ITT Industrial Credit Co. v. Lawco Energy, Inc.

86 F.R.D. 708, 30 Fed. R. Serv. 2d 1665, 1980 U.S. Dist. LEXIS 13790
CourtDistrict Court, S.D. West Virginia
DecidedJune 4, 1980
DocketMisc. Civ. A. No. 78-4-H
StatusPublished
Cited by7 cases

This text of 86 F.R.D. 708 (ITT Industrial Credit Co. v. Lawco Energy, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ITT Industrial Credit Co. v. Lawco Energy, Inc., 86 F.R.D. 708, 30 Fed. R. Serv. 2d 1665, 1980 U.S. Dist. LEXIS 13790 (S.D.W. Va. 1980).

Opinion

MEMORANDUM OPINION

STAKER, District Judge.

This is a collection matter. Plaintiffs, after having obtained a judgment in this case in the United States District Court for the Southern District of Ohio (Ohio District Court), caused their Ohio judgment to be registered with the Clerk of the United States District Court of the Southern District of West Virginia, Huntington Division (this Court), pursuant to 28 U.S.C. § 1963. Thereafter began an intricate series of maneuvers, by execution and suggestion proceedings in this Court, the purpose of which was to collect (or resist collection of) the judgment, or in the alternative, to force (or resist) the posting of supersedeas bond during the pendency of various post-judgment proceedings, in the Ohio District Court, themselves designed to vacate the judgment. The factual background is illustrative.

FACTS:

The pertinent facts, set forth hereunder in approximately chronological order, are as follows:

(A) On February 23, 1978, judgment by default was entered in favor of plaintiffs and against all of the defendants in Civil Action No. C — 1—77—27 in the Ohio District Court.

(B) On March 20,1978, defendants moved in the Ohio District Court, under Fed. Rules Civ. Proc., Rule 60(b), 28 U.S.C., to set aside that judgment. The 60(b) motion was denied by that Court on May 2, 1978.

(C) On March 23, 1978, the time for appeal of the Ohio judgment expired.

[710]*710(D) On May 30, 1978, the Ohio District Court’s denial of the Rule 60(b) motion was itself appealed to the Sixth United States Circuit Court of Appeals. That appeal was dismissed for failure to prosecute on October 11, 1978.

(E) On November 13, 1978, plaintiffs obtained from the Clerk of the Ohio District Court a certification of the Ohio judgment and registered that judgment in the office of the Clerk of this Court on November 15, 1978. This clerk issued execution on that judgment on November 16,1978, and subsequently issued three others, all returned unsatisfied.

(F) On December 13, 1978, defendants Fitzgerald and Whaley filed in the Ohio District Court a second Rule 60(b) motion with respect to the Ohio judgment.

(G) On December 12, 1978, suggestion was filed in this Court in this Civil Action 78-4-H for the collection of the judgment, and on December 29, 1978, Judge Haden of this Court issued a stay for a period of thirty (30) days from this date, and directed the Marshal not to proceed pursuant to his lawful authority with respect to certain shares of stock indisputably owned by defendants Fitzgerald and Whaley. Subsequently, by consent of those defendants, those shares were placed in a bank safe deposit box, access to which was limited to the joint (and not several) approval of A. Michael Perry, Attorney for the Plaintiff, and E. Dennis White, Jr., Attorney for the Defendants Fitzgerald and Whaley.

(H) In a separate civil action (No. 78-3371-H) in this Court, Defendants Fitzgerald and Whaley petitioned this Court for an order granting a stay of execution on the judgment, and on December 14,1978, Judge Haden of this Court denied such stay and adjudged the Ohio Judgment to have been duly registered in the office of the Clerk of this Court pursuant to 28 U.S.C. § 1963. That adjudication became final and was not appealed.

(I) On December 15, 1978, defendants obtained in the Ohio District Court, incident to the second Rule 60(b) motion proceeding, a stay of enforcement of the judgment upon the condition that supersedeas bond be posted. Apparently, no such bond was ever posted or filed in the Ohio District Court.

(J) On February 1,1980, plaintiffs moved this Court for an order directing delivery of the aforementioned stock to the U.S. Marshal.

(K) On February 15, 1980, the second Rule 60(b) motion was formally denied by the Ohio District Court. Appeal of such denial was taken again to the Sixth Circuit United States Court of Appeals on February 29, 1980. That appeal is still pending, but, as stated above defendants have never posted bond as a condition for the stay of execution pursuant to the Ohio District Court’s stay order.

(L) On May 2, 1980, defendants were directed by order of this Court to post adequate security for the stay of the execution upon the judgment by May 15, 1980, or be subject to an order directing execution against all property found within this judicial district.

(M) On May 14, 1980, defendant filed with this Court a motion to quash the registration of judgment which was filed with the Clerk of this Court on November 15, 1978.

(N) On May 15, 1980, the Court held a hearing on the motions set out in (J) and (M) above. During the hearing, defendants Fitzgerald and Whaley moved to stay the rulings of the Court with respect to those motions. Also, the attorney for defendant Whaley moved to withdraw as counsel of record.

(O) Between November 10,1978 and May 15, 1980, the date of the May 15, 1980 hearing in this matter, plaintiffs requested and were issued four executions by the Clerk of this Court directing the United States Marshal to levy against assets belonging to the defendants and located within the Southern District of West Virginia. All were returned unsatisfied. During the same period, plaintiffs filed two suggestions and one amended suggestion in the course of their efforts to satisfy their judgment.

The opinion below deals with the motions described in (N) above.

[711]*711I

MOTION TO QUASH REGISTRATION

The provisions of 28 U.S.C. § 1963 permit registration of money or property judgments in districts other than the one in which the judgment was initially rendered. Registration is conditioned upon the entry of a judgment “in an action for the recovery of money or property . . . which has become final by appeal or [by] expiration of the time for appeal,” and certification of the judgment by the rendering district court and filing thereof with the clerk of the court in the new district. Defendants Fitzgerald and Whaley contend that the Ohio Judgment has not yet become “final by appeal.”

Enforcement of judgments rendered in foreign state courts usually depends upon a separate judgment (from the enforcing state) in an action to enforce the foreign judgment. Riley v. New York Trust Company, 315 U.S. 343, 62 S.Ct. 608, 86 L.Ed. 885 (1942), reh. den. 315 U.S. 829, 62 S.Ct. 903, 86 L.Ed. 1223 (1942). The rule was the same for federal judgments obtained in foreign federal districts. Hilton v. Guyot, 159 U.S. 113, 16 S.Ct. 139, 40 L.Ed. 95 (1895). The cause pled, in an action to enforce judgments, is merely that a valid judgment was rendered in another jurisdiction. In effect, enforcement thereof depended on, so to speak, a judgment upon a judgment.

The reason for such a rule is that the defendant was believed to have the right to contest the validity of the judgment according to the laws of the enforcing state. See

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Bluebook (online)
86 F.R.D. 708, 30 Fed. R. Serv. 2d 1665, 1980 U.S. Dist. LEXIS 13790, Counsel Stack Legal Research, https://law.counselstack.com/opinion/itt-industrial-credit-co-v-lawco-energy-inc-wvsd-1980.