MAKS, Inc et al v. EODT General Security Company et al

Filing 487

ORDER granting in part and denying in part 475 Motion to Increase Supersedeas Bond or, in the Alternative, to Lift Stay on Post Judgment Discovery and Compel Discovery by MAKS Inc General Trading and Contracting Co.. Signed by Magistrate Judge H Bruce Guyton on 5/23/14. (JBR)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF TENNESSEE
AT KNOXVILLE
MAKS, INC. GENERAL TRADING AND
CONTRACTING CO.,
Plaintiff / Counter-Defendant,

v.
STERLING OPERATIONS, INC.,
Formerly known as
EOD TECHNOLOGY, INC.,
Defendant / Counter-Plaintiff.

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No. 3:10-CV-443-TAV-HBG

MEMORANDUM AND ORDER
This case is before the undersigned pursuant to 28 U.S.C. § 636, the Rules of this Court,
and the referral of the District Judge.
Now before the Court is a Motion to Increase Supersedeas Bond, or in the Alternative, to
Lift Stay on Post Judgment Discovery and Compel Discovery [Doc. 475], filed by MAKS Inc.
General Trading and Contracting Company (“MAKS”). In its motion, MAKS moves the Court
to increase its supersedeas bond from $2,300,000 to $3,000,000. In support of this request,
MAKS notes that the Court recently awarded MAKS approximately $650,000.00 in prejudgment
interest, attorneys’ fees, and taxable costs. MAKS argues that the bond obtained by Defendant
Sterling Operations Inc., (“Sterling”), should be increased to reflect this additional award. In the
alternative, MAKS moves the Court to lift the stay on post-judgment discovery so that it may
obtain information about the assets from which it could potentially collect its judgment.

Sterling responded to the Motion to Increase Supersedeas Bond on May 13, 2014.
Sterling concedes that MAKS’s award now totals $2,626,921.34, and Sterling agrees that the
bond should be increased to reflect this amount. The parties appear to disagree as to the period
for post-judgment relief. Sterling proposes that any increase in the bond reflect three years of
post-judgment interest totaling $11,821.15. Sterling also proposes the inclusion of $1,257.51, as
a margin of error assurance. Thus, Sterling suggests a new bond amount of $2,640,000.00.
The Court has considered the parties’ filings and the procedural posture of this case.
Consistent with the parties’ agreement, the Court finds that the award to MAKS now totals
$2,626,921.34. The Court finds that Sterling’s suggestion that post-judgment interest for a
period of three years be included in the bond amount is reasonable, and the Court finds that the
inclusion of $1,257.51, as a margin of error, is appropriate. The Court finds that security in
excess of $2,640,000.00 is not necessary given the amount of MAKS award. Thus, the Court
finds that the proposed security amount of $2,640,000.00 is reasonable and appropriate under the
circumstances.
The Court finds that Sterling has already secured a bond in the amount of $2,300,000.00,
and that the Clerk of Court has $40,268.79 from Sterling on deposit. Therefore, the Court will
order that Sterling increase its bond by $299,731.21.
Accordingly, the Motion to Increase Supersedeas Bond, or in the Alternative, to Lift Stay
on Post Judgment Discovery and Compel Discovery [Doc. 475] is GRANTED IN PART and
DENIED IN PART, as follows:
1. Sterling is ORDERED to obtain a bond of at least $299,731.21, to serve as postjudgment security in this matter, on or before June 2, 2014;

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2. Sterling SHALL FILE a notice that it has secured the appropriate bond on or
before June 2, 2014.
3. If the bond is obtained from an entity other than Hanover Insurance Company, the
company that provided the previous bond, then Sterling SHALL MOVE for
approval of the bond on or before June 2, 2014. MAKS SHALL RESPOND to
any motion for approval of bond on or before June 9, 2014.
4. To the extent MAKS sought an increase in the bond in excess of $299,731.21,
that request is DENIED;
5. Because the Court is ordering Sterling to increase its bond, the Court finds that
MAKS’s alternative request to lift the stay on post-judgment discovery is moot,
and it is DENIED AS MOOT.
IT IS SO ORDERED.
ENTER:

s/ H. Bruce Guyton
United States Magistrate Judge

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