Dugan et al v. Wiegand et al

Filing 92

ORDER granting 80 Motion to Register Judgment Pursuant to 28 U.S.C. § 1963. Signed by Magistrate Judge David S. Cayer on 10/20/2020. (Pro se litigant served by US Mail.)(mek)

IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF NORTH CAROLINA
CHARLOTTE DIVISION
CIVIL ACTION NO. 3:15-CV-00366-RJC-DSC
GUY M. DUGAN, KAREN DUGAN
AND MARK S. DUGAN AS TRUSTEE
OF THE GDM FAMILY TRUST,

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)
)
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Plaintiffs,
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v.
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PILIANA M. SCHAMENS, DAVID W.
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SCHAMENS, INVICTUS CAPITAL
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GROWTH AND INCOME FUND LLP,
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INVICTUS ASSET MANAGEMENT
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LLC, INVICTUS INCOME FUND,
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INVICTUS HOLDINGS LLP, INVICTUS )
REAL ESTATE INVESTMENT LLP,
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TRADEDESK CAPITAL LLC,
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INVICTUS FUNDS LLC, TRADEDESK
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FINANCIAL GROUP INC.,
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TRADEDESK FINANCIAL CORP. AND )
TRADESTREAM ANALYTICS LTD.,
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)
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Defendants.
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ORDER

THIS MATTER is before the Court on “Plaintiffs’ Motion to Register Judgment Pursuant
to 28 U.S.C. § 1963” (document # 80) filed August 11, 2020 and the parties’ associated briefs and
exhibits. This matter was referred to the undersigned Magistrate Judge pursuant to 28 U.S.C. §
636(b)(1) and the Motion is ripe for determination.
On October 2, 2017, the Honorable Robert J. Conrad, Jr. granted Plaintiffs’ Motion for
Default Judgment.

See document #69.

Plaintiffs were unable to locate assets owned by

Defendants in this district that would partially or fully satisfy the Judgment. On November 26,

2019, Defendant David W. Schamens purchased real property located in Greensboro, North
Carolina. Plaintiffs now move for leave to register the Judgment in the Middle District of North
Carolina.
Pursuant to 28 U.S.C. § 1963, a judgment may be entered in another district when the
judgment has become final or where ordered by the court that entered the judgment upon a showing
of good cause. The Judgment in this case is not final because an appeal is pending in the United
States Court of Appeals for the Fourth Circuit, Appellate Case No. 19-1476. Consequently,
Plaintiffs seek an order from this Court allowing them to register the Judgment in another district.
“Good cause exists when the defendant has substantial property in the foreign district and
insufficient property in the rendering district to satisfy the judgment.” United States v. D'Elegance
Mgmt. Ltd., Inc., 217 F.3d 843, 2000 WL 966034, at *8 (4th Cir. Jul 13, 2000) (unpublished); see
also Rubbermaid Inc. v. Signalife, Inc., (unpublished); see also Rubbermaid Inc. v. Signalife, Inc.,
No. 3:07cv33–RJC, 2009 WL 242991, at *1 (W.D.N.C. Jan. 30, 2009) (Conrad, C.J.); E.I. Du Pont
De Nemours & Co. v. Kolon Indus., Inc., Civil Action No. 3:09cv058, 2012 WL 1203327, at *2
(E.D. Va. Apr. 10 2012).
For the reasons detailed in Plaintiffs’ briefs, the Court finds that Plaintiffs have
demonstrated good cause to register the Judgment in another district pursuant to Section 1963.
First, Defendants did not file a supersedeas bond or otherwise move to stay enforcement of the
Judgment in this case. Second, Plaintiffs contend that while Defendants lack assets in this district,
an asset search indicates that Defendants purchased real property located in the Middle District of
North Carolina. Defendants’ response to the Motion does not deny ownership of this property but
rather argues that there is a $900,000 mortgage on the property as well as liens from creditors.

Third, based upon Defendants prior conduct in this case giving rise to entry of a default judgment,
the Court finds that Plaintiffs’ concerns that Defendants may transfer or otherwise conceal property
necessary to satisfy the Judgment in this case is justified. Accordingly, the Court finds that
Plaintiffs have shown good cause under Section 1963 to register the Judgment in the Middle
District of North Carolina and elsewhere.
Therefore, the Court GRANTS “Plaintiffs’ Motion to Register Judgment Pursuant to 28
U.S.C. § 1963” (document # 80).
The Clerk is directed to send copies of this Order to counsel for the parties and to the
Honorable Robert J. Conrad, Jr.
SO ORDERED.

Signed: October 20, 2020