Hammond v. Creative Financial Planning Organization, Inc.

800 F. Supp. 1244, 1992 U.S. Dist. LEXIS 3357, 1992 WL 189259
CourtDistrict Court, E.D. Pennsylvania
DecidedFebruary 28, 1992
DocketCiv. A. 91-2257
StatusPublished
Cited by28 cases

This text of 800 F. Supp. 1244 (Hammond v. Creative Financial Planning Organization, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hammond v. Creative Financial Planning Organization, Inc., 800 F. Supp. 1244, 1992 U.S. Dist. LEXIS 3357, 1992 WL 189259 (E.D. Pa. 1992).

Opinion

MEMORANDUM AND ORDER

HUYETT, District Judge.

This ease involves a 42 U.S.C. § 1983 suit brought jointly by pro se plaintiffs Lucinda Hammond and James L. Martin against various defendants. Defendants have moved for a dismissal of the Complaint pursuant to Federal Rule of Civil Procedure 12(b)(6). Plaintiffs have responded to defendants’ motions and have filed a motion for summary judgment. For the reasons discussed more fully below, plaintiffs will be granted leave to amend their complaint. The motion for summary judgment will be marked withdrawn as moot.

(I) Facts

Lucinda Hammond brought suit in the Court of Common Pleas for Chester County, Judge Smith presiding, against her former employer, Creative Financial Planning Organization, Inc. (“Creative”). Her principal claim was wrongful discharge, but the complaint stated other causes of action as well. The action is on-going and James L. Martin apparently is acting as her attorney. 1 Hammond had a default judgment entered against Creative.

The Court’s knowledge of the procedural history of the state court case is derived mainly from plaintiff’s complaint in federal court, and his lengthy, convoluted filings. The Complaint does not paint a clear picture of the events leading up to this suit, but, as the Court understands it, Creative was given a certain period of time to respond to the default judgment during the summer of 1990. Apparently, this time period lapsed, after which one of Creative’s attorney’s, Thomas Ellixson, contacted Martin about re-opening the default judgment. Ellixson, who is working with another Creative attorney, Stephen Dittman, entered an appearance and Judge Smith reopened the default judgment. At this point, our knowledge of the procedural posture of the state case ends.

*1247 In their federal complaint, plaintiffs give a long, confusing account of how they had been checking the prothonotary’s file periodically. Plaintiffs allege that Ellixson’s entry of appearance was not filed at the time Ellixson claims, but instead was put in the file at a later time and back-dated in a fraudulent manner. Plaintiffs view this as a conspiracy to tamper with the state court record of the case in a manner designed to deprive Hammond and Martin of their “constitutional” rights.

Plaintiffs allege that Judge Smith opened the default judgment “without notice, hearing, and cause,” and that doing so was “blatant disregard for plaintiffs [sic] federally secured rights against the arbitrary and capricious deprivation of a property interest____” Complaint, paragraph 51. Plaintiffs allege that “[i]n doing so, [Judge Smith] acted under color of state law to endorse the other federal defendants’ sabotage of the state file at case no. 90-04564.” Id. Plaintiffs also allege that “[t]he evidence suggests that defendant Smith did not bother to read the materials Hammond filed and made a series of preordained rulings consistent with what Dittman told Martin would occur during a phone conversation on July 17, 1990.” Complaint, paragraph 53. Plaintiffs do not elaborate further about this mysterious phone call. As is discussed below, these allegations are insufficient to sustain a conspiracy theory.

While plaintiffs never explicitly say so, they apparently believe that Judge Smith relied on this supposedly fraudulent entry of appearance as grounds for reopening the default judgment. Plaintiffs therefore claim that Judge Smith is part of the “conspiracy” between state court defendant Creative and defense attorneys Ellixson and Dittman. Plaintiffs make sweeping allusions to “sabotage” (Complaint paragraphs 45, 51) and “misconduct” (Complaint paragraph 55) but Plaintiffs do not offer any concrete allegations of actions or communications by or between the “conspirators” which could lead a reasonable person to believe a conspiracy might exist.

(II) Theories of the Parties

Hammond and Martin have filed a joint complaint. Both seem to be acting pro se. Martin does not allege in this federal complaint that he is acting as Hammond’s attorney. Plaintiffs’ principal theory is that defendants acted to deprive them of a constitutionally protected property interest in violation of 42 U.S.C. § 1983. In Hammond’s case, the alleged property interest is the default judgment. In Martin’s case, the alleged property interest is the fee he claims he is entitled to under a contingent fee agreement he negotiated with Hammond to pay for his representation of her in the state case.

In their complaint, plaintiffs state four causes of action:

a) violation of plaintiffs’ Fourteenth Amendment due process rights;
b) violation of section 1983;
c) “federal equity: mandatory injunction and declaratory judgment” pursuant to 28 U.S.C. § 2201 (the declaratory judgment statute); and
d) state constitutional claims under a pendant jurisdiction theory.

Plaintiffs seek both damages and injunctive relief. Defendants have responded in three separate motions to dismiss. Defendants Creative and Ellixson have filed together, and defendants Dittman and Smith have each filed their own motion. The Court will respond to these motions collectively since they all request the same relief. As part of their response to these motions to dismiss, plaintiffs move the Court to treat defendants’ motions as motions for summary judgment. Also, Martin moves for summary judgment. Rather than outline all of defendants’ arguments now, I will incorporate most of their points into my analysis below. Two of the three defendant motions request Rule 11 sanctions in the form of attorneys fees and costs.

(Ill) Standard of Review

The Third Circuit has articulated the 12(b)(6) standard as follows: “[t]he court is reviewing the dismissal of the complaint for failure to state a claim on which relief can be granted. Rule 12(b)(6), Fed.R.Civ.P. *1248 The applicable standard of review requires the court to accept as true all allegations in the complaint-and all reasonable inferences that can be drawn therefrom, and view them in the light most favorable to the nonmoving party.” Rocks v. City of Philadelphia, 868 F.2d 644, 645 (3rd Cir.1989).

(IV) Analysis

(A) Violation of 14th Amendment Rights

The Supreme Court has never held that there is an implied private right of action against a state, or a state actor, under the Fourteenth Amendment. The Supreme Court has enunciated an implied right of action under the Fourth and Fifth Amendments, but has gone no further. See Bivens v. Six Unknown Named Agents of Federal Bureau of Narcotics,

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Cite This Page — Counsel Stack

Bluebook (online)
800 F. Supp. 1244, 1992 U.S. Dist. LEXIS 3357, 1992 WL 189259, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hammond-v-creative-financial-planning-organization-inc-paed-1992.