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holding that the general rule for nonparties is that "a contempt decision's finality and appealability is composed of two parts: a finding of contempt, and an appropriate sanction"
Summary of this case from Fed. Trade Comm'n v. ZurixxOpinion
Nos. 86-2750, 86-2751.
September 10, 1987.
Kenneth R. Wynne, Alfredo R. Perez, Bracewell Patterson, Houston, Tex., for plaintiff-appellant.
Kirkland Ellis, James P. Cusick, Chicago, Ill., for IHC.
William H. Jeffress, Jr., Steve Braga, Herbert J. Miller, Jr., Miller, Cassidy, Larroca Lewin, Washington, D.C., for Crawford, et al.
Appeals from the United States District Court for the Southern District of Texas.
Before GEE, JOHNSON and HILL, Circuit Judges.
Petroleos Mexicanos (Pemex) appeals from an order of the district court finding Pemex in civil and criminal contempt of the court's orders and subpoenas. Pemex has allegedly failed to comply with the court's discovery orders and subpoenas, seeking the production of Pemex documents, issued in the criminal prosecution of Crawford Enterprises, Inc., and Donald G. Crawford. For the reasons stated below, we affirm in part and dismiss in part.
I.
On October 2, 1982, Crawford Enterprises, Inc., Donald G. Crawford (collectively Crawford), and six other individuals were indicted for multiple violations of the Foreign Corrupt Practices Act, 15 U.S.C. § 78dd-2. The indictment alleged that Crawford and the other individuals had bribed certain officials of Pemex, the national oil company of Mexico, in order to obtain several multi-million dollar equipment contracts with Pemex. Crawford initially entered pleas of not guilty and denied any knowledge of improper payments to Pemex officials. In its defense Crawford claimed that the contracts had been awarded on the basis of Pemex's own competitive bidding process; that Pemex possessed documentation that would reflect this process; and that Crawford and the other defendants had been awarded the contracts because their bids were superior, not because of improper influencing of Pemex officials.
In October 1983, while the criminal proceeding against Crawford and the other defendants was pending in the Southern District of Texas, Pemex initiated a civil suit in the same district against Crawford and others. In its complaint Pemex sought several million dollars in both compensatory and punitive damages from Crawford and the other entities based upon the same conduct that was alleged in the criminal indictment. Pemex's suit was premised upon alleged violations of the Sherman Antitrust Act, 15 U.S.C. § 1 et seq.; the Robinson-Patman Act, 15 U.S.C. §§ 13(c), 14; and the Racketeering Influenced and Corrupt Organizations Act, 18 U.S.C. § 1961 et seq. Pemex also asserted causes of actions based upon commercial bribery and common law fraud.
During the latter part of 1983, Crawford began its efforts to obtain the documents from Pemex that it claimed would be crucial to a defense of both the criminal and civil cases. In August 1983 Crawford persuaded the district court to send letters rogatory to Pemex requesting that it produce procurement, bidding process, and purchase order documentation relevant to the pending criminal matters. Four months elapsed and Crawford received no response from Pemex. Since the criminal proceeding was apparently moving toward an early trial, Crawford requested that the district court issue a subpoena directing Pemex to produce the documentation necessary for Crawford's defense. Pemex responded to this request by moving for a protective order claiming that the production request would be unduly burdensome. On December 20, 1983, the district court after a hearing on Crawford's request, issued a subpoena, pursuant to Fed.R.Crim.P. 17(c), directing production of several different categories of documents, including purchase orders, bid analyses, and procurement recommendations. The court ordered the production of the documents by February 6, 1984.
A second supplemental subpoena was served upon Pemex on January 13, 1984, directing that documents in six additional categories be produced. On January 17 the district court again ordered full compliance with the subpoena.
