Decker v. Decker, et al. CV-96-424-M 09/11/97 UNITED STATES DISTRICT COURT
DISTRICT OF NEW HAMPSHIRE
Marshal N. Decker
v. Civil No. 96-424-M
David R. Decker; Duncan Farmer; Robert Stinson; Normandin, Cheney & O'Neil, P.A.; Decker, Fitzgerald & Sessler, P.A.; a/k/a Fitzgerald & Sessler, P.A.
O R D E R
Pro se plaintiff, Marshall Decker, brings this action
against his brother and other defendants alleging malicious
prosecution and abuse of process arising from state court
litigation that followed a failed business relationship.
Plaintiff's brother, defendant David Decker, also pro se, moves
to dismiss plaintiff's conspiracy count for failure to state a
claim upon which relief can be granted. For thefollowing
reasons, defendant's motion todismiss plaintiff's conspiracy
cause of action is granted.
I. Standard of Review
A motion to dismiss under Fed. R. Civ. P. 12(b)(6) is one
limited inguiry, focusing not on "whether a plaintiff will
ultimately prevail but whether the claimant is entitled to offe
evidence to support the claims." Scheuer v. Rhodes, 416 U.S.
232, 236 (1974). Accordingly, the court must take the factual
averments contained in the complaint as true, indulging every reasonable inference helpful to the plaintiff's cause. Garita
Hotel Ltd. Partnership v. Ponce Fed. Bank, 958 F.2d 15, 17 (1st
Cir. 1992); see also Dartmouth Review v. Dartmouth College, 889
F.2d 13, 16 (1st Cir. 1989). Great specificity is not required
to survive a Rule 12(b)(6) motion. "[I]t is enough for a
plaintiff to sketch an actionable claim by means of a generalized
statement of facts from which the defendant will be able to frame
a responsive pleading." Garita, 958 F.2d at 17 (citation and
internal quotation marks omitted). In the end, the court may
grant a motion to dismiss under Rule 12(b) (6) "'only if it
clearly appears, according to the facts alleged, that the
plaintiff cannot recover on any viable theory.'" Id., at 17
(quoting Correa-Martinez v. Arrillaqa-Belendez, 903 F.2d 49, 52
(1st Cir. 1990) ) .
Because the plaintiff is acting pro se, his complaint is
necessarily held to a less stringent standard than are formal
pleadings drafted by lawyers. See Haines v. Kerner, 404 U.S.
519, 520 (1972). Although the court will liberally construe a
complaint drafted by a pro se litigant, the plaintiff must still
allege facts sufficient to state a cause of action. See Correa-
Martinez v. Arrillaqa-Belendez, 903 F.2d at 53.
II. Background
This lawsuit is the culmination of a ten year disagreement
and several years of state court litigation between two brothers
2 regarding a real estate investment and development project. In
1986, defendant, David Decker, purchased from his brother
Marshall a ten percent interest in a real estate development
project known as Cotton Farm Village ("C.F.V."). Subseguently,
David sued Marshall in state court, claiming that Marshall
converted profits from the sale of homes on the property for his
own use. In 1993, the matter was tried on the merits to the
Belknap County Superior Court.
At trial, David called an accountant who had audited
C.F.V.'s books. The auditor testified that Marshall Decker had
engaged in "unauthorized borrowing" of up to one million dollars.
Although the trial court held that David had failed to prove that
any "unauthorized borrowing" or "conversion" of the funds
occurred, the court did find that "Marshall [had] not made the
proper use of large sums of Cotton Farm Village [income]." Decker
v. Decker, No. E-86-0128, slip op. at 12 (N.H. Superior C t .
September 1, 1993). In the end, the Superior Court ordered
Marshal to pay his brother approximately $70,000, representing
the value of David's ten percent interest in C.F.V. from 1986
through 1991 if Marshall had not engaged in "unauthorized and
detrimental removal of a portion of the gross revenues for Cotton
Farm Village" during that period. Id. at 16. The court also
awarded David $15,000 in accounting fees. Marshall appealed that
order to the New Hampshire Supreme Court, which affirmed the
trial court's finding that David held a ten percent interest in
3 C.F.V., but remanded the matter to the trial court for
recalculation of his damages and revaluation of his ten percent
interest in C.F.V. Decker v. Decker, 139 N.H. 588 (1995).
