District Title v. Warren

319 F.R.D. 25, 2015 U.S. Dist. LEXIS 153561, 2015 WL 12976850
Court of Appeals for the D.C. Circuit·Decided November 13, 2015·No. Civil Action No. 14-1808 (ABJ)·Published·Cited by 3 cases

Opinion

MEMORANDUM OPINION AND ORDER

AMY BERMAN JACKSON, United States District Judge

Plaintiff District Title, a real estate settlement company, was handling the sale of a property formerly owned by defendant Anita K. Warren when it erroneously transferred $293,514.44 to Warren instead of to the mortgage lender, non-party Wells Fargo Bank, N.A. Am. Compl. [Dkt. # 5] ¶¶ 9,15. Plaintiff alleges that defendant Warren and her adult son, defendant Timothy Day, made off with the funds, spent them, and now refuse to pay them back. Aff. of Steven Sushner, Ex. B to Pl.’s Opp. to Defs.’ Mot. for Summ. J. [Dkt. # 48] ¶¶ 16-27.

[28]*28On August 28, 2015, plaintiff filed a motion seeking sanctions against defendants and their counsel related to their conduct during the discovery process. Pl.’s Mot. for Sanctions [Dkt. # 68]. To address plaintiff’s motion, it is necessary to set forth the procedural background of this case in general, while focusing specifically on discovery:

September 2, 2014: Plaintiff filed a complaint in the Superior Court of the District of Columbia. Super. Ct. Compl. [Dkt. # 22] at 19.
October 29, 2014: Defendants removed the case to this Court. Notice of Removal [Dkt. #1].
November 10, 2014: Plaintiff filed an amended complaint. Am. Compl. Count I, for breach of contract, is brought solely against defendant Warren. Id. ¶¶ 26-32. The remaining counts—for trover and conversion (Count II), unjust enrichment (Count III), and equitable and injunctive relief (Count IV) are brought against both defendants. Id. ¶¶ 33-62.
November 19, 2014: Plaintiff filed a motion for a preliminary injunction seeking to prevent any further dissipation of the funds. Pl.’s Mot. for Prelim. Inj. [Dkt. # 6].
December 4, 2014: Defendant Day moved to dismiss the entire complaint for a lack of subject matter jurisdiction and to dismiss certain counts for failure to state a claim under Rule 12(b)(6). Def. Day’s Mot. to Dismiss [Dkt. # 10]. The 12(b)(1) motion was predicated in part on defendant Day’s assertion that this Court could not exercise jurisdiction over the removed action if the jurisdiction of the Superior Court had not been properly invoked, and he asserted that there was no jurisdiction in Superior Court because that court did not have what he improperly labeled as subject-matter— as opposed to personal—jurisdiction over him under the D.C. long-arm statute. Id. at 3-7. Defendant Day also claimed that he had never been properly served. Id. at 7, 9. Day’s motion to dismiss did not challenge plaintiffs standing to bring this case.
December 4, 2014: Defendant Warren moved to dismiss the state common law claims under Rule 12(b)(6), but did not move to dismiss the breach of contract claim. Def. Warren’s Mot. to Dismiss [Dkt. # 11], Warren’s motion to dismiss did not challenge plaintiffs standing to bring this case.
December 9, 2014: Defendant Warren filed a motion to compel arbitration and to stay all other proceedings, invoking the arbitration clause contained in her contract with plaintiff.1 Def. Warren’s Mot. to Compel Arbitration & Stay Proceedings [Dkt. # 14]; see also Ex. 10 to Am. Compl. (the contract).
December 12, 2014: The Court heard argument on plaintiffs motion for a preliminary injunction. Min. Entry (Dec. 12, 2014). During the hearing, counsel for defendants questioned plaintiffs constitutional standing to bring the case even though there was no pending motion to dismiss on those grounds. See Hr’g Tr. at 52:2-6. The Court expressed its view that plaintiff had standing to pursue its claims in this diversity action. Id. at 52:7-9.
December 15, 2014: The Court granted plaintiffs motion for a preliminary injunction. Order (Dec. 15, 2014) [Dkt. #21],
Januaiy 5, 2015: Defendants filed a motion to stay the preliminary injunction pending appeal. Mot. to Stay Prelim. Inj. Pending Appeal [Dkt. # 28] at 1. The motion relied in part on the claim that plaintiff lacked standing to pursue this case, and defendants complained about what they described as the “unexplained cursory dismissal of counsel’s argument” on that point. Mem. in Supp. of Mot. to Stay Prelim. Inj. Pending Appeal [Dkt. # 28] at 5-7.
January 9, 2015: The Court denied defendants’ motion to stay the preliminary injunction, Mem. Op. & Order (Jan. 9, 2015) [Dkt. # 29], observing that “[t]here is no question that plaintiff has standing to pursue its claims in this case,” and defendants’ [29]*29appeal was therefore “not likely to succeed on the standing issue.” 2 Id. at 9.
March 6, 2015: Plaintiff filed a report on a discovery conference held by the parties pursuant to Federal Rule of Civil Procedure 26(f) and Local Civil Rule 16.3 before any order had been issued requiring it to do so. Pl.’s Report on Conference Regarding Proposed Disc. & Briefing Schedule [Dkt. # 32]. In the report, plaintiff stated that the parties were unable to agree to a joint discovery plan because defendants’ counsel took the position that the Court should resolve the pending motions to dismiss and for a stay pending arbitration first. Id. at 1. Plaintiff proposed a discovery schedule that would begin as soon as the Court entered a scheduling order, Id. at 2-3. Defendants did not file any response to plaintiffs report or propose a schedule for discovery of their own.
April 28, 2015: Plaintiff filed a motion for leave to take depositions daices tecum of defendants Warren and Day to perpetuate their testimony. Pl.’s Mot. for Leave to Take Deps. [Dkt. #36]. Plaintiff stated that “[defendants’ counsel has repeatedly referred, through pleadings and communications, to the Defendants’ health conditions which give rise to a concern that they may not be available for depositions at a later date or for trial.” Mem. of P. & A. in Supp. of Pl.’s Mot. for Leave to Take Deps. [Dkt. #36-1]. Plaintiff noted that defendants’ pleadings had described Warren as “elderly and infirm,” and stated “[u]pon information and belief’ that Day was suffering from cancer.3 Id. at 5. Defendants opposed the motion on May 11, 2015. Opp. to Mot. for Deps. [Dkt. # 39]. Defendants opposed the motion on the grounds that the entire case should be dismissed for lack of standing, and they raised no medical concerns. Id.
May 19, 2015: The Court issued the following minute order: “In the event that the pending motions to dismiss have been resolved at or before the status conference scheduled on June 4, 2015, the Court will take up the discovery schedule at that time. If defendants intend to object to the taking of their depositions within the ensuing 30 days, they should be prepared to provide the Court with specific information concerning their current medical conditions.” Min. Order (May 19, 2015). No medical evidence has ever been provided to the Court.
June 1, 2015: The Court denied defendants’ motions to dismiss and defendant Warren’s motion to stay and compel arbitration. Mem. Op. & Order (June 1, 2015) [Dkt. # 40].

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District Title v. Warren, 319 F.R.D. 25, 2015 U.S. Dist. LEXIS 153561, 2015 WL 12976850 (D.C. Cir. 2015).

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