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729 F.Supp.2d 9
D.D.C.
2010
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Background

  • This case concerns David E. Hammer’s verified motions to vacate civil contempt orders related to Bilzerian litigation and an injunction from 2001 governing filings in courts.
  • Bilzerian was previously enjoined from filing or pursuing certain lawsuits without this Court’s permission; Hammer acted on Bilzerian’s behalf.
  • In 2009 the Court held Bilzerian and Hammer in civil contempt for violating the 2001 Order by pursuing several lawsuits.
  • The Court then ordered Hammer to purge by withdrawing from Steffen and Puma matters and to file a compliance statement.
  • Hammer later disclosed withdrawals, but the Court found those actions did not cure the 2001 Order violations and denied relief.
  • The Court analyzed Hammer’s motions under Rule 59(e) and Rule 60(b), noting contempt orders are interlocutory but this nonparty contempt is appealable, and ultimately denied the motions to vacate.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Hammer’s 59(e) motion is appropriate for newly available evidence. Hammer argues withdrawals from Steffen and Puma constitute newly available evidence. Court should consider withdrawals as new evidence warranting relief. Denied; withdrawals were not newly available evidence justifying relief.
Whether Hammer’s 60(b)(1) claim of mistake warrants relief. Hammer contends the Court failed to consider evidence, constituting a mistake. No extraordinary circumstance; error insufficient for relief. Denied; not an extraordinary circumstance.
Whether Hammer’s 60(b)(5) hardship argument warrants relief. Applying the 2010 Order prospectively is no longer equitable due to hardship. Hardship alone does not justify relief; Hammer delayed remedial actions. Denied; hardship not extraordinary enough.
Whether Hammer’s Second Motion to Vacate is time-barred or previously addressed. Argues new evidence and Rule 60(b)(2) claims may avoid time limits. Claims time-barred and duplicative of prior arguments. Denied; time-barred and duplicative.

Key Cases Cited

  • United States Catholic Conference v. Abortion Rights Mobilization, Inc., 487 U.S. 72 (1988) (appealability of nonparty contempt orders; finality considerations)
  • White v. N.H. Dept. of Empl’t Sec., 455 U.S. 445 (1982) ( Rule 59(e) standards: correction of mistakes; extraordinary circumstances)
  • Firestone v. Firestone, 76 F.3d 1208 (D.C. Cir. 1996) ( Rule 59(e) standard; extraordinary circumstances required)
  • Kattan v. District of Columbia, 995 F.2d 274 (D.C. Cir. 1993) (limits on reconsideration; not a vehicle for new arguments)
  • Williamsburg War Museum, Inc. v. Historic Figures, Inc., 810 F.2d 243 (D.C. Cir. 1987) (Rule 60(b)(6) interpretation and time limitations)
  • Cobell v. Norton, 334 F.3d 1128 (D.C. Cir. 2003) (review of civil contempt and interlocutory orders)
  • Ellipso, Inc. v. Mann, 583 F. Supp. 2d 1 (D.D.C. 2008) (context for Rule 59(e)/Rule 60(b) standards in this district)
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Case Details

Case Name: SEC v. Bilzerian
Court Name: District Court, District of Columbia
Date Published: Nov 1, 2010
Citations: 729 F.Supp.2d 9; Civil Action No. 1989-1854
Docket Number: Civil Action No. 1989-1854
Court Abbreviation: D.D.C.
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