D. Grant Peacock v. Jack L. Thomas (516 U.S. 349)

U.S. Supreme Court · decided February 21, 1996 · Supreme Court Database (Spaeth)

Citation
516 U.S. 349 · 116 S. Ct. 862
Decided
February 21, 1996
Term
October Term 1995
Vote
8–1
Majority author
Justice Thomas
Issue area
Economic Activity
Disposition
Reversed
Outcome
Petitioning party won
Ideological direction
Conservative

Opinion excerpt

Justice Thomas delivered the opinion of the Court. This case presents the issue whether federal courts possess ancillary jurisdiction over new actions in which a federal judgment creditor seeks to impose liability for a money judgment on a person not otherwise liable for the judgment. We hold that they do not. I Respondent Jack L. Thomas is a former employee of TruTech, Inc. In 1987, Thomas filed an ERISA class action in federal court against Tru-Tech and petitioner D. Grant Peacock, an officer and shareholder of Tru-Tech, for benefits due under the corporation’s pension benefits plan. Thomas alleged primarily that Tru-Tech and Peacock breached their fiduciary duties to the class in administering the plan. The District Court found that Tru-Tech had breached its fiduciary duties, but ruled that Peacock was not a fiduciary. On November 28, 1988, the District Court entered judgment in the amount of $187,628.93 against Tru-Tech only. Thomas v. Tru-Tech, Inc., No. 87-2243-3 (D. S. C.). On April 3, 1990, the Court of Appeals for the Fourth Circuit affirmed. Judgt. order reported at 900 F. 2d 256. Thomas did not execute the judgment while the ease was on appeal and, during that time, Peacock settled many of Tru-Tech’s accounts with favored creditors, including himself. After the Court of Appeals affirmed the judgment, Thomas unsuccessfully attempted to collect the judgment from…

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