Coventry Capital U.S. LLC v. Eea Life Settlements, Inc.

357 F. Supp. 3d 294
CourtDistrict Court, S.D. Illinois
DecidedJanuary 29, 2019
Docket17 Civ. 7417 (VM)
StatusPublished
Cited by2 cases

This text of 357 F. Supp. 3d 294 (Coventry Capital U.S. LLC v. Eea Life Settlements, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coventry Capital U.S. LLC v. Eea Life Settlements, Inc., 357 F. Supp. 3d 294 (S.D. Ill. 2019).

Opinion

VICTOR MARRERO, United States District Judge

On December 17, 2018, the Court denied the motion of plaintiff Coventry Capital US LLC ("Coventry") for a preliminary injunction preventing defendant EEA Life Settlements, Inc. ("EEA") from selling the portfolio of life insurance policies (the "Portfolio") at issue in this case. See Coventry Capital US LLC v. EEA Life Settlements, 17 Civ. 7417, 2018 WL 7080327 (S.D.N.Y. Dec. 17, 2018) ("PI Order"). By letter dated December 28, 2018, Coventry requested, pursuant to Federal Rule of Civil Procedure 59(e) (" Rule 59(e)"), that the Court reconsider its denial. (See"December 28 Letter," Dkt. No. 100.) Coventry argues that the Court denied injunctive relief only because EEA represented that it would retain at least thirty-two percent of the proceeds of any sale of the Portfolio, which could then be used to satisfy a judgment against EEA in this action. (Id. at 1.) Coventry therefore asks the Court to "memorialize that promise in a binding order" directing EEA to retain at least thirty-two percent of the proceeds of any sale of the Portfolio. (Id. at 3.)

By letter dated January 8, 2019, EEA opposed Coventry's request for reconsideration. (See Dkt. No. 105.) First, EEA argues that Coventry's request should be denied because Coventry fails to identify facts or law that the Court overlooked when denying the preliminary injunction motion. (Id. at 1-2.) Second, although EEA acknowledges that it represented that it would retain at least thirty-two percent of the proceeds of any potential sale of the Portfolio, it argues that this representation does not suffice to establish that, in the absence of an injunction formally obliging EEA to retain said proceeds, EEA would likely be judgment proof were it to lose at trial. (Id. at 2-3.) Therefore, EEA argues, *296Coventry fails to make the showing of irreparable harm needed for a preliminary injunction. (Id. )

By letter dated January 9, 2019, Coventry replied to EEA's opposition. (See Dkt. No. 106.) Coventry views EEA's resistance to being held to its representation as evidence that EEA would not retain proceeds from a potential sale. (Id. at 1-2.)

The Court held a telephone conference on January 15, 2019, during which the parties agreed to inform the Court by January 22, 2019 as to whether they could reach a stipulation regarding EEA's retention of proceeds from any potential sale of the Portfolio. (See Minute Entry dated January 15, 2019.) The next day, Coventry filed a notice of appeal of the PI Order. (See"Notice of Appeal," Dkt. No. 107.) Because "a notice of appeal ordinarily divests a district court of jurisdiction," Smith v. City of New York, 12 Civ. 8131, 2014 WL 2575778, at *1 n. 1 (S.D.N.Y. June 9, 2014), the Court held a telephone conference to discuss the Notice of Appeal's impact. (See Minute Entry dated January 17, 2019.) On that occasion, the parties disagreed on whether the Court has jurisdiction to rule on Coventry's reconsideration request.

By letter dated January 18, 2019, defendants Vincent Piscaer and Hiren Patel (the "Individual Defendants") reiterated their view, expressed during the previous day's telephone conference, that "black-letter law" dictates that the Notice of Appeal divested the Court of jurisdiction over the request for reconsideration. (See Dkt. No. 108.) To support that proposition, the Individual Defendants rely on Ideal Toy Corp. v. Sayco Doll Corp., 302 F.2d 623 (2d Cir. 1962) and New York v. Nuclear Regulatory Commission, 550 F.2d 745 (2d Cir. 1977). (See id. at 2.) By letter dated January 22, 2019, EEA joined the Individual Defendants' position as to jurisdiction. (See Dkt. No. 109.) By letter dated January 22, 2019, Coventry argued that the rule defendants cite is inapplicable to a timely filed Rule 59(e) motion for reconsideration that precedes a notice of appeal. (See Dkt. No. 110.)

In their January 22 letters, Coventry and EEA also informed the Court that they could not reach a stipulation regarding the retention of proceeds from a potential sale. (See Dkt. Nos. 109, 110.)

By letter dated January 24, 2019, the Individual Defendants again asserted that the Court lacks jurisdiction to entertain the request for reconsideration. (See Dkt. No. 112.) They argue that Coventry's reconsideration request is governed by Federal Rule of Civil Procedure 62, not Rule 59(e). (Id. at 1-2.) By letter dated January 24, 2019, EEA contended that it never specifically represented that it would retain thirty-two percent of the proceeds of a potential sale as a litigation reserve. (See Dkt. No. 114.)

By letter dated January 25, 2019, Coventry argued that thirty-two percent of the gross sale price from any potential sale of the Portfolio should "remain in the United States, held by the U.S.-based EEA," and "not be committed to satisfy other liabilities, such as taxes or other obligations incurred as a result of any sale." (See Dkt. No. 115.) Coventry believes it properly styled its December 28 Letter as a request to make a Rule 59(e) motion to alter or amend a judgment, because a denial of a preliminary injunction is a "judgment" within the meaning of that rule. (See id. at 2.)

The Court now construes Coventry's December 28 Letter as a motion for reconsideration pursuant to Rule 59(e) and finds that it has jurisdiction to rule on the motion. For the reasons set forth below, Coventry's motion is denied.

*297The Court first finds that, because the December 28 Letter requests reconsideration of the Court's appealable denial of injunctive relief, it is, in fact, properly analyzed as a Rule 59(e) motion for amendment of a judgment. See 28 U.S.C. § 1292(a)(1) (order denying injunction is appealable); Fed. R. Civ. P. 54(a) (defining "any order from which an appeal lies" as a "judgment"); Lichtenberg v. Besicorp Grp. Inc., 204 F.3d 397, 400 (2d Cir. 2000) (injunction denial is a "judgment" for purposes of the Federal Rules of Civil Procedure).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
357 F. Supp. 3d 294, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coventry-capital-us-llc-v-eea-life-settlements-inc-ilsd-2019.