935 F.3d 696
9th Cir.2019Background
- Fidelity obtained a multimillion-dollar federal judgment in the Central District of California against the Friedmans and Meshkatais; the judgment became final in 2003.
- Fidelity registered the California judgment in the District of Arizona under 28 U.S.C. § 1963, later attempted renewal, and the Arizona court held the renewal expired under Arizona’s five-year enforcement statute.
- To circumvent the Arizona statute of limitations, Fidelity registered the California judgment in the Western District of Washington (creating a "Washington Judgment") and then registered that Washington Judgment back in Arizona (the "Second Arizona Judgment").
- Defendants moved under Fed. R. Civ. P. 60(b) to vacate the Second Arizona Judgment, arguing (1) § 1963 does not permit successive registration and (2) the Washington court lacked personal jurisdiction, making the Washington Judgment void.
- This Court in Fidelity I held successive registration was permissible under § 1963 and remanded; on remand the Arizona district court considered and held that registration requires personal jurisdiction in the registering district and vacated the Second Arizona Judgment.
- On appeal from that Rule 60(b)(4) ruling, the Ninth Circuit reversed, holding § 1963 does not require personal jurisdiction in the registering district and that due process is not offended by registration of a pre-existing federal judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether 28 U.S.C. § 1963 requires personal jurisdiction over the judgment debtor in the district of registration | Fidelity: § 1963 permits registration in “any other district” by filing a certified copy; no jurisdictional limit exists | Defendants: Registration creates a new judgment; thus the registering court must have personal jurisdiction or the new judgment is void | Held: § 1963 contains no personal-jurisdiction requirement; registration is a clerical/administrative act and may occur in districts lacking personal jurisdiction |
| Whether the Due Process Clause independently requires personal jurisdiction at registration because registration creates a “new” judgment | Fidelity: Due process protects against being sued in a distant forum; registration is not a new suit or obligation—due process was satisfied in the original adjudication | Defendants: Fidelity I treated a registration as creating a new judgment rendered by the registering court, so constitutional jurisdictional limits apply | Held: Due process does not impose a personal-jurisdiction requirement on mere registration of an existing federal judgment because registration does not involve maintaining a suit or requiring the debtor to defend anew; the original adjudication satisfied due process |
Key Cases Cited
- Fidelity Nat’l Fin., Inc. v. Friedman, 803 F.3d 999 (9th Cir. 2015) (holding successive registration under § 1963 creates a registrable judgment)
- World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286 (U.S. 1980) (personal-jurisdiction minimum-contacts analysis protects against burdens of distant litigation)
- Kulko v. Superior Court, 436 U.S. 84 (U.S. 1978) (contacts test and fair play/substantial justice framework)
- Int’l Shoe Co. v. Washington, 326 U.S. 310 (U.S. 1945) (foundational minimum-contacts standard for personal jurisdiction)
- Shaffer v. Heitner, 433 U.S. 186 (U.S. 1977) (presence of property in a forum does not always confer jurisdiction)
- In re Ctr. Wholesale, 759 F.2d 1440 (9th Cir. 1985) (judgment is void if the court that rendered it lacked jurisdiction)
- Export Grp. v. Reef Indus., Inc., 54 F.3d 1466 (9th Cir. 1995) (de novo review of Rule 60(b)(4) challenges to judgment validity)
- Air Transp. Ass’n of Am. v. Prof’l Air Traffic Controllers Org. (PATCO), 699 F.2d 539 (D.C. Cir. 1983) (registration is a rapid clerical procedure not requiring judicial intervention)
- Stanford v. Utley, 341 F.2d 265 (8th Cir. 1965) (§ 1963 adopted to eliminate necessity and expense of a second lawsuit)
