to being disbarred by the State of Arizona. (Id. 5-7.)
Therefore, the Court found fees were appropriate under 42 U.S.C. § 12205. Consequently, although the Court stated “it is likely that Defendant can establish evidence to justify sanctions under” 28 U.S.C. § 1927-which addresses an unreasonable and vexatious increase in court proceedings, the Court did “not reach this issue.” (Order Granting Mot. for Atty's Fees 7-8.) The Court likewise did not consider Defendant's request for sanctions under the Court's inherent authority. (See id.) The Court then determined $21, 995 in attorney's fees were reasonable and ordered Mr. Strojnik “to pay this amount forthwith” (“Fee Award”). (Id. 8.)
After the fee ruling, Defendant's counsel lodged a proposed Final Judgment, which included the Fee Award, addressed post-judgment interest, and substituted Defendant's counsel in lieu of Defendant as the judgment creditor. (ECF No. 24.) After analyzing the request for post-judgment interest, the Court entered the Final Judgment, stating:
JUDGMENT IS HEREBY ENTERED in favor of Philip H. Stillman, attorney for Defendant Village 1107 Coronado, Inc. and against plaintiff Peter Strojnik, Sr., in the amount of $21, 995.00,...
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