Raymond J. Donovan, Secretary of U.S. Department of Labor v. Joseph P. Mazzola, Robert E. Buckley, Robert J. Costello, Etc.

The trustees of a labor pension fund were ordered in July 1982 to post an indemnity bond and make restitution of lost assets to the fund. Civil contempt orders issued in September 1982 on the indemnity bond, in January 1983 on the restitution bond, and in May 1983 on both bonds. After compliance, fines were assessed, based upon the September and January orders, at a hearing in August 1983.

This court previously affirmed both the July 1982 judgment on the merits and the September 1982 contempt sanction. Donovan v. Mazzola, 716 F.2d 1226 (9th Cir. 1983) (Donovan I), cert. denied, — U.S. -, 104 S.Ct. 704 , 79 L.Ed.2d 169 (1984). The facts concerning the judgment on the merits are set forth in detail in that decision, id. at 1228-1231, and will not be repeated here. We now consider the validity of the September 1983 order which assessed contempt fines based upon orders issued in September 1982 and January 1983. We reverse and remand.

FACTS AND PROCEDURAL BACKGROUND

This proceeding involves civil contempt orders following a judgment entered for the Secretary of Labor against fourteen present and former members of the Board of Trustees of the Pension Fund of Local 38 of the United…