Babcock v. Gold
| Decision Date | 20 August 1990 |
| Docket Number | Civil No. 1990-30 |
| Citation | 25 V.I. 325 |
| Parties | HARVEY A. BABCOCK, Plaintiff v. VICTOR A. GOLD, Defendant |
| Court | U.S. District Court — Virgin Islands |
Plaintiff's motion for summary judgment to collect on a foreign judgment. The District Court, Brotman, J., granted plaintiff's motion for summary judgment, holding the foreign judgment was entitled to full faith and credit, and computed award of interest according to the foreign court's substantive law.LEE J. ROHN, ESQ., Christiansted, V.I., for plaintiff
RUSSELL B. JOHNSON, ESQ., Christiansted, V.I., for defendant
MEMORANDUM
Before the court is plaintiff's motion for summary judgment to recover on a Judgment entered in the state of Michigan. For the following reasons, the court will grant plaintiff's motion.
Plaintiff seeks to recover on a May 23, 1986 Judgment entered in the state of Michigan, District Court for the 46th Judicial District. See Plaintiff's Memorandum of Law in Support of Motion for Summary Judgment, Exhibit 1. The Judgment as entered by the Michigan Court was for $334.13, plus $7,807.71 for mediation sanctions and actual attorney's fees, for a total Judgment of $8,141.84.1 Defendant does not contest the amount of the Judgment totaling $334.13; rather, he claims that the award of $7,807.71 for mediation sanctions and attorney's fees is not entitled to recognition in the Virgin Islands. Additionally, defendant claims that he has already paid$1,000.00 of the Judgment by way of a January 6, 1988 garnishment previously executed. See Defendant's Response to Motion for Summary Judgment, Exhibit A. Plaintiff has stipulated that defendant is entitled to a $1,000.00 credit due to the prior garnishment. See Plaintiff's Reply to Defendant's Response to Summary Judgment at 3. Plaintiff's complaint, which was actually a counter-complaint, was filed on January 10, 1983. See Plaintiff's Memorandum of Law in Support of Motion for Summary Judgment, Exhibit 2.
[1] Preliminarily, the court notes that plaintiff has pleaded in his complaint that this court has jurisdiction pursuant to 48 U.S.C.A. § 1612(a) (1987) and 28 U.S.C. § 1332 (West Supp. 1990). However, this court is not sitting in its capacity as a District Court of the United States pursuant to 48 U.S.C.A. § 1612(a) or in its capacity to hear diversity cases pursuant to 28 U.S.C.A. § 1332.2 Plaintiff's action, is more properly characterized as a common law action to collect on a foreign judgment or debt. Thus, this court has jurisdiction pursuant to 48 U.S.C.A. § 1612(b), the statute section granting this court general original jurisdiction over all causes whose jurisdiction was not previously vested in the Territorial Court. See also V.I. Code Ann. tit. 4, § 32 (Supp. 1989).
In opposition to plaintiff's motion, defendant claims that this court should reevaluate the amount of mediation sanctions and attorney's fees included in the Michigan Court's Judgment. In an attempt to support his argument, defendant quotes the Restatement (Second) of Conflicts of Laws § 101 & comment (c) (1971) which state:
Id. Defendant argues that pursuant to this section, particularly comment c, this court may review the award of costs and attorney's fees included in the Michigan Judgment. A cursory reading of the Re-statement's language quoted above, however, makes clear that defendant's argument is without merit. It is not the costs assessed in the first judgment which are allowed in accordance with the law of the second forum. Rather, it is the costs incurred in the second forum collecting on the judgment previously entered which are allowed in accordance with the law of the second forum. Nowhere in the Restatement is there authority or support for defendant's argument.
[2] The Michigan Judgment is entitled to full faith and credit under U.S. Const. Art. IV, § 1 as applied to the federal courts by 28 U.S.C.A. § 1738 (1966)3, and specifically to the Virgin Islands by 48 U.S.C.A. § 1561 (1987).4 See Migra v. Warren City School Dist. Bd. of Educ, 465 U.S. 75, 80-81 (1984). As stated by the Supreme Court in Migra, "It is now settled that a federal court must give to a state court judgment the same preclusive effect as would be given that judgment under the law of the State in which the judgment was rendered." Id. at 81. See also Kremer v. Chemical Constr. Corp., 456 U.S. 461, 466 (1982). According full faith and credit to the state court judgment precludes any inquiry by this court into the merits of the cause of action, the legal consistency of the decision, or the validity of the legal principles upon which the Michigan Judgment is basedunless it can be shown that there was a lack of personal or subject matter jurisdiction of the rendering court, fraud in procurement of the judgment, satisfaction, lack of due process or other grounds that make the judgment invalid or unenforceable. Baldwin v. Heinold Commodities, Inc., 363 N.W.2d 191, 194 (S.D. 1985); Estate of Pettit v. Levine, 657 S.W.2d 636, 640-41 (Mo. App. 1983). See also Bredin v. Bredin, 140 F. Supp. 132, 134 (D.V.I. 1956) (citations omitted).
