A federal judge has turned down a request by the U.S. government to sanction Elon Musk for missing a scheduled deposition.
Sanctioning Musk, the billionaire owner of SpaceX and the social media platform X, would not serve a purpose, U.S. District Judge Jacqueline Scott Corley wrote in a three-page decision.
In a case brought by the U.S. Securities and Exchange Commission (SEC), the parties agreed that Musk would testify on Sept. 10. Three SEC lawyers flew to Los Angeles for the deposition. But on the morning of Sept. 10, lawyers for Musk told SEC lawyers that Musk could not testify because his position as chief technology officer of SpaceX “required he urgently travel to the East Coast” for the Polaris Dawn launch.
The timing could not be helped because it was “highly weather-dependent and beyond Mr. Musk’s control,” Musk’s lawyers said.
Subsequent discussion led to the rescheduling of the deposition for Oct. 3.
Corley, during a hearing, found Musk in violation of a court order requiring him to appear for a deposition absent consent of the SEC or an order from the court, unless an emergency arose. She stressed the importance of Musk appearing for the rescheduled deposition.
Musk, who is advising President-elect Donald Trump, appeared for the rescheduled deposition and later agreed to pay $2,923.09 to the SEC as compensation for travel costs. Musk, however, declined to agree that he violated the order.
The SEC turned to Corley, asking her to sanction Musk. In response, Musk told the court a sanction finding was moot because he had already complied with the order and agreed to compensate the SEC.
Corley sided with Musk, noting that sanctions in civil cases are only imposed to coerce defendants into compliance and to compensate complainants for losses.
“A finding that Mr. Musk violated the Court’s May 31, 2024 order does not accomplish either,” Corley wrote. “As to the former, coercion is unnecessary because Mr. Musk already appeared at the deposition. As to the latter, it is undisputed Mr. Musk agreed to compensate the SEC for the losses sustained in the form of travel costs, so a court order compelling payment is unnecessary.”
She added later: “Because the Court previously found Mr. Musk violated the deposition order, and because the Court cannot afford a remedy Mr. Musk has not already agreed to provide, the Court DENIES the SEC’s request.”
An attorney representing Musk did not respond to a request for comment. The SEC did not return an inquiry.
Musk shared a post on X celebrating the win. “SEC,” he joked, “The middle word is definitely ‘Elon’s’, but I can never remember what the other two words stand for.”
From The Epoch Times