Between January and April 1984 Pemex produced several thousand pages of documents mostly from its files in a Houston office. While many of the documents were responsive to the subpoena, the key documents involving the procurement and bidding process were noticeably absent. Crawford's counsel informed Pemex in two separate letters that the key documents had not been produced and requested that they be produced or an explanation given as to why they were not. Pemex did not respond to these letters. Faced with Pemex's lack of response, in June 1984 Crawford filed a motion to compel further compliance with the subpoenas. In its motion Crawford specified the types of documents not yet produced by Pemex and why they were important to Crawford's defense in both the criminal and civil action. Pemex filed no response to this motion. On July 17 the district court granted the motion and again ordered Pemex to "comply without further delay with this Court's previous order to produce all documents specified in the attachment to [Crawford's] Rule 17(c) subpoenas." From this date until February 1985, however, Pemex produced no further documents nor did it supply any reason why it did not respond or act.
While the above criminal discovery was proceeding, Pemex's civil action against Crawford was transferred to the docket of the same judge overseeing the criminal prosecution. The judge initially stayed most discovery efforts in the civil matter while the criminal discovery problems between the parties Crawford and Pemex were being resolved. However, on February 13, 1984, in the civil action the district court did order Pemex to produce a list of all documents Pemex had obtained from the Mexican Attorney General that related to matters involved in the parallel civil and criminal proceedings. Crawford concedes that Pemex has complied with this order.
With the criminal trial set for April 8, 1985, Crawford made a final effort to obtain the documents requested in the prior subpoenas and court orders. Crawford moved for an order for Pemex to show cause why it should not be held in contempt for failing to comply with the subpoenas and orders of the district court. Pemex opposed this motion by asserting that it had produced all of the subpoenaed documents in its possession that it had uncovered. Pemex also suggested that any failure to produce relevant documents should be attributable to the possibility that Crawford was involved with former Pemex employees in "covering their tracks." An order to show cause was issued by the district court on March 21, 1985.
The order to show cause encompassed not only the discovery disputes involved in the criminal proceeding but also whether Pemex had complied with the court's February 13 order in the civil action.
A hearing on the show cause motion was held on April 1, 1985. Crawford presented testimony and exhibits showing that the key documents they sought were prepared in the general course of Pemex's business and were usually retained in Pemex's file, that these documents were crucial to Crawford's defense in the criminal action and in Pemex's civil action, and that many of these key documents which had been specifically requested in the subpoenas had not been produced. In response Pemex had witnesses testify that a search for relevant documents had been performed by Pemex officials, but on cross-examination the witnesses admitted to not having personal knowledge of the fact or scope of any search for the key documents. Pemex also asserted that a fire in 1982 had destroyed many of the documents sought by the subpoenas. While indicating that it believed at this point that Pemex had willingfully failed to comply with the court's orders, the district court did not hold Pemex in contempt, but directed Crawford to submit by the next day, April 2, a specific list of documents it needed and ordered Pemex to produce these documents by April 15. Apparently thinking that it had finally resolved the discovery dispute, the district court adjourned the contempt hearing "without prejudice to the entry at a later date of an order imposing sanctions upon Pemex for failure to comply with this order and previous orders of this Court." On April 2 Crawford submitted the list ordered.
At the April 1 hearing Crawford and Pemex agreed that Pemex had complied with the February 13 discovery order in the civil action.
The court and parties agreed on the April 15 production date, even though Crawford's criminal trial was set for April 8, because it was not anticipated that Crawford's defense would not begin until April 15. The April 15 deadline was later extended two weeks to April 29 by order of the court.
On April 4, 1985, Crawford entered pleas of nolo contendere to the indictment specifically noting that they did so in part because they did not have the necessary documents to prepare their defense. On April 29 Pemex produced 2,731 pages of documents that were especially favorable to Crawford. In particular, Pemex produced an internal Pemex analysis of its contract procurements between 1977-79 (years covered within the indictment) that reflected the number of bidders on each contract, the amount of the bids, the specific promises made by the bidders, as well as explanations of why the winning bidder was chosen. Several key documents described in the subpoenas however were still not forthcoming from Pemex. Based upon Pemex's continued failure to produce key documentation, Crawford moved to reconvene the contempt hearing in August 1985, requesting that Pemex be held in both civil and criminal contempt of court. The district court granted the request, and another hearing was finally scheduled for June 1986.
In July 1985 Crawford and several other defendants in the criminal proceeding were sentenced pursuant to their nolo contendere pleas.
Before the hearing Pemex produced another four documents specifically described in the court's April 2 order.
