Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_18-cv-00253/USCOURTS-cand-3_18-cv-00253-3/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 28:1332 Diversity-Breach of Contract

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United States District Court

Northern District of California

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

TNF GEAR, INC.,

Plaintiff,

v.

VF OUTDOOR, LLC,

Defendant.

Case No. 18-cv-00253-JSC 

ORDER CERTIFYING JUDGMENT AS 

TO TNF GEAR AND KL SPORT FOR 

REGISTRATION IN ANOTHER 

DISTRICT 

Re: Dkt. No. 109

William and Linda Vinci and TNF Gear, Inc., a Vermont corporation of which the Vincis 

are the sole shareholders, filed this civil action against VF Outdoor, LLC, which operates a 

division under the brand name “North Face.” VF Outdoor filed counterclaims against the Vincis

and KL Sport Inc., TNF Gear’s predecessor. The claims and counterclaims arose out of a business 

arrangement between the parties wherein TNF Gear acted as a reseller of The North Face 

merchandise. 

In July 2019, the Court granted VF Outdoor’s motion for summary judgment and entered

judgment in its favor on its breach of contract counterclaims. (Dkt. No. 98.) The Vincis and TNF 

Gear thereafter filed a notice of appeal and VF Outdoor filed the underlying motion to certify the 

judgment for registration for enforcement in another district. (Dkt. Nos. 103 & 109.) After the 

motion was filed, the Vincis filed a suggestion of bankruptcy indicating that they had filed a 

voluntary petition for relief under Chapter 7. (Dkt. No. 111.) The Court issued an order staying 

proceedings as to the Vincis under 11 U.S.C. § 362(a)(1) and ordering Plaintiffs to file a further 

statement if they contended that the bankruptcy stay extended to TNF Gear and KL Sport. (Dkt. 

No. 112.) Plaintiffs did not file anything further and did not oppose the underlying motion. 

Because VF Outdoor’s motion was based on the contention that the Vincis have substantial 

Case 3:18-cv-00253-JSC Document 115 Filed 11/06/19 Page 1 of 3
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United States District Court

Northern District of California

assets in Vermont and proceedings as to the Vincis are stayed under Section 362(a)(1), the Court 

requested supplemental briefing regarding whether there was nonetheless good cause to grant the 

motion as to TNF Gear (and its predecessor KL Sport) given that VF Outdoor attests that neither 

has any assets from which it could collect. (Dkt. No. 113.) The Court has considered VF 

Outdoor’s supplemental briefing, finds that there is good cause, and GRANTS the motion to 

certify the Court’s judgment for registration for enforcement in another district under 28 U.S.C. § 

1963.

DISCUSSION

Generally, a judgment becomes final and enforceable ten days after judgment is entered. 

Fed. R. Civ. P. 62(a). At that time, a prevailing party is entitled to execute upon a judgment. See

Columbia Pictures Television, Inc. v. Krypton Broad. of Birmingham, Inc., 259 F.3d 1186, 1197 

(9th Cir. 2001). Where a party has filed an appeal, the judgment is only enforceable in the district 

in which it was rendered, unless the judgment is “registered” in another district by court order. Id. 

(citing 28 U.S.C. § 1963). The process for registering a judgment is set forth in 28 U.S.C. § 1963:

A judgment in an action for the recovery of money or property entered in any 

[ ] district court ... may be registered by filing a certified copy of the 

judgment in any other district [ ], ... when the judgment has become final by 

appeal or expiration of the time for appeal or when ordered by the court that 

entered the judgment for good cause shown .... A judgment so registered shall 

have the same effect as a judgment of the district court of the district where 

registered and may be enforced in like manner.

Id. “Section 1963 thus permits a district court to issue an order certifying a judgment for 

registration during the pendency of an appeal upon a finding of ‘good cause.’” Columbia Pictures, 

259 F.3d at 1197 (quoting 28 U.S.C. § 1963).

The good cause standard is not defined in the statute, but in Columbia Pictures the Ninth 

Circuit adopted the following standard: “an absence of assets in the judgment forum, coupled with 

the presence of substantial assets in the registration forum” constitutes good cause. Columbia

Pictures, 259 F.3d at 1197–98. Here, there is no suggestion that any Plaintiffs have assets in 

California. (Dkt. No. 109-1 at ¶¶ 11-13.) Thus, the first factor of the good cause standard is easily 

met. 

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United States District Court

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With respect to the second factor, VF Outdoor contends that the Vincis have substantial 

assets in Vermont where it seeks to register the judgment, but concedes that the Court cannot 

certify the judgment as to them given the bankruptcy stay. VF Outdoor nonetheless insists “‘the 

distinct possibility of [a judgment creditor] being faced with an unsatisfied judgment’ sufficiently 

satisfies the ‘good cause’ threshold.” See UMG Recordings, Inc. v. BCD Music Grp., Inc., No. CV 

07-05808 SJO (FFMx), 2012 WL 12882702, at *3 (C.D. Cal. Oct. 3, 2012) (quoting Associated 

Bus. Tel. Sys. Corp. v. Greater Capital Corp., 128 F.R.D. 63, 66-67 (D. N.J. 1989)); see also In re 

Reddy, 589 B.R. 867, 873 (Bankr. E.D. Cal. 2018) (“the possibility that the plaintiff will have an 

unsatisfied judgment if not allowed to register in other districts before or pending appeal 

ordinarily suffices as ‘good cause.’”). Further, VF Outdoor emphasizes that while TNF Gear’s tax 

returns indicate that it did not have any assets as of the end of 2017, TNF Gear has continued to 

pursue the appeal of this court’s judgment (through counsel) following the Vincis’ personal 

bankruptcy filing. As Vermont corporations with their principal places of business in Vermont 

and sole shareholders in Vermont, TNF Gear and KL Sports assets, if any, would most likely be in 

Vermont. (Dkt. No. 114-1 at ¶¶ 7-8.)

Given that VF Outdoor is unlikely to be able to collect on the judgment here, the Court 

finds that VF Outdoor has demonstrated good cause under 28 U.S.C. § 1963 for allowing it to 

register the judgment against TNF Gear and its predecessor KL Sport in the District of Vermont. 

The motion is GRANTED.

This Order disposes of Docket No. 109.

IT IS SO ORDERED.

Dated: November 6, 2019

JACQUELINE SCOTT CORLEY

United States Magistrate Judge

Case 3:18-cv-00253-JSC Document 115 Filed 11/06/19 Page 3 of 3