Too Little, Too Late: Seventh Circuit Reaffirms the Limits of a Registration Proceeding Under 28 U.S.C. § 1963


In Goldman v. Gagnard, No. 12-2706 (June 27, 2014), the Seventh Circuit (in an opinion authored by Judge Tinder) waded into a long-running, continent-spanning dispute, which it characterized as “Dickensian” in character, arising out of water leaks in a California house that was sold ten years and five judicial proceedings ago. The court’s ultimate holding was that the sellers had waited too long to raise an error that a California state court allegedly made almost three years ago, and had thereby waived any error.

What’s important about the case, however, is that, in the course of reaching its conclusion, the court reminded us of its decision 14 years ago in Board of Trustees, Sheet Metal Workers’ Nat’l Pension Fund v. Elite Erectors, Inc., 212 F.3d 1031, 1034 (7th Cir. 2000), that when a federal judgment is registered in another district for collection, under 28 U.S.C. § 1963, the court in the receiving district may not modify the judgment but must enforce it as entered.

That rule rightly prevents what could be considerable confusion if multiple districts modified the judgment in potentially different ways. Any motion for relief from the judgment under Fed. R. Civ. P. 60(b), therefore, must be made in the rendering court.

The appellants (the Gagnards) attempted to use the appellee’s registration proceeding in the Northern District of Illinois as a means to raise a setoff issue that they previously had not litigated when a federal district court in California confirmed an arbitral award against them. The Seventh Circuit thought that the Gagnards had ample opportunity to litigate the issue in the California district court or, at least, in a related California state-court proceeding. The Northern District of Illinois was “a tribunal entrusted not with sifting through the substantive arguments, but simply with enforcing the judgment entered by the entities that invested significant resources and time in determining which parties owed what to whom.” Slip Op. 9. It thus “did not have jurisdiction to substantively ‘modify or annul’ the judgment of the California federal court.” Slip Op. 9-10.

View This Blog

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Foley & Lardner LLP | Attorney Advertising

Written by:


Foley & Lardner LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.