Harry v. KCG Americas LLC

Background

Plaintiffs Bright Harry and Ronald S. Draper filed an ex parte application—a request made without the usual advance participation of the opposing side—to disqualify Judge Haywood S. Gilliam, Jr. from this case. Judge Gilliam referred the application to the clerk for random assignment to another district judge, and Judge Charles R. Breyer was selected to decide it.

Arguments and Analysis

Under 28 U.S.C. § 144 and the Northern District of California’s local rules, the question was whether a reasonable person who knew all the facts would reasonably question Judge Gilliam’s impartiality. Judge Breyer concluded that the answer was no.

The plaintiffs argued that Judge Gilliam had improperly reassigned the case to himself. Judge Breyer rejected that argument, explaining that the defendants had properly filed a motion in the lowest-numbered related case to determine whether the cases should be treated as related. The local rules required that process, and the judge assigned to the lowest-numbered case could order later-filed related cases reassigned to that judge. Judge Breyer stated that nothing about this process violated the plaintiffs’ due-process rights, jury-trial rights, subject-matter jurisdiction limits, or another legal rule.

The plaintiffs also alleged that Judge Gilliam had dismissed their claims and declared them vexatious litigants. Judge Breyer explained that dismissal of a lawsuit generally does not show bias or hostility and that the plaintiffs had not identified another legitimate reason to question Judge Gilliam’s impartiality.

Disposition

Judge Breyer denied the plaintiffs’ ex parte application for disqualification. The order did not decide the underlying claims against KCG or the other defendants.