At the June 1986 hearing Crawford again presented evidence that the documents that had been so reluctantly surrendered to date by Pemex and the ones that had yet to be disclosed were documents ordinarily produced and kept by Pemex officials. Crawford also established that several of the documents had multiple copies and should be available from several sources within Pemex. Pemex sought to explain its failure to produce documents and its incremental disclosure of some documents. Pemex presented two officials who stated that a "good faith" effort had been made to discover the necessary documents. Both Pemex witnesses however explained that the documents had recently been discovered in a file cabinet in the office of one of the witnesses that had been previously searched. Pemex also attempted to explain its lack of production because of a fire at a Pemex filing office. Crawford countered on cross-examination by bringing out the fact that many of the documents (or copies of them) sought by the subpoenas and court orders were stored in buildings in which no fire had occurred.
At the close of the evidence, the district court entered detailed findings of fact and conclusions of law. It found by clear and convincing evidence that the documents produced on April 29 and November 26, 1985 (with the exception of one document obtained from an outside engineering firm) did exist in Pemex's files in December 30, 1983, and continuously thereafter; that the documents were plainly called for by the subpoenas and court orders of December 30, 1983, and January 17 and July 17, 1984; that a conscientious search conducted in good faith would have located those documents; and that Pemex either did not search the files in good faith, or did not produce the documents when located. The court further found that the nonproduction served Pemex's interest in hindering Crawford's ability to defend against criminal charges very similar to the civil complaint being pursued simultaneously by Pemex against Crawford; that the documents were finally produced only after the Crawford defendants, after great expenditure of time and money, had proved their existence in open court and that certain testimony by Pemex representatives as to the purported reasons for nonproduction of the documents prior to April 29, 1985, was not credible. The court further found that neither the fire nor any other explanation satisfactorily explained the absence of other records which remained unproduced at the time of the hearing. Based upon these factors and the entire record of the proceedings before it, the district court found beyond a reasonable doubt that Pemex's failure fully to comply with the subpoenas and court orders was willful and inexcusable. On September 3, 1986, the court entered an order adjudging Pemex guilty of both criminal and civil contempt. 643 F. Supp. 370.
In fashioning a remedy for Pemex's contempt, the district court ordered Pemex to pay to Crawford or its legal representative a compensatory fine of $79,431.25, representing the reasonable and necessary costs and fees in bringing the contempt action and in attempting to secure the discovery sought by the subpoenas. The court also rejected Pemex's belated claim of sovereign immunity, its claim of lack of notice as to criminal contempt, its contention that criminal contempt could not be prosecuted by private attorneys, and its claim of mootness. The court did not impose any sanctions for criminal or civil contempt other than the award of costs and fees. It found, however, that the criminal case against Crawford and the related Pemex civil action against Crawford and others were "inextricably linked," and that "Pemex's voluntary invocation of the jurisdiction of this court to pursue a civil remedy cannot be viewed apart from its conduct in the criminal case against the Crawford defendants." It further found that Pemex's civil case was a "property interest" of Pemex within the United States, and that "the only meaningful way for [the court] to obtain compliance with its orders and vindicate its authority is to threaten the viability of that cause of action."
Pemex does not challenge the rulings on sovereign immunity and notice in this appeal.
Rather than dismiss Pemex's civil action as requested by Crawford, however, the district court permitted Pemex another further opportunity to produce the missing documents or satisfactorily explain their absence. Pemex was given 60 days to produce the documents or supply explanations, and the court appointed a paralegal, Philip Evans, employed by the law firm representing Crawford, as a Special Master for the purpose of "facilitating the production process and the court's overseeing of it." The court in its order further stated: "If Pemex fails to comply with this order within sixty (60) days or responds unsatisfactorily, the Court will dismiss Pemex's Civil Action H-83-6418 with prejudice." (emphasis in original.)
The Special Master's powers were "limited to the collection of documents and/or explanations for documents produced in accordance with this order, comparison of the production with the two subpoenas and Exhibit 44, and preparation of a report to be filed with this court on the compliance with this order."
Pemex immediately appealed the September 3, 1986, contempt order to this court.
II.