[3] In the instant case, defendant has stated that he does not deny the validity in the Virgin Islands of the principal amount of $334.13 awarded in the Michigan judgment. Defendant challenges only that portion of the judgment awarding mediation sanctions and attorney's fees. However, as discussed above, this court may not disturb the Michigan court's determination in that regard. Consequently, plaintiff's motion for summary judgment will be granted insofar as he moves for recognition and localization of the amount of $8,141.84 as the amount of the Judgment.
Plaintiff also seeks an award of interest on the judgment. Plaintiff asserts that this court should apply Michigan law and award 12% interest from January 10, 1983, the date plaintiff's claim against defendant was filed. Defendant did not address the issue of interest raised by plaintiff.
[4] The matter of what interest to award is substantive and consequently is governed by the laws of the state which rendered the judgment. See, e.g., Slade v. Slade, 81 N.M. 462, 468 P.2d 627, 631 (1970) (citations omitted). Therefore, this court looks to Michigan law to determine whether, and at what rate, to apply interest to the Michigan Judgment.
The relevant Michigan statute relating to awarding interest on judgments is Mich. Comp. Laws § 600.6013 (1987), which states in pertinent part:
Id. "The purpose of an award of interest under the statute is to compensate the prevailing party for the expenses incurred in bringing an action and for the delay in receiving money damages." McDaniel v. Macomb County Bd. of Rd. Comm'rs, 169 Mich. App. 474, 426 N.W.2d 747, 749 (1988) (citation omitted), appeal denied, 432 Mich. 888 (1989). See also Wood v. Detroit Auto. Inter-Insurance Exch., 413 Mich. 573, 321 N.W. 2d 653, 662 n. 17 (1982). This statute is remedial in nature and is to be liberally construed in order to effectuate its purpose. Mich. Comp. Laws § 600.102 (1989). See American Anodco, Inc. v. Reynolds Metals Co., 572 F. Supp. 895, 896 (W.D. Mich. 1983) (), aff'd, 743 F.2d 417 (6th Cir. 1984). But see Schwartz v. Piper Aircraft Corp., 90 Mich. App. 317, 282 N.W.2d 306, 308 (1979).
Although plaintiff requests that this court grant him prejudgment interest on the entire $8,141.84 from the date the counter-complaint was filed, the matter is not so easily resolved. To resolve the issue this court will look to Michigan law. Interest after damages are awarded on a counter-complaint runs from the date of the filing of the counter-complaint. Goodwin, Inc. v. Coe, 62 Mich. App. 405, 233 N.W.2d 598, 603 (1975). The question this court confronts, however, is whether prejudgment interest should be granted on the amount of mediation sanctions and attorney's fees imposed by the Michigan court. The parties have not addressed this issue in their briefs. Plaintiff argues that prejudgment interest on the entire amount of the judgment should be allowed, though he does not address the specific issue of whether interest should be awarded on entire amount of the Judgment, or on only the $334.13. Plaintiff cites no case law for his position. Defendant, on the other hand, has not even responded to the argument put forth by plaintiff. Thus, the court is not aided on this issue by the parties' briefs.
After examining the Michigan cases as discussed below, this court concludes that prejudgment interest should be awarded only on the award of $334.13, and not the award of mediation sanctions and attorney's fees. However, this court further concludes that interest on the entire amount of the judgment should be allowed from the date of Judgment, May 23, 1986, until January 6, 1988, the date on which the parties agree that defendant paid $1,000.00 of the Judgment by wayof a garnishment. Consequently, the principal on which post-judgment interest will be allowed shall be reduced by $1,000.00 as of January 6, 1988. Interest will be assessed at the...
To continue reading
Request your trial
-
Morton v. Morton
...on a foreign judgment has been previously recognized as a common law action to collect on a foreign debt or judgment. In Babcok v. Gold, 25 V.I. 325 (D.V.I.1990), the plaintiff sought recovery on a money judgment entered by a Michigan court. The District Court found that the plaintiff's act......