Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_06-cv-06654/USCOURTS-cand-4_06-cv-06654-5/pdf.json

Parties Involved:
Board of Trustees of General Employees Trust Fund
Plaintiff
General Employees Trust Fund
Plaintiff
Victory Building Maintenance, Inc.
Defendant

Document Text:

United States District Court

For the Northern District of California

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Although Federal Rule of Civil Procedure 59(e) generally

requires any motion to alter or amend the judgment to be filed

within ten days of the entry of judgment, the Ninth Circuit has

held that motions that do not go to the merits of the case are not

subject to the restrictions of Rule 59(e). Cigna Prop. & Cas. Ins.

Co. v. Polaris Pictures Corp., 159 F.3d 412, 421 (9th Cir. 1998)

(citing White v. N.H. Dep't of Employment Sec., 455 U.S. 445, 451

(1982)). Plaintiffs' motion does not go to the merits of the case.

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

GENERAL EMPLOYEES TRUST FUND and

BOARD OF TRUSTEES OF GENERAL

EMPLOYEES TRUST FUND,

Plaintiffs,

v.

VICTORY BUILDING MAINTENANCE, INC.,

Defendant.

 /

No. C 06-6654 CW

ORDER ON PLAINTIFFS'

MOTION TO AMEND THE

JUDGMENT TO ADD

JUDGMENT DEBTORS

Plaintiffs General Employees Trust Fund and its board of

trustees move to amend the judgment to add Victory Building

Materials, Inc. and VICTORYBUILDINGMATERIALSINC (collectively VB

Materials) as judgment debtors. The Court entered default

judgement in favor of Plaintiffs on May 2, 2007.1 

Federal Rule of Civil Procedure 69(a) provides, 

A money judgment is enforced by a writ of execution,

unless the court directs otherwise. The procedure on 

execution--and in proceedings supplementary to and in 

Case 4:06-cv-06654-CW Document 30 Filed 01/15/08 Page 1 of 3
United States District Court

For the Northern District of California

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aid of judgment or execution--must accord with the

procedure of the state where the court is located, but a

federal statute governs to the extent it applies.

Under California Code of Civil Procedure § 187, a trial court has

the authority to amend a judgment to add a judgment debtor that is 

a successor of the original judgment debtor, if the successor is 

liable for the acts of its predecessor. McClellan v. Northridge

Park Townhome Owners Ass'n, 89 Cal. App. 4th 746, 753-55 (2001). 

Therefore, Plaintiffs argue that additional judgment debtors may be

added to the judgment based on the federal successorship doctrine,

under which a successor employer may be held liable for the

contractual obligations of its predecessor. However, it appears

that it is the state, rather than federal, successorship law that

applies. See, e.g., Katzir's Floor and Home Design, Inc. v. MMLS.COM, 394 F.3d 1143 (9th Cir. 2004) (applying California law to

determine whether proposed additional judgment debtors were

successors to original defendant); Butler v. Adoption Media, LLC,

486 F. Supp. 2d 1022 (N.D. Cal. 2007) (same). 

Having considered Plaintiffs' papers and good cause appearing

therefor, the Court hereby orders that, within two weeks,

Plaintiffs shall file a supplemental memorandum of points and

authorities addressing whether federal or state law controls the

question of successor liability and providing any argument in

support of a finding that VB Materials has assumed Defendant's

liabilities under state law. Plaintiffs shall also file any

additional declarations and exhibits necessary to support their 

state law arguments. The hearing scheduled for January 24, 2008 is 

Case 4:06-cv-06654-CW Document 30 Filed 01/15/08 Page 2 of 3
United States District Court

For the Northern District of California

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hereby VACATED. The matter will be decided on the papers unless

the Court sets a hearing.

IT IS SO ORDERED.

Dated: 1/15/08 

CLAUDIA WILKEN

United States District Judge

Case 4:06-cv-06654-CW Document 30 Filed 01/15/08 Page 3 of 3