Several issues are raised by the appeal. We see the principal questions as follows: (1) Are the findings of civil and criminal contempt final and appealable? (2) Is there sufficient evidence to support the district court's finding of civil contempt against Pemex? (3) Did the district court err in threatening to dismiss Pemex's civil action? and (4) Did the district court err in appointing a paralegal in the law firm representing Crawford as a special master to monitor Pemex's discovery compliance? We turn now to answering the above queries.
A.
As an initial matter we must examine our jurisdiction over Pemex's appeal of the civil and criminal contempt findings made by the district court. In doing so we address two questions: (1) are the civil and/or criminal contempt decisions of the district court final and appealable? and (2) if the civil contempt decision is final and appealable, is it moot?
At oral argument Pemex suggested that we should not re-examine the jurisdictional issues presented because a motions panel of this court in this appeal has already refused Crawford's request to dismiss Pemex's appeal. This argument is without merit. It is well-settled in this circuit that the denial of a motion to dismiss by a motions panel is provisional and the oral argument panel enjoys the prerogative to fully consider any jurisdictional issue. See In re MDL, 799 F.2d 1076, 1079 (5th Cir. 1986); Equal Employment Opportunity Comm'n v. Heches Butane Products Co., 704 F.2d 144, 147 n. 2 (5th Cir. 1983); CFTC v. Preferred Capital Inv. Co., 664 F.2d 1316, 1318 (5th Cir. 1982). This is so because the jurisdiction of this court over an appeal is subject to examination at any stage.
Such is not the rule, however, when a panel of this court in an earlier appeal has ruled upon a question of jurisdiction over the appeal. In such an instance, the earlier ruling is subject to the "law of the case" doctrine and may not be set aside in a subsequent appeal by a panel of this court absent a showing of certain exceptional circumstances. See Anderegg v. High Standard, Inc., 825 F.2d 77, 79-80 (5th Cir. 1987).
1.
In this case the district court conducted the civil and criminal contempt proceedings together. Such a practice is permissible. See United States v. United Mine Workers, 330 U.S. 258, 299, 67 S.Ct. 677, 698, 91 L.Ed. 884 (1946). The district court found Pemex to be in both criminal and civil contempt of the court's prior orders and subpoenas in the criminal action. In structuring a remedy the court threatened to dismiss Pemex's civil action and imposed "a compensatory fine" of $79,431.25 in favor of Crawford for its costs and expenses incurred in bringing and prosecuting the contempt hearings.
As a general rule an adjudication of civil contempt is final and appealable as to a non-party such as Pemex. See McCrone v. United States, 307 U.S. 61, 65, 59 S.Ct. 685, 687, 83 L.Ed. 1108 (1939); Southern Railway Co. v. Lanham, 403 F.2d 119, 124 (5th Cir. 1968), reh'g denied, 408 F.2d 348 (5th Cir. 1969). Also as a general rule, an adjudication of criminal contempt is a final judgment and the contemnor, whether party or non-party, may obtain immediate appellate review. See Union Tool Co. v. Wilson, 259 U.S. 107, 109, 42 S.Ct. 427, 428, 66 L.Ed. 848 (1922); Southern Railway, 403 F.2d at 124. Under both of these general rules a contempt decision's finality and appealability is composed of two parts: (1) a finding of contempt, and (2) an appropriate sanction for that contempt. See Nasco, Inc. v. Calcasieu Television Radio, Inc., 752 F.2d 157, 159 (5th Cir. 1985) (appealable adjudication of contempt must entail both a finding sanction); United States v. Hankins, 565 F.2d 1344, 1352 (5th Cir. 1978) (criminal contempt finding not appealable without sanction); see also Motorola, Inc. v. Computer Displays Int'l, 739 F.2d 1149, 1154 (7th Cir. 1984) (a civil contempt decision is final only "if it includes both a finding of contempt and the imposition of a sanction.") (emphasis in original); Weyerhaeuser Co. v. Int'l Longshoremen's Union, 733 F.2d 645, 645 (9th Cir. 1984) (a criminal contempt order not appealable because no sanction imposed).
