Hellenic Petroleum LLC v. Mansfield Oil Company of Gainsville, Inc.
1:19-cv-01071-DAD-SKO
E.D. Cal.Apr 22, 2022Background
- Hellenic Petroleum LLC sued Mansfield Oil and another defendant in Aug. 2019; Mansfield filed counterclaims and an amended counterclaim.
- Parties executed a July 10, 2020 Settlement: Hellenic to pay $950,000 over three years; settlement provided that on Hellenic’s default the court would enter judgment for $1,200,000 minus any payments made and Hellenic waived challenges to that judgment.
- On July 15, 2020 the parties stipulated to dismiss the case without prejudice; the magistrate judge entered the dismissal and declined to retain jurisdiction to enforce the settlement.
- After an October 29, 2021 addendum modifying the payment schedule, Hellenic stopped making payments after Nov. 19, 2021; Mansfield contends $275,085.23 was paid and seeks judgment for $924,914.77.
- Mansfield moved (Jan. 12, 2022) to reopen, set aside the dismissal, and enter final judgment; Hellenic did not oppose. The court found diversity jurisdiction and granted Mansfield’s motion, directing entry of judgment for $924,914.77 and closing the case.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the court retained ancillary jurisdiction to enforce the settlement after the dismissal | Dismissal without a reservation by the court means no ancillary jurisdiction (implicit) | N/A (court record shows magistrate declined to retain jurisdiction) | Court: No ancillary jurisdiction because dismissal did not reserve or incorporate settlement |
| Whether the court has an independent basis for jurisdiction (diversity) to enforce the settlement | Hellenic did not respond; no opposing jurisdictional facts presented | Mansfield: parties are diverse (GA corp v. FL LLC) and amount in controversy exceeds $75,000 | Court: Diversity exists here; independent basis for jurisdiction over the enforcement motion |
| Whether the court should reopen the case, set aside dismissal, and enter judgment under the settlement terms | Hellenic did not oppose; no facts disputing default or amounts paid | Mansfield: settlement requires entry of $1.2M judgment on default less payments; requests $924,914.77 | Court: Exercising discretion, granted reopening and entered final judgment for $924,914.77 |
| Whether post-judgment interest should be awarded at 10% per annum | Hellenic did not respond | Mansfield requested post-judgment interest at 10% per annum | Court: Declined to award post-judgment interest because the settlement did not provide for it and no authority was shown |
Key Cases Cited
- Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375 (1994) (district court lacks ancillary jurisdiction to enforce a settlement unless dismissal reserves jurisdiction or settlement is incorporated into the order)
- O'Connor v. Colvin, 70 F.3d 530 (9th Cir. 1995) (after dismissal federal jurisdiction terminates; enforcement of settlement requires independent basis for jurisdiction)
- Ahanachian v. Xenon Pictures, Inc., 624 F.3d 1253 (9th Cir. 2010) (district courts have broad discretion in case management, including whether to reopen cases)
- Keeling v. Sheet Metal Workers Int'l Ass'n, Local Union 162, 937 F.2d 408 (9th Cir. 1991) (review of vacating dismissal is for abuse of discretion)
