803 F.3d 999
9th Cir.2015Background
- Fidelity obtained a multimillion-dollar fraud judgment in the Central District of California in 2002; final May 15, 2003, with defendants owing over $10 million including interest.
- Fidelity registered the California judgment in the District of Arizona in 2002 under 28 U.S.C. § 1963; the Arizona registration expired in 2007 under state statute.
- Efforts to renew or re-register the Arizona judgment were rejected by the district court.
- In 2011 Fidelity registered the California judgment in the Western District of Washington, and Fidelity then registered the Washington judgment in the District of Arizona.
- Defendants moved under Rule 60(b)(4) to vacate the second registration as void; the district court vacated the second registration, ruling only an original judgment may be registered under § 1963.
- The Ninth Circuit held that a registered judgment itself may be registered; § 1963 provides that a registered judgment has the same effect as a district-court judgment and may be enforced accordingly.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| May a registered judgment be registered again under § 1963? | Fidelity argues § 1963 permits registration of a registered judgment. | Friedman argues only original judgments may be registered. | Yes; a registered judgment may be registered. |
| Whether a registered judgment qualifies as a ‘judgment in an action for the recovery of money or property’ for § 1963. | Fidelity contends the registered judgment is within § 1963’s scope. | Friedman contends it is not an original judgment. | It qualifies as a judgment for § 1963 purposes. |
| Effect of registering a registered judgment on the statute of limitations concerns. | Fidelity asserts routine enforcement, regardless of prior expirations. | Friedman argues potential title to new limitations issues are controlled by the original jurisdictions. | The statute of limitations concerns are governed by the registering state's law; registration semantics control. |
Key Cases Cited
- Hilao v. Estate of Marcos, 536 F.3d 980 (9th Cir. 2008) (registering state limitations apply to registered judgments)
- Del Prado v. B.N. Development Co., 602 F.3d 660 (5th Cir. 2010) (registered judgment may be registered and enforced in another court)
- De Leon v. Marcos, 742 F. Supp. 2d 1168 (D. Colo. 2010) (district court rejected reasoning that only original judgments may be registered)
- Amalgamated Transit Union Local 1309 v. Laidlaw Transit Servs., Inc., 448 F.3d 1092 (9th Cir. 2006) (absurdity canon does not override statutory text)
- SEC v. McCarthy, 322 F.3d 650 (9th Cir. 2003) (definition of an action includes civil judicial proceedings)
