Amtrust Bank et al v. Lewis et al

Filing 247

ORDER that Judgment Creditors' 233 Motion for Contempt is DENIED with leave to refile pending a decision by the Ninth Circuit and Judgment Creditors' 234 Motion to Modify Injunction is DENIED with leave to refile pending a decision by the Ninth Circuit. Signed by Judge James C. Mahan on 3/23/2017. (Copies have been distributed pursuant to the NEF - SLD)

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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***

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FDIC as Receiver for AMTRUST BANK, f/k/a
Ohio Savings Bank, a federal savings bank,
et al.,

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ORDER

Plaintiff(s),

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Case No. 2:10-CV-439 JCM (VCF)

v.
REX H. LEWIS, et al.,

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Defendant(s).

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Presently before the court is a motion for contempt filed by plaintiffs Iota Cinnamon, LLC,

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Iota Coral, LLC, Iota Red, LLC, Iota Royal, LLC, and Iota Violet, LLC (collectively, as “judgment

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creditors”). (ECF No. 233). Defendant Rex Lewis filed a response (ECF No. 235), to which

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judgment creditors replied (ECF No. 240).

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Also before the court is judgment creditors’ motion to modify injunction. (ECF No. 234).

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Defendant Lewis filed a response (ECF No. 236), to which judgment creditors replied (ECF No.

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241).

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The facts of the instant case are familiar to the court and the parties. This dispute arose out

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of five commercial loan agreements guaranteed by judgment debtor. Each loan was secured by

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one or more deeds of trust on the relevant properties. After Nevada’s real estate market crashed

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in 2008, the borrowers on the loans defaulted and the banks foreclosed on the properties.

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Substantial debts remained after the foreclosure sales. (ECF No. 174).

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Judgment creditors filed a deficiency judgment action against judgment debtor as guarantor

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of the loans. (ECF No. 1). Judgment creditors moved for summary judgment, and judgment debtor

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did not oppose the motions. The court granted summary judgment and entered judgment against

James C. Mahan
U.S. District Judge

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judgment debtor and his various companies, jointly and severally, for $66,089,661.52. (ECF Nos.

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41, 59).
On July 3, 2014, the court entered an order enjoining defendant Lewis (judgment debtor)

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from transferring assets he currently owns which are worth $5,000.00 or more. (ECF No. 65).
On August 27, 2015, Lewis filed a notice of appeal. (ECF No. 182). The appeal is

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currently pending.

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On September 10, 2015, the court entered an order denying judgment creditors’ motion for

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an order holding Lewis in contempt (ECF No. 181) with leave to refile pending a decision by the

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Ninth Circuit. (ECF No. 199). In particular, the court held that “because Lewis’ appeal contests

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the basis on which the judgment creditors’ pending motions seek relief, the court denies the

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pending motions without prejudice and with leave to renew following a decision by the Ninth

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Circuit.” (ECF No. 199 at 3).

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In the instant motions, judgment creditors move for an order holding Lewis in contempt

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and an order modifying the court’s July 3rd order to include Catherine Lewis. (ECF Nos. 233,

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234).

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For the same reasons set forth in the court’s September 10th order (ECF No. 199),

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judgments creditors’ motions for contempt (ECF No. 233) and to modify injunction (ECF No. 234)

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will be denied with leave to refile pending a decision by the Ninth Circuit.

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Accordingly,

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IT IS HEREBY ORDERED, ADJUDGED, and DECREED that judgment creditors’

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motion for contempt (ECF No. 233) be, and the same hereby is, DENIED with leave to refile

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pending a decision by the Ninth Circuit.

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IT IS FURTHER ORDERED that judgment creditors’ motion to modify injunction (ECF

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No. 234) be, and the same hereby is, DENIED with leave to refile pending a decision by the Ninth

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Circuit.

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DATED March 23, 2017.

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James C. Mahan
U.S. District Judge

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UNITED STATES DISTRICT JUDGE

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