Garamendi v. Hennin

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Sierra filed a motion under FRCP 60 in the district court that had issued default judgments against defendant, an officer of a French corporation that bought assets from an insolvent California insurance company pursuant to a rehabilitation plan, asking that court to correct judgments to add an explanation sufficient to permit its enforcement in France. The district court granted the motion and entered two corrected judgments. Defendant appealed. The court affirmed because the operative, substantive terms of the corrected judgments were identical to the terms of the original judgments. Therefore, the amendments only clarified the original intent of the judgments, and the district court did not abuse its discretion in making those changes under Rule 60(a). The court also held that, by failing to challenge the original judgments, defendant waived his arguments as to setoff, release, and the nature and amount of his liability. Finally, the court concluded that the district court did not abuse its discretion by refusing to stay entry of the amended or corrected judgments. View "Garamendi v. Hennin" on Justia Law