Delco, Inc. v. Corporate Management, Inc. et al

Filing 135

ORDER denying 132 Motion to Set Aside. Signed by District Judge Keith Starrett on 10/12/12 (scp)

IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF MISSISSIPPI
HATTIESBURG DIVISION
DELCO, INC.
v.

PLAINTIFF
CIVIL ACTION NO. 2:11-CV-90-KS-MTP

CORPORATE MANAGEMENT, INC., et al.

DEFENDANTS

ORDER
For the reasons stated below, the Court denies Defendants’ Motion to Set Aside
[132]. Defendants first argue that the Court “violated” its own previous order by
ordering the disbursement of the disputed funds to the Circuit Court of Greene County,
Mississippi. Defendants are mistaken. The Court’s Memorandum Opinion and Order
[128] of August 2, 2012, merely stated that the Court would release the funds at some
point in the future. The Court did not specify to whom it would release the funds.
Next, Defendants argue that the Court lacked jurisdiction to order the
disbursement of the funds. Defendants have not cited any legal authority in support
of this position. The Court notes, however, that its jurisdiction was intact when it
entered the parties’ agreed order for the deposit of the funds.
Rule 67 permits parties to deposit disputed funds into the Court’s registry. FED.
R. CIV. P. 67(a). The purpose of the rule “is to relieve the depositor of the responsibility
for a fund in dispute.” Muncy v. City of Dallas, 123 F. App’x 601, 605 (5th Cir. 2005).
“Once funds are deposited, the court should determine ownership and make
disbursements.” Gulf States Utils. Co. v. Ala. Power Co., 824 F.2d 1465, 1474 (5th Cir.
1987). The Court has made no such determination of ownership, and, as such, it would

be inappropriate to release the funds to Defendants.
Indeed, Defendants argue that the “proper forum for disposition of the funds is
in a court which possesses subject matter jurisdiction.” The Court agrees. Therefore,
as previously ordered, the funds will be disbursed to the Circuit Court of Greene
County, Mississippi, which is capable of determining ownership of the funds and
disbursing them to the appropriate party.
SO ORDERED AND ADJUDGED this 12th day of October, 2012.

s/ Keith Starrett
UNITED STATES DISTRICT JUDGE

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