Cleartrac, LLC v. Lanrick Contractors, LLC

CourtDistrict Court, E.D. Louisiana
DecidedJanuary 9, 2020
Docket2:19-cv-12137
StatusUnknown

This text of Cleartrac, LLC v. Lanrick Contractors, LLC (Cleartrac, LLC v. Lanrick Contractors, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cleartrac, LLC v. Lanrick Contractors, LLC, (E.D. La. 2020).

Opinion

EASTERN DISTRICT OF LOUISIANA

CLEARTRAC, LLC et al. CIVIL ACTION

VERSUS NO. 19-12137 LANRICK CONTRACTORS, LLC et al. SECTION: “G”(2)

ORDER AND REASONS

Before the Court is Defendants Lanrick Contractors, LLC, Lanrick Real Estate, LLC, Southeast Dirt, LLC, Hudson Holdings, LLC, Hudson Holdings Equipment, LLC, and Thomas P. McKellar (collectively, “Defendants”) “Motion to Dismiss.”1 In this litigation, Plaintiffs Cleartrac, LLC and Russell Kent Moore (“Plaintiffs”) seek to enforce a foreign judgment under the Louisiana Enforcement of Foreign Judgments Act.2 In the instant motion, Defendants argue that this case should be dismissed under the doctrine of res judicata.3 Having considered the motion, the memoranda in support and opposition, the record, and the applicable law, the Court grants the motion. I. Background On August 26, 2010, a default judgment was rendered in favor of Cleartrac, LLC (“Cleartrac”) and against Lanrick Contractors Corp. (“Lanrick”) by the 272nd Judicial District Court for the County of Brazos, State of Texas (the “Texas Judgment”).4 The Texas Judgment

1 Rec. Doc. 26. 2 Rec. Doc. 1 at 1. 3 Rec. Doc. 26 at 1. 4 Rec Doc. 1 at 2. $3,000 in attorneys’ fees for filing and prosecuting the claim; $2,500 in post-judgment collection

efforts; $500 in court costs; and post-judgment interest at the rate of 5% from the date of judgment until paid in full.5 Plaintiffs allege that the Texas Judgment is now final as no appeals were taken.6 On November 16, 2011, following entry on of the Texas Judgment, Cleartrac filed a “Petition to Make Judgment Executory” against Lanrick in the 21st Judicial District Court for the Parish of Tangipahoa, State of Louisiana.7 On November 21, 2011, the Louisiana state court ordered the Texas Judgment be made executory and the judgment of the Louisiana state court.8 On August 3, 2017, Cleartrac filed a “Petition to Enforce Judgment” in the Louisiana state court, seeking to enforce the Texas Judgment against Lanrick.9 On July 9, 2018, Cleartrac filed a “First Amended Petition to Enforce Judgment” in the Louisiana state court, adding Lanrick Real Estate, LLC, Southeast Dirt, LLC, Hudson Holdings, LLC, Hudson Holdings Equipment, LLC, Thomas

P. McKellar, and Lisa C. McKellar as defendants.10 On August 5, 2019, the Louisiana state court granted Defendants’ exception of no right of action.11 Cleartrac was given an opportunity to amend its petition to cure the defect, but failed to do so.12 Therefore, on August 19, 2019, the Louisiana

5 Id. at 2–3. 6 Id. at 3. 7 Rec. Doc. 12-2 at 13. 8 Id. at 15. 9 Id. at 4. 10 Rec. Doc. 26-2 at 1–2. 11 Rec. Doc. 26-3. 12 Id. December 9, 2019, Cleartrac filed a notice of appeal, and the Louisiana state court granted

Cleartrac a suspensive appeal from the Judgment.14 In the interim, on August 13, 2019, Plaintiffs filed a Complaint in this Court against Defendants seeking to make the Texas Judgment executory and to enforce the Texas Judgment.15 On September 9, 2019, Defendants filed a motion to dismiss for lack of subject matter jurisdiction.16 On September 10, 2019, Plaintiffs filed an opposition to the motion.17 On January 8, 2020, the Court denied the motion to dismiss for lack of jurisdiction. On December 6, 2019, Defendants filed the instant motion to dismiss based on res judicata.18 On December 10, 2019, Plaintiffs filed an opposition to the motion.19 II. Parties’ Arguments A. Defendants’ Arguments in Support of the Motion to Dismiss

