MTGLQ INVESTORS LP v. WELLINGTON (2021)

United States Court of Appeals, Tenth Circuit.2021-07-20No. No. 21-2017

Summary · law.co

Holding. The appellate court affirmed the district court's denial of Wellington's motion to amend or vacate the judgment awarding attorney's fees.

Monica Wellington appealed the district court's denial of her motion to amend or vacate a judgment awarding attorney's fees to MTGLQ Investors. Wellington raised two main challenges: first, that MTGLQ lacked legal capacity to sue because it was an unincorporated association, and second, that the judgment enforcing the fee award was procedurally improper under the Federal Rules of Civil Procedure.

The appellate court rejected both arguments. Wellington's first argument about MTGLQ's capacity had not been properly raised in the original appeal and had already been rejected in a prior appeal, so it could not be relitigated. On the procedural issue, the court explained that Rule 37 (governing discovery sanctions) operates independently from Rule 54 (governing judgments), and the district court properly ordered attorney's fees as a discovery sanction under Rule 37 when Wellington failed to comply with an order to provide interrogatory responses. The court further noted that district courts retain jurisdiction over attorney's fees issues even after entering final judgment in a case.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

Whether a non-incorporated association has legal capacity to sue
Whether attorney's fees can be awarded as discovery sanctions under Rule 37
Whether Rule 54 applies to sanctions orders issued under Rule 37
Whether district courts retain jurisdiction over collateral attorney's fees issues after final judgment

Procedural posture

Wellington appealed the district court's denial of her motion to amend or vacate a judgment awarding attorney's fees to MTGLQ Investors.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion · public domain

ORDER AND JUDGMENT **

Defendant-Appellant Monica Wellington appeals from the district courts denial of her motion to amend/vacate the district courts entry of judgment awarding attorneys fees to Plaintiff-Appellee MTGLQ Investors, LP (MTGLQ).

We have jurisdiction under 28 U.S.C. § 1291, and we affirm.

Ms. Wellington raises two issues. First, she argues that the district court lacked jurisdiction over the matter because MTGLQ is “legally merely an informal unincorporated association,” and therefore lacked legal existence, standing, and the capacity to sue. Aplt. Br. at 7. However, this issue was not raised or ruled on in connection with the judgment from which Ms. Wellington appeals and was not otherwise raised in the notice of appeal. Therefore, the issue is not properly before this court. See Cunico v. Pueblo Sch. Dist. No. 60, 917 F.2d 431, 444 (10th Cir. 1990). And in any event, this court has already considered that argument in a prior appeal and rejected it for a variety of reasons we need not recount. See Wellington, ––– Fed.Appx. at –––– – ––––, 2021 WL 1217451, at *3–6. Ms. Wellington may not now relitigate the issue. See Rohrbaugh v. Celotex Corp., 53 F.3d 1181, 1183 (10th Cir. 1995).

Ms. Wellington also argues that the district courts entry of judgment enforcing its award of $623.50 in attorneys fees was procedurally improper. First, she argues that, because the judgment was entered pursuant to Fed. R. Civ. P. 37 rather than Fed. R. Civ. P. 54, it does not satisfy Fed. R. Civ. P. 54(a)’s definition of a “judgment” as “any order from which an appeal lies.” Second, she argues that courts are not permitted to award attorneys fees as discovery sanctions in a final judgment pursuant to Rule 54.

Both arguments lack merit. As the district court noted, Rule 54 does not apply to Rule 37 sanctions. Fed. R. Civ. P. 54(d)(2)(E). The district court was required to order the payment of attorneys fees based on its denial of Ms. Wellingtons motion to compel interrogatory responses absent a valid exception. See Fed. R. Civ. P. 37(a)(5)(B). And when Ms. Wellington failed to comply with that order, the district court was permitted to enter judgment enforcing the fee award. See Fed. R. Civ. P. 37(b)(2) (permitting a court to “issue further just orders” when a party fails to comply with an order issued under Fed. R. Civ. P. 37(a)). That judgment is independent from the final judgment entered pursuant to Rule 54 and is not otherwise subject to Rule 54.

Finally, to the extent Ms. Wellington argues that the district court lacked the power to enter judgment enforcing the fee award as a discovery sanction after it had entered final judgment in the case, that argument is meritless. This court has repeatedly held that even after entry of final judgment, the district court retains jurisdiction over collateral attorneys fees issues. See, e.g., McKissick v. Yuen, 618 F.3d 1177, 1196–97 (10th Cir. 2010).

AFFIRMED.

FOOTNOTES

. The facts of this case were set out fully in a prior appeal to this court. See MTGLQ Invrs, LP v. Wellington, No. 20-2000, ––– Fed.Appx. ––––, –––– – ––––, 2021 WL 1217451, at *1–2 (10th Cir. Mar. 31, 2021). The parties are familiar with those facts and we need not repeat them here.

Paul J. Kelly, Jr. Circuit Judge