HOME PORT RENTALS, INC., Plaintiff-Appellee-Cross-Appellant, v. THE INTERNATIONAL YACHTING GROUP, INC., ETC.; ET AL., Defendants, ROGER MOORE, Defendant-Appellant-Cross-Appellee.
No. 00-30610
UNITED STATES COURT OF APPEALS, FIFTH CIRCUIT
May 21, 2001
Revised May 24, 2001
252 F.3d 399
WIENER and STEWART, Circuit Judges, and SMITH, District Judge.
[Copyrighted Material Omitted]
WIENER, Circuit Judge.
Appellant-Cross-Appellee Roger Moore and several co-defendants were cast in judgment in March, 1989 (the “1989 judgment“) by the United States District Court for the District of South Carolina (the “rendering court“). Although he did not appeal that judgment, two of his co-defendants did, and it was affirmed. Moore now appeals from a judgment rendered a decade later by the district court for the Western District of Louisiana, (1) denying Moore‘s motion to dismiss two petitions filed simultaneously on March 17, 1999 by Appellee-Cross-Appellant Home Port Rentals, Inc. (“Home Port“), the successful plaintiff in the rendering court which sought to register and enforce the 1989 judgment in the district court for the Western District of Louisiana (the “registration court“), and (2) declaring the 1989 judgment enforceable in the Western District of Louisiana until April 2, 2002, the tenth anniversary of the 1989 judgment‘s finality on appeal. We affirm the registration court‘s denial of Moore‘s motion to dismiss; we modify that court‘s declaration of enforceability in the Western District of Louisiana by changing the commencement date of the applicable period of limitation (Louisiana‘s 10-year liberative prescription for enforcement of judgments) from April 2, 1992 (the date that the 1989 judgment was affirmed by the Fourth Circuit) to March 17, 1999, the date it was registered in the registration court; and, as thus modified, we affirm the registration court‘s declaration of enforceability of the 1989 judgment in the Western District of Louisiana.
I. Facts and Proceedings
In 1989, the rendering court held Moore and his co-defendants liable to Home Port for $1,200,000 in compensatory damages and $50,000 in punitive damages for securities fraud, common law fraud, and breach of contract. By an order dated March 16, 1989 and entered March 17, 1989, the rendering court directed its clerk of court to enter judgment for Home Port, which the clerk did on March 20, 1989. This judgment, the 1989 judgment, was affirmed by the United States Court of Appeals for the Fourth Circuit, and that court‘s mandate issued on April 2, 1992. Ultimately, the Supreme Court of the United States denied certiorari.
Fast forward to 1999. On March 17 of that year ---- three days shy of the tenth anniversary of the rendering court‘s entry of the 1989 judgment ---- Home Port simultaneously filed two petitions in the registration court. One seeks registration of a foreign judgment, pursuant to
After Moore filed a motion to dismiss Home Port‘s two petitions, the registration court referred the case to a magistrate judge for a Report and Recommendation, which was prepared and filed in due course. The magistrate judge recommended that the district court deny Moore‘s motion to dismiss Home Port‘s petitions and that the court declare the 1989 judgment enforceable in the Western District of Louisiana until April 2, 2002, 10 years after the issuance of the Fourth Circuit‘s mandate affirming the appealed 1989 judgment.
Both Moore and Home Port filed written objections to the magistrate judge‘s recommendations. Moore faulted the report for “failing to apply Louisiana Civil Code art. 3501 in its entirety” and for finding the 1989 judgment enforceable until April 2, 2002, rather than until March 20, 1999 only. Moore contended that the earlier date, 10 years after the 1989 judgment was entered by the rendering court, was the last date on which South Carolina law would permit that judgment to be enforced, regardless of appeal, insisting that South Carolina law should control.1
Home Port‘s objection criticized only the magistrate judge‘s legal conclusion that the running of Louisiana‘s prescriptive period for an action to enforce a registered judgment commenced to run on the day the underlying judgment was affirmed on appeal. Home Port contended that Louisiana‘s 10-year liberative prescription, which applies to money judgments in federal district courts located in the state, commences to run not from either the date on which the original judgment was entered in the rendering court or the date on which it was affirmed on appeal, but from the date it was registered in the registration court. Specifically, Home Port faulted the report‘s conclusion that, for purposes of enforcement in the registration court‘s district, registration under
Over those objections, the district court adopted the magistrate judge‘s Report and Recommendation and ruled accordingly. Moore timely filed a notice of appeal, and Home Port timely filed such a notice for its cross-appeal.