On remand, the trial court determined that plaintiff's ten
percent share of C.F.V. for the years at issue was valued at
$100,000, which was then offset by $38,461 in payments made by
C.F.V. on a loan for which David was liable. Accordingly, the
trial court entered judgment in favor of David in the amount of
$61,539 and ordered a yearly accounting of the profits generated
by C.F.V. The record suggests that Marshall appealed that
judgment to the New Hampshire Supreme Court, which apparently
denied his appeal.
III. Discussion
In this suit, Marshall asserts that David, David's former
law firm (Decker, Fitzgerald & Sessler, P.A.), and the accountant
retained by David, Duncan Farmer, engaged in malicious
prosecution and abuse of process by bringing the state court suit
against him based on false information and perjured testimony.
Paragraph 69 of plaintiff's complaint, which is the subject of
the pending motion to dismiss, alleges that "the defendant
conspired with other defendants to commit perjury with respect to
the subject litigation," in a successful effort to obtain the
substantial monetary judgment awarded by the Superior Court.
Defendant moves to dismiss on ground that the facts alleged in
4 the complaint do not state an actionable claim under the
governing law of New Hampshire.
"A civil conspiracy is a combination of two or more persons
by concerted action to accomplish an unlawful purpose, or to
accomplish some purpose not in itself unlawful by unlawful
means." Jav Edwards, Inc. v. Baker, 130 N.H. 41, 47 (1987) .
In New Hampshire, there is no recognized civil action based
solely on conspiracy. See Langley v. Langley, 84 N.H. 515, 516
(1931)(citing Stevens v. Rowe, 59 N.H. 578, 579 (1880)). It is
the wrong actually done to the plaintiff, and not the conspiracy
to commit that wrong, that is the foundation of the action. See
Langley, 84 N.H. at 516 (citing Fitzhugh v. Railway, 80 N.H. 185,
18 9 (1921)); see also Stevens, 59 N.H. at 579 (1880).
Conseguently, to state a viable claim, a plaintiff in a civil
conspiracy action must allege some damages or injury resulting
from the alleged conspiracy. See id.
Moreover, under New Hampshire law, the defeated party in a
previous lawsuit cannot maintain a civil action against a witness
for allegedly giving false testimony in favor of his opponent,
unless and until the underlying civil judgment is overturned or
reversed. See Stevens, 59 N.H. at 579. See also Sweeney v.
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Decker v. Decker, et al. CV-96-424-M 09/11/97 UNITED STATES DISTRICT COURT
DISTRICT OF NEW HAMPSHIRE
Marshal N. Decker
v. Civil No. 96-424-M
David R. Decker; Duncan Farmer; Robert Stinson; Normandin, Cheney & O'Neil, P.A.; Decker, Fitzgerald & Sessler, P.A.; a/k/a Fitzgerald & Sessler, P.A.
O R D E R
Pro se plaintiff, Marshall Decker, brings this action
against his brother and other defendants alleging malicious
prosecution and abuse of process arising from state court
litigation that followed a failed business relationship.
Plaintiff's brother, defendant David Decker, also pro se, moves
to dismiss plaintiff's conspiracy count for failure to state a
claim upon which relief can be granted. For thefollowing
reasons, defendant's motion todismiss plaintiff's conspiracy
cause of action is granted.
I. Standard of Review
A motion to dismiss under Fed. R. Civ. P. 12(b)(6) is one
limited inguiry, focusing not on "whether a plaintiff will
ultimately prevail but whether the claimant is entitled to offe
evidence to support the claims." Scheuer v. Rhodes, 416 U.S.