In the instant motion, Defendants argue that this case should be dismissed under the doctrine of res judicata.20 Defendants assert that the August 19, 2019 Judgment of the Louisiana state court is a final judgment under Louisiana’s res judicata principles.21 Therefore, because the

13 Id. 14 Rec. Doc. 29-1. 15 Rec. Doc. 1 at 1. 16 Rec. Doc. 12. 17 Rec. Doc. 15. 18 Rec. Doc. 26. 19 Rec. Doc. 29. 20 Rec. Doc. 26-1 at 1. 21 Id. at 2. in this case, Defendants argue that Cleartrac is precluded from further litigating these issues.22

Furthermore, Defendants contend that Plaintiff Russell Kent Moore (“Moore”) is also precluded from relitigating these issues under the doctrine of res judicata.23 Defendants assert that Moore was the sole member of Cleartrac, and Moore clearly controlled the litigation of Cleartrac.24 Therefore, Defendants argue that Moore is also precluded from relitigating these claims because he is Cleartrac’s successor.25 Finally, Defendants assert that the Louisiana state court judgment is final for purposes of res judicata even if it could be appealed or an appeal is pending.26 In support, Defendants cite district court cases holding that a pending appeal does not affect the finality of a Louisiana state trial court’s judgment for res judicata purposes.27 Accordingly, because a valid and final judgment has been rendered by the Louisiana state court, Defendants argue that Plaintiffs are precluded from

litigating these issues in this Court.28 B. Plaintiffs’ Arguments in Opposition to the Motion to Dismiss In opposition, Plaintiffs argue that the Louisiana Judgment does not have preclusive effect because the Louisiana state court granted Plaintiffs a suspensive appeal.29 Plaintiffs contend that

22 Id. at 2–3. 23 Id. at 3. 24 Id. 25 Id. at 3–4 26 Id. at 4. 27 Id. (citing Shelton v. Board of Sup’rs of Southern University and A & M College, 2012 WL 75040 (M.D. La. 2012); Rimkus Consulting Grp., Inc. v. Cammarata, 688 F. Supp. 598, 657–58 (S.D. Tex. 2010)). 28 Id. at 6. 29 Rec. Doc. 29 at 1. rendered, to maintain the status quo until the appeal can be reached in due course, and to suspend

the effect of the judgment until exhaustion of all appeals.”30 Plaintiffs assert that a federal court cannot give a state court judgment greater preclusive effect than the state courts themselves would give to it.31 Therefore, Plaintiffs contend that this case is not barred under the doctrine of res judicata.32 Next, Plaintiffs note that this suit was initiated on August 13, 2019, six days before the Louisiana Judgment was rendered.33 Plaintiffs quote comment (d) to Louisiana Revised Statute § 13:4231, which provides that “the preclusive effect of a judgment attaches once a final judgment has been signed by the trial court and would bar any action filed thereafter. . . .”34 Because this litigation was filed before the Louisiana Judgment was entered, Plaintiffs assert that this litigation is not barred under the doctrine of res judicata.35 Alternatively, because the state court judgment

is on appeal and could be overturned, Plaintiffs argue that Cleartrac’s claims must be dismissed without prejudice because “the state court judgment may ultimately be of no effect.”36 Finally, Plaintiffs contend that the Louisiana Judgment does not prevent Moore from litigating this case.37 According to Plaintiffs, the only issue decided by the Louisiana state court

30 Id. (citing New Orleans Home for Incurables, Inc. v. Greenstein, 911 F.Supp.2d 386, 403 (E.D. La. 2012); Latiolais v. Griffith, 2015 WL 13022875 (W.D. La. 2015)). 31 Id. (citing Marrese v. American Academy of Orthopedic Surgeons, 470 U.S. 373, 384 (1985)). 32 Id. 33 Id. at 2. 34 Id. 35 Id. 36 Id. 37 Id. at 3. the company was dissolved.38 Plaintiffs argue that the Texas statute has no effect upon a member’s

individual right to enforce the judgment.

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Cleartrac, LLC v. Lanrick Contractors, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cleartrac-llc-v-lanrick-contractors-llc-laed-2020.