GameTech International Inc. v. Trend Gaming Systems, L.L.C.

MEMORANDUM

This is the second appeal in this action brought by GameTech International Inc. to recover receipts allegedly due under its contract with Trend Gaming Systems, L.L.C., to distribute GameTech’s gaming equipment. In the earlier appeal, we reversed a judgment in favor of Trend and remanded for a new trial. GameTech Intern. Inc. v. Trend Gaming Systems, LLC., 232 Fed.Appx. 676 (9th Cir.2007).

In this appeal, Trend seeks to challenge the district court’s order distributing the monies collected by Trend and held in constructive trust pending the outcome of the litigation. After the jury returned a verdict in favor of GameTech following our remand, and after final judgment was entered, GameTech filed a motion requesting the district court to release the funds in the constructive trust to GameTech as partial satisfaction of the damages award against Trend. The day after GameTech filed its motion for disbursement, Trend and its attorneys executed a security agreement purporting to grant the attorneys a security interest in the constructive trust to cover the attorneys’ fees owed by Trend. Trend then filed a response opposing GameTech’s motion and cross-moved the district court…