District Title v. Warren

181 F. Supp. 3d 16, 2014 U.S. Dist. LEXIS 191322, 2014 WL 11803823
CourtDistrict Court, District of Columbia
DecidedDecember 15, 2014
DocketCivil Action No. 14-1808 (ABJ)
StatusPublished
Cited by3 cases

This text of 181 F. Supp. 3d 16 (District Title v. Warren) 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
District Title v. Warren, 181 F. Supp. 3d 16, 2014 U.S. Dist. LEXIS 191322, 2014 WL 11803823 (D.D.C. 2014).

Opinion

ORDER

AMY BERMAN JACKSON, United States District Judge

Plaintiff District Title brings this action against defendants Anita K. Warren and [20]*20Timothy Day and seeks a preliminary injunction against both defendants. Am. Compl. [Dkt. #5]; Mot. of District Title for Prelim. Inj. [Dkt. # 6] (“Pl.’s Mot.”); Mem. of P. & A. in Supp. of Pl.’s Mot. [Dkt. # 6—1] (“PL’s Mem.”). The Court finds that plaintiff is likely to succeed on the merits of its case and will suffer irreparable harm if a preliminary injunction is not granted, and that the balance of the equities and the interests of the public also favor-a preliminary injunction in this case at this time. Therefore, the Court will grant plaintiffs motion for a preliminary injunction.

BACKGROUND

I. Factual Background

The following facts have not been contested with any evidence or affidavits except where noted. Plaintiff is a real estate settlement company that handled the settlement of the sale of a property owned by defendant Warren on July 11, 2014. See Am. Compl. ¶¶ 1, 14; Opp. to PL’s Mot. [Dkt. # 12] (“Defs.’ Opp.”) at 3-4. Defendant Day is defendant Warren’s adult son. Defs.’ Opp. at 4. At the time of the property sale, $293,514.44 was owed to a- mortgage lender, Wells Fargo. See Am. Compl. ¶¶ 9, 15. But plaintiff erroneously wired the funds owed to Wells Fargo to defendant Warren instead. Am. Compl. ¶ 15. Despite numerous requests by plaintiff to return the funds, defendants have declined to do so as of the date of this order. See Aff. of Jacquelynn N. Baker, Ex. 2 to PL’s Mot. [Dkt. # 6-4] (“Baker Aff.”) ¶¶ 14-20; Aff. of Steven Sunsher, Ex. 1 to PL’s Mot. [Dkt. # 6-3] (“Sunsher Aff.”) ¶¶ 16-21. Defendant Day has been on notice of the error since August 12, 2014, at the latest. See Ex. 2F to Baker'Aff. [Dkt. #6-4] (email exchange between District Title employee Jacquelynn “Jackie” Baker and defendant Day). Defendant Warren has been on notice of the error since August 27, 2014, at the latest. See Sunsher Aff. ¶ 16 (describing phone conversation with defendant Warren).

Plaintiff has produced evidence that on or about the date of the settlement, defendant Warren transferred $100,000 by a cashier’s check made out to defendant Day and a third party, Anthony Silva.1 Ex. 2 to Am. Compl. [Dkt. #5]. The check was deposited in an account owned by Anthony and Suzanne Silva and processed on July 14, 2014. Id. In late July 2014, Anthony and Suzanne Silva purchased real property in Worcester County, Maryland with the address of 6 Boston Drive, Berlin, Maryland. Ex. 3 to Am. Compl. [Dkt. # 5] (copy of wire transfer of $60,600 from Silvas to Brennan Title Company); Ex. 4 to Am. Compl. [Dkt. # 5] (deed of trust). Plaintiff alleges that the funds used in that transaction came from defendant Warren and lawfully belonged to plaintiff. Am. Compl. ¶ 21.

In addition, on August 20, 2014, defendant Warren transferred $189,028.98 to the Brennan Title Company, Ex. 5 to Am. Compl. [Dkt. # 5], and on August 26, 2014, defendant Day purchased real property in Worcester County, Maryland with the address of 3 Boston Drive, Berlin, Maryland through the Brennan Title Company. Ex. 6 to Am. Compl. [Dkt. # 5].