In this case the district court explicitly found Pemex to be in both criminal and civil contempt, thus the first prong of the finality requirement is satisfied as to both decisions. The difficulty arises as to whether the second prong is satisfied for either or both findings. The threat to dismiss Pemex's civil action cannot serve as a sanction for either the civil or criminal contempt finding because it is simply an unfulfilled statement of possibility. We turn then to the $79,431.25 fine.
Our task of course is to decide whether this fine was meant to be a civil or criminal contempt sanction. In carrying out this duty, we are guided by the general test of discerning the trial court's apparent purpose for levying the judgment of contempt. See Thyssen, Inc. v. S/S CHUEN ON, 693 F.2d 1171, 1172 (5th Cir. 1982); Smith v. Sullivan, 611 F.2d 1050, 1053 (5th Cir. 1980); Lewis v. SS BAUNE, 534 F.2d 1115, 1119 (5th Cir. 1976). Additionally, we are guided by the principle that "[s]entences for criminal contempt are punitive in their nature and are imposed primarily for the purpose of vindicating the authority of the court." United States v. Rizzo, 539 F.2d 458, 462 (5th Cir. 1976) (citing United States v. United Mine Workers, 330 U.S. 258, 302, 67 S.Ct. 677, 700, 91 L.Ed. 884 (1947)). In contrast, sanctions for civil contempt are meant to be "wholly remedial" and serve to benefit the party who has suffered injury or loss at the hands of the contemnor. See Southern Railway, 403 F.2d at 124.
Applying these standards to the court's award of $79,431.25 to Crawford, we believe it is best considered a sanction for civil contempt. The court specifically described the fine as "compensatory" and intended to remedy Crawford's expenses in dealing with Pemex's recalcitrant action. The sanction also runs only in favor of a private party, Crawford, rather than the court or the United States, and thus is comparable to civil contempt sanctions imposed in other cases. E.g., Northside Realty Associates v. United States, 605 F.2d 1348, 1356 n. 22 (5th Cir. 1979). Furthermore, payment of the sanction would allow Pemex to purge itself of contempt, a fact that in the past we have considered to cut in favor of classifying a sanction as civil in nature rather than a punitive criminal one. See Southern Railway, 403 F.2d at 125. Finally, after reviewing the record and the district court's findings of fact and conclusions of law it is apparent to this court that the fine was intended to be the civil contempt sanction in this case. Our conclusion is bolstered by the fact that the district court was considering dismissing Pemex's civil case as the appropriate "punishment" for its prior actions. It thus appears that the punitive sanction was to be the dismissal rather than the fine.
While the district court's characterization is certainly not controlling, see Lewis, 534 F.2d at 1119; Thyssen, 693 F.2d at 1173, it can be considered.
For the above reasons, we conclude that the civil contempt decision is final and appealable because there is a finding of contempt and a concomitant sanction. As for the criminal contempt decision, we must conclude that it is not final because no sanction for criminal contempt has been imposed. See Flanagan v. United States, 465 U.S. 259, 263, 104 S.Ct. 1051, 1053, 79 L.Ed.2d 288 (1984); see also Hankins, 565 F.2d at 1352. Accordingly, we must dismiss this portion of Pemex's appeal.
While we do not address the propriety of the criminal contempt finding, we would point out for the parties and district court's benefit that the Supreme Court has recently held that interested private attorneys may not be appointed to prosecute criminal contempts. See Young v. United States ex rel. Vuitton et Fils S.A., ___ U.S. ___, 107 S.Ct. 2124, 95 L.Ed.2d 740 (1987). Since we lack jurisdiction to review the criminal contempt finding, we must allow the district court the opportunity in the first instance to take any action that it deems proper in light of Young.
2.
Pemex contends that it was wrongfully held in civil contempt because the contempt action was mooted when the criminal case in which it allegedly committed contempt ended. We disagree.
The government's prosecution of Crawford ended on July 11, 1985, when it was sentenced pursuant to its nolo contendere plea to the indictment. Pemex was held to be in civil contempt in September 1986. Whether this action of holding Pemex in civil contempt for its actions and inactions in the criminal prosecution which ended in July 1985 was proper depends largely upon the nature of the civil contempt remedy sought from the district court.
