Milliken & Co. v. HAIMA GROUP CORP.

654 F. Supp. 2d 1374, 2009 U.S. Dist. LEXIS 72855, 2009 WL 2567025
CourtDistrict Court, S.D. Florida
DecidedAugust 18, 2009
DocketCase 08-MC-22891
StatusPublished
Cited by1 cases

This text of 654 F. Supp. 2d 1374 (Milliken & Co. v. HAIMA GROUP CORP.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Milliken & Co. v. HAIMA GROUP CORP., 654 F. Supp. 2d 1374, 2009 U.S. Dist. LEXIS 72855, 2009 WL 2567025 (S.D. Fla. 2009).

Opinion

ORDER ADOPTING REPORT AND RECOMMENDATION

JAMES LAWRENCE KING, District Judge.

THIS CAUSE comes before the Court upon Magistrate Judge Turnoffs Report and Recommendation (DE # 75), issued on June 25, 2009. Defendants filed their Objections (DE # 76), and Plaintiff filed a *1375 Response to the Objections (DE # 77). After conducting a de novo review of the Report, the objections, and the legal authorities cited therein, this Court concludes that Judge Turnoffs Report contains well-reasoned recommendations.

Accordingly, it is ORDERED, ADJUDGED, and DECREED that:

1. Judge Turnoffs Report and Recommendation (DE #76) is hereby AFFIRMED and ADOPTED as an Order of this Court.
2. Defendants’ Motion for Summary Judgment (DE #54) is DENIED.
3. This case will proceed to a trial calendar in accordance with this Court’s forthcoming Order Requiring Parties to Submit Magistrate Election Form.

REPORT AND RECOMMENDATION

WILLIAM C. TURNOFF, United States Magistrate Judge.

THIS CAUSE is before the Court upon an Order of Recusal entered by United States Magistrate Judge Ted E. Bandstra on March 3, 2009 [D.E. 57], and Third-Party Weihai Haima Dahua Carpet Co’s (hereinafter “Dahua”) Motion for Summary Judgment. [D.E. 54]. A hearing on this Motion took place on May 29, 2009.

Upon review of the Motion [D.E. 54], the Response [D.E. 68], the court file, hearing argument from counsel, and being otherwise duly advised in the premises, the undesigned makes the following findings.

I. Background

This action stems from litigation between Milliken & Company (hereinafter “Milliken”), Haima Group Corporation (hereinafter “Haima”), and Weihai No. 1 Carpet Factory (hereinafter ‘Weihai”) in the District of Nevada. (Case No. CVJS02-1376-JCMRJJ). In that case, Milliken sued Weihai and Haima alleging, inter alia, copyright infringement. Milliken obtained a permanent injunction and Final Judgment against Weihai and Haima, in the amount of $4,050,000.00 1 on July 31,-2003. [D.E. 1],

Milliken registered said judgment in this district on October 17, 2008. Id. For present purposes, it is assumed that Milliken conducted due diligence and learned that both Princess Cruise Lines and Carnival Corporation “ha[d] tangible or intangible property of Defendant in [their] hands,” specifically, rolls of carpet that they had purchased from Dahua. See [D.E. 6, 8, 17]. Milliken promptly moved for post judgment Writs of Garnishment against both Princess and Carnival on October 21, 2008. [D.E. 6, 8]. The Writs were issued that same day. [D.E. 7, 9]. A Writ of Execution was issued (and served on Cruise Logistics, USA) on November 18, 2008 “to seize approximately 200 roles of carpet owned by Defendants [i.e. Weihai and Haima].” [D.E. 17]. Same was returned as executed. [D.E. 18,19]. Dahua entered the suit for the purpose of obtaining a declaration as to the contested personal property and filed an Emergency Motion to Dissolve the Writs of Garnishment. [D.E. 26]. That Motion was ultimately denied by Judge James Lawrence King. [D.E. 35],

II. Summary of the Arguments

In its summary judgment motion, Dahua makes the following three arguments: (1) Dahua is a separate entity from the Judgment Debtors, (2) Fla. Stat. § 95.11(2)(a)’s five (5) year statute of limitation bars this action, and (3) Fla. Stat. § 77.07(2) and Fla. Stat. § 77.16(1) prohibit the garnishment of personal property or monies owed *1376 to Dahua by the Garnishees. [D.E. 54]. Each argument shall be addressed below.

First, Dahua argues that it is a separate and distinct legal entity and not party to the underlying judgment. In support of its motion, Dahua submits the affidavit of its general manager Jaime Zhang. In his affidavit, Mr. Zhang avers that Dahua is a foreign investment joint venture whose shareholders are Weihai Haima (65%) and Taiga Trading (35%). [D.E. 54, Ex. Zhang Decl. at 1]. Dahua also claims that it did not come into existence until August 23, 2005, more than two years after the underlying judgment was entered, and did not begin transacting with Princess and Carnival until May 2007 and September 2007 respectively. See Def.’s Sum. J. Mot. [D.E. 54]. Plaintiffs Chinese law expert, Xiaolin Zhou, does not contradict Zhang’s statements. [D.E. 54].

Second, Dahua argues that the Writ of Garnishment is time barred pursuant to Fla. Stat. § 95.11(2)(a), which prescribes a five (5) year statute of limitations period as to “an action on a judgment or decree of any court, not of record, of this state or any court of the United States, any other state or territory in the United States, or a foreign country.” Here, Milliken registered its Judgment on October 17, 2008, more than five years after the entry of the underlying judgment, which was entered on July 31, 2003. [D.E. 54].

Third, Dahua argues that, based on Florida law, the writs of garnishment cannot apply to any debts owed by the Garnishees to Dahua. See Fla. Stat. §§ 77.07(2), 77.16(1). Specifically, Fla. Stat. § 77.07(2) provides: “[if] any allegation in plaintiffs motion is not proven to be true, the garnishment shall be dissolved.” Dahua argues that since it was not part of the original judgment, and both Garnishees state that they owe money only to Dahua and not the Judgment Debtors, the writs of garnishment should be dissolved. [D.E. 54]. Dahua also cites to Fla. Stat. § 77.16(1), which provides that if “any person other than defendant claims that the debt due by a garnishee is due to that person not to the defendant, or that the property in the hands or possession of any garnishee is that person’s property and shall make an affidavit to the effect, the court shall impanel a jury to determine the right of property between the claimant and plaintiff unless [a] jury is waived.” Here again, Dahua and the Garnishees both suggest that all monies owed are owed to Dahua and not the Judgement Debtors. Id. Despite the fact that Fla. Stat. § 77.16(1) suggests that a jury trial is required, Dahua and the Garnishees argue that since “Florida Garnishment statutes are still subject to all applicable

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654 F. Supp. 2d 1374, 2009 U.S. Dist. LEXIS 72855, 2009 WL 2567025, Counsel Stack Legal Research, https://law.counselstack.com/opinion/milliken-co-v-haima-group-corp-flsd-2009.