T hi s di s pos i t i on i s notappr opr i a t e f orpubl i c a t i on and i s notpr e c e de nt * e xc e pta s pr ovi de d by 9th C i r . R . 36- 3. NOT F OR P UB L I CAT I ON UN I TE D STATE S C OU RT OF APPE ALS FOR T HE NI NTH CI RC UI T S E C UR I T I E S AN D E XC HA NG E C OMMI S S I ON , P l ai nt i ff

- A pp el l ee , v. I N G U SA A N N U I TY A N D LI FE I N S U R A N C E C O M P A N Y ; e t a l., A p p el l an t s, v. TE NA NTS I N COM M ON COM M I TT EE ; e t a l., In t erv en o rs - A p p el l ees, v. S U N W E S T M A N A G E M E N T , IN C . ; et a l., D efen d an t s - A p p el l ees, v. N o. 09- 35250 D. C . No . 6 : 0 9 - c v - 0 6 0 5 6 - HO ME MOR AN DU M * 

# FI LED DE C 29 2009 M OLLY C. DW Y ER, CLERK U . S. C O U R T OF APPE ALS2

C A P M A R K F I N A N C E , I N C .; e t a l., M o v an t s - A p p el l ees,

__________________________ M I CH A EL G RA SSM U ECK R e c e iv e r- A p p e lle e . S E C UR I T I E S AN D E XC HA NG E C OMMI S S I ON , P l ai nt i ff

- A pp el l ee , P L AI NS C AP I T AL B AN K, I n te rv e n o r- A p p e lla n t, a nd I N G U SA A N N U I TY A N D LI FE I N S U R A N C E C O M P A N Y ; e t a l., In t erv en o rs, v. S U N W E S T M A N A G E M E N T , IN C . ; et a l., D efen d an t s - A p p el l ees,

__________________________ N o. 09- 35859 D. C . No . 6 : 0 9 - c v - 0 6 0 5 6 - HO3

M I CH A EL G RA SSM U ECK R e c e iv e r- A p p e lle e .

A pp ea l fr om the U ni t ed S t at es D i stri ctC ou rt

f orthe D i s tr i c tof

O r e gon M i c ha e l R . H oga n, D i s tr i c tJ udge , P r e s i di ng A r gue d a nd S ubm i tt e d D e c e m be r2, 2009 S a n F r a n c is c o , C a lif

o rn ia B efo re: B . F L E T C H E R , T H O M A S , an d N . R . S M IT H , C i rcu i tJu d g es.

A gr oup of

s e c ur e d c r e di t or s , notpa rt i e s i n the pr oc e e di ngs be l ow ( “ A ppe l l a nt s ” ) , appe a l 1) the di s tr i c tc ourt ’ s de ni a l of the i rm ot i on f

orr e c us a l a nd 2 ) th e d i s tr i c tc o u rt ’ s g r a n to f ap r e l i mi n a ryi n

j u n c t i o n b a rr i n g a l l l e g a l c l a i ms ag ai n sta n u m b er o f co rp o rat e en t i t i es asso ci at ed w i th Jo n H ard er an d S u n w est M a n a g e m e n t. W e a ls o h a v e b e f o r e u s th r e e m o tio n s d e a lin g w ith th e r e c o r d in th is c a s e : 1) A ppe l l a nt s ’ m ot i on t o s tr i ke , 2) A ppe l l a nt s ’ m ot i on t o s uppl e m e nt appel l at e r ec ord, and 3 ) A pp el l ee M i chae l G ra ss m ueck’ s r equestfor j ud i ci al not i c e . B e c aus e the pa rt i e s a r e f a m i l i a rw i th the f

a c t s a nd pr oc e dur a l hi s t oryof thi s c as e, w e do n otre ci t e them here . I. A pp el l ant s’ M ot i on for R ec usal4

T he di s tr i c tc ourtdi d notabus e i t s di s c r e t i on i n de ny i ng A ppe l l a nt s ’ m ot i on f o rr e c u s a l. R e c u s a l m o tio n s a r e r e v ie w e d f o rab u s e o f

d is c r e tio n . P reston v. U ni ted Stat es , 923 F . 2d 731, 733 ( 9th C i r . 1991) ( c i t a t i on om i tt e d) . “ A n abus e of di s c r e t i on i s apl a i n e rr or , di s c r e t i on e xe r c i s e d t o a n e nd notj us t i f i e d bythe evi dence, a j ud gm entthati s c l earl y a gai nstthe l og i c and ef fe ctof the fa ct s a s are foun d. ” R ab ki n v. O r. H eal th Scis. U

ni v. , 350 F . 3d 967, 977 ( 9th C i r . 2003) ( c i t a t i o n o m i tt e d ) . F u rth e rm o r e , we c a n n o tr e v e r s e th e d i s tr i c tc o u rt“ u n l e s s we ha ve ade f

i ni t e a nd f

i rm c onvi c t i on tha tthe di s tr i c tc ourtc om m i tt e d ac l e a re rr orof j ud gm enti n the concl usi on i tre ac hed u po n w ei gh i ng the re l evantfa ct ors. ” SE Cv. C o ld ic u tt , 2 5 8 F .3 d 9 3 9 , 9 4 1 ( 9 th C ir . 2 0 0 1 ) . R ec usal i s app ropri at e w hen a j ud ge has “ a per sonal bi as or prej ud i ce ” a ga i ns tapa rty , 28 U . S . C . §144, the j udge ’ s “ i m pa rt i a l i tym i ghtr e a s onabl ybe qu es t i on ed, ” 28 U . S . C . § 4 55 (a ), or the j ud ge has “ pers on al kn ow l edge of di sput ed ev i d en t i ary facts, ” 2 8 U . S . C . § 4 5 5 (b )(1 ). A p p el l an t s o n l y sp ecu l at e th at , b ecau se J udge H oga n w a s a l s o i nvol ve d a s am e di a t ori n ar e l a t e d ba nkrupt c ypr oc e e di ng, he c a nnota c ti m pa rt i a l l y i n thi s m a tt e r . T he r e i s no author i tyf orthe pr opos i t i on thatj ud ges m ustre cuse them se l ves i f they s erved as m edi at ors i n a re l at ed p r o c e e d in g .5

