Kai Hansjurgens v. Donald H. Bailey

90 F.4th 1158
CourtCourt of Appeals for the Eleventh Circuit
DecidedJanuary 12, 2024
Docket22-10819
StatusPublished
Cited by4 cases

This text of 90 F.4th 1158 (Kai Hansjurgens v. Donald H. Bailey) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kai Hansjurgens v. Donald H. Bailey, 90 F.4th 1158 (11th Cir. 2024).

Opinion

USCA11 Case: 22-10819 Document: 62-1 Date Filed: 01/12/2024 Page: 1 of 22

[PUBLISH] In the United States Court of Appeals For the Eleventh Circuit

____________________

No. 22-10819 ____________________

In re: DONALD H. BAILEY Debtor. ________________________________________ KAI HANSJURGENS, Plaintiff-Appellant, versus DONALD H. BAILEY,

Defendant-Appellee. ____________________

Appeal from the United States District Court for the Southern District of Georgia D.C. Docket No. 4:21-cv-00105-RSB-CLR, USCA11 Case: 22-10819 Document: 62-1 Date Filed: 01/12/2024 Page: 2 of 22

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Bkcy No. 4:07-bk-41381-EJC ____________________

Before WILLIAM PRYOR, Chief Judge, and ROSENBAUM and ABUDU, Circuit Judges. ROSENBAUM, Circuit Judge: Baseball Hall of Famer Frank Robinson famously said that “[c]lose only counts in horseshoes and hand grenades.” 1 To that list we add one more thing: close—as long as it’s close enough to qualify as “substantial compliance”—also counts when it comes to following a state’s rules for reviving a judgment in federal court un- der Federal Rule of Civil Procedure 69(a). More than a decade ago, Appellee Donald Bailey obtained a bankruptcy judgment against Appellant Kai Hansjurgens for tor- tious interference with contract. That judgment included punitive damages based on Hansjurgens’s “malice and intent to injure” and “cavalier attitude toward [his] duties as [a] litigant[].” Bailey v. Hako- Med USA, Inc., No. 09-4002, at 8–9 (Bankr. S.D. Ga. Apr. 7, 2011). Hansjurgens has not paid Bailey a cent. Georgia state law gave Bailey ten years to collect. But before Bailey’s judgment expired irretrievably, Bailey filed—and the bank- ruptcy court granted—a motion to revive that judgment. Hansjur- gens does not dispute that the underlying judgment is valid, but he

1 Nick Acocella, More Info on Frank Robinson, ESPN CLASSIC (last visited Jan. 12,

2024), https://www.espn.com/classic/000728frankrobinsonadd.html [https://perma.cc/5ATF-87HL]. USCA11 Case: 22-10819 Document: 62-1 Date Filed: 01/12/2024 Page: 3 of 22

22-10819 Opinion of the Court 3

still seeks to keep his streak of dodging payment intact. This time, Hansjurgens claims that Bailey didn’t strictly comply with Georgia state-law procedures to revive his judgment. But the district court found—and Bailey argues on appeal—that Bailey did enough to sat- isfy the Georgia judgment-revival procedure under Federal Rule of Civil Procedure 69(a). We agree. So after careful consideration, and with the benefit of oral argument, we affirm. I. BACKGROUND

A. Original Bankruptcy Proceedings and Related Appeals

Bailey and Hansjurgens’s dispute originated with a business arrangement. Bailey leased medical equipment to physicians. To obtain some of his leasing inventory, Bailey entered into a distrib- utorship agreement with Hansjurgens and his medical device com- pany Hako-Med USA, Inc. Bailey v. Hako-Med USA, Inc. (In re Bai- ley), 2010 Bankr. LEXIS 6300, at *2 (Bankr. S.D. Ga. 2010). Under this agreement, Bailey bought several Hako-Med PRO Elec DT 2000 and VasoPulse 2000 devices. Healthcare professionals use these machines to non-invasively treat lower back pain. Id. Unfor- tunately for Bailey, though, he had trouble selling the devices. In Bailey’s view, his sales problem arose because Hansjurgens and Hako-Med recommended billing codes that resulted in lower reim- bursement rates than they had touted. Id. at *3–4.

