United States District Court, D. Minnesota
National Credit Union Administration Board, Acting in its Capacity as Liquidating Agent for the Hmong American Federal Credit Union, Plaintiff,
True Yang Vangh and Nkajlo Vangh, Defendants.
ORDER MODIFYING PERMANENT INJUNCTION TO PERMIT SALE
OF BUSINESS ASSETS
Wilhelmina M. Wright United States District Judge.
matter is before the Court on the parties' Joint Motion
to Modify Permanent Injunction. (Dkt. 90.) In a November 3,
2015 Order, the Court entered a preliminary injunction. That
injunction, among other things, enjoined Defendants True Yang
Vangh and Nkajlo Vangh from selling, dissipating, or
otherwise disposing of personal and business assets. On June
29, 2018, the Court entered a permanent injunction that
incorporated the previously ordered asset freeze. The June
29, 2018 Order also incorporated the terms of the
parties' settlement agreement, which, among other things,
requires Defendants to make monthly payments of $15, 000 to
Plaintiff National Credit Union Administration Board (NCUAB).
to the parties, after the Court ordered the permanent
injunction, the Minnesota Department of Human Services took
administrative action seeking to revoke the license necessary
for Defendants to continue conducting their adult day care
business. Defendants' ability to continue conducting
their home health care business faces a similar risk of
revocation. The parties assert that, if Defendants'
licenses are revoked, Defendants' businesses will close,
and they will be unable to continue making monthly payments
to NCUAB. To maximize the value of their business assets,
Defendants negotiated a proposed sale of their home health
care and adult day care businesses to third parties. NCUAB
represents that it has participated in these sale
negotiations and agrees to the sale terms and the form of the
transactional documents. The parties jointly move the Court
for an order modifying the permanent injunction to permit the
district court “has inherent jurisdiction in the
exercise of its equitable discretion . . . [to] modify its
injunctions.” Booker v. Special Sch. Dist. No.
1, 585 F.2d 347, 352 (8th Cir. 1978). “The
determination of whether it is appropriate to dissolve or
modify an injunction ‘rests primarily on the shoulders
of the district court that issued the injunction in the first
place.' ” United States v. Northshore Mining
Co., 576 F.3d 840, 848-49 (8th Cir. 2009) (quoting
Booker, 585 F.2d at 353). When a change in
circumstances requires modification of an injunction to
achieve the purpose of the initial relief, it is within a
district court's authority to do so. Larken Minn.,
Inc. v. Wray, 881 F.Supp. 1413, 1419 (D. Minn. 1995).
the Court ordered the permanent injunction at issue here, the
Court found that doing so would advance the interests of the
Federal Credit Union Act (FCUA), 12 U.S.C. §§ 1751
et seq., and promote the FCUA's public policy
goals of protecting creditors and ensuring a legitimate
credit union system. The proposed sale of Defendants'
businesses will advance those ends. But the proposed sale
cannot proceed without a modification to the existing
injunction. Moreover, the sale is necessary at this time
because, if Defendants' business licenses are revoked in
the near future, NCUAB's ability to collect its judgment
against Defendants could be lost. For these reasons, the
Court concludes that modifying the injunction is warranted.
on the foregoing analysis and all the files, records and
proceedings herein, IT IS HEREBY ORDERED:
parties' Joint Motion to Modify Permanent Injunction,
(Dkt. 90), is GRANTED.
injunction established by the Court's November 3, 2015
Order, which was converted to a permanent injunction by the
Court's June 29, 2018 Order and July 2, 2018 Judgment, is
hereby modified to permit the Defendants to do the following:
a. sell the assets of Twin Cities Home Health Services, LLC,
to North Star Health Alliance, LLC, a Minnesota limited
liability company; and
b. sell the assets of Hmong Elite Home Care, Inc., to Golden
Crescent Health Services, LLC, a Minnesota limited liability
Defendants shall remit the proceeds from the sale of the
foregoing businesses to Plaintiff as provided in the
respective agreements among the parties.
combined purchase price of Hmong Elite Home Care, Inc., and
Twin Cities Home Health Services, LLC, shall be no less than
the full amount of the restitution that Defendants owe
Plaintiff on the closing dates of the sales. Prior to the
sales, Plaintiff shall have the right to review and approve
the final form of all documents related to the sales. Without
such approval, the sales may not take place.
permanent injunction shall remain in effect in ...