On August 27, 2014, defendant Day deposited a cashier’s check from defendant Warren in the amount of $33,000 in his bank account, Ex. 9 to Am. Compl. [Dkt. # 5], and on September 10, 2014, defendant Day deposited two more cashier’s checks from defendant Warren in the amounts of $33,000 and $33,445. Ex. 7 to Am. Compl. [Dkt. #5]; Ex. 8 to Am. [21]*21Compl. [Dkt. # 5]. Plaintiff alleges that defendant Day made these deposits after he was served with the original complaint in this case. Am. Compl. ¶23. Defendant Day denies that he was ever properly served process in this case. Def. Day’s Mot. to Dismiss [Dkt. # 10] (“Day Mot.”) at 1.

II. Procedural Background

Plaintiff filed its original complaint in the Superior Court for the District of Columbia on September 2, 2014. Compl., Notice of Removal [Dkt. # 1-1]. Plaintiff also filed a parallel action in the Circuit Court for Worcester County, Maryland on September 5, 2014. Maryland Judiciary Case Search, http://casesearch.courts.state.md.us/ (search for Worcester County Circuit Court case number 23-C-14-001158).

Defendants removed the Superior Court action to this , Court on October 29, 2014. Notice of Removal [Dkt. # 1]. Plaintiff filed an amended complaint on November 10, 2014. Am. Compl. The amended complaint contains four counts. 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. Plaintiff seeks relief including a judgment of at least $293,514.44 with prejudgment and post-judgment interest; equitable relief; an order that defendants provide an accounting; an order enjoining defendants from dissipating assets; and attorneys’ fees and costs, with prejudgment and postjudgment , interest. Id., Prayer for Relief ¶¶ a-f.

On November 19, 2014, plaintiff filed a motion for a preliminary injunction, seeking to prevent defendants from further disbursing any of the $293,514.44 or from transferring any property. Pl.’s Mot. On December 4, 2014, defendants Day and Warren each filed separate motions to dismiss. Day Mot.; Mem. of P. & A. in Supp. of Day Mot. [Dkt. # 10] (“Day Mot.”); Def. Warren’s Mot. to Dismiss [Dkt. # 11] (‘Warren Mot.”); Mem. of P. & A. in Supp. of Warren Mot. [Dkt. #11] (“Warren Mot.”). In addition to challenging the sufficiency of the complaint, defendant Day contends in his motion to dismiss that he never received proper service of process, and that the Court lacks personal jurisdiction over him.2 Day Mot. at 1. Defendants also jointly filed an opposition to plaintiffs motion for a preliminary injunction on that date. Defs.’ Opp. Plaintiff filed a reply to defendants’ opposition to its motion for a [22]*22preliminary injunction on December 9, 2014. Reply to Defs.’ Opp. [Dkt. # 16] (“Pl.’s Reply”).

On December 8, 2014, the parties and the Court conferred in a teleconference and agreed to an abbreviated briefing schedule for defendants’ motions to dismiss. The Court ordered plaintiff to file oppositions to defendants’ motions to dismiss on December 9, 2014, and ordered defendants to file any replies to those oppositions on December 10, 2014. Minute Order (Dec. 8, 2014). On December 9, 2014, plaintiff filed its oppositions. Opp. to Day Mot. [Dkt. # 17]; Mem. of P. & A. in Opp. to Day Mot. [Dkt. # 17] (“Opp. to Day Mot.”); Opp. to Warren Mot. [Dkt. # 18]; Mem. of P. & A. in Opp. to Warren Mot. [Dkt. # 18] (“Opp. to Warren Mot.”). Defendants did not file any reply briefs on December 10, 2014.

During its review of the pleadings filed in this case, the Court discovered that the settlement contract signed by defendant Warren and plaintiff contained an alternative dispute resolution clause that required “mandatory, binding arbitration” of “[a]ll disputes, claims, or controversies of any kind and nature arising out of ... the relationship among the parties and District Title.” See Ex. 10 to Am. Compl. [Dkt. # 5] ¶F(1). On December 4, 2014, the Court ordered the parties to “file brief submissions addressing the impact of the arbitration clause ...

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Bluebook (online)
181 F. Supp. 3d 16, 2014 U.S. Dist. LEXIS 191322, 2014 WL 11803823, Counsel Stack Legal Research, https://law.counselstack.com/opinion/district-title-v-warren-dcd-2014.