Hudnall v. Smith

CourtDistrict Court, W.D. Texas
DecidedJanuary 10, 2023
Docket3:21-cv-00106
StatusUnknown

This text of Hudnall v. Smith (Hudnall v. Smith) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hudnall v. Smith, (W.D. Tex. 2023).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF TEXAS EL PASO DIVISION

§ ROBERT K. HUDNALL; and SHARON § ELIAS HUDNALL, § § Plaintiffs, § § v. § EP-21-CV-00106-FM § TY SMITH, individually and as agent for § Smith and Ramirez Restoration LLC; § ALEJANDRO C. RAMIREZ, individually § and as agent for Smith and Ramirez § Restoration LLC; SMITH AND § RAMIREZ RESTORATION LLC; and § JOHN DOES 1-100, § § Defendants. § §

ORDER GRANTING DEFENDANTS’ MOTION TO DISMISS

Before the court are “Ty Smith’s, Alejandro C. Ramirez’s, and Smith and Ramirez Restoration LLC’s Joint Rule 12(C) Motion to Dismiss with Prejudice” (“Motion”) [ECF No. 99], filed October 3, 2022, by Ty Smith (“Defendant Smith”), Alejandro C. Ramirez (“Defendant Ramirez”), and Smith and Ramirez Restoration LLC (“Defendant Smith & Ramirez”) (collectively, “Defendants”); “Plaintiffs’ Response to Defendants [sic] Joint Rule 12 (C) [sic] Motion to Dismiss with Prejudice and Motion for Summary Judgment” (“Response”) [ECF No. 103], filed October 25, 2022, by Robert K. Hudnall and Sharon Elias Hudnall (“Plaintiffs”); and “Ty Smith’s, Alejandro C. Ramirez’s, and Smith and Ramirez Restoration LLC’s Reply to Plaintiffs’ Response to Joint Rule 12(C) Motion to Dismiss with Prejudice” (“Reply”) [ECF No. 104], filed November 1, 2022, by Defendants. After due consideration of the Motion, Response, Reply, and applicable law, the Motion is GRANTED. I. BACKGROUND A. Factual Background In June 2014, Plaintiffs hired Defendants to install a roof on Plaintiffs’ property.1 The agreement provided that “arbitration would be the sole means of resolving disputes” that might arise under the contract.2 Installation was to take five days but ended up dragging on for six

months.3 The roof was not finished properly and “began to deteriorate almost immediately.”4 Sometime after the installation, heavy rains in El Paso caused Plaintiffs’ home to flood numerous times.5 Defendants promised to repair the damage at no cost to Plaintiffs.6 At the same time, Defendants allegedly colluded with the adjuster for Plaintiffs’ homeowner’s policy for improper reimbursement for the repairs.7 Plaintiffs also claim Defendants “enter[ed] into an illegal agreement with a city roofing inspector” to rate the roof as having passed municipal code without conducting a physical inspection.8 In May 2015, after Plaintiffs complained to the city, a supervising inspector audited the original inspection and found the roof in fact failed to meet municipal code.9

1 “First Amended Complaint” (Am. Compl.”) 1–2 ¶ 1, ECF No. 14, filed June 1, 2021. 2 Id. at 2 ¶ 1, 3 ¶ 9 fn. 2. 3 Id. at 2 ¶ 2. 4 Id. at 2 ¶ 5. 5 Id. at 2 ¶ 3. 6 Id. 7 Id. at 2 ¶ 6. 8 Id. at 2 ¶ 4. 9 Id. at 3–4 ¶ 10. Plaintiffs further assert Defendants tried to squeeze them for more money than Defendants were owed. They allege Defendants knew some work on Plaintiffs’ property had been funded under the Department of Veterans Affairs Special Adaptive Housing Program and demanded an amount “equal to half of those funds . . . for no other reason than they wanted them.”10 Defendants also allegedly demanded from Plaintiffs $4,000 more than was called for in the contract, which

Plaintiffs paid.11 Finally, Defendants allegedly later sued Plaintiffs for another $9,000.12 Plaintiffs thereafter requested arbitration, which Defendants ignored, and demanded payment of the building and construction bond (“the Bond”) that Defendant Smith & Ramirez posted with the City of El Paso before beginning construction.13 B. Procedural Background In June 2015, Defendant Smith & Ramirez filed suit against Plaintiffs in state court (“the Contract Case”) to resolve this contract dispute.14 Plaintiffs filed counterclaims including fraud, fraudulent inducement, fraudulent misrepresentation, breach of contract, and promissory estoppel.15 Pursuant to the contract, Judge Sergio Enriquez sent the Contract Case to arbitration, which is ongoing.16

10 Id. at 3 ¶ 3. 11 Id. at 3 ¶ 9. 12 Id. 13 Id. at 4 ¶¶ 10–11. 14 Id. at 5 ¶ 14 (state court case number 2015DCV1113); Mot. at 2 ¶ 2. 15 “Ty Smith’s, Alejandro C. Ramirez’s, and Smith and Ramirez Restoration LLC’s Joint Rule 12(c) Motion to Dismiss with Prejudice” (“Mot.”) 6 ¶ 33, ECF No. 99, filed Oct. 3, 2022. 