PRESIDENTIAL FACILITY, LLC v. CAMPBELL et al

Filing 31

MEMORANDUM AND/OR OPINION. SIGNED BY HONORABLE MARK A. KEARNEY ON 4/7/15. 4/7/15 ENTERED AND COPIES E-MAILED.(mbh, )

IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF PENNSYLVANIA

PRESIDENTIAL FACILITY, LLC

CIVIL ACTION

v.
NO. 14-7076
CAMPBELL, et al

ORDER-MEMORANDUM
AND NOW, this 7th day of April 2015, upon consideration of Plaintiffs Motion for

Reconsideration and to Alter or Amend a Judgment (ECF Doc. No. 30), it is hereby ORDERED:
1.

Plaintiffs Motion for Reconsideration seeking additional limited discovery it

claims is necessary to file an Amended Complaint to gather facts necessary to plead a reverse
veil piercing claim is DENIED. Plaintiff is not prejudiced. For over five months, it has enjoyed
and will continue to enjoy, the ability to pursue execution discovery in either Pennsylvania state
court or in this Court with personal jurisdiction over all named defendants through its prior
pending judgment at No. 14-MC-263 ("Judgment").

Under Fed.R.Civ.P. 69, Plaintiff may

pursue execution discovery not only from the defendants in No. 14-MC-263, but also from third
parties concerning the judgment debtors' assets and concealment of his assets from persons and
entities who Plaintiff believes have a sufficient relationship with the judgment debtor. See
Falicia v. Advanced Tenant Services, Inc., 235 F.R.D. 5 (D.D.C. 2006)(non-party companies);
U.S. v. Neumann, No. 86-0034-F, 1999 WL 156151 (D. Mass. 1999) (spouse); National Union
Fire Ins. Co. v. Van Waeyenberghe, 148 F.R.D. 256, 257 (N.D. Ind. 1993) (judgment debtor
must answer questions regarding spouse assets); In re Wesco Distribution, Inc., No. 2:11-cv-739,
2013 WL 432932, at *2 (W.D. Pa. 2013)(discovery permitted where narrowly tailored to find
assets to satisfy the debt). This discovery, under either the Federal or Pennsylvania Rules of Civil

Procedure, allows Plaintiff to identify assets from which a judgment may be satisfied and,
accordingly, Plaintiff is permitted broad inquiry to uncover the judgment debtor's hidden or
concealed assets. Plaintiff has ample opportunity to take discovery in either the state or federal
court to collect on the pre-existing Judgment and then timely evaluate whether it wishes to
pursue a claim based on those facts. Plaintiff, however, may not obtain discovery in this case to
find facts to support its present Complaint.
2.

Plaintiffs Motion for Reconsideration seeking to vacate this Court's dismissal of

the fraudulent conveyance claim is DENIED.

Plaintiff has not argued a new issue of law

demonstrating that Pennsylvania changed its interpretation of the statute of limitations. The
Pennsylvania Superior Court's holding in K-B Building Co. v. Sheesley Construction, Inc., 833
A.2d 1132 (Pa. Super. Ct. 2003), continues to define Pennsylvania's statute of limitations under
the Uniform Fraudulent Transfer Act, 12 Pa. C.S.A. §§ 5105-5110 (the "UTFA"). A plain
reading of UFTA's §5109(1) also confirms that the statute of limitations relates to a transfer "as
to present and future creditors".

As such, the plain reading would include those "future"

creditors who, as yet, do not have a judgment. Accordingly, while we recognize that other states
interpret UFTA's statute of limitations differently than Pennsylvania, we apply K-B Building

Co. 's mandate to determine that Plaintiffs fraudulent conveyance claim is time barred.

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