JPMorgan Chase Bank, N.A. v. Larry J. Winget
JPMorgan Chase Bank, N.A. v. Larry J. Winget
Opinion
This appeal is not the first time we have seen Larry Winget and JPMorgan Chase. Nor will it likely be the last. Winget's appeal du jour follows the district court's award of interim attorneys' fees to Chase. But because this order is not a "final decision" under
I.
We need not revisit each "chapter in [this] longstanding dispute between the parties."
JPMorgan Chase Bank, N.A. v. Winget
,
The parties then litigated attorneys' fees-and whether Winget was personally liable for Chase's $ 12.6 million in fees and expenses.
JPMorgan Chase Bank, N.A. v. Winget
,
But Chase's final judgment against Winget did not end this decade-long saga. Rather than use the trust's assets to pay Chase, Winget transferred the assets out of his trust and filed a new lawsuit-asking the district court to declare that Chase had no recourse against those assets. In response, Chase filed counterclaims against Winget, alleging that the transfers were fraudulent conveyances designed to avoid paying Chase. The district court consolidated the new lawsuit with the previous litigation, characterizing it as "the functional equivalent of post-judgment proceedings." (Order, R. 686 at 2.)
The parties are still engaged in these post-judgment proceedings. For example, Winget is fighting over what assets Chase can collect, how Chase can collect those assets, and what those assets are worth. And as these collection efforts drag on, Chase periodically asks the district court for more attorneys' fees. The district court granted one such motion-awarding Chase another $ 2 million. These fees covered Chase's expenses from June 2015 through November 2016. But in doing so, the district court recognized the interim nature of the award, noting that "Chase's efforts to collect the Guaranteed Obligations are ongoing." (Order, R. 773 at 1.) These ongoing efforts include charging orders, depositions, requests for constructive trusts, writs of executions on stocks, continued discovery on the value of the assets in the trust, a potential trial to determine Chase's damages from Winget's fraudulent conveyances, and more requests for attorneys' fees. In sum, Chase's collection efforts continue in the district court.
II.
Winget now appeals the $ 2 million interim attorneys' fees award. To start, however, we "must determine that [we] have jurisdiction before proceeding to the merits."
Lance v. Coffman
,
So how then do we determine when a fee award is appealable? In most cases, the timing of the award provides the answer. For example, the district court can award attorneys' fees
before
it decides the merits of the case. We know the answer in this situation; "orders awarding interim fees in the course of litigation are not appealable."
Webster v. Sowders
,
*1106
Mohawk Indus., Inc. v. Carpenter
,
The district court can also award attorneys' fees at the same time it decides the merits of the case. Or it can give itself time to award attorneys' fees at substantially the same time.
Compare
Fed. R. Civ. P. 54(d)(2)(B)(i) (requiring a party to move for attorneys' fees "no later than 14 days after the entry of judgment");
with
id.
58(e) (allowing the district court to extend the time for filing a notice of appeal to award fees if it "act[s] before a notice of appeal has been filed"),
and
Fed. R. App. P. 4(a)(4)(A)(iii) (explaining that the "time to file an appeal runs from the entry of ... attorney's fees under Rule 54 if the district court extends the time to appeal under Rule 58");
Wikol ex rel. Wikol v. Birmingham Pub. Schs. Bd. of Educ.
,
Still, the district court can award attorneys' fees
after
it decides the merits of the case. This scenario is a familiar one-courts routinely resolve attorneys' fees and costs post-judgment.
See
Fed. R. Civ. P. 58(e) ("Ordinarily, the entry of judgment may not be delayed, nor the time for appeal extended, in order to tax costs or award fees.");
see also, e.g.
,
White v. New Hampshire Dep't. of Emp't Sec.
,
This approach especially makes sense here, where the post-judgment proceedings, in large part, were prompted by a new lawsuit-albeit one the district court consolidated into the existing case. Thus, while "[a] postjudgment order might seem final by definition because the judgment is already behind it," we still do not have a "final decision" under § 1291 until the district court completes the post-judgment proceedings.
In re Asbestos Litig.
