Earthgrains Baking Companies v. Sycamore Family Bakery

Court of Appeals for the Tenth Circuit·Decided June 12, 2025·No. 24-4085·Unpublished

Opinion

FILED

United States Court of Appeals UNITED STATES COURT OF APPEALS Tenth Circuit

FOR THE TENTH CIRCUIT June 12, 2025

Christopher M. Wolpert

Clerk of Court

EARTHGRAINS BAKING COMPANIES, INC.,

Plaintiff - Appellee,

v. No. 24-4085 (D.C. No. 2:09-CV-00523-DAK-DBP)

SYCAMORE FAMILY BAKERY, (D. Utah) INC.; LELAND SYCAMORE,

Defendants.

------------------------------

SYCAMORE FAMILY LLC; TYLER SYCAMORE,

Interested Parties - Appellants.

------------------------------ R. WAYNE KLEIN,

Receiver - Appellee.

ORDER AND JUDGMENT *

Before TYMKOVICH, BACHARACH, and PHILLIPS, Circuit Judges.

*

This order and judgment is not binding precedent, except under the doctrines of law of the case, res judicata, and collateral estoppel. It may be cited, however, for its persuasive value consistent with Fed. R. App. P. 32.1 and 10th Cir. R. 32.1.

This appeal marks another chapter in EarthGrains Baking Companies, Inc.’s, efforts to collect on its multimillion-dollar judgment against Leland Sycamore and Sycamore Family Bakery, Inc. After determining that Leland and the Sycamore Family Bakery were preventing EarthGrains from collecting on the judgment in bad faith, the district court entered a charging order against Leland’s interest in Sycamore Family, LLC, under which Leland’s assets in the LLC were paid to EarthGrains. But Leland and the LLC refused to comply with the order, and the district court appointed a receiver to ensure their compliance.

Years after the district court entered the charging order and appointed a receiver, the LLC and Tyler Sycamore (the son of Leland), who were not parties in the district-court litigation, moved as interested parties to terminate the charging order and receivership. They argued that the judgment had expired under Utah law after EarthGrains failed to renew the judgment within the time given by the statute of limitations. Applying tolling under the applicable Utah statute, the district court concluded that the statute of limitations had not expired and denied the motion.

Before us, the LLC and Tyler challenge the district court’s ruling. As a jurisdictional matter, we conclude that Tyler lacks standing. So we dismiss him as a party to this appeal. But we conclude that the LLC has standing and that it has a unique interest in bringing this appeal as a nonparty. Even so, we conclude that the LLC’s claim lacks merit, so we affirm the district court’s ruling and remand for further proceedings consistent with this opinion.

BACKGROUND

I. Factual Background A. The Judgment (2012) and the Charging Order (2014)

In 2012, a jury found that Leland Sycamore and Sycamore Family Bakery, Inc., had infringed EarthGrains’s trademarks, engaged in unfair competition, and breached their contract with EarthGrains. On July 16, 2012, the district court entered a judgment (1) that Leland had forfeited his trademark rights in California, Nevada, and Arizona, and (2) awarding EarthGrains about $4.6 million in damages against Leland, and $26,100 against Sycamore Family Bakery, Inc., plus interest on both damages awards. 1 For two years, Leland and the Sycamore Family Bakery failed to pay anything on the judgment. EarthGrains obtained supplemental discovery that revealed Leland was a partial owner in Sycamore Family LLC. With that, EarthGrains moved for a charging order against Leland’s interest in the LLC. 2

1 After the district court entered the judgment, it awarded EarthGrains $1,091,336.40 in attorneys’ fees and costs. Memorandum Decision and Order at 7, EarthGrains Baking Cos., Inc. v. Sycamore Fam. Bakery Inc., No. 2:09-CV- 00523-DAK-DBP (D. Utah Dec. 14, 2012), ECF No. 309; United States v. Ahidley, 486 F.3d 1184, 1192 n.5 (10th Cir. 2007) (noting that we may take judicial notice of publicly filed court records).

2 As is relevant here, a charging order allows the court to charge the debtor’s interest in an LLC with payment of the unsatisfied judgment. § 48-2c- 1103(1)(a). In other words, “[a] charging order constitutes a lien on the judgment debtor’s interest in the company.” § 48-2c-1103(2)(a). The court has broad powers to enforce the charging order, including foreclosing on the (footnote continued)

Utah Code Ann. § 48-2c-1103 (West 2014) (current version at Utah Code Ann. § 48-1d-604 (West 2025)). The district court granted the motion and charged Leland’s rights and interests in the LLC “to the extent necessary to satisfy the Judgment in full.” 3 App. vol. I, at 102. The charging order required the LLC to pay EarthGrains all distributions due to Leland until the judgment was satisfied. The order also required the LLC to disclose its planned distributions to Leland and prohibited the LLC from modifying any planned distribution to Leland without providing EarthGrains notice.

B. The Amended Judgment (2015) and the Receivership (2018)

When the district court entered the judgment in 2012, Leland and the Sycamore Family Bakery appealed. Two years later, we affirmed in part and reversed in part. EarthGrains Baking Cos. Inc. v. Sycamore Fam. Bakery, Inc., 573 F. App’x 676, 682–83 (10th Cir. 2014). We reversed part of the judgment, ruling that Leland had not forfeited his trademark rights in Arizona and Nevada, but we otherwise affirmed the judgment. Id. at 681. On September 1, 2015, the district court entered an amended judgment consistent with our order.

debtor’s interest in the LLC or appointing a receiver. § 48-2c-1103(1)(b), (2)(b).

3 EarthGrains’s application also sought a charging order against another LLC in which Leland had an interest, Mary Rae Sycamore, LLC. But the court’s charging order was against only Sycamore Family LLC, and EarthGrains does not challenge that decision on appeal.

Leland appealed the amended judgment. After another two-year wait, we affirmed. EarthGrains Baking Cos., Inc. v. Sycamore Fam. Bakery, Inc., 721 F. App’x 736, 752 (10th Cir. 2017). By 2018, EarthGrains had still failed to collect a penny. It moved for sanctions, arguing that the LLC had willfully made distributions in violation of the charging order. The court agreed that the LLC had violated the charging order and appointed a receiver to oversee payment of the judgment. A year later, the receiver issued a report recommending that the district court order the LLC to pay EarthGrains $1.1 million from its cash holdings and to liquidate some of its real-estate assets to pay the rest of the multimillion-dollar judgment. The district court adopted the recommendation, and the LLC appealed.

C. The Appellate Stay (2020–2022)

Soon after the LLC appealed the judgment, it moved for the district court to stay the part of its order that required it to liquidate real-estate assets. The district court granted the LLC’s motion and entered a partial stay. The district court clarified that though it stayed the sale of the real-estate assets, the receiver must keep collecting rents from the LLC’s properties and paying those rents to EarthGrains until the judgment was satisfied. Two years later, we reversed the district court’s calculation of the amount of money the LLC distributed to Leland, but otherwise affirmed the judgment. EarthGrains Baking Cos., Inc. v. Sycamore, No. 19-4174, 2022 WL 433486, at *9, *12 (10th Cir. Feb. 14, 2022) (unpublished).

In March 2022, after we decided the appeal, the district court lifted the stay. See EarthGrains Baking Cos., Inc. v. Sycamore Fam. Bakery Inc., No. 2:09-CV-00523-DAK-DBP, 2024 WL 3415905, at *1 (D. Utah July 15, 2024). In total, the partial stay ran 667 days. 4 D. The Change-of-Counsel Stay (2023)

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