Court Limits Civil Contempt Fine to $250 Where Landlord Failed to Show Actual Loss

Posted: May 18, 2026 / Written by: Samuel L. Butt, Channing J. Turner, Ian Weiss, Thomas A. Kissane / Categories Court Rules/Procedures, Contempt, Sanctions

Court Limits Civil Contempt Fine to $250 Where Landlord Failed to Show Actual Loss

On April 16, 2026, in Core 5th Ave. LLC v. 711 Fifth Ave. Principal Owner LLC, Index No. 654976/2025, Justice Andrea Masley granted the landlord’s motion for civil contempt against the tenant but rejected the landlord’s request for a per diem financial penalty. The landlord moved under Judiciary Law §§ 753(A) and 773 for civil contempt and sanctions of $250 per day after the tenant admittedly failed to check government IDs of its members and their guests, in violation of a prior court order, for a nine-week period from December 15, 2025 until February 5, 2026, when the tenant purged the contempt by initiating an ID-checking program. The Court held that civil contempt fines are compensatory, not punitive, and that the landlord had failed to establish any compensable injury from the nine-week delay. The Court emphasized that the landlord had monitored and videotaped the tenant’s lobby check-in process for the entire nine-week period without objection — conduct the Court found undermined the landlord’s contention that the breach posed a security risk causing damage. The Court limited the financial penalty to a one-time $250 award, plus reimbursement for the cost of making the contempt motion (including attorneys’ fees, but expressly excluding the cost of the surveillance video). In limiting the financial penalty, the Court explained:

“Unlike criminal contempt sanctions which are intended to punish, civil contempt fines are intended to compensate victims for their actual losses.” (Matter of Barclays Bank v Hughes, 306 AD2d 406, 407 [2d Dept 2003].) . . . Where no actual damage or loss is shown, the fine is $250. (Page v Cheung On Mansion, Inc., 138 AD2d 324, 325 [1st Dept 1988].)

The attorneys at Schlam Stone & Dolan LLP have extensive experience litigating contempt and sanctions issues in complex commercial disputes. Contact the Commercial Division Blog Committee at commercialdivisionblog@schlamstone.com if you or a client have questions concerning such issues.