II. Analysis
A. Standard of Review
We review the denial of Moore‘s dismissal motion de novo.2 As the material facts of this case are undisputed, the issues presented on appeal, including interpretation of state and federal statutes and jurisprudence, and determining which among those are applicable, are issues of law so we also review them de novo.3
B. Background
When, on March 17, 1999, the rendering court‘s money judgment was registered in the registration court, it was still “live” ---- enforceable ---- under applicable South Carolina law.4 Likewise, as of its registration on March 17, 1999, the 1989 judgment would still have been enforceable under Louisiana law.5 Thus, at a time when it remained enforceable in both the rendering and the registration jurisdictions, (1) the 1989 judgment was registered, and (2) enforcement proceedings were commenced ---- “execution [] issue[d]” in South Carolina terminology ---- in the registration court. Even if measured from the entry date of March 20, 1989 and not the date of finality under Louisiana law or
C. Case Law
We are aware of no Supreme Court authority on point, and of very little pertinent jurisprudence from federal appellate or district courts.9 Still, we are not wholly without jurisprudential guidance. The landmark case in this area is Stanford v. Utley, authored by Judge (later Justice) Blackmun for the Eighth Circuit Court of Appeals.10 The Stanford court was called on to consider the enforceability, in a federal district court in Missouri, of a judgment that had been rendered by a federal district court in Mississippi, then registered the next day, pursuant to
In concluding that the post-registration expiration of the rendering state‘s statute of limitations for enforcement of judgments had no effect on enforcement proceedings commenced in the court of registration at a time when the registration state‘s statute of limitations for enforcement of judgments had not yet expired, the Stanford court recapped its analysis with the following pronouncement:
We have concluded that
§ 1963 is more than “ministerial” and is more than a mere procedural device for the collection of the foreign judgment. We feel that registration provides, so far as enforcement is concerned, the equivalent of a new judgment of the registration court. In other words...for enforcement purposes, the [registration state] federal registration equated with a new [registration state] federal judgment on the original [rendering state] federal judgment, that is, it is no different than a judgment timely obtained by action in [the registration state] federal court on that [rendering state] judgment.11
Stanford‘s express recognition of the applicability of Missouri‘s statute of limitations and the inapplicability of Mississippi‘s, for purposes of post-registration enforcement in Missouri, underpins that court‘s holding that, as far as enforcement in the registration court‘s district is concerned, a “live” judgment duly registered there is the full legal equivalent of a judgment-on-judgment.
We have neither been cited to a case nor found any on our own that questions Stanford‘s holding that, when a money judgment rendered in one federal district court is registered in another federal district court at a time when the original judgment is still enforceable under the laws of both states, registration truly is the equivalent of a new judgment of the registration court for purposes of enforcement in the registration district. That the registered judgment might not be congruent with a new judgment of the registration court for every purpose other than enforcement ---- a possibility recognized in Stanford and elsewhere ---- is of no moment to the instant inquiry. We are concerned with only the narrow, two-pronged question, “which state‘s statute of limitations applies for enforcement purposes in the registration court, and when does that state‘s applicable limitation period for enforcement in the registration court start to run?”
We have not previously addressed this precise question, but in our otherwise distinguishable case of United States v. Kellum,12 we expressed agreement with Standford‘s core pronouncements. After quoting Stanford‘s holding that “[r]egistration provides...the equivalent of a new judgment of the registration court....” and is “no different than a judgment timely obtained by action in [the registration] court on [the rendering court‘s] judgment,” we stated in Kellum that “[w]e agree with the holding in Stanford....”13 There, we (admittedly in dicta) voiced our approbation of Stanford‘s recognition that, for purposes of enforcement, registration is the equivalent of a new judgment of the registration court. Kellum even states that, despite agreement with Stanford‘s holding, it is inapposite to the precise issue presented in Kellum. Nevertheless, Stanford remains good law lo these 36 years and, unlike in Kellum (which dealt with a judgment in favor of the United States that was exempt from the local statute of limitations), is pertinent to the issue we decide today.
