Javelin Global Commodities Ltd. v. Lexington Coal Company, LLC

Background

Javelin Global Commodities (UK) Ltd. and Bluegrass Commodities, LP obtained a judgment against Lexington Coal Company, LLC, which the court entered on November 5, 2024. Lexington filed a notice of appeal. The plaintiffs then moved under 28 U.S.C. § 1963 to register the judgment in the Eastern District of Kentucky and the Southern District of West Virginia.

Legal standard

Section 1963 allows a judgment for the recovery of money or property to be registered in another federal district after it becomes final by appeal or the expiration of the appeal period. When the judgment has been appealed, the court that entered it may allow registration in another district for good cause. The court stated that good cause may be shown by establishing that the judgment debtor has substantial property in the other district and insufficient property in the district where the judgment was entered. It also stated that a creditor need not provide exact evidence of the debtor’s assets when locating property in another district is difficult.

Court’s reasoning

The court found that the plaintiffs had shown good cause. They showed that Lexington was not registered to do business in New York and that New York had no coal mines or coal reserves, supporting the conclusion that Lexington did not have property in the Southern District of New York. They also showed that Lexington’s principal place of business was in the Eastern District of Kentucky and that Lexington was registered to do business and owned property in the Southern District of West Virginia. The court found it reasonable to infer that the plaintiffs might be able to enforce the judgment in those districts.

Disposition

Judge Hellerstein granted the plaintiffs’ motion to register the judgment. The plaintiffs may file the judgment in the Eastern District of Kentucky and the Southern District of West Virginia. The clerk was directed to terminate the motion, identified as ECF No. 130.