After the distributorship agreement expired, a medical- equipment rental company, New River, offered to pay Bailey $1,000 each month per device to lease the devices to physicians’ offices. USCA11 Case: 22-10819 Document: 62-1 Date Filed: 01/12/2024 Page: 4 of 22

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Id. at *5. But Hansjurgens and Hako-Med threatened (unfounded) legal action against physicians who were negotiating with Bailey and New River. Id. at *6. So Bailey stopped marketing the devices, and New River shut down its operations. Id. at *9. Bailey filed for Chapter 11 bankruptcy. In bankruptcy court, Bailey brought an adversary proceeding against Hansjurgens and Hako-Med for tortious interference with contract. The bankruptcy court held a trial and entered an interlocu- tory order in favor of Bailey. Id. at *27. It concluded that Hansjur- gens had indeed tortiously interfered “to bully the Potential Pur- chasers out of negotiations” and “to advance his own pecuniary in- terest.” Id. at *18–19. After finding that Hansjurgens and Hako-Med “acted with malice and intent to injure,” the bankruptcy court ordered post- judgment discovery on punitive damages and attorney’s fees. Id. at *21, *27. Bailey’s post-judgment discovery requests went “largely unanswered,” so Bailey moved to compel. Bailey, No. 09- 4002, at 2. The bankruptcy court ordered Hansjurgens and Hako- Med to submit discovery responses for the court’s inspection, but they did not do so. Id. at 2–3. In the meantime, the bankruptcy court proceeded with its trial on punitive damages and attorney’s fees. In April 2011, the bankruptcy court entered judgment for Bailey and awarded $893,973.64 total: $277,336.13 in compensatory damages, $554,672.26 in punitive damages, and $61,965.25 in attorney’s fees. Id. at 12. In support of its ruling, the court characterized USCA11 Case: 22-10819 Document: 62-1 Date Filed: 01/12/2024 Page: 5 of 22

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Hansjurgens’s trial testimony as “evasive and uncooperative” and noted his “cavalier attitude toward [his] duties as [a] litigant[]” throughout the discovery process. Id. at 3, 9. And it found that Hansjurgens’s failure to produce post-judgment discovery was “in- tentional” and “possibly motivated by a desire to perpetrate a fraud on the Court.” Id. at 10. Hansjurgens repeatedly and unsuccessfully appealed. First, before the bankruptcy court entered final judgment, Hansjurgens sought to appeal the partial-liability determination to the district court. But the district court dismissed the appeal for lack of jurisdiction because Hansjurgens never obtained leave to appeal the interlocutory order. Hansjurgens v. Bailey (In re Bailey), 489 F. App’x 425, 425 (11th Cir. 2012). We affirmed. Id. Hansjurgens then moved to reopen his appeal. The district court denied the motion. Because the bankruptcy court later is- sued a final judgment, we dismissed as moot Hansjurgens’s appeal of that denial. Hansjurgens v. Bailey, No. 12-12465, at 4 (11th Cir. 2013). In his third effort on appeal, Hansjurgens appealed the final judgment to the district court. But the district court found that Hansjurgens’s notice of appeal was untimely filed, and he failed to show excusable neglect as Federal Rule of Bankruptcy Procedure 8002(c)(2) requires. Hansjurgens v. Bailey, No. CV411-202, 2012 WL 3289001, at *3 (S.D. Ga. Aug. 10, 2012). We affirmed the dismissal for lack of jurisdiction. In re Bailey, 521 F. App’x 920, 922 (11th Cir. 2013). USCA11 Case: 22-10819 Document: 62-1 Date Filed: 01/12/2024 Page: 6 of 22

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Around the same time, Bailey moved the bankruptcy court to hold Hansjurgens in contempt based on his and Hako-Med’s continued failure to produce post-judgment discovery. Hansjur- gens did not appear at the contempt hearing. So the bankruptcy court submitted a proposed contempt order to the district court. Bailey v. Hako-Med USA, Inc. (In re Bailey), 2011 Bankr. LEXIS 5424 (Bankr. S.D. Ga. 2011).

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90 F.4th 1158, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kai-hansjurgens-v-donald-h-bailey-ca11-2024.