,
This rule is easily applied in most post-judgment cases. A district court typically resolves all attorneys' fees in a single, final order; completing the post-judgment proceedings. In this situation, we would have independent jurisdiction over an appeal
*1107
from the final fee award (distinct from any previous appeal on the merits).
See
Budinich
,
But he did not-and so we now find ourselves in a different scenario. Winget appeals an interim award of attorneys' fees post -judgment, where the post-judgment proceedings are ongoing . In other words, this award of attorneys' fees did not end the post-judgment litigation. Thus, applying the post-judgment completeness rule, this appeal is not from a final, appealable order.
The Eleventh Circuit confirmed this rule and result-dealing specifically with a postjudgment fee award.
Mayer v. Wall Street Equity Grp., Inc.
,
This is the situation we face here. The district court has not completed the post-judgment litigation. The parties are still fighting over what assets Chase can collect, how Chase can collect those assets, and what those assets are worth. See supra p. 1105. And Chase continues to incur attorneys' fees in these collection efforts. Indeed, both parties admit that the post-judgment litigation is not final. According to Winget, the $ 2 million fee award is "premature" because "there is no final judgment." 1 (Winget's Reply Br. at 4; Winget Supp. Br. at 3.) And while Chase prefers to confirm its fees sooner rather than later (arguing that we have jurisdiction), Chase still described its motion for fees as "interim in nature" and that it "will from *1108 time to time return to this Court to seek further orders for the recovery of costs and expenses." (Mot. for Costs, R. 709 at 4; see also Chase's Br. at 14 (explaining that Chase is still "endeavoring to collect" and has not "finally prevailed in its second collection action").) This is exactly what Chase did in October 2018-filing another motion for attorneys' fees. (Mot. for Costs, R. 862 at 1 (asking for fees from December 2016 through June 2018).) The district court has not resolved this latest motion.
In sum, it is undisputed that this award for attorneys' fees is not the last order to be entered in the action. Instead, there is plenty left for the district court to resolve. Thus, viewing Chase's post-judgment collection efforts as separate and ongoing litigation, the interim award of attorneys' fees is not a final, appealable decision under
III.
There are, of course, exceptions to
Chase argues that this case fits within one of these narrow exceptions: post-judgment monitoring cases. In these "monitoring" cases, our sister circuits have allowed parties to appeal interim awards of attorneys' fees. But these cases are unique. They typically stem from consent decrees between parties-agreeing that long open-ended monitoring is needed to cure constitutional violations. For example, in one of the cases Chase relies on,
Balla v. Idaho
, there was a "twenty-year-old injunction" in place to fix constitutional violations in prisons.
This reveals the key commonality in the monitoring cases that is missing here-the inability to obtain post-judgment finality.
See
Gates v. Rowland
,
We have recognized this same commonality.
Webster
,
But here, despite the long litigation between the parties, Chase's collection efforts will have an end date. The district court will eventually enter a final amended judgment, resolving which assets Chase can collect from, and calculating Chase's total attorneys' fees.
See, e.g.
,
Cent. States
,
As a result, the $ 2 million interim attorneys' fee award is not a "final decision." And because our jurisdiction is limited to "final decisions of the district courts,"
Winget's main argument is that the district court mistakenly considered the 2015 litigation as part of the 2008 litigation. But this distinction does not matter. Whether we consider the ongoing litigation as "post-judgment" collection efforts-or instead, a separate lawsuit-Winget concedes that "there is no final judgment in the 2015 Action." (
See
Winget Supp. Br. at 3.) Essentially, Winget wants to eat his cake and have it, too. Winget wants us to have jurisdiction to reverse the fee award-but he wants us to reverse the fee award because there is no final judgment. But if the 2015 litigation is a separate lawsuit, then the general rule applies and "orders awarding interim fees in the course of litigation are not appealable."
Webster
,
Reference
- Full Case Name
- JPMORGAN CHASE BANK, N.A., Plaintiff-Appellee, v. Larry J. WINGET; Larry J. Winget Living Trust, Defendants-Appellants.
- Cited By
- 22 cases
- Status
- Published