Bank of America, N.A. v. Veluchamy
643 F.3d 185
| 7th Cir. | 2011Background
- Bank of America obtained a December 2010 judgment against the Veluchamys for about $39 million.
- During post-judgment proceedings, BOA sought asset production and identified transfers of funds to India after default.
- Veluchamys provided few assets in the U.S., hindering satisfaction of the judgment.
- BOA sought emergency relief to compel repatriation of funds and to seize the Veluchamys’ passports to prevent flight.
- The district court temporarily seized the Veluchamys’ passports as a minimal control measure to protect enforcement of the production order.
- The Seventh Circuit affirmed the district court’s authority to impose the passport seizure as a collateral, temporary measure.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether district court could seize passports | BOA argues limited passport seizure is necessary to enforce production orders. | Veluchamys contend passport seizure requires contempt or explicit flight history. | Yes; district court may seize passports as a minimal, collateral measure. |
| Whether passport seizure was collateral to the merits | Seizure aids enforcement of post-judgment production and asset location. | Seizure not reviewable later and not integral to merits. | Yes; seizure is collateral and appealable as such. |
| Whether due process and procedure were satisfied | Procedural safeguards adequate under injunction-like framework. | Argues potential due process deficiencies. | Claim waived; no reversible due process defect found on record. |
| Scope of Illinois post-judgment powers to seize assets | Illinois law grants broad tools to locate and seize assets (including funds control). | Judgment debtor's rights require limited, explicit actions. | District court may employ minimal control (passport seizure) when needed to enforce production. |
Key Cases Cited
- Dexia Credit Local v. Rogan, 629 F.3d 612 (7th Cir. 2010) (broad post-judgment enforcement powers; asset control)
- United States v. Shaheen, 445 F.2d 6 (7th Cir. 1971) (passport seizure permissible to prevent dissipation of assets)
- Cohen v. Beneficial Indus. Loan Corp., 337 U.S. 541 ((1949)) (collateral-order doctrine; immediate review of collateral orders)
- Hatchett, United States v. Hatchett, 862 F.2d 1249 (6th Cir. 1988) (need specific, not blanket, Fifth Amendment assertions in post-judgment proceedings)
- Dexia Credit Local v. Rogan, 602 F.3d 879 (7th Cir. 2010) (record supports injunction-like findings without remand)