Custom Wellhead appeals the order of the district court denying its motion to intervene into this highly complex securities fraud case pursuant to Fed.R.Civ.P. 24(a). An order completely denying a party the ability to intervene is appealable as a final order under 28 U.S.C. § 1291. We have jurisdiction and affirm.
In 1986 Custom Wellhead purchased two promissory notes previously executed by Cardinal Oil, a defendant in the underlying controversy, in favor of Hemisphere Licensing Corp., also a defendant. The notes are valued at 9.5 million dollars. As security for the notes, Custom Wellhead acquired an interest in subscription notes executed by some of the plaintiff limited partners in favor of Cardinal Oil. The ability of defendants and their assignees to enforce these subscription notes is the subject of declaratory relief sought in the consolidated cases. A detailed description of the underlying controversy can be found in Roberts v. Heim, 670 F.Supp. 1466 (N.D.Cal.1987).
On December 23, 1988, the district court entered an order in Roberts v. Republic, one of the consolidated cases, enjoining the parties and all those acting in active concert and participation with them from taking any steps to enforce or collect on the promissory notes and subscription agreement obligations at issue in the litigation.
Jurisdiction: U.S. Court of Appeals, Ninth Circuit
Related Categories: Business Organizations , Civil Remedies , Government / Politics , Torts