Opinion ID: 202766
Heading Depth: 2
Heading Rank: 3

Heading: Dissolution of the Injunction and Release of the Security

Text: 14 On April 13, 2006, Verizon moved this court to issue its mandate in GNAPs II early; in the alternative, it asked for an order lifting the injunction pending appeal, as either relief would permit Verizon to terminate services to GNAPs for non-payment of access charges. 15 GNAPs opposed Verizon's motion on April 18, 2006. It contended for the first time that if access charges were due at all, GNAPs actually owed Verizon only about $7.5 million in total damages in the case. This amount was far less than the $56 million GNAPs had earlier offered to pay Verizon, and was also lower than the $16 million in security that GNAPs had previously posted. GNAPs' new argument was that the FCC's ISP Remand Order capped Verizon's access charges for VNXX calls to ISPs at $0.0007 per minute. 16 We granted Verizon's motion in part, vacating the injunction pending appeal later that same day, April 18, 2006. 2 17 After this court vacated the injunction, and still on April 18, Verizon moved in the district court for the release of the $16 million in security. Its motion was supported by affidavits evidencing that the harm to Verizon from issuance of the injunction exceeded $16 million. 18 On May 2, 2006, the day GNAPs' opposition to Verizon's motion was due in the district court, GNAPs moved for leave to oppose that motion only after this court issued its mandate in GNAPs II. Until that happened, GNAPs contended, the district court lacked jurisdiction. GNAPs requested that the district court give it leave to submit the grounds for its opposition three days after [the district court] regains jurisdiction upon issuance of . . . the mandate. Verizon opposed GNAPs' motion on May 4, 2006, contending that the mandate's issuance was not necessary for the district court to release the security. 19 GNAPs did file an opposition in the district court on May 5, 2006, contesting Verizon's motion for release of security. GNAPs continued to press its argument that the district court did not have jurisdiction to consider Verizon's motion until after this court's mandate had issued. GNAPs also made three substantive arguments: (1) that release of the security was improper because this court's injunction pending appeal had not expressly stated that the amount [GNAPs] posted is `for payment for such costs and damages as may be incurred or suffered' by the enjoined party, if found to have been wrongfully enjoined; (2) that this court's dissolution of the injunction pending appeal did not compel the conclusion that Verizon had been wrongfully enjoined; and (3) that due process entitled GNAPs to a full and fair opportunity to litigate the invoice amounts that Verizon had used as evidence of its harm from the injunction. GNAPs provided little elaboration of, and no affidavit support for, its arguments disputing Verizon's proof. 3 20 On May 15, 2006, this court issued its mandate in GNAPs II. That same day, GNAPs filed a motion in the district court seeking leave until May 22, 2006 to file a motion for an evidentiary hearing and discovery. The next day, May 16, the district court granted Verizon's previously filed motion and ordered the release to Verizon of the full $16 million in security. Simultaneously, the court issued an order denying GNAPs' May 2 motion for leave to wait until issuance of the mandate in order to oppose Verizon's request for the security, but granting GNAPs' May 15 motion. 21 GNAPs responded with two more motions in the district court. On May 16, 2006, GNAPs moved for a stay of the district court's order releasing the security. But on May 17, 2006, the district court clerk's office released the security to Verizon, mooting the motion. Then, on May 22, 2006, GNAPs moved for reconsideration of the district court's May 16 order, styling its motion as one seeking the return [of] property previously deposited in [c]ourt, and also requesting discovery and an evidentiary hearing. GNAPs also, for the first time in the district court, attached two affidavits to its motion. The affidavit of Michael Couture purported to demonstrate that GNAPs owed Verizon only $563,077.60 for access charges accrued during the pendency of the two injunctions. The affidavit of Robert Fox was to similar effect. The district court denied GNAPs' motion on June 16. 22 GNAPs separately appealed two of the district court's orders: its May 16 order granting the release of security, and its June 16 order denying GNAPs' request for reconsideration. This court consolidated those appeals. 23 These consolidated appeals embody the latest efforts by GNAPs to delay or avoid payment of the sums past due to Verizon. The district court rejected those efforts and so do we.