Bovinett v. HomeAdvisor, Inc.

CourtDistrict Court, N.D. Illinois
DecidedMarch 23, 2020
Docket1:17-cv-06229
StatusUnknown

This text of Bovinett v. HomeAdvisor, Inc. (Bovinett v. HomeAdvisor, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bovinett v. HomeAdvisor, Inc., (N.D. Ill. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

RAY ALAN BOVINETT, t/a ALAN BOVINETT,

Plaintiff,

v.

HOMEADVISOR, INC., ANGI HOMESERVICES, INC., and HAWTHORNE DIRECT, LLC,

Defendants. Case No. 17 C 06229

HOMEADVISOR, INC., Judge Harry D. Leinenweber

Third-Party Plaintiff,

JULIE TALLARIDA, and PLANET EARTH AGENCY, LLC,

Third-Party Defendants.

MEMORANDUM OPINION AND ORDER

Hawthorne Direct, LLC brings a Motion for Sanctions pursuant to FED. R. CIV. P. 37 (Dkt. No. 83). HomeAdvisor, Inc., ANGI Homeservices, Inc., and Hawthorne (collectively “Former Defendants”) bring a Motion for Sanctions, Attorney’s Fees, and Costs pursuant to FED. R. CIV. P. 11, and alternatively 28 U.S.C. § 1927 or the Court’s inherent authority (Dkt. No. 107), and a Supplemental Motion for Sanctions, Attorney’s Fees, and Costs (Dkt. No. 131-1). For the reasons stated herein, the Motion for Sanctions (Dkt. No. 83), Motion for Sanctions, Attorney’s Fees, and Costs (Dkt. No. 107), and Supplemental Motion for Sanctions,

Attorney’s Fees, and Costs (Dkt. No. 131-1) are granted. I. BACKGROUND In August 2017, Plaintiff Ray Alan Bovinett, through his former counsel, Attorney Mark Barinholtz, sued the Former Defendants alleging a myriad of claims that stem from the alleged improper use of Plaintiff’s image in the background of video commercials. Specifically, the 150-paragraph Complaint consisted of fourteen claims and sought damages of “not less than $2.8 million.” (See generally Compl., Dkt. No. 1.) Former Defendants moved to dismiss—ANGI and Hawthorne under Rule 12(b)(2) for lack of jurisdiction and HomeAdvisor under Rule 12(b)(6) for failure to state a claim. Hawthorne’s Motion to Dismiss “respectfully

reserve[d] the right to pursue Bovinett and counsel for its fees and costs in what can only be characterized as an extortion attempt.” (Dkt. No. 21 at 1 n.1.) Former Defendants also presented an early settlement offer, stating that they “believe[d] that this lawsuit is being brought in bad faith, or is at least frivolous and unjustified.” (Hall Decl. ¶ 2, Dkt. No. 107-1.) The Court granted the Former Defendants’ Motions to Dismiss in full, leaving just the three claims Former Defendants had not moved on for future resolution. Plaintiff, through Barinholtz, followed with a Motion for Reconsideration, which the Court swiftly denied.

Because the dismissals were without prejudice, Plaintiff, through Barinholtz, filed a 203-paragraph Amended Complaint containing fourteen claims and seeking damages of “not less than $4.65 million.” (Am. Compl. at 38, Dkt. No. 54.) Former Defendants again moved to dismiss—this time HomeAdvisor and ANGI under Rule 12(b)(6) for failure to state a claim and Hawthorne under Rule 12(b)(2) for lack of jurisdiction. The parties also worked through discovery issues that included resolving each party’s previously granted motion to compel. (Dkt. Nos. 59, 63, 80 & 82.) Eventually, Hawthorne filed a Motion for Sanctions arguing that Plaintiff and Barinholtz failed to identify, in response to the Court’s order on Former Defendants’ motion to compel, any facts

supporting a good faith basis for jurisdiction over Hawthorne. (Hawthorne’s Mot., Dkt. No. 83.) The Court took the Motion under advisement and subsequently granted Former Defendants’ Motion to Dismiss the Amended Complaint—this time with prejudice. In dismissing Hawthorne for lack of jurisdiction, the Court rejected the Amended Complaint’s allegations of an “elaborate conspiracy” amongst the Former Defendants. (Dkt. No. 95 at 3.) The Court also dismissed all eleven claims for relief upon which Former Defendants moved, including the nine new causes of action. (See id. at 7–16.) This left three causes of action remaining. Former Defendants then filed an Answer and a Motion for Sanctions,

