Hilao v. Revelstroke Investment

CourtCourt of Appeals for the Ninth Circuit
DecidedJuly 30, 2008
Docket06-16301
StatusPublished

This text of Hilao v. Revelstroke Investment (Hilao v. Revelstroke Investment) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hilao v. Revelstroke Investment, (9th Cir. 2008).

Opinion

FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

In re: ESTATE OF FERDINAND E.  MARCOS HUMAN RIGHTS LITIGATION,

CELSA HILAO, Plaintiff-Appellee, No. 06-16301 v.  D.C. No. MDL-00840-MLR ESTATE OF FERDINAND MARCOS, Defendant-Appellee, OPINION REVELSTOKE INVESTMENT CORPORATION, INC. Applicant for Intervention and Appellant.  Appeal from the United States District Court for the District of Hawaii Manuel L. Real, District Judge, Presiding

Argued and Submitted June 17, 2008—Honolulu, Hawaii

Filed July 31, 2008

Before: Alfred T. Goodwin, Pamela Ann Rymer, and Sandra S. Ikuta, Circuit Judges.

Opinion by Judge Rymer

9753 9756 IN RE: ESTATE OF MARCOS

COUNSEL

Eugene D. Gulland (argued) and Richard A. Jones, Covington & Burling LLP, Washington, D.C., for the proposed- intervenors-appellants.

Jon Van Dyke, Honolulu, Hawaii, (argued); Robert A. Swift, Kohn, Swift & Graf, P.C., Philadelphia, Pennsylvania, for the appellee. IN RE: ESTATE OF MARCOS 9757 OPINION

RYMER, Circuit Judge:

This appeal requires us to consider a novel situation involv- ing the registration of a federal judgment. In short, the judg- ment was rendered in the United States District Court for the District of Hawaii and registered in the United States District Court for the Northern District of Texas, where the prevailing plaintiff sought to enforce it against a non-party, Texas defen- dant. The defendant in the Texas enforcement action moved to dismiss on the ground that the judgment was not timely registered because, under Texas’s borrowing statute, the Hawai’i “statute of limitations” for enforcing judgments applies and under it, the judgment had expired. This prompted the plaintiff to ask the rendering court to declare that the judg- ment was live and, in any event, to extend it, which the dis- trict court did. Meanwhile, the collection defendant moved to intervene in the extension proceeding, which the district court did not allow, and then to appeal the extension, which the court also did not allow. We conclude that the party against whom enforcement was sought had a significant protectable interest at stake that gave it the right to be heard in the exten- sion proceeding, and to appeal. Having considered the inter- venor’s arguments on the merits, we also conclude that the district court erred in purporting to extend the judgment. Accordingly, we reverse the orders denying intervention, and vacate the order granting extension.

I

In March, 1986, a class of human rights victims whose lead plaintiff was Celsa Hilao brought suit in the District of Hawaii against Ferdinand E. Marcos and his estate. This action became part of a multidistrict proceeding, Estate of Ferdinand E. Marcos Human Rights Litigation, MDL 840, over which the transferee judge, Honorable Manuel L. Real, presided. A judgment was entered in Hilao’s favor on February 3, 1995 9758 IN RE: ESTATE OF MARCOS (the MDL 840 Judgment). In it, the court retained jurisdiction. The MDL 840 Judgment was appealed and affirmed, Hilao v. Estate of Marcos, 103 F.3d 767 (9th Cir. 1996); our mandate issued January 8, 1997. Before commencing the proceedings at issue here, Hilao registered the MDL 840 Judgment in the Northern District of Illinois in January 1997, the Republic of the Philippines in May 1997, and Singapore in February 2005. Hilao then registered the MDL 840 Judgment in the Northern District of Texas pursuant to 28 U.S.C. § 1963,1 and filed a class action complaint April 8, 2005 against Revelstoke Investment Corporation, Inc., and six other corporations (col- lectively, “Revelstoke”), alleging that real properties to which Revelstoke holds title in Texas are beneficially owned by the Marcos Estate, and seeking to execute and foreclose on those properties in partial satisfaction of the MDL 840 Judgment.

On May 9, 2006, Revelstoke notified Hilao of its belief that the MDL 840 Judgment had expired pursuant to Hawai’i Revised Statute § 657-52 as applied through the Texas statute 1 Section 1963 provides in pertinent part: A judgment in an action for the recovery of money or property entered in any . . . district court . . . may be registered by filing a certified copy of the judgment in any other district . . . when the judgment has become final by appeal or expiration of the time for appeal or when ordered by the court that entered the judgment for good cause shown. . . . A judgment so registered shall have the same effect as a judgment of the district court of the district where registered and may be enforced in like manner. 2 HRS § 657-5 provides: Unless an extension is granted, every judgment and decree of any court of the State shall be presumed to be paid and discharged at the expiration of ten years after the judgment or decree was ren- dered. No action shall be commenced after the expiration of ten years from the date a judgment or decree was rendered or extended. No extension of a judgment or decree shall be granted unless the extension is sought within ten years of the date the original judgment or decree was rendered. A court shall not extend any judgment or decree beyond twenty years from the date of the original judgment or decree. No extension shall be granted without notice and the filing of a non-hearing motion or a hearing motion to extend the life of the judgment or decree. IN RE: ESTATE OF MARCOS 9759 of limitations, Texas Civil Practice & Remedies Code § 16.066(a), which is a borrowing statute.3 HRS § 657-5 pro- vides that a judgment is presumed paid and discharged ten years after it is rendered, unless the judgment is extended within that ten-year period.

On June 5, Hilao filed a motion pursuant to Federal Rules of Civil Procedure 69 in the MDL 840 action for a ten-year extension of the judgment. Hilao’s memorandum in support explains that the issue had been raised in the Texas collection litigation and that, while Hilao believed HRS § 657-5 was not applicable to her federal judgment, she sought an extension out of an abundance of caution.

Revelstoke filed a motion for judgment on the pleadings in the Texas litigation on June 15, contending that the enforce- ment action was barred by the Hawai’i ten-year statute of lim- itations borrowed in the forum state by Tex. Civ. Prac. & Rem. Code § 16.066(a). On June 19, Hilao asked the Northern District of Texas to stay proceedings on Revelstoke’s motion until after the District of Hawaii ruled on Hilao’s request to extend the judgment. A stay was subsequently entered.

On June 22, Revelstoke moved to intervene in MDL 840 for the limited purpose of contesting Hilao’s motion to extend. Hilao did not oppose intervention.

At a hearing held on June 26, Judge Real first granted Hilao’s motion to extend the judgment. After ruling on that motion, the court considered, and denied, Revelstoke’s request to intervene for the purpose of opposing the motion. Its reasons, stated from the bench, were that the court had no jurisdiction over the matters in Texas; that the Texas litigation had not been sent to the District of Hawaii under the multidis- 3 Tex. Civ. Prac. & Rem.

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