Opinion ID: 498446
Heading Depth: 1
Heading Rank: 1

Heading: facts

Text: 2 The underlying proceeding is an action by plaintiff-appellee Sanko Steamship Co. (Sanko), based upon the New York Fraudulent Conveyance Act, in which Sanko is seeking to set aside a transfer of title to property by Galin to a medical practice partnership which includes Galin and the three other individual defendants. Plaintiff-appellee became a judgment creditor of defendant Galin in a prior proceeding involving a federal question, see Dow Chemical Pacific Ltd. v. Rascator Maritime S.A., 594 F.Supp. 1490 (S.D.N.Y.1984), aff'd in part, vacated and remanded in part, 782 F.2d 329 (2d Cir.1986), and then brought the underlying action herein as an aid to enforcement of the previously obtained $750,000 judgment, and to set aside the allegedly fraudulent conveyance. Jurisdiction was posited as supplementary to the prior proceeding or, in the alternative, diversity of citizenship. Galin subsequently satisfied Sanko's federal judgment, but because Sanko still had a state court action for compensatory and punitive damages pending against Galin, the district court permitted Sanko to amend its complaint to predicate jurisdiction solely on diversity of citizenship. 3 On January 16, 1987, the individual defendants other than Galin moved through their attorney, appellant da Parma, to realign Galin as a party plaintiff alleging that his interest in having the property placed in his name rather than that of the partnership was aligned with Sanko's interest, i.e., adverse to the interest of the remaining defendants. The granting of the motion would have destroyed diversity and therefore would have required the court to dismiss the action for lack of jurisdiction. 4 In an endorsed memorandum, Judge Duffy denied the motion for realignment as totally frivolous and, although plaintiff did not raise the issue, sanctioned appellant $1,000 pursuant to Rule 11. Appellant timely moved for reconsideration of the imposition of sanctions, citing his right to notice and an opportunity to be heard under the due process clause and this court's prior decision in Oliveri v. Thompson, 803 F.2d 1265 (2d Cir.1986), cert. denied, --- U.S. ----, 107 S.Ct. 1373, 94 L.Ed.2d 689 (1987). Judge Duffy summarily denied the motion for reconsideration. Having escaped from the district court without the imposition of any further sanctions, da Parma filed this appeal.