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Facts

  • Standage Farms, Inc. sought to register an Oregon default judgment against Lusk Onion Inc. in New Mexico. The Oregon court had entered a default judgment, which Lusk Onion Inc. sought to vacate on the grounds of lack of personal jurisdiction and fraud. The case involved issues related to the Perishable Agricultural Commodities Act (PACA) status of Standage Farms, Inc. and whether its claim survived a bankruptcy final decree issued in 2007 without payment to Standage Farms, Inc. (paras [RP 1], [RP 240-241]).

Procedural History

  • No. 30,912: The Court of Appeals reversed the district court's denial of Lusk Onion Inc.'s motion to stay the registration of the foreign judgment and to vacate it, remanding the case for consideration of the merits of Lusk Onion Inc.'s defenses (paras [RP 66], [RP 91-97]).
  • District Court of Curry County, Stephen K. Quinn, District Judge: On remand, the district court found that the Oregon court had jurisdiction, the judgment satisfied due process, and was not procured through fraud. It ruled that Standage Farms, Inc. was not entitled to enforce its judgment in New Mexico because it was not a PACA claimant in the bankruptcy case, and its claim did not survive the 2007 Final Decree (para [RP 240]).

Parties' Submissions

  • Plaintiff-Appellant (Standage Farms, Inc.): Argued that it was a PACA claimant whose claim was not discharged in the bankruptcy final decree and that its judgment should be enforceable in New Mexico (para [MIO 1-2]).
  • Defendant-Appellee (Lusk Onion Inc.): Initially moved to vacate the default judgment on the basis of lack of personal jurisdiction and fraud. On remand, argued that Plaintiff’s judgment did not survive the 2007 Final Decree in the bankruptcy proceedings (paras [RP 96], [RP 226]).

Legal Issues

  • Whether the district court exceeded the directions of the Court of Appeals' Mandate and Opinion upon remand by determining Plaintiff’s PACA status.
  • Whether the Oregon court had jurisdiction over Defendant and if the judgment satisfied due process.
  • Whether Plaintiff’s judgment was procured through fraud.
  • Whether Plaintiff’s claim survived the 2007 Final Decree in the bankruptcy proceedings to be enforceable in New Mexico (paras [DS 3], [RP 240-241]).

Disposition

  • The Court of Appeals affirmed the district court’s decision and order, holding that the district court did not exceed the remand's parameters and correctly determined the merits of Defendant’s defenses (para conclusion).

Reasons

  • Per Jonathan B. Sutin, Judge (Cynthia A. Fry, Judge, Michael E. Vigil, Judge concurring):
    The Court of Appeals found that the district court on remand properly addressed the issues as directed. It affirmed the district court's findings that the Oregon court had jurisdiction, the judgment satisfied due process, and was not procured through fraud. The Court of Appeals agreed with the district court's determination that Standage Farms, Inc. was not a PACA claimant in the bankruptcy case and that its claim did not survive the 2007 Final Decree, rendering the judgment unenforceable in New Mexico. The Court of Appeals held that these findings were within the scope of its remand for the district court to consider the merits of Defendant's defenses, affirming the district court's decision and order (paras [RP 240-241], conclusion).
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