Cappiello v. ICD Publications
868 F. Supp. 2d 55
E.D.N.Y2012Background
- Plaintiff breach of contract/tortious interference action against ICD and Palcek; action removed to EDNY; judgment entered 8/20/2010 for $600,510.15 including pre-judgment interest.
- Post-judgment interest issue: whether federal rate under 28 U.S.C. § 1961 or NY rate under CPLR § 5004 applies.
- ICD tendered $612,587.66 plus costs and post-judgment interest; Plaintiff rejected alleging NY rate should apply.
- Plaintiff docketed federal judgment in NY State court under CPLR § 5018(b) for enforcement.
- Second Circuit affirmed judgment in 2012; dispute centers on applicable post-judgment interest rate and enforcement implications.
- Court intends to correct the judgment to reflect federal post-judgment interest rate under § 1961.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Applicable post-judgment interest rate in diversity case | Plaintiff argues NY rate applies | Federal rate applies; docketing does not change. | Federal rate (§1961) governs; NY rate not required. |
| Procedural propriety of 60(b)(5) motion | N/A | 60(b)(5) should be treated as 60(a) to correct oversight | Motion construed as 60(a) to correct the judgment with federal rate. |
| Effect of docketing federal judgment in state court | Docketing converts to NY judgment for enforcement, affecting rate | Docketing is enforcement-only; federal judgment remains federal | Docketing does not divest jurisdiction or convert judgment; federal rate remains applicable. |
Key Cases Cited
- Kaiser Aluminum & Chemical Corp. v. Bonjorno, 494 U.S. 827 (U.S. 1990) (set rate as of judgment date; cannot be altered later)
- FCS Advisors, Inc. v. Fair Fin. Co., Inc., 605 F.3d 144 (2d Cir. 2010) (federal rate in diversity cases unless contract specifies otherwise)
- Hartman v. Morganstern, 28 A.D.3d 423 (2d Dep’t 2006) (discusses state vs federal rate context; distinguishing Hartman from federal judgment docketing)
- Wells Fargo & Co. v. Davis, 105 N.Y. 670 (N.Y. Ct. App. 1887) (predecessor authority cited regarding NY enforcement of foreign judgments)
- Knapp v. McFarland, 462 F.2d 935 (2d Cir. 1972) (enforcement effects under §1962; docketing significance)