Securities & Exchange Commission v. Capital Consultants LLC

MEMORANDUM *

In the accompanying per curiam opinion, we dismissed the appeal of one set of appellants, Benson and Brix, LLC, for lack of jurisdiction. This memorandum disposition addresses the merits of the appeal of the remaining appellants, the American Funeral and Cemetery Services, MUDD, and the Mudd Revocable Trust. These appellants challenge the district corut’s order that they must remit their settlement funds in order to receive their traced investments. We reverse. Since the facts are adequately discussed in the per curiam opinion we will only recite them to the extent necessary for this disposition.

We review de novo the district court’s interpretation of a settlement agreement. Botefur v. City of Eagle Point, 7 F.3d 152, 156 (9th Cir.1993). Because the district court erred in its interpretation of the settlement agreement, the court should not have ordered the appellants to remit their share of settlement funds in order to trace their investment assets.

In interpreting the settlement agreement, we are bound by the principles of Oregon contract law. Botefur, 7 F.3d at 156 . Under Oregon law, “[f]irst, the court examines the text of the disputed provision, in the…