Sovereign Bank v. REMI Capital, Inc., 042320 FED3, 18-3319
|Opinion Judge:||RESTREPO, CIRCUIT JUDGE|
|Party Name:||SOVEREIGN BANK v. REMI CAPITAL, INC.; ERIK A. KAISER, individually *Jenzack Partners, LLC, as assignee for Sovereign Bank, Appellant *(Pursuant to Fed. R. App. P. 12(a))|
|Attorney:||Alissa L. Poynor Barry G. Braunstein Riemer & Braunstein LLP Counsel for Appellant Joseph B. Fiorenzo Mark S. Olinsky David W. Phillips Sillis Cummis & Gross P.C. One Riverfront Plaza Counsel for Appellee|
|Judge Panel:||Before: CHAGARES, RESTREPO, and BIBAS, Circuit Judges.|
|Case Date:||April 23, 2020|
|Court:||United States Courts of Appeals, Court of Appeals for the Third Circuit|
Argued on March 10, 2020
Appeal from the United States District Court for the District of New Jersey (D.C. No. 3-09-cv-01580) District Court Judge: Honorable Peter G. Sheridan
Alissa L. Poynor Barry G. Braunstein Riemer & Braunstein LLP Counsel for Appellant
Joseph B. Fiorenzo Mark S. Olinsky David W. Phillips Sillis Cummis & Gross P.C. One Riverfront Plaza Counsel for Appellee
Before: CHAGARES, RESTREPO, and BIBAS, Circuit Judges.
RESTREPO, CIRCUIT JUDGE
Appellant Jenzack Partners, LLC appeals the District Court's order applying the federal statutory interest rate to a consent judgment resolving a contractual dispute. Jenzack urges us to reverse the District Court and hold that the underlying contracts provide the applicable post-judgment interest rate. Because the District Court's order was not final under 28 U.S.C. § 1291, we will dismiss Jenzack's appeal for lack of jurisdiction.
On January 25, 2007, Appellees REMI Capital, Inc., and Erik A. Kaiser, REMI's president, entered into certain financing agreements with Sovereign Bank to obtain a $15 million line of credit, including a guarantee and promissory note providing a prime interest rate1 plus six percent on the loan amount before and after entry of a judgment.
REMI became insolvent and was unable to pay the required amounts under the loan agreements. Sovereign Bank then sent REMI a default notice and demanded payment of the entire balance, including unpaid interest. Because REMI did not make any payments following the default notice, Sovereign Bank filed a complaint against REMI and Kaiser on April 3, 2009. One year later, Sovereign Bank filed a motion for summary judgment.
While the motion was pending, the parties came to an agreement, which the District Court entered as a consent judgment on September 1, 2010. The consent judgment holds REMI and Kaiser jointly and severally liable for $1, 560, 430.24. Sovereign Bank assigned its right, title, and interest in the consent judgment to Jenzack on July 16, 2012. Following a dispute on the remaining balance, Kaiser filed a motion to declare the consent judgment satisfied pursuant to Federal Rule of Civil Procedure 60(b)(5). On September 24, 2018, the District Court denied Kaiser's motion without prejudice and set the post-judgment interest rate at the federal rate of 0.26%, as determined by 28 U.S.C. § 1961(a). Jenzack filed a notice of appeal on October 17, 2018.
The District Court had diversity...
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