United States District Court, W.D. North Carolina, Charlotte Division
LEGACY DATA ACCESS, INC., a Georgia corporation, and DIANNE M. PETERS, a Georgia resident, Plaintiffs,
CADRILLION, LLC, a North Carolina limited liability company, LEGACY DATA ACCESS, LLC, a North Carolina limited liability company, and JAMES YUHAS, a North Carolina resident, Defendants.
D. Whitney, Chief United States District Judge
MATTER is before the Court on the joint motion of Plaintiffs
Legacy Data Access, Inc. and Diane M. Peters (collectively,
“Plaintiffs”) and Defendants Cadrillion, LLC
(“Cadrillion”) and James Yuhas
(“Yuhas”) for Stay of Execution on the Judgment
and Proceedings to Enforce It and to Release Obligations of
James Yuhas Under Prior Letter of Credit pursuant to Rule
62(b) of the Federal Rules of Civil Procedure (Doc. No. 224).
After a careful review of the Motion and Supporting
Memorandum (Doc. No. 225), and noting Plaintiffs' consent
to the relief sought, the Court GRANTS the Motion.
February 8, 2017, this Court entered a judgment against
Cadrillion and Yuhas (the “2017 Judgment”)
following a jury trial.
March 21, 2018, this Court entered an order (the “2018
Stay Order”) granting the joint motion of Cadrillion,
Yuhas, and Plaintiffs to stay proceedings to enforce the 2017
Judgment pending the appeal by Cadrillion and Yuhas to the
United States Court of Appeals for the Fourth Circuit (the
“Fourth Circuit”). (Doc. No. 156). As security
for the judgment pending appeal and in lieu of a supersedeas
bond, Plaintiffs agreed to accept an Irrevocable Standby
Letter of Credit from Paragon Commercial Bank, Paragon
Commercial Bank Irrevocable Letter No. SLC-433 dated January
5, 2018, (the “2018 Letter of Credit”), in favor
of Plaintiffs and on behalf of Cadrillion and Yuhas in the
total amount of $2, 906, 409.00.
2018 Stay Order provides in relevant part that, if the Fourth
Circuit reverses or vacates the 2017 Judgment in its
entirety, then Cadrillion and Yuhas may apply to this Court
for, and the Court will enter, an order releasing the
obligations of Cadrillion, Yuhas, and Paragon Commercial Bank
under the 2018 Letter of Credit.
Fourth Circuit subsequently issued a decision that, as
relevant here, reversed and vacated the 2017 Judgment.
See Legacy Data Access, Inc. v. Cadrillion, LLC, 889
F.3d 158 (4th Cir. 2018). The Fourth Circuit's decision
dismissed all claims against Yuhas, leaving Plaintiffs'
breach of contract claim against Cadrillion as the only claim
remaining in the case. The Fourth Circuit remanded for a new
trial on damages on the breach of contract claim against
Cadrillion. and for this Court to reassess the appropriate
amount of attorneys' fees.
August 8, 2019, following a jury trial held upon remand from
the Fourth Circuit, this Court entered an Order and Judgment
(the “2019 Judgment”) in favor of Plaintiffs and
against Cadrillion in the total amount of $3, 002, 982.68,
plus post-judgment interest.
September 4, 2019, Cadrillion timely filed a Notice of Appeal
from the 2019 Judgment, and the appeal is currently pending
before the Fourth Circuit.
Pursuant to Rule 62(b) of the Federal Rules of Civil
Procedure, at any time after judgment is entered, a party may
obtain a stay by providing a bond or other security. The stay
takes effect when the court approves the bond or other
security and remains in effect for the time specified in the
bond or other security.
Cadrillion proposes, and Plaintiffs have agreed to accept, an
Amendment to Irrevocable Standby Letter of Credit (the
“2019 Letter of Credit”) from TowneBank, a copy
of which is attached as Exhibit B to the Motion, in
favor of Plaintiffs in the amount of $3, 355, 816.69 as
security for the 2019 Judgment pending appeal.
Given Plaintiffs' consent to the relief requested in the
Motion and to the security offered by Cadrillion and upon the
record before it, the Court finds that a stay of execution on
the 2019 Judgment and proceedings to enforce it pending
appeal is warranted in this matter and that the 2019 Letter
of Credit constitutes sufficient security to protect
Plaintiffs during the pendency of the appeal.
Court hereby stays execution on the 2019 Judgment and
proceedings to enforce it during the pendency of the appeal
and permits Cadrillion to provide Plaintiffs with the 2019
Letter of Credit in favor of Plaintiffs in the amount of $3,
355, 816.69 pursuant to the following procedures:
a. Should the Fourth Circuit affirm the 2019 Judgment, in
whole or in part, the stay shall extend for an additional ten
(10) days following the issuance of the mandate from the
Fourth Circuit to permit Cadrillion to voluntarily satisfy
the full amount of the affirmed 2019 Judgment.
b. If, during such ten (10) day period, Cadrillion fails to
voluntarily satisfy the full amount of the affirmed 2019
Judgment, Plaintiffs (jointly and severally) may apply to the
Court for, and the Court will enter, an Order granting one or
both Plaintiffs the right of execution against the 2019
Letter of Credit and directing TowneBank to pay, upon
presentment of such Order, the affirmed amount of the 2019
Judgment to one or both Plaintiffs. For the avoidance of
doubt, Plaintiffs are permitted to collect against the 2019
Letter of Credit whatever amount of the 2019 Judgment the
Fourth Circuit may affirm on appeal, including post-judgment
interest accruing on the affirmed amount at 2.58% from
January 25, 2019, through the date of collection under the
2019 Letter of Credit. Also for the avoidance of doubt,
Plaintiffs, either individually or collectively, may not
collect against Cadrillion or the ...