Consumer Financial Protection Bureau v. Howard Law, P.C.

MEMORANDUM

Howard Law, P.C., The Williamson Law Firm, LLC, Williamson & Howard, LLP, Vincent D. Howard, and Lawrence Williamson (collectively “Attorneys”) appeal the district court’s “Clarification Order” of July 6, 2015, and its order holding them in contempt for violating the Permanent Injunction (“Contempt Order” of October 9, 2015). We have jurisdiction pursuant to 28 U.S.C. § 1291 . We reverse and remand.

1. The district court failed to adequately explain its reasons for binding the Attorneys to the June 18, 2015 injunction as non-parties under Federal Rule of Civil Procedure 65(d)(2). Thus, the Clarification Order does not afford us a “clear understanding of the basis of decision.” Lumbermen’s Underwriting All. v. Can-Car, Inc., 645 F.2d 17, 18 (9th Cir. 1980) (per curiam) (quoting Swanson v. Levy, 509 F.2d 859, 861 (9th Cir. 1975)). An injunction binds a non-party only if it has actual notice, United States v. Baker, 641 F.2d 1311, 1313 (9th Cir. 1981), and either “abet[s] the [enjoined party]” in violating the injunction, NLRB v. Sequoia Dist. Council of Carpenters, AFL-CIO, 568 F.2d 628, 633 (9th Cir. 1977), or is “legally identified” with the enjoined party, id. A…