D. Enforceability
The first prong of the question here presented is not seriously challenged on appeal, nor was it in the district court. Section 1963 concludes with the statement that “[a] judgment so registered shall have the same effect as a judgment of the district court of the district where registered and may be enforced in like manner.” Specifically, none here seriously question that
Our inquiry does not end, however, with our determination that Louisiana‘s 10-year liberative prescription on enforcement of the 1989 judgment in the Western District of Louisiana is the applicable limitation law. We must also determine when Louisiana‘s prescription clock started to tick: Was it on (1) March 20, 1989 when the 1989 judgment was entered, as Moore contends, or (2) April 2, 1992, when the Fourth Circuit‘s mandate affirming that judgment issued, as the district court held, or (3) March 17, 1999, when the 1989 judgment was registered in the registration court, as Home Port contends? This issue was not raised in Stanford because the judgment at issue there was registered in Missouri only one day after it was rendered in Mississippi. Section 1963 strongly implies the answer by equating the registered judgment with a new judgment of the registration court ---- as does Stanford and even our opinion in Kellum, at least vis-a-vis enforcement. But, one federal circuit court has addressed and answered the question directly: Marx v. Go Publishing Co., Inc.15
Despite the magistrate judge‘s Report and Recommendation‘s rejection of Marx as instructive on the ground that its reasoning is extended by analogy to the registration state‘s statute governing enforcement of foreign judgments rather than by analogy to that state‘s statute of limitations on enforcement of domestic judgments, we find Marx quite persuasive. Moreover, we are reluctant to create a circuit split by holding differently, particularly when we agree with the Ninth Circuit‘s holding despite getting there via a slightly different route. Given the pronouncements in Marx,19 Stanford,20 and Kellum,21 and the plain language of
This accords with the Stanford court‘s further statement:
It seems to be conceded that the purposes of
§ 1963 were to simplify and facilitate the enforcement of federal judgments, at least those for money, to eliminate the necessity and expense of a second lawsuit, and to avoid the impediments, such as diversity of citizenship, which new and distinct federal litigation might otherwise encounter.22
Thus, once a money judgment of a federal district court in one state is registered in the federal district court of another state at a time when neither state‘s statute of limitations (prescriptive period) has expired, neither the limitation period of the rendering state nor the date the judgment became final in that state has any effect whatsoever on enforcement of the registered judgment within the district of registration. Rather, such enforcement proceedings following registration are governed exclusively by the limitation rules of the state in which the registration district is situated, as they would be applied to a judgment-on-judgment of the registration court. Therefore, enforcement proceedings on a registered judgment can be instituted in the registration court at any time before the expiration of that court‘s state-determined limitation (prescriptive) period, that such proceedings could be instituted on a new judgment ---- including a judgment-on-judgment ---- of the registration court. At least in Louisiana, that period starts to run on the date the judgment is registered.23
Thus, our only disagreement with the Report and Recommendation of the magistrate judge, as adopted by the district court, is with its position that, for purposes of enforcement of registered judgments in the registration court, Louisiana‘s 10-year liberative prescription begins to run from the date that the foreign judgment became eligible for registration, i.e., “when the [original money judgment] has become final....”25 This error is the result of an impermissible cross-over between, on one hand, the limitation period for registering the judgment ---- which, pursuant to
Where the magistrate judge‘s Report and Recommendation went wrong was in treating the 1989 judgment as “the judgment” referred to in the final clause of the first paragraph of
III. Conclusion
Home Port‘s March 17, 1999 registration, in the Western District of Louisiana, of the 1989 judgment against Moore et al was timely for purposes of
Therefore, applying as we must the law of Louisiana regarding the time and location for enforcing a judgment of a federal district court situated in that state, we hold that the 1989 judgment became enforceable in the Western District of Louisiana for a period of 10 years commencing on March 17, 1999, the day it was registered in that court. We therefore affirm the district court‘s denial of Moore‘s motion to dismiss Home Port‘s petitions seeking registration and enforcement; modify the judgment of the district court to declare that Home Port can enforce the 1989 judgment in the Western District of Louisiana until March 17, 2009; and, as thus modified, affirm the judgment of the district court. Finally, we remand this case to the district court for further proceedings consistent with this opinion.
MODIFIED in part; AFFIRMED as modified; REMANDED for further consistent proceedings.
