Burka v. Aetna Life Insurance

917 F. Supp. 8, 1996 U.S. Dist. LEXIS 2527, 1996 WL 93635
CourtDistrict Court, District of Columbia
DecidedFebruary 12, 1996
DocketCivil Action 94-0975(CRR)
StatusPublished
Cited by7 cases

This text of 917 F. Supp. 8 (Burka v. Aetna Life Insurance) 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
Burka v. Aetna Life Insurance, 917 F. Supp. 8, 1996 U.S. Dist. LEXIS 2527, 1996 WL 93635 (D.D.C. 1996).

Opinion

MEMORANDUM OPINION

CHARLES R. RICHEY, District Judge.

INTRODUCTION

Before the Court is a Motion for Preliminary Injunction, filed by the defendant The American University (the “University”) on December 22,1995 in the above-entitled case. The plaintiffs filed an Opposition thereto on January 2, 1996, which the plaintiffs supplemented on January 22,1996. The University filed its Reply on January 29, 1996. On January 2, 1996, the defendant Aetna Life Insurance Company (“Aetna”) filed a Statement in Support of Motion for Preliminary Injunction. Also before the Court, are the Motions of The Great Atlantic & Pacific Tea Company, Inc. (“A & P”) and Salon Jean-Paul, Ltd. (“Jean-Paul”) for Leave to Intervene in the above-entitled case. A & P and Jean-Paul have submitted Motions for Preliminary Injunction as well. Finally, on February 5, 1996, the plaintiffs filed a Motion to Dismiss the Counterclaim of the American University or, alternatively, to Remand the Case to the Superior Court of the District of Columbia.

Based on the pleadings, the entire record herein, and the law applicable thereto, and for the following reasons, the Court shall deny the Motions of A & P and Jean-Paul for Leave to Intervene and for Preliminary Injunctions. The Court shall grant the University’s Motion for Preliminary Injunction as provided herein. Also, the Court shall deny the Burkas’ Motion to Dismiss and Motion to Remand, without prejudice to the Burkas’ right to renew those motions after this case is remanded by the Court of Appeals.

*10 BACKGROUND

The above-entitled case involves a dispute concerning Lot 9, Square 1449 in the District of Columbia. For real estate tax assessment purposes, Lot 9 is further subdivided into two “assessment and taxation” lots, known as Lot 806 and Lot 807. Lot 806 contains a building known as 4801 Massachusetts Avenue, N.W., that the University now occupies as its law school. Lot 807 contains a supermarket and other retail stores, as well as a two-level parking deck with 106 spaces on the upper level and 110 spaces on the lower level.

From the early 1970s until 1993, all of Lot 9 was owned by the Burkas or by various combinations of the Burka family members or trusts for their benefit. In 1978, the Burkas ground-leased Lot 806 to a limited partnership consisting of their family members and others to construct the building on Lot 806. By deed of trust dated May 29, 1979, the leasehold estate and fee title to Lot 806 were subjected to a lien to secure the repayment of financing provided by the defendant Aetna. The building was constructed in 1979-80, originally for retail and general office use. The building includes a three-level underground parking garage.

A Declaration of Easement was executed on December 20, 1978 and recorded May 25, 1979, as Instrument No. 16911. The Declaration conveys

to the owners from time to time of ... [Lot 806] ... and any ground lessee, tenants, occupants, guests and business invitees, a non-exclusive easement for vehicular parking of not less than 236 automobiles on the parking areas located from time to time upon ... [Lot 807].
❖ * * * *• *
The owners from time to time of [Lot 807] ... shall, at its expense, maintain the driveways and parking areas located on ... [Lot 807] at its sole expense_ The owners of ... [Lot 807] shall have the right to establish uniform and reasonable rules, regulations and conditions governing the use of the driveways and parking areas as may be appropriate for the convenience and safety of the persons making use thereof.

In early 1993, Aetna foreclosed and acquired fee title to Lot 806. On April 22, 1994, the Burkas filed the above-captioned case in the Superior Court of the District of Columbia against the defendant Aetna, seeking, inter alia, to invalidate the foreclosure by which Aetna had acquired title to Lot 806 and to invalidate the parking easement conveyed by the 1978 Declaration.

On May 3, 1994, Aetna removed the case to this Court on the basis of diversity jurisdiction. Aetna moved for and obtained summary judgment on all counts. On June 23, 1994, Aetna conveyed Lot 806 and the parking easement to the University by deed, retaining an interest as the secured party under a purchase-money deed of trust.

The Court of Appeals affirmed summary judgment as to the validity of the foreclosure and the Declaration of Easement. However, the Court of Appeals remanded the case for further consideration of the issue whether the building on Lot 806, known as 4801 Massachusetts Avenue, N.W., exceeded the gross floor area allocated to it under the Declaration of Easement. Burka v. Aetna Life Ins. Co., 56 F.3d 1509 (D.C.Cir.1995). The Court of Appeals agreed with this Court that the gross floor area issue was not relevant to the validity of the contested documents but, rather, was relevant to the Burkas request for a declaration that neither Aetna nor its successors were entitled to use or erect any structure exceeding the 179,302 square feet specified in those documents. Id. at 1511-13.

After remand, Aetna and the Burkas filed motions to bring the University into the case. Aetna’s motion sought to substitute the University pursuant to Fed.R.Civ.P. 25(c), while the Burkas’ motion sought to join the University as an indispensable party pursuant to Fed.R.Civ.P. 19. Under Rule 25(c), the substitution of a nondiverse party, such as the University, would not divest the court of jurisdiction. The Burkas argued for the University’s joinder under Rule 19 and for a remand to Superior Court because, under 28 U.S.C. § 1447(e), the Court may not retain jurisdiction over a ease when a non-diverse party is joined.

*11 On August 2, 1995, the Court granted Aet-na’s motion under Rule 25(c) and denied the Burkas’ motion under Rule 19. The Court certified the matter for interlocutory appeal under 28 U.S.C. § 1292(b). The Court also granted the Burkas leave to amend their complaint. The Amended Complaint seeks cancellation of the easement granted by the Declaration because the size of the building on Lot 806 allegedly exceeds that allowed under the easement and because the building changed from retail and offices to a law school. The Burkas also seek $10 million in damages. The University has counterclaimed for declaratory judgment and permanent injunctive relief. Further court proceedings were stayed by Order filed August 23,1995.

The Burkas’ petition to appeal was granted by the Court of Appeals on December 1, 1995. A briefing schedule, providing for oral argument on May 9, 1996, was issued on December 12,1995.

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917 F. Supp. 8, 1996 U.S. Dist. LEXIS 2527, 1996 WL 93635, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burka-v-aetna-life-insurance-dcd-1996.