Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Hardy Industrial Technologies, LLC v. BJB, LLC

United States District Court, N.D. Ohio, Eastern Division

December 15, 2017

Hardy Industrial Technologies, LLC, Plaintiff,
v.
BJB LLC d/b/a Agri Trading Defendant.

          MEMORANDUM OF OPINION AND ORDER

          PATRICIA A. GAUGHAN United States District Court Chief Judge

         INTRODUCTION

         This matter is before the Court upon Defendant's Motion to Compel Compliance with Subpoena (Doc. 39) and NonParty Magnus International Group, Inc.'s Renewed Motion to Quash Subpoena (Doc. 40). For the reasons discussed below, Defendant's motion to compel is granted, and Magnus's renewed motion to quash is denied.

         BACKGROUND

         On January 6, 2017, this Court confirmed the June 23, 2016 arbitration award in favor of Defendant Agri Trading, which awarded Agri Trading a total of $1, 280, 064 in damages and $146, 568 in attorney's fees. Since then, Agri Trading has unsuccessfully sought to recover on the award from Plaintiff Hardy Industrial Technologies, LLC.

         Agri Trading engaged in discovery in an effort to obtain information about Hardy's assets on which execution can issue. During discovery, Hardy produced a credit agreement with KeyBank National Association entered into jointly with Magnus International Group, Inc., Hardy's parent corporation. Hardy also produced its corporate banking statements from KeyBank, checks drawn on a Magnus account at KeyBank, and commercial loan statements from KeyBank issued to Magnus. (Doc. 39, at 3). Hardy's bank statements show that, over the past three and a half years, Hardy has transferred millions of dollars to the account number shown on Magnus's checks. Because of these transfers, Hardy's account has a zero balance by the end of every month. According to Agri Trading, Hardy has transferred more than $4 million to Magnus so far this year, but Hardy refuses to produce any other KeyBank documentation explaining the transfers. It also refuses to produce any other documents regarding the joint credit agreement with Magnus and KeyBank, although Hardy has claimed that the agreement prohibits it from satisfying Agri Trading's judgment.

         Because Hardy refused to produce this information, Agri Trading issued a subpoena to KeyBank on August 16, 2017. According to Agri Trading, its requests of KeyBank “seek[] documents related to the transfer of assets that [Hardy] may have made to its parent corporation Magnus... and Hardy's indebtedness to KeyBank.” (Doc. 39, at 2).[1] KeyBank produced copies of Hardy's corporate account statements. It refuses to produce other responsive documents without a court order, however, because “they evidence or relate to both parties' (and others') intertwined credit relationships with KeyBank.” (Doc. 37-2, at 2).

         Counsel for Agri Trading, Hardy, and KeyBank met and conferred but were unable to resolve their dispute. Agri Trading now moves to compel KeyBank to comply with the subpoena. Magnus opposes Agri Trading's motion and moves to quash the subpoena. KeyBank has not responded to Agri Trading's motion to compel or joined in Magnus's motion to quash.

         ANALYSIS

         Federal Rule of Civil Procedure 69(a)(2) permits a judgment creditor to obtain discovery in aid of the judgment or execution from “any person” as provided in the Federal Rules, including through a subpoena issued under Rule 45. The scope of post-judgment discovery is 4. All documents that refer to, relate to, mention and/or involve [certain identified] loans.

         5. All documents that refer to, relate to, mention, and /or involve the signatories or guarantors on any bank account, checking account, certificate of deposit, mutual fund or letter of credit, held in the name of or on behalf of Hardy or Magnus from January 1, 2011 to the present or pursuant to the terms of the Credit and Security Agreement.

         6. All documents concerning the Credit and Security Agreement, including all supporting documentation, guarantees, financial statements, notices, and communications between, by or on behalf of KeyBank and Hardy or Magnus, and/or any guarantors.

         7. All documents that relate to, refer to, mention and/or involve any loans or letters of credit, including any revolving loans, term loans, or CapEx loans, obtained or sought by Hardy orMagnus, under the terms of the Credit and Security Agreement, including all supporting documentation, notices, notes, payments, and communications between, by or on behalf of KeyBank and Hardy or Magnus, and/or any guarantors.

         8. All documents concerning any liens asserted against or attached to Hardy and/or Magnus by KeyBank, including all supporting documentation, and communications between, by or on behalf ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.