Harry Sargeant, III v. Daniel Hall

951 F.3d 1280
CourtCourt of Appeals for the Eleventh Circuit
DecidedMarch 2, 2020
Docket18-15205
StatusPublished
Cited by21 cases

This text of 951 F.3d 1280 (Harry Sargeant, III v. Daniel Hall) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harry Sargeant, III v. Daniel Hall, 951 F.3d 1280 (11th Cir. 2020).

Opinion

Case: 18-15205 Date Filed: 03/02/2020 Page: 1 of 17

[PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT

________________________

No. 18-15205 ________________________

D.C. Docket No. 9:17-cv-81070-BB

HARRY SARGEANT, III,

Plaintiff-Appellee,

versus

DANIEL HALL,

Defendant-Appellant.

Appeal from the United States District Court for the Southern District of Florida ________________________

(March 2, 2020)

Before JORDAN and JILL PRYOR, Circuit Judges, and COOGLER, ∗ District Judge.

JORDAN, Circuit Judge:

∗The Honorable L. Scott Coogler, Chief United States District Judge for the Northern District of Alabama, sitting by designation. Case: 18-15205 Date Filed: 03/02/2020 Page: 2 of 17

Under Federal Rule of Civil Procedure 41(d), if a plaintiff who voluntarily

dismissed an action files a second action against the same defendant based on or

including the same claim, “the court: (1) may order the plaintiff to pay all or part of

the costs of that previous action; and (2) may stay the proceedings until the plaintiff

has complied.” The question presented in this appeal—one of first impression in

our circuit—is whether Rule 41(d) applies when a plaintiff, after dismissing the first

federal action, files a subsequent action in state court. For the reasons which follow,

we conclude that Rule 41(d) does not apply in such a scenario.

I

In February of 2018, Harry Sargeant, III filed a complaint against Daniel Hall

and others in federal court. He alleged, in pertinent part, that Mr. Hall had conspired

with the other defendants to access a computer server and email account in order to

obtain his sensitive information. Mr. Sargeant asserted two claims against Mr. Hall.

The first was conspiracy to violate the federal Computer Fraud and Abuse Act

(“CFAA”), 18 U.S.C. § 1030, and the second was civil conspiracy to invade privacy

and violate Florida’s Computer Abuse and Data Recovery Act (“CADRA”), Fla.

Stat. § 668.801 et seq.

Mr. Hall moved to dismiss the complaint, and the district court referred the

motion to a magistrate judge. On May 30, 2018, the magistrate judge issued a report

recommending that the district court grant the motion because Mr. Sargeant failed

2 Case: 18-15205 Date Filed: 03/02/2020 Page: 3 of 17

to state a claim against Mr. Hall. On June 4, 2018, before the district court acted on

the report, Mr. Sargeant filed a notice of voluntary dismissal pursuant to Rule

41(a)(1)(A)(i). The district court accordingly dismissed the action without

prejudice, providing that “[e]ach party shall bear its own attorneys’ fees and costs[.]”

D.E. 198.

About three weeks later, Mr. Sargeant filed a new action—this time in a

Florida state court—against Mr. Hall and the other defendants based on the same

alleged wrongful conduct. Mr. Sargeant asserted the same Florida law claim against

Mr. Hall—for civil conspiracy to invade privacy and violate CADRA—that had

been alleged in the federal action, as well as a separate invasion of privacy claim,

but omitted the federal CFAA claim.

After Mr. Sargeant filed the state-court complaint, Mr. Hall moved in the

closed federal case for costs of the previously dismissed federal action under Rule

41(d). The district court referred the motion to a magistrate judge, who issued a

report recommending its denial. The magistrate judge concluded that Rule 41(d)

“applies only when the defendant seeks relief in the second judicial proceeding,

which must be in federal court.” D.E. 216 at 4. The magistrate judge first reasoned

that a Rule 41(d) motion for costs must be filed in the second action based on the

language of subsection (d)(1), which authorizes the court to order the plaintiff to pay

the costs of the “previous action.” Id. at 5. He next determined that the motion for

3 Case: 18-15205 Date Filed: 03/02/2020 Page: 4 of 17

costs must be filed in the second action because subsection (d)(2) permits the district

court to “stay the proceedings until the plaintiff has complied,” and the first action—

which has already been dismissed—cannot and need not be stayed. See id. Finally,

he explained that a subsequent state-court action cannot trigger Rule 41(d) because

that would render the stay provision superfluous, as the district court in the first-filed

federal action cannot stay a state-court proceeding. See id. at 8.

Mr. Hall objected to the report, arguing that the magistrate judge erroneously

limited Rule 41(d) to cases where the second action is filed in federal court. The

district court overruled Mr. Hall’s objections and adopted the report in full. See D.E.

225. The district court noted that Mr. Hall’s “suggested application of Rule 41(d)

. . . would eviscerate [the] well established rule” that a plaintiff has an unconditional

right to dismiss a complaint before the defendant has answered or moved for

summary judgment under Rule 41(a)(1)(A)(i). Id. at 2.

With the benefit of oral argument, we affirm.

II

The district court’s interpretation of Rule 41(d) presents a legal question, so

our review is plenary. See Lizarazo v. Miami-Dade Corr. & Rehab. Dep’t, 878 F.3d

1008, 1010 (11th Cir. 2017) (“We review de novo a district court’s interpretation of

the Federal Rules of Civil Procedure.”); Jordan v. Time, Inc., 111 F.3d 102, 105

(11th Cir. 1997) (“[T]he proper interpretation of Rule 68 is a legal question[.]”).

4 Case: 18-15205 Date Filed: 03/02/2020 Page: 5 of 17

III

After voluntarily dismissing his federal action, Mr. Sargeant filed a second

action in state court against Mr. Hall based on or including the same claim. The sole

question for us is whether Rule 41(d) applies when a plaintiff refiles a previously

dismissed federal action in state court. 1

A

“We give the Federal Rules of Civil Procedure their plain meaning.” Bus.

Guides, Inc. v. Chromatic Commc’ns Enters., Inc., 498 U.S. 533, 540 (1991)

(quoting Pavelic & LeFlore v. Marvel Entm’t Grp., 493 U.S. 120, 123 (1989)). We

therefore begin by examining the text of Rule 41(d).

Rule 41(d) states:

(d) Costs of a Previously Dismissed Action. If a plaintiff who previously dismissed an action in any court files an action based on or including the same claim against the same defendant, the court: (1) may order the plaintiff to pay all or part of the costs of that previous action; and

(2) may stay the proceedings until the plaintiff has complied.

1 The parties dispute whether “costs” under Rule 41(d) includes attorneys’ fees. We do not reach this issue because we conclude that Rule 41(d) costs cannot be awarded in this case. 5 Case: 18-15205 Date Filed: 03/02/2020 Page: 6 of 17

(emphasis added).

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951 F.3d 1280, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harry-sargeant-iii-v-daniel-hall-ca11-2020.