Prospect Capital Corp. v. Mutual of Omaha of Omaha

In this declaratory judgment action, at issue is which party, either Prospect or Mutual Bank, had priority under Texas law in certain collateral. Prospect obtained a money judgment for approximately $2.3 million against Michael Enmon in federal court in New York. To avoid paying the judgment, Enmon engaged in a series of fraudulent transfers of his assets. The district court granted summary judgment for Mutual Bank and Prospect appealed, arguing that, under Texas’s law of title disputes, it was entitled to a declaratory judgment that it had priority over Mutual in the contested collateral. The court concluded that Prospect’s unabstracted and unexecuted money judgment did not give it a lien interest in any of the specific contested collateral. Hence the doctrine does not apply. Furthermore, Prospect has not shown that the district court abused its discretion in denying Prospect’s request for Fed.R.Civ.P. 56(d) relief. Accordingly, the court affirmed the judgment. View "Prospect Capital Corp. v. Mutual of Omaha of Omaha" on Justia Law