PSM Holding Corp. v. Nat’l Farm Fin. Corp. (2018)

The Ninth Circuit accepted Horvitz & Levy’s arguments in a precedent-setting case about the consequences of enforcing a money judgment pending appeal. The Ninth Circuit held that a judgment creditor who seizes a judgment debtor’s company under a judgment that is later reversed on appeal may not recover from the judgment debtor business losses suffered while operating the seized company. The Ninth Circuit reversed a $1.1 million award against Horvitz & Levy’s clients, and foreclosed further proceedings that could have exposed the clients to a new award exceeding $5 million. In an earlier appeal in this same case, Horvitz & Levy persuaded the Ninth Circuit to reverse a $40 million judgment against its clients.