## Facts

- Grupo Mexicano de Desarrollo, S.A. (GMD), a Mexican holding company involved in Mexico’s toll-road program, financed operations by issuing unsecured notes.
- U.S. investment funds purchased substantial amounts of GMD’s notes.
- Toll-road concessionaires defaulted on obligations to contractors, contributing to GMD’s default on its notes.
- Mexico implemented a Toll Road Rescue Program that took control of toll roads and addressed certain construction-debt obligations, generating for GMD valuable rights to receive payment or value connected to its toll-road work (intangible receivables).
- The noteholders sued GMD in federal court for breach of contract and obtained a money judgment.
- As post-judgment relief, the district court ordered GMD to “irrevocably assign or transfer” its rights under the Toll Road Rescue Program to the noteholders.

## Issues

1. Whether, after entry of a money judgment, a federal court may compel a judgment debtor to assign or transfer intangible receivables to the judgment creditors without a clear fit within New York judgment-enforcement mechanisms incorporated by Federal Rule of Civil Procedure 69(a).
2. Whether the district court’s compelled assignment order complied with New York post-judgment procedures for reaching a debtor’s intangible property interests.

## Decision

- The Second Circuit affirmed the entry of judgment for the noteholders on liability and damages.
- The Second Circuit vacated the portion of the judgment ordering GMD to “irrevocably assign or transfer” its Toll Road Rescue Program rights.
- The case was remanded for further fact-finding and determination of appropriate post-judgment relief consistent with New York enforcement procedures.

## Legal Principles

- Federal Rule of Civil Procedure 69(a) generally requires enforcement of money judgments to proceed in accordance with the practice and procedure of the state where the federal court sits, absent an applicable federal statute.
- When the property targeted for collection is an intangible right to payment (a chose in action), the remedy must align with the state’s specified post-judgment collection devices (including the procedural safeguards those devices entail).
- A federal court may not impose an ad hoc property-transfer remedy to satisfy a money judgment where the record does not establish that the remedy is authorized under, and procedurally consistent with, state judgment-enforcement law.

## Conclusion

The Second Circuit held that post-judgment collection in federal court must track state enforcement procedures under Rule 69(a) and vacated a compelled assignment of Mexican toll-road receivables because the record did not show the order clearly fit within New York’s statutory judgment-enforcement framework.


Alliance Bond Fund, Inc. v. Grupo Mexicano de Desarrollo, S.A., 190 F.3d 16 (2d Cir. 1999)