In re ac hi ng thi s r es ul t , w e a ss um e— w i tho utfi nd i ng — thatA pp el l ant s had s ta n d in g to b r in g th is m o tio n b e lo w a n d th a t th is p an e l h a s p e n d a n t ju r is d ic tio n to rul e on thi s m ot i on as partof thi s i nt er l ocut ory app ea l of the prel i m i nary i nj unc t i on. I I . T he P r e l i m i na ry I nj unc t i on D i s tr i c tc ourt s ha ve author i tyt o i s s ue i nj unc t i ons s uc h a s thi s one . W e ha ve pr e vi ous l y uphe l d the appoi ntm e ntof ar e c e i ve ri n as e c ur i t i e s f r aud c a s e br ought b y th e S E C . See SE Cv. W enke , 622 F . 2d 1363, 1365 ( 9th C i r . 1980) . W e ha ve a ls o u p h e ld th e au th o r ityo f th e d is tr ic t c o u rt to b a ra ll a c tio n s a g a in s t r e c e iv e r s h ip e n titie s ( in c lu d in g a c tio n s b r o u g h t b yn o n - p a rtie s ) . Se e i d. a t 1 3 6 9 ; accord SE Cv. Hi ckey , 32 2 F . 3d 11 23 , 11 31 (9th C i r. 20 03 ). T hi s autho ri ty s t em s f rom the di stri ct c ourt ’ s br oa d i n rem ju r is d ic tio n o v e rr e c e iv e r s h ip a s s e ts . W encke , 62 2 F . 2d at 13 69 , 13 70 n. 11 . F i nal l y, di stri ctcourt s m ayst ayfore cl osure procee di ng s i n an S E C e n f o r c e m e n t a c tio n , SE Cv . U ni v e rs al Fi n. , 76 0 F . 2d 10 34 , 10 37 –3 9 (9th C i r. 1 9 8 5 ) , e n jo in b a n k ru p tc y p r o c e e d in g s , SE Cv. L i ncoln T hri f t A ss ’n , 577 F . 2d 600 ( 9 th C ir . 1 9 7 8 ) , a n d s e ll r e c e iv e r s h ip a s s e ts o u ts id e o f b a n k ru p tc yp r o c e e d in g s , See S E Cv. R o ss , 5 0 4 F .3 d 1 1 3 0 , 1 1 4 5 ( 9 th C ir . 2 0 0 7 ) .6

H ow e ve r , R ul e 52 of

the F e de r a l R ul e s of

C i vi l P r oc e dur e r e qui r e s the di stri ctcourtt o “ st at e the fi nd i ng s and concl usi on s thatsupp orti t s a ct i on ” w hen g r a n tin g o rd e n y in g ap r e lim in a ryin ju n c tio n . T he di stri ctcourtabused i t s di sc re t i on i n g rant i ng the prel i m i nary i nj unc t i on, be c aus e i te nt e r e d the pr e l i m i na ryi nj unc t i on w i thoutf i ndi ngs a nd c o n c lu s io n s th a t s u p p o rt its a c tio n . O n its f a c e , th e p r e lim in a ryin

ju n c tio n o n ly st at es thatthere i s “ go od cause” t o i ss ue the i nj un ct i on . F urther, the re cord c o n ta in s n o o th e rf

in d in g s to s u p p o rt th e g r a n t o f th e in ju n c tio n . T h u s , o n th is r e c o r d , th e r e is n o b a s is f o ru s to d e te rm in e th a t th e d is tr ic t c o u rt d id n o t ab u s e its d is c r e tio n b y ap p ly in g a n in c o rr e c t le g a l s ta n d a r d o rb a s in g its ru lin g o n c le a r ly e rr o n e o u s f

in d in g s o f

f a c t. See A m . T

rucki ngA ss ’ns, Inc. v. C i t y of L os A ng eles , 55 9 F . 3d 10 46 , 10 52 (9th C i r. 20 09 ). W e th e r e f

o r e r e m a n d to th e d is tr ic t c o u rt to m a k e a d e q u a te f in d in g s . H ow e ve r , the i nj unc t i on w i l l r e m a i n i n f or c e f ors i xtyda y s i n or de rt o a l l ow the di s tr i c tc ourtt o m a ke the s e f i ndi ngs a nd e nt e rane w or de rgr a nt i ng orde ny i ng the m ot i on f orapr e l i m i na ry i nj unc t i on. I I I . P e ndi ng M ot i ons7

F i n al l y, w e d en y A p p el l an t s’ m o t i o n t o stri k e an d g ran tb o th A p p el l an t s’ m ot i on t o sup pl em entand A pp el l ee M i chae l G ra ss m ueck’ s r equestfor j ud i ci al no t i ce .E a c h p a rtys h a ll b e a rits o w n c o s ts o n ap p e a l. A F F I R M E D in p a rt, R E V E R S E D a n d R E M A N D E D in p a rt.