Ali v. Mid-Atlantic Settlement Services, Inc.

235 F.R.D. 1, 2006 U.S. Dist. LEXIS 13305, 2006 WL 618416
CourtDistrict Court, District of Columbia
DecidedMarch 10, 2006
DocketNo. Civ.A. 02-2271
StatusPublished
Cited by3 cases

This text of 235 F.R.D. 1 (Ali v. Mid-Atlantic Settlement Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ali v. Mid-Atlantic Settlement Services, Inc., 235 F.R.D. 1, 2006 U.S. Dist. LEXIS 13305, 2006 WL 618416 (D.D.C. 2006).

Opinion

MEMORANDUM OPINION AND ORDER

ROBERTS, District Judge.

Plaintiff Betty Gene Ali has moved for reconsideration of the order denying sanctions in the form of attorney’s fees and expenses incurred in preparing and litigating her motion for default judgment against defendant Anthony Noble. Ali has also moved to certify an interlocutory appeal from the decision to permit Noble to file a verified answer to avoid a default judgment.

Ali’s motion for reconsideration will be granted. Upon reconsideration, because Noble’s actions that prompted Ali’s motion for default judgment and the ensuing litigation were willful and repeated, and caused unnecessary delay and cost in violation of Rule 11 of the Federal Rules of Civil Procedure, monetary sanctions will be imposed on Noble. Because the law in this circuit overwhelmingly favors a trial on the merits over a default judgment, there is no controlling issue of law for which there is a substantial ground for a difference of opinion, and Ali’s motion for certification of an interlocutory appeal will be denied.

BACKGROUND

[2]*2Ali sued Noble and others1 alleging that she was the victim of a fraud scheme in which Noble’s stepfather induced Ali to sell her home to Noble at a value below market price, and then failed to deliver the money. Ali served Noble on November 13, 2002 and twice thereafter. When Noble did not respond after having been served three times, Ali sought and received an entry of default and then filed a motion for default judgment. (See Dkt. 33, 35, 36.)

Because Noble did not respond to Ali’s motion, an order issued on August 13, 2004 directing Noble to show cause why Ali’s motion for default judgment should not be granted. In response, Noble filed a motion to set aside entry of default. (See Dkt. 39.) His motion asserted the bare legal conclusion that he had not been personally served, but it failed to address Ali’s allegations about service with factual particularity and it failed to include a verified answer as is required by Local Civil Rule 7(g). Ali opposed Noble’s motion to set aside default entry and filed a notice of intent to seek sanctions if Noble did not amend his assertions that he had never been served. (See Dkt. 42, 44.) In an order dated November 24, 2004, Noble was directed to respond further to the show cause order and to specifically answer all of Ali’s factual allegations about service upon Noble. Noble filed a memorandum, affidavit, and exhibits in response. {See Dkt. 46, 47, 48.) Noble’s affidavit was a picture of “studied ambiguity” and “almost contemptuously non-compliant, reciting spare and selective facts[.]” Mem. Op. & Order, Jan. 6, 2006 (“Mem.Op.”) at 18. Ali filed documents countering Noble’s arguments and factual contentions and a motion for sanctions under Rule 11, claiming that Noble’s assertions lacked evidentiary support, were not warranted on the evidence, and were intended to and had the purpose of causing unnecessary delay and needless increase to the cost of litigation. (See Dkt. 50, 51.) Only after being ordered to do so by yet another show cause order entered February 4, 2005 did Noble respond to Ali’s motion for sanctions. (See Dkt. 52, 53, 54.) Ali made arguments and submitted evidence to refute Noble’s position. (See Dkt. 55, 56.)

Ali’s motion for sanctions was granted in part and denied in part. The memorandum opinion concluded that “Noble ha[d] played a cat and mouse game in order to evade the jurisdiction of the court,” noted that he had engaged in a “disingenuous and ultimately ineffective ... evasion of service,” Mem. Op. at 18 & n. 4, and found that “Ali ha[d] incurred unnecessary costs and prejudicial delay from Noble’s insupportable failure to respond as required to the service of the summons and complaint.” Id at 19. Noble’s attorney was admonished for his part in what amounted “at least to a failure to conduct the required reasonable inquiry under the circumstances and to restrict legal contentions to those warranted by existing law.” Id. at 18. Noble was warned not to cause further delay with his baseless claims that he had not been served, but no monetary sanctions were imposed. Noble was also ordered to submit a verified answer to Ali’s complaint no later than January 17, 2006 or risk entry of a default judgment. Id. at 19. Noble did not initially comply with this order, but instead first submitted an unverified answer. {See Dkt. 60.) This answer was ordered stricken and Noble was ordered to comply in full with the court’s January 6, 2006 order. Then, and only then, did Noble finally submit a verified answer on January 24, 2006. {See Dkt. 62, Ex. B.)

After the January 26, 2006 memorandum opinion had issued but before Noble had filed his verified answer, Ali filed a motion for reconsideration regarding the denial of monetary sanctions, seeking “all attorneys fees incurred in compelling Noble to answer to the jurisdiction of this court.” (Dkt. 58, PL’s Mot. for Recons. (“Mot. for Reeons.”) at 1.)2 Her request includes the cost of serving Noble the second and third times, seeking the entry of default, and filing the motion for default judgment. (See id. at 1.) She also filed a motion to certify for interlocutory appeal the court’s decision to permit Noble to file a verified answer to avoid default judgment. Noble has opposed both the motion [3]*3for certification and the motion for reconsideration. (See Dkt. 61, 62.)

DISCUSSION

I. SANCTIONS

Rule 11(b) of the Federal Rules of Civil Procedure is designed to ensure that factual contentions presented to the court are warranted by the evidence and that legal contentions are warranted by existing law or a nonfrivolous extension of existing law. See Fed.R.Civ.P. 11(b). Rule 11(c) authorizes sanctions against any party, whether or not represented, who is responsible for any violation of Rule 11(b). See Fed.R.Civ.P. 11(c).

The district court has the discretion to determine whether the facts of the case warrant the imposition of sanctions. Getter v. Randi, 40 F.3d 1300, 1304 (D.C.Cir.1995). In determining whether to impose sanctions under Rule 11(b) or 11(c), the advisory committee notes that proper considerations may include “whether the improper conduct was willful, ... whether it was part of a pattern of activity, ... what effect it had on the litigation process in time or expense; ... [and] whether the person responsible is trained in the law[.]” Fed.R.Civ.P. 11 advisory committee’s notes.

Noble was a law student at the University of Pennsylvania School of Law at the time he was first served and each time thereafter. (See Dkt. 62, Opp’n to Pl.’s Mot. for Recons., Ex. A, Aff. of Anthony L. Noble, Jan.

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Cite This Page — Counsel Stack

Bluebook (online)
235 F.R.D. 1, 2006 U.S. Dist. LEXIS 13305, 2006 WL 618416, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ali-v-mid-atlantic-settlement-services-inc-dcd-2006.