Civil contempt can serve two different purposes. On one hand, civil contempt is used to enforce, through coerciveness, compliance with a court's order. On the other hand, civil contempt can be used to compensate a party who has suffered unnecessary injuries or costs because of the contemptuous conduct. See Shillitani v. United States, 384 U.S. 364, 370-71, 86 S.Ct. 1531, 1535-36, 16 L.Ed.2d 622 (1966); United States v. United Mine Workers, 330 U.S. 258, 304, 67 S.Ct. 677, 701, 91 L.Ed. 884 (1947); In re Hunt, 754 F.2d 1290, 1293 (5th Cir. 1985); Smith v. Sullivan, 611 F.2d 1050, 1053 (5th Cir. 1980); United States v. Rizzo, 539 F.2d 458, 463 (5th Cir. 1976).
If the civil contempt proceeding is coercive in nature, the general rule is that it is mooted when the proceeding out of which it arises is terminated. See Shillitani, 384 U.S. at 371, 86 S.Ct. at 1536; Howell v. Jones, 516 F.2d 53, 56 (5th Cir. 1975). If, however, the civil contempt proceeding is compensatory in nature, the termination of the underlying action out of which the contempt hearing arose does not moot the contempt proceeding. See Backo v. Local 281, United Brotherhood of Carpenters Joiners, 438 F.2d 176, 182 (2d Cir.), cert. denied, 404 U.S. 858, 92 S.Ct. 110, 30 L.Ed.2d 99 (1970); see also People's Housing Development Corp. v. City of Poughkeepsie, 425 F. Supp. 482, 495 (S.D.N.Y. 1976) ("There is a vital distinction between coercive contempt proceedings, which do not survive the abatement of the original actions out of which they arise, and compensatory contempt proceedings, which do survive."). This distinction rests upon the fact that the harm or injury that gives rise to the need for compensation continues unredressed at the end of the underlying litigation while the need for getting a party to act in the underlying litigation necessarily terminates when that litigation ends.
In this case the purpose of the April 1985 and June 1986 contempt hearings encompassed both coercive and compensatory purposes. As for the contempt fine of $79,431.25, we have already held that it served to compensate Crawford for the costs it incurred in attempting to obtain discovery from Pemex. Based upon the above-mentioned legal principles we are of the opinion that the compensatory purposes of the contempt hearings were not mooted by the termination of the underlying criminal prosecution.
Furthermore, we would be obliged to reject Pemex's mootness argument even if we did not distinguish between coercive and compensatory contempt purposes. Under the circumstances of this case the criminal prosecution and the civil action are so closely related that Pemex's mootness argument must fail since Pemex's civil action continues. We agree with the district court's finding that
in the unique situation presented here, the rationale in support of the mootness of a coercive contempt remedy is inapplicable. The existence of the civil case, and the similarity to the criminal case in proof and defense does afford a contemnor the opportunity to purge himself of contempt. Further the criminal and civil cases are so intertwined that the court can conclude that because the civil case is still open, the cause of action out of which the contempt arose is not truly abated.
Thus, under the unique circumstances of this particular case, the ability to structure a contempt remedy, whether termed coercive or compensatory, was not moot because the on-going civil action was so intertwined with the terminated criminal prosecution that relief could properly be granted in the civil case for improprieties committed by Pemex in the criminal proceeding.
Accordingly, we reject Pemex's argument that the opportunity to determine civil contempt and structure a remedy for it was mooted by the termination of the criminal prosecution.
B.
Pemex argues that there is insufficient evidence to support the district court's finding that Pemex was in civil contempt. Pemex also claims that it in good faith attempted to comply with the court's orders and subpoenas and, citing United States v. Rizzo, 539 F.2d 458 (5th Cir. 1976), argues that its good faith is a defense to a civil contempt action.
The movant in a civil contempt proceeding bears the burden of establishing by clear and convincing evidence: (1) that a court order was in effect; (2) that the order required certain conduct by the respondent; and (3) that the respondent failed to comply with the court's order. See McComb v. Jacksonville Paper Co., 336 U.S. 187, 191, 69 S.Ct. 497, 499, 93 L.Ed. 599 (1949); Northside Realty, 605 F.2d at 1352. Willfulness is not an element of civil contempt. Id. at 1352. After the movant has shown a prima facie case, the respondent can defend against it by showing a present inability to comply with the subpoena or order. See United States v. Rylander, 460 U.S. 752, 757, 103 S.Ct. 1548, 1552, 75 L.Ed.2d 521 (1983).
