Ralph Janvey v. James Alguire
539 F. App'x 478
5th Cir.2013Background
- Ralph S. Janvey, as receiver for the Stanford entities, filed suit against former employees for fraudulent transfers under TUFTA and unjust enrichment.
- Employee Defendants moved to compel arbitration; district court denied, ruling receiver sued on creditors’ behalf, not on Stanford entities’ behalf, thus not bound by arbitration agreements.
- The district court previously froze assets of the Employee Defendants via preliminary injunction; the court of appeals initially questioned arbitration but later remanded for merits.
- This court has previously held that a federal equity receiver has standing to assert only the claims of the entities in receivership, not claims on behalf of creditors.
- In this DSCC II framework, the Receiver cannot sue on behalf of creditors but may sue on behalf of the Stanford Entities; the effect on arbitration remains unresolved at district court level.
- On appeal, the court reverses the district court’s denial of motions to compel arbitration and remands to address whether the Receiver, if suing on behalf of the Stanford Entities, is bound by the arbitration agreements.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing of the receiver to sue for creditors | Janvey argues standing to pursue creditors' TUFTA claims. | Employee Defendants argue receiver lacks standing to represent creditors. | DSCC II controls; receiver may sue only for entities, not creditors. |
| Arbitration binding when suit is on behalf of entities | Receiver can pursue claims on behalf of Stanford Entities, thus should be subject to arbitration clauses with Employees. | Arbitration applicability depends on who is a party; the receiver’s status matters for arbitration. | Remand to district court to determine if the receiver, suing for Stanford Entities, is bound by arbitration clauses. |
Key Cases Cited
- Janvey v. Democratic Senatorial Campaign Comm., Inc. (DSCC II), 712 F.3d 185 (5th Cir. 2013) (receiver has standing only to assert claims of the entities in receivership)
- Janvey v. Democratic Senatorial Campaign Comm., Inc. (DSCC I), 699 F.3d 848 (5th Cir. 2012) (initial standing analysis; withdrawn in light of DSCC II)
- Alguire II, 647 F.3d 585 (5th Cir. 2011) (receiver has standing to assert only claims of entities in receivership)
- Scholes v. Lehmann, 56 F.3d 750 (7th Cir. 1995) (relevant to standing imputation for receivers)
- National Federation of the Blind of Tex., Inc. v. Abbott, 647 F.3d 202 (5th Cir. 2011) (standing de novo review standards)