Paskenta Band of Nomlaki Indians et al v. Crosby et al
Filing
359
MEMORANDUM AND ORDER signed by District Judge Morrison C. England, Jr. on 1/24/2017 DENYING 300 Motion for Entry of Final Judgment. (Michel, G.)
1
2
3
4
5
6
7
8
UNITED STATES DISTRICT COURT
9
EASTERN DISTRICT OF CALIFORNIA
10
11
12
PASKENTA BAND OF NOMLAKI
INDIANS; and PASKENTA
ENTERPRISES CORPORATION,
13
14
15
16
17
18
19
20
21
22
23
24
Plaintiffs,
No. 2:15-cv-00538-MCE-CMK
MEMORANDUM AND ORDER
v.
INES CROSBY; JOHN CROSBY;
LESLIE LOHSE; LARRY LOHSE; TED
PATA; JUAN PATA; CHRIS PATA;
SHERRY MYERS; FRANK JAMES;
UMPQUA BANK; UMPQUA
HOLDINGS CORPORATION;
CORNERSTONE COMMUNITY BANK;
CORNERSTONE COMMUNITY
BANCORP; JEFFERY FINCK; GARTH
MOORE; GARTH MOORE
INSURANCE AND FINANCIAL
SERVICES, INC.; ASSOCIATED
PENSION CONSULTANTS, INC.; THE
PATRIOT GOLD & SILVER
EXCHANGE, INC.; GDK
CONSULTING LLC; and GREG
KESNER,
Defendants.
25
26
Defendants Garth Moore and Garth Moore Insurance (collectively, “Moore”)
27
previously moved under Federal Rule of Civil Procedure (“Rule”) 12(c) to dismiss the
28
claims made against them. ECF No. 275. This Court granted the motion, dismissing the
1
1
claims with prejudice. ECF No. 299. Moore now moves for the entry of final judgment
2
under Rule 54(b) on the order dismissing the claims. ECF No. 300. For the reasons that
3
follow, Moore’s Motion for Judgment is DENIED.1
4
BACKGROUND2
5
6
7
The Paskenta Band of Nomlaki Indians (“the Tribe”) employed Ines Crosby, John
8
Crosby, Leslie Lohse, and Larry Lohse (collectively, the “Employee Defendants”) in
9
executive positions for more than a decade. Plaintiffs contend that the Employee
10
Defendants used their positions to embezzle millions of dollars from the Tribe and its
11
principal business entity, the Paskenta Enterprises Corporation (“PEC”). As part of their
12
scheme, Plaintiffs allege that the Employee Defendants caused the Tribe to invest in two
13
unauthorized retirement plans for the Employee Defendants’ personal benefit: a defined
14
benefit plan and a 401(k) (collectively, “Tribal Retirement Plans”). The Employee
15
Defendants allegedly kept their activities hidden from Plaintiffs by various means
16
including harassment, intimidation, and cyber-attacks on the Tribe’s computers.
17
Plaintiffs go on to assert that Moore, among others, knowingly assisted the
18
Employee Defendants in aspects of their scheme. According to Plaintiffs, Moore, as the
19
Tribe’s financial advisor, assisted the Employee Defendants in setting up and
20
administering the unauthorized Tribal Retirement Plans.
21
After filing an answer, Moore moved to dismiss the third-party claims against it
22
under Rule 12(c), and on October 19, 2016, the Court granted the motion. The claims
23
against Moore were dismissed with prejudice. Moore now seeks entry of final judgment
24
on that order, pursuant to Rule 54(b).
25
///
26
27
1
Because oral argument would not have been of material assistance, the Court ordered this
matter submitted on the briefs in accordance with Local Rule 230(g).
2
28
Unless otherwise noted, the allegations in this section are drawn directly from the allegations of
Plaintiffs’ Complaint.
2
1
LEGAL STANDARD
2
3
Rule 54(b) allows courts to “direct entry of a final judgment as to one or more, but
4
fewer than all, claims or parties only if the court expressly determines that there is no just
5
reason for delay.” The original purpose of Rule 54(b) was, given the modern practice of
6
joining multiple parties and claims into a single action, to reduce uncertainty as to what
7
constituted a final judgment that was ripe for appeal. Dickinson v. Petroleum Conversion
8
Corp., 338 U.S. 507, 511–12 (1950); see also Gelboim v. Bank of Am. Corp., 135 S. Ct.
