Mail America Communications, Inc. v. World Healing Center Church, Inc.

Background

On April 7, 2021, the court entered a final judgment against World Healing Center for $2,993,221.74, plus interest and costs. World Healing Center filed a notice of appeal on April 26, 2021. It had not sought a stay of enforcement pending the appeal and had not posted a supersedeas bond, which is a bond used to pause enforcement of a judgment during an appeal.

Mail America filed two motions: one to register the judgment in other federal districts under 28 U.S.C. § 1963, and another seeking attorney’s fees and costs under Federal Rule of Civil Procedure 54(d).

Registration of the Judgment

The court held that a federal judgment may be registered in another district while an appeal is pending when the court finds good cause. The court explained that good cause may be shown when the judgment debtor has substantial property in another district and insufficient property in the district where the judgment was entered. Exact proof of the debtor’s assets is not required.

The parties did not dispute that World Healing Center had no assets in the Southern District of New York sufficient to satisfy the judgment. Mail America submitted an asset search and evidence that World Healing Center maintained administrative operations in Grapevine, Texas, and its central headquarters in Aliso Viejo, California. World Healing Center submitted no contrary evidence and offered no substantial reason to deny registration.

The court therefore granted Mail America’s motion to register the judgment in the Northern District of Texas, the Southern District of California, and other districts where World Healing Center might later be found to have assets.

Attorney’s Fees and Costs

The court stated that the pending appeal could affect which party ultimately qualifies as the prevailing party for purposes of attorney’s fees and costs. Because the appeal could change the outcome relevant to that determination, the court denied Mail America’s motion for attorney’s fees and costs as premature, without prejudice to renewal within 14 days after the appellate mandate is entered on the docket.

Disposition

The motion to register the judgment was granted. The motion for attorney’s fees and costs was denied without prejudice to renewal within 14 days of entry of the appellate mandate. The Clerk was directed to terminate the open motions identified as ECF Nos. 58 and 63.