Opinion ID: 156794
Heading Depth: 3
Heading Rank: 1

Heading: Relitigation of Issues

Text: 29 The FDIC argues the district court properly denied Defendants' request for relief because Defendants' Rule 60(b) motions constituted an improper attempt to relitigate substantive issues which were raised and decided at trial and which were affirmed on appeal. In denying Defendants' second Rule 60(b) motion, the district court likewise concluded that the collectibility of the disputed collateral [was] fully litigated at trial and on appeal. 30 As the FDIC notes, Rule 60(b) is not available to allow a party merely to reargue an issue previously addressed by the court when the reargument merely advances new arguments or supporting facts which were available for presentation at the time of the original argument. Cashner v. Freedom Stores, Inc., 98 F.3d 572, 577 (10th Cir.1996). In requesting relief pursuant to Rule 60(b) based on the FDIC's recovery from the post-trial liquidation of the remaining collateral, however, Defendants were not merely rearguing issues which were already raised at trial or which were available for presentation at trial. 31 Before trial, the district court granted the FDIC's in limine motion to exclude evidence relating to the FDIC's future settlements with investors and potential recovery from the liquidation of the remaining loan collateral on the ground that such evidence would be speculative. Because this evidence was excluded from trial, the collectibility and status of collateral liquidated following the trial was not a matter which was actually before the jury or trial court or which could have been presented by Defendants at trial. Moreover, in ruling that evidence of the FDIC's potential recovery from the remaining collateral could not be presented at trial, the district court did not resolve the issue of whether Defendants were entitled to a credit under the bonds for any actual future recoveries obtained by the FDIC. 32 The FDIC, however, asserts that Defendants' Rule 60(b) motions constituted an attempt to relitigate the jury's determination of the FDIC's loss under the bonds, a determination which was affirmed on appeal. As the FDIC notes, issues relating to whether the FDIC actually sustained a loss under the bonds and relating to the actual amount of that loss were litigated at trial and disposed of on appeal. See United Pac. Ins. Co., 20 F.3d at 1079-83. Contrary to the FDIC's characterization of Defendants' Rule 60(b) motions, however, Defendants are not seeking to relitigate those issues. 33 As this court noted in our prior opinion, the starting point for determining the FDIC's loss was the full amount of the loan, $4,586,257, which would never be collected from Hartwell. See id. at 1080. Under the bond terms, the loan collateral that was liquidated by the FDIC at the time of trial was a recovery against that loss. See id. at 1081. In reaching the verdict of $3,333,044, the jury credited against the total $4,586,257 loss $1,253,213 in net recoveries from settling investors. See id. at 1081 n. 9. 34 In seeking a credit against the judgment for the net amount recovered by the FDIC on the remaining loan collateral, Defendants are not attempting to relitigate the issue of the total loss sustained by the FDIC. Defendants are not now challenging the jury's determination that the FDIC suffered a loss within the coverage of the bonds. Instead, Defendants are merely seeking to be partially or fully relieved from the judgment based on the FDIC's recovery for the same loss through the liquidation of the remaining loan collateral. 35 Thus, the issue of Defendants' right to a credit for the FDIC's post-trial liquidation of the remaining loan collateral was not litigated and decided at trial or on appeal. To the extent the district court relied on Defendants' alleged relitigation of the issues in denying relief under Rule 60(b), the district court abused its discretion. Cf. Lyons, 994 F.2d at 727 (noting district court abuses its discretion when decision is based on erroneous view of law or clearly erroneous assessment of evidence).