Ensource Investments LLC v. Tatham et al

Filing 264

ORDER granting 253 Plaintiff's Motion to Certify. Signed by Judge Marilyn L. Huff on 6/21/2021. (jmr)

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UNITED STATES DISTRICT COURT

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SOUTHERN DISTRICT OF CALIFORNIA

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ENSOURCE INVESTMENTS LLC, a
Delaware limited liability company,

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Case No.: 17-cv-00079-H-LL
ORDER GRANTING PLAINTIFF’S
MOTION TO CERTIFY

Plaintiff,

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v.

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MARK A. WILLIS,

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[Doc. No. 253.]
Defendant.

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On May 5, 2021, Plaintiff Ensource Investments LLC (“Plaintiff”) filed a motion to

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certify the judgment in this case for registration in foreign districts pursuant to 28 U.S.C.

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§ 1963. (Doc. No. 253.) Defendant Mark A. Willis (“Defendant”) did not oppose the

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motion. (Doc. No. 258.) The Court submitted the matter on June 3, 2021. (Doc. No. 261.)

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For the following reasons, the Court grants Plaintiff’s motion to certify the judgment for

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registration in a foreign district.
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17-cv-00079-H-LL

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Background

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On February 4, 2020, this case proceeded to a jury trial. (Doc. No. 195.) On

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February 10, 2020, the jury returned a verdict in favor of Plaintiff against Defendant with

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respect to Plaintiff’s Rule 10b-5 Securities and Exchange Act claim, in the amount of

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$205,000, and the jury found in favor of Defendant with respect to Plaintiff’s intentional

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misrepresentation claim. (Doc. Nos. 204, 211.) On February 19, 2020, the Court entered

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judgment consistent with the jury’s verdict. (Doc. No. 222.) On March 19, 2020,

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Defendant appealed the judgment. (Doc. No. 230.) The appeal is currently pending in the

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Ninth Circuit. Defendant has not filed a supersedeas bond pursuant to Rule 62(b).

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On May 5, 2021, Plaintiff filed the instant motion, asking the Court to certify the

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Court’s judgment in this case for registration in the Southern District of Texas and any

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other foreign jurisdiction where Defendant owns substantial assets. (Doc. No. 253.)

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Plaintiff served the motion on Defendant as well as his counsel of record in this case. (Doc.

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No. 253-3; Doc. No. 254.) Defendant did not timely oppose Plaintiff’s motion to certify

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within the time frame set forth in the Local Rules.

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As a result, on June 3, 2021, the Court ordered Plaintiff to serve Defendant’s

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appellate counsel with the motion to certify by June 10, 2021. (Doc. No. 261 at 2.) The

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Court then gave Defendant until June 17, 2021, to respond to or file a supersedeas bond.

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(Id.) Plaintiff mailed a copy of its motion to certify to Defendant’s appellate counsel on

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June 3, 2021. (Doc. No. 263.) Defendant still has not opposed Plaintiff’s motion or filed

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a supersedeas bond.

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Discussion

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A district court’s judgment becomes enforceable ten days after entry. Fed. R. Civ.

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P. 62(a). Where, as here, the judgment is pending appeal, “the judgment is only enforceable

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in the district in which it was rendered, unless the judgment is ‘registered’ in another district

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by court order.” Columbia Pictures Television, Inc. v. Krypton Broad. of Birmingham,

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Inc., 259 F.3d 1186, 1197 (9th Cir. 2001). The registration process is set forth in 28 U.S.C.

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17-cv-00079-H-LL

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§ 1963.1 In short, § 1963 “permits a district court to issue an order certifying a judgment

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for registration [in another district] during the pendency of an appeal upon a finding of

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‘good cause.’” Columbia Pictures, 259 F.3d at 1197. Good cause generally exists when

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there is “an absence of assets in the judgment forum, coupled with the presence of

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substantial assets in the registration forum.” Id. at 1197-98 (citations omitted).

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That is the case here. Earlier in this action, Defendant submitted a declaration

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claiming that he does not own any property in California, that he does not maintain a

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California bank account, and that he resides in Texas. (Doc. No. 8-3, Willis Decl. ¶¶ 8-

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10.) Additionally, Plaintiff filed a recent TransUnion report indicating that Defendant

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owns a $1.9 million property located in the Southern District of Texas. (Doc. No. 260 at

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28.) The report did not reveal that Defendant owns any assets in California. (Id.) As a

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result, good cause exists to certify the Court’s judgment for registration in the Southern

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District of Texas and other districts where Defendant owns substantial assets. See

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Columbia Pictures, 259 F.3d at 1197-98; Rockin Artwork, LLC v. Bravado Int’l Grp.

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Merch. Servs., Inc., No. C15-1492-JCC, 2017 WL 11437734, at *2 (W.D. Wash. Apr. 4,

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2017) (allowing, upon a showing of good cause, registration of judgment in “any other

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jurisdictions where [the defendant’s] assets may be found”); Brighton Collectibles, Inc. v.

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Marc Chantal USA, Inc., No. 06-CV-1584 H (POR), 2009 WL 10674204, at *2 (S.D. Cal.

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Aug. 17, 2009) (same).

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Conclusion

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For the foregoing reasons, the Court grants Plaintiff’s motion to certify the judgment

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for registration in a foreign district. The Court certifies the Court’s judgment in this case

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In pertinent part, § 1963 provides the following: “A judgment in an action for the recovery of
money or property entered in any . . . district court . . . may be registered by filing a certified copy of the
judgment in any other district . . . when the judgment has become final by appeal or expiration of the time
for appeal or when ordered by the court that entered the judgment for good cause shown. . . . 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.”
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for registration in any district where Defendant owns substantial assets, including the

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Southern District of Texas, pursuant to 28 U.S.C. § 1963.

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IT IS SO ORDERED.
DATED: June 21, 2021
MARILYN L. HUFF, District Judge
UNITED STATES DISTRICT COURT

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