Dominos Pizza LLC v. Robert Deak

534 F. App'x 171
CourtCourt of Appeals for the Third Circuit
DecidedAugust 9, 2013
Docket12-2654
StatusUnpublished

This text of 534 F. App'x 171 (Dominos Pizza LLC v. Robert Deak) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dominos Pizza LLC v. Robert Deak, 534 F. App'x 171 (3d Cir. 2013).

Opinion

OPINION OF THE COURT

VANASKIE, Circuit Judge.

Robert Deak appeals from an order of the District Court that precluded Deak from reasserting a counterclaim that the District Court had previously dismissed without prejudice. Finding no error, we will affirm.

I.

We write primarily for the parties to this action. Accordingly, we set forth only those facts necessary to our analysis.

In July 1980, Deak entered into a franchise agreement with Domino’s Pizza, Inc., the predecessor corporation to Dominos Pizza LLC (“Domino’s” or “Domino’s Pizza”). The agreement gave Deak exclusive rights to develop Domino’s Pizza franchises in several counties in Pennsylvania for ten years. Four years later, Deak signed another agreement granting him exclusive franchise rights in several counties in Maine. Over the next twenty years, the parties agreed to addenda that extended the respective expiration dates of each agreement. In August of 2005, however, Domino’s informed Deak that it did not intend to renew his agreements in the same form and would, instead, begin accepting franchise applications from third *173 parties. Deak responded that he had received representations from Domino’s that he had the right to renew the franchise agreements on the same terms so long as he continued to operate Domino’s Pizza franchises, and that he believed Domino’s was in breach of that agreement.

Domino’s sought a declaratory judgment that the franchise agreements had expired and no longer bound the parties. Deak filed a counterclaim, contending that the parties had agreed orally that Deak’s operation of Domino’s Pizza franchises guaranteed him the right to continually renew his franchise agreements on the same terms. Domino’s moved to dismiss Deak’s counterclaim, and, on March 23, 2007, the District Court granted the motion, but explicitly gave Deak the opportunity to file an amended counterclaim.

Deak filed an amended counterclaim on April 13, 2007, and Domino’s again moved for its dismissal. On March 20, 2008, the District Court once more dismissed, without prejudice, Deak’s counterclaim. Deak, however, did not file an amended counterclaim. Instead, he filed an appeal, which we subsequently dismissed pursuant to Federal Rule of Appellate Procedure 42(b).

On November 25, 2008, Domino’s moved for judgment on the pleadings. The District Court granted Domino’s motion, finding that the parties were no longer bound by the franchise agreements. Deak appealed the District Court’s order, and, on June 4, 2010, we vacated and remanded for further proceedings. See Domino’s Pizza LLC v. Deak, 383 Fed.Appx. 155 (3d Cir.2010).

On May 4, 2012, Domino’s moved to voluntarily dismiss its declaratory judgment action. Deak opposed the voluntary dismissal, citing Federal Rule of Civil Procedure 41, which prohibits a district court from granting voluntary dismissal over a defendant’s objection where the defendant has pleaded a counterclaim, unless “the counterclaim can remain pending for independent adjudication.” Fed.R.Civ.P. 41(a)(2). Given that there was no counterclaim pending when Domino’s moved for voluntary dismissal, the District Court granted Domino’s case and dismissed the action in its entirety.

Deak sought reconsideration of the portion of the District Court’s order closing the case, and filed a motion for leave to amend his pleadings by reasserting his counterclaim. The District Court denied both motions, explaining that Deak “had ample opportunity to attempt to reassert his counterclaim ... while the case was open, but he failed to do so.” (Joint Appendix (“J.A.”) 5.) Deak filed this timely appeal, contending that the District Court erred in denying his motions to reconsider and to amend his pleadings to reassert his counterclaim.

II.

The District Court had jurisdiction under 28 U.S.C. § 1332. We have appellate jurisdiction under 28 U.S.C. § 1291.

Deak moved for reconsideration of the closure of the case pursuant to Federal Rule of Civil Procedure 60(b)(6), and for leave to amend to reassert a counterclaim pursuant to Federal Rule of Civil Procedure 15. The grant or denial of motions under both procedural rules is within the sound discretion of the District Court, and we will reverse only for abuse of discretion. Budget Blinds, Inc. v. White, 536 F.3d 244, 252 (3d Cir.2008); In re Burlington Coat Factory Sec. Litig., 114 F.3d 1410, 1434 (3d Cir.1997).

Rule 60(b) enumerates several specific grounds upon which a court may relieve a party from a final judgment, and also permits a court to do so for “any other reason that justifies relief.” Fed.R.Civ.P. *174 60(b)(6). Despite its broad language, however, the “catch-all provision” of Rule 60(b)(6) is satisfied only by “extraordinary circumstances.” 1 Budget Blinds, 536 F.3d at 252 (citing Gonzalez v. Crosby, 545 U.S. 524, 125 S.Ct. 2641, 162 L.Ed.2d 480 (2005)).

Deak does not argue that this case presents an extraordinary circumstance. Instead, he asserts that relief from the District Court’s final judgment is warranted because the liberal standards of Rule 15 do not preclude him from amending his responsive pleadings to include a counterclaim. This argument is unavailing. Rule 15(a)(2), which directs courts to “freely give leave [to amend],” presents a much lower standard for relief than that required by Rule 60(b)(6). Indeed, while courts must deny relief under Rule 60(b)(6) unless extraordinary circumstances are present, courts are counseled to grant relief under Rule 15(a)(2) unless specific circumstances such as undue delay or bad faith justify denial. See Foman v. Davis, 371 U.S. 178, 182, 83 S.Ct. 227, 9 L.Ed.2d 222 (1962). Thus, simply qualifying for leave to amend under Rule 15 does not demonstrate extraordinary circumstances justifying relief under Rule 60(b)(6). Accordingly, we will not analyze his motion to reconsider the District Court’s final judgment under the considerably more relaxed standards for amending pleadings.

Applying the framework of Rule 60(b)(6), we conclude that this case does not present extraordinary circumstances justifying relief.

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Related

Foman v. Davis
371 U.S. 178 (Supreme Court, 1962)
Dominos Pizza LLC v. Robert Deak
383 F. App'x 155 (Third Circuit, 2010)
Gonzalez v. Crosby
545 U.S. 524 (Supreme Court, 2005)
Budget Blinds, Inc. v. White
536 F.3d 244 (Third Circuit, 2008)
Adams v. Gould Inc.
739 F.2d 858 (Third Circuit, 1984)

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Bluebook (online)
534 F. App'x 171, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dominos-pizza-llc-v-robert-deak-ca3-2013.