232, 236 (1974). Accordingly, the court must take the factual
averments contained in the complaint as true, indulging every reasonable inference helpful to the plaintiff's cause. Garita
Hotel Ltd. Partnership v. Ponce Fed. Bank, 958 F.2d 15, 17 (1st
Cir. 1992); see also Dartmouth Review v. Dartmouth College, 889
F.2d 13, 16 (1st Cir. 1989). Great specificity is not required
to survive a Rule 12(b)(6) motion. "[I]t is enough for a
plaintiff to sketch an actionable claim by means of a generalized
statement of facts from which the defendant will be able to frame
a responsive pleading." Garita, 958 F.2d at 17 (citation and
internal quotation marks omitted). In the end, the court may
grant a motion to dismiss under Rule 12(b) (6) "'only if it
clearly appears, according to the facts alleged, that the
plaintiff cannot recover on any viable theory.'" Id., at 17
(quoting Correa-Martinez v. Arrillaqa-Belendez, 903 F.2d 49, 52
(1st Cir. 1990) ) .
Because the plaintiff is acting pro se, his complaint is
necessarily held to a less stringent standard than are formal
pleadings drafted by lawyers. See Haines v. Kerner, 404 U.S.
519, 520 (1972). Although the court will liberally construe a
complaint drafted by a pro se litigant, the plaintiff must still
allege facts sufficient to state a cause of action. See Correa-
Martinez v. Arrillaqa-Belendez, 903 F.2d at 53.
II. Background
This lawsuit is the culmination of a ten year disagreement
and several years of state court litigation between two brothers
2 regarding a real estate investment and development project. In
1986, defendant, David Decker, purchased from his brother
Marshall a ten percent interest in a real estate development
project known as Cotton Farm Village ("C.F.V."). Subseguently,
David sued Marshall in state court, claiming that Marshall
converted profits from the sale of homes on the property for his
own use. In 1993, the matter was tried on the merits to the
Belknap County Superior Court.
At trial, David called an accountant who had audited
C.F.V.'s books. The auditor testified that Marshall Decker had
engaged in "unauthorized borrowing" of up to one million dollars.
Although the trial court held that David had failed to prove that
any "unauthorized borrowing" or "conversion" of the funds
occurred, the court did find that "Marshall [had] not made the
proper use of large sums of Cotton Farm Village [income]." Decker
v. Decker, No. E-86-0128, slip op. at 12 (N.H. Superior C t .
September 1, 1993). In the end, the Superior Court ordered
Marshal to pay his brother approximately $70,000, representing
the value of David's ten percent interest in C.F.V. from 1986
through 1991 if Marshall had not engaged in "unauthorized and
detrimental removal of a portion of the gross revenues for Cotton
Farm Village" during that period. Id. at 16. The court also
awarded David $15,000 in accounting fees. Marshall appealed that
order to the New Hampshire Supreme Court, which affirmed the
trial court's finding that David held a ten percent interest in
3 C.F.V., but remanded the matter to the trial court for
recalculation of his damages and revaluation of his ten percent
interest in C.F.V. Decker v. Decker, 139 N.H. 588 (1995).
On remand, the trial court determined that plaintiff's ten
percent share of C.F.V. for the years at issue was valued at
$100,000, which was then offset by $38,461 in payments made by
C.F.V. on a loan for which David was liable. Accordingly, the
trial court entered judgment in favor of David in the amount of
$61,539 and ordered a yearly accounting of the profits generated
by C.F.V. The record suggests that Marshall appealed that
judgment to the New Hampshire Supreme Court, which apparently
denied his appeal.
III. Discussion
In this suit, Marshall asserts that David, David's former
law firm (Decker, Fitzgerald & Sessler, P.A.), and the accountant
retained by David, Duncan Farmer, engaged in malicious
prosecution and abuse of process by bringing the state court suit
against him based on false information and perjured testimony.
Paragraph 69 of plaintiff's complaint, which is the subject of
the pending motion to dismiss, alleges that "the defendant
conspired with other defendants to commit perjury with respect to
the subject litigation," in a successful effort to obtain the
substantial monetary judgment awarded by the Superior Court.
Defendant moves to dismiss on ground that the facts alleged in
4 the complaint do not state an actionable claim under the
governing law of New Hampshire.
"A civil conspiracy is a combination of two or more persons
by concerted action to accomplish an unlawful purpose, or to
accomplish some purpose not in itself unlawful by unlawful
means." Jav Edwards, Inc. v. Baker, 130 N.H. 41, 47 (1987) .