Attorney’s Fees, and Costs. The Court entered and continued that Motion to be decided along with Hawthorne’s prior Sanctions Motion. After taking the depositions of three key individuals, Former Defendants filed a Supplemental Motion for Sanctions, Attorney’s Fees, and Costs, which the Court entered and continued along with the other two Motions to resolve at the end of the case. Barinholtz then withdrew as Plaintiff’s counsel, and Plaintiff proceeded pro se. Plaintiff and Former Defendants’ counsel appeared at a December 3, 2019 status hearing. (12/3/19 Tr. at 2:4–9, Dkt. No. 143.) At the hearing, Former Defendants’ counsel advised the Court that they had resolved all matters as to Plaintiff but that the Motions against Barinholtz were still pending. (Id. at 2:12–

24.) Plaintiff settled with Former Defendants for about .06% of the monetary damages demanded in the Amended Complaint. (See Dkt. No. 156 ¶ 2; Settlement Agreement, Dkt. No. 156-1.) The Court instructed Former Defendants’ counsel to attempt to resolve the remaining claims with Barinholtz and set another status hearing two weeks later. (Id. at 3:9–11.) On December 17, 2019, Barinholtz, Former Defendants’ counsel, and Plaintiff, via telephone, appeared for the second status hearing. (12/17/19 Tr. at 2:4–18, Dkt. No. 147.) Former Defendants’ counsel informed the Court that the attempt to resolve the remaining claims with Barinholtz had been unsuccessful and that a

briefing schedule was necessary. (Id. at 2:20–3:4.) Barinholtz then mentioned Plaintiff’s previously filed combined motion to compel and for sanctions against Former Defendants (Dkt. No. 59) and objections (Dkt. No. 85) that he believed to still be pending. (12/17/19 Tr. at 3:5–13.) The Court clarified that the parties, meaning Plaintiff himself and the Former Defendants, had resolved “whatever disputes existed between them,” and the only pending claims requiring resolution were Former Defendants’ sanctions claims against Barinholtz. (Id. at 3:14–21.) The Court ordered that Barinholtz respond to the outstanding Motions identified on the record as Dkt. Nos. 83, 107, 131 by February 3, 2020. (Id. at 6:15–19; 7:1–6.) A week before that

response came due, Barinholtz filed a motion for miscellaneous relief. The Court denied that motion and ordered Barinholtz to respond to the outstanding Motions by March 5, 2020. On March 5, 2020, instead of filing a response, Barinholtz filed a motion to extend. The Court also denied that motion and ordered Barinholtz to respond by March 11, 2020. Finally, the Court is in receipt of Barinholtz’s response. The Court now rules on the Motion for Sanctions pursuant to FED. R. CIV. P. 37 (Dkt. No. 83), Motion for Sanctions, Attorney’s Fees, and Costs pursuant to FED. R. CIV. P. 11, and alternatively

28 U.S.C. § 1927 or the Court’s inherent authority (Dkt. No. 107), and the Supplemental Motion for Sanctions, Attorney’s Fees, and Costs (Dkt. No. 131-1) as follows. II. DISCUSSION Former Defendants argue that this case presents rare circumstances in which sanctions are appropriate. In support, Former Defendants focus on three broad instances of misconduct: (1) failing to obey a Court discovery order; (2) re-pleading Hawthorne in the Amended Complaint after it was clear that no facts or law supported its continued inclusion; and (3) proliferating frivolous arguments in the Amended Complaint. The Court addresses these arguments under the appropriate standards below.

A. Rule 37 Former Defendants seek Rule 37 sanctions for failure to obey a Court order. Rule 37 authorizes sanctions when a party “fails to obey an order to provide or permit discovery.” FED. R. CIV. P. 37(b)(2).

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Bovinett v. HomeAdvisor, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/bovinett-v-homeadvisor-inc-ilnd-2020.