9
897, 902 (2015) (“Rule 54(b) permits district courts to authorize immediate appeal of
10
dispositive rulings on separate claims in a civil action raising multiple claims . . . .”).
11
In determining whether to direct entry of a final judgment under Rule 54(b), courts
12
must consider (1) whether it has rendered a “final judgment,” and then (2) “whether there
13
is any just reason for delay.” Wood v. GCC Bend, LLC, 422 F.3d 873, 878 (9th Cir.
14
2005) (quoting Curtiss-Wright Corp. v. Gen. Elec. Co., 446 U.S. 1, 7 (1980)). While
15
“[t]he Court has eschewed setting narrow guidelines for district courts to follow,” id. at
16
878 n.2, its “discretion is to be exercised ‘in the interest of sound judicial administration,’”
17
Curtiss-Wright, 446 U.S. at 8 (quoting Sears, Roebuck & Co. v. Mackey, 351 U.S. 427,
18
437 (1956)).
19
20
ANALYSIS
21
22
There is no doubt that the dismissal of the claims against Moore constitutes a final
23
judgment. By dismissing the claims against Moore, this Court’s order was “an ultimate
24
disposition of an individual claim entered in the course of a multiple claims litigation.”
25
Wood, 422 F.3d at 878 (quoting Curtiss-Wright, 466 U.S. at 7). The Court dismissed all
26
claims against Moore with prejudice after the close of the pleadings. The analysis does
27
not end there, however, as Rule 54(b) also requires the Court to make an express
28
///
3
1
finding that there is no “just reason for delay” in actually entering a judgment as to less
2
than all claims.
3
Moore here does not move for entry of final judgment so that it can file an
4
appeal—its motion to dismiss was successful—but instead so that it will not “be required
5
to expend more time and resources in monitoring the activity of this case, and of
6
potentially preventing any party from circumventing the Court’s Order.” Defs.’ Mot. for J.
7
at 3.
8
9
While Moore’s motion would not serve the original purposes of Rule 54(b), the
Ninth Circuit has not precluded such considerations from being considered by a district
10
court when ruling on a Rule 54(b) motion. See Continental Airlines, Inc. v. Goodyear Tire
11
& Rubber Co., 819 F.2d 1519, 1525 (9th Cir. 1987); cf. Bank of Lincolnwood v. Fed.
12
Leasing, Inc., 622 F.2d 944, 949 n.7 (7th Cir. 1980) (“The requirement that there be ‘no
13
just reason for delay’ is frequently referred to as a requirement that there be no just
14
reason to delay an appeal. This, however, is too narrow a reading of the Rule.”).
15
Moore, however, has not made clear why there would be any costs incurred
16
absent an entry of judgment under Rule 54(b). Furthermore, granting the 54(b) motion
17
would likely work to undermine “the historic federal policy against piecemeal appeals.”
18
Wood, 422 F.3d at 878 (quoting Curtiss-Wright, 466 U.S. at 7). If the Court were to grant
19
Moore’s motion, Plaintiffs would be obligated to seek an appeal immediately or else
20
forfeit the right to an appeal. An immediate appeal, though, would likely be
21
inappropriate. Plaintiffs have alleged many parallel claims against various defendants
22
and they should be analyzed on appeal as a single unit. See Jewel v. Nat’l Sec.
23
Agency, 810 F.3d 622, 625 (9th Cir. 2015) (finding that a Rule 54(b) motion should be
24
analyzed with regard to “the interrelationship of the claims so as to prevent piecemeal
25
appeals in cases which should be reviewed only as single units” (quoting Curtiss-Wright,
26
466 U.S. at 10)).
27
///
28
///
4
1
CONCLUSION
2
3
4
5
6
For the reasons above, Moore’s Motion for Judgment under Rule 54(b) is
DENIED.
IT IS SO ORDERED.
Dated: January 24, 2017
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
5
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?