Adams

MEMORANDUM *

Richard L. Adams appeals from the district court’s order granting Elliott Kastner’s motion to enforce a settlement agreement between them and dismissing the diversity action with prejudice. Adams is Kastner’s judgment creditor, having obtained a $1.3 million judgment against Kastner in the United States District Court for the Eastern District of Virginia (“the Virginia judgment”). Seeking to enforce the Virginia judgment, Adams sued Kastner and Kastner’s wife, Tessa Kennedy, to enforce the judgment against real property in California and New York that Kastner had allegedly fraudulently transferred to Kennedy. The parties entered into a settlement agreement, which is the subject of this appeal.

Adams argues that Kastner’s attempt to provide the full settlement amount-by tendering a supplement to the proceeds from the agreed-upon sale of a residence in Beverly Hills, California-was not provided for in the settlement agreement; that he should therefore be allowed to pursue payment of the full balance of the Virginia judgment from Kastner; and that the district court erred by interpreting the terms of the settlement agreement to prevent him from doing so. We disagree,…

dissenting:

The facts of this appeal are straightforward. In 1999, the United States District Court for the Eastern District of Virginia entered judgment in favor of Richard Adams and against Elliott Kastner in the amount of $1.3 million. The federal judgment arose out of loans made by Adams to Kastner that were unpaid. Adams initiated the underlying suit against Kastner and his wife, Tessa Kennedy, after learning that there was a residence in Beverly Hills, California that Kastner had allegedly fraudulently transferred to Kennedy. Adams claimed Kastner conveyed legal title to the residence in Beverly Hills and placed legal title to two apartments in Rancho Mirage, California and two condominiums in New York in Kennedy’s name in order to avoid creditors.

Adams alleged three causes of action: (1) declaratory judgment that the Beverly Hills residence, the Rancho Mirage apartments, and the New York condominiums are Kastner’s property subject to the Virginia judgment; (2) action to set aside the fraudulent conveyance of Kastner’s interest in the Beverly Hills residence to Kennedy; and (3) liability of community property to satisfy the Virginia judgment. The parties entered into a…