Securities & Exchange Commission v. Capital Consultants LLC

I. Introduction

Pursuant to 28 U.S.C. § 1291 , we have jurisdiction over appeals from “all final decisions of the district courts of the United States.” 1 This appeal presents the question of whether a district court’s order determining the rights and liabilities of some, but not all, claimants with claims to receivership assets is a final decision under § 1291. 2 We conclude that, unless the district court certifies the order and directs entry of judgment pursuant to Federal Rule of Civil Procedure 54(b), such an order is not a final decision. Thus, we lack jurisdiction over the appeal of one set of claimants/appellants, Benson and Brix, LLC (“Benson and Brix”), but we have jurisdiction over the appeal of the other set, the American Funeral and Cemetery Trust Services, MUDD, and the Mudd Revocable Trust. We address the merits of the second set of claimants’ appeal in a memorandum disposition issued with this opinion.

II. Background

These consolidated appeals arise from a civil suit against an investment advisor, Capital Consultants, LLC (“CCL”), by the SEC (“the SEC litigation”). The appellants were all clients of CCL and are thus claimants in the SEC litigation. To understand…