In New Hampshire, there is no recognized civil action based
solely on conspiracy. See Langley v. Langley, 84 N.H. 515, 516
(1931)(citing Stevens v. Rowe, 59 N.H. 578, 579 (1880)). It is
the wrong actually done to the plaintiff, and not the conspiracy
to commit that wrong, that is the foundation of the action. See
Langley, 84 N.H. at 516 (citing Fitzhugh v. Railway, 80 N.H. 185,
18 9 (1921)); see also Stevens, 59 N.H. at 579 (1880).
Conseguently, to state a viable claim, a plaintiff in a civil
conspiracy action must allege some damages or injury resulting
from the alleged conspiracy. See id.
Moreover, under New Hampshire law, the defeated party in a
previous lawsuit cannot maintain a civil action against a witness
for allegedly giving false testimony in favor of his opponent,
unless and until the underlying civil judgment is overturned or
reversed. See Stevens, 59 N.H. at 579. See also Sweeney v.
Young, 82 N.H. 159, 166 (1925) ("It is held that conduct in
bringing about a judgment is not actionable while the judgment is
in force. This is not only the rule in cases of malicious
5 prosecution, but also in other cases where the conduct is
inherently wrongful.") (citations omitted).
Under circumstances such as those presented here, there can
be no civil action for conspiracy to commit perjury, because the
merits of that action "can not in general be tried without at the
same time trying the merits of an action which has already been
settled in the due course of law." Curtis v. Fairbanks, 16 N.H.
542, 544 (1845). A judgment on a guestion once fairly submitted,
in final form, is in effect and may not be challenged or raised
again by a party in a separate proceeding. See id. at 545. So,
as the losing party in state court litigation, plaintiff cannot
assert that the state court judgment was either unjust or
obtained through fraud as the grounds for recovering damages in
this action, so long as the underlying state court judgment
remains in force. See Lvford v. Demerritt, 32 N.H. 234, 237-38
(1855) ("Where a verdict and judgment have been recovered against
a party to a suit, he cannot, while such judgment is unreversed,
maintain an action against another party jointly with others,
upon an allegation that said verdict was unjust and false, and
was procured by them through fraud and perjury, under a
conspiracy to effect that purpose." ) (citation omitted). Under
those circumstances, a party's appropriate remedy is an eguitable
proceeding to set aside the judgment, or a petition for a new
trial. See Stevens, 59 N.H. at 579.
6 Here, in light of the governing law of New Hampshire, the
facts alleging conspiracy to commit perjury fall short of stating
an actionable claim. The underlying dispute involves the
calculation of David's interest in C.F.V. That issue was fully
and finally decided by the state court, and Marshall was ordered
to pay his brother, David, the specified amount found to be due.
Nevertheless, Marshall has attempted to launch a form of
collateral attack on the state court judgment, claiming that he
is entitled to recover damages (presumably measured, at least in
part, by the amount the state court ordered him to pay his
brother) on the theory that David and the accountant conspired to
bring about an unjust judgment by giving false testimony in the
state court proceeding. To prove his claim, plaintiff seeks to
relitigate the very issue that was previously decided by the
state court between the same parties, namely the method adopted
by the state court for calculating the value of David's interest
in C.F.V. and the amount of money which he is properly owed. In
short, plaintiff seeks to collaterally attack the validity of the
state court's judgment ordering him to pay his brother $61,539.
"This, on well-settled principles, he cannot be permitted to do."
Lyford, 32 N.H. at 237. Plaintiff's proper recourse is to the
state Superior or Supreme Court.
IV. Conclusion
Given the summary facts alleged, plaintiff does not state a
cause of action upon which he may recover. Accordingly,
7 defendant's motion to dismiss plaintiff's conspiracy claim
(paragraph 69 of the complaint) is granted (document no. 29).
SO ORDERED.
Steven J. McAuliffe United States District Judge
September 11, 1997
cc: Marshal N. Decker David R. Decker Jeffrey B. Osburn, Esg. David H. Bownes, Esg. James C. Wheat, Esg.