The district court filed extensive findings of fact which we attach in the Appendix. These findings encompass all of the above elements and defenses. We measure the competency of those findings with the clearly erroneous rule of Fed.R.Civ.P. 52. See also Anderson v. City of Bessemer City, 470 U.S. 564, 572, 105 S.Ct. 1504, 84 L.Ed.2d 518 (1985). Our review of the record and the hearing transcripts reveal that each of the district court's findings are well-supported and certainly not clearly erroneous. Those findings support the district court's decision of civil contempt on the part of Pemex. In particular in finding 26 the court specifically finds that Pemex did not act in good faith, thus nullifying Pemex's asserted good faith defense. Accordingly, we express no opinion on the existence or availability of such a defense.
Pemex relies on several older cases to argue that since the findings of fact rendered by the district court track Crawford's proposed findings they are entitled to less deference. This argument is meritless in light of the Supreme Court's explicit rejection of it in Anderson. See Anderson, 470, U.S. at 572, 105 S.Ct. at 1511.
For these reasons we affirm the district court's finding that Pemex was in civil contempt of court.
C.
Pemex also challenges the district court's threat to dismiss its civil case. As we have already stated, the propriety of dismissing Pemex's civil suit as a punitive sanction for criminal contempt is not ripe for decision at this time. See supra II A(1); see also 15 Wright, Miller Cooper, Federal Practice and Procedure § 3915, at 266 (1986) (mere indications that district court may enter specific orders in the future are plainly nonfinal and not ripe for review). Accordingly, we decline Pemex's invitation to address this matter.
D.
The final issue raised by Pemex involves the district court's appointment of a paralegal in the law firm representing Crawford as a special master to review further disclosures Pemex was ordered to make. Pemex claims that the appointment was improper because the paralegal was associated with Crawford's law firm.
As an initial matter our review of the record does not reveal that Pemex raised this contention in the district court. Accordingly, we have held that we can decline to review such an assertion when raised for the first time on appeal. See Alberti v. Klevenhagen, 790 F.2d 1220, 1229 (5th Cir.), reh'g denied, 799 F.2d 992 (5th Cir. 1986). However in the interest of judicial economy, we note our language from Lister v. Commissioners Court of Navarro County, 566 F.2d 490, 493 (5th Cir. 1978):
A special master "should have no interest in or relationship to the parties . . . and [should be] fit to perform the duties incumbent on one sitting in the place of the court." A special master has the duties and obligations of a judicial officer. Having served as a witness for one side of the case, the appointee was accordingly disqualified.
Philip Evans, the paralegal appointed by the court, did serve as a witness in the contempt hearing for Crawford. Under Lister's language he is disqualified to serve as a special master.
Much of what Evans was appointed to do, however, was to mechanically file and index the various document productions. The district court should not be forced to redo all of Evans' work to the extent that it was purely mechanical. Therefore, in the continuing proceedings before the district court, it would be appropriate for the district court to vacate the order of reference to the special master and to carefully review the mechanical work and to disregard any of Evans' opinion or judgment about the state of Pemex's compliance. The district court is free to appoint a disinterested master to aid in monitoring Pemex's compliance with the court's orders, if it so chooses.
The court provided in its appointment:
Mr. Evans' powers shall consist of and be limited to the collection of documents and/or explanations for documents produced in accordance with an accompanying order, comparison of the production with the subpoenas of December 1, 1983 and January 13, 1984 and Exhibit 44, and preparation of a report to be filed with this court on the compliance with this order. The report should include as exhibits any explanations offered by Pemex for documents that are not produced.
III.
For the above reasons, we AFFIRM the district court's order of September 3, 1986, of adjudication of civil contempt against Pemex. Further, we DISMISS Pemex's appeal of the district court's order of September 3, 1986, finding Pemex in criminal contempt, because the finding is not final and appealable.
AFFIRMED IN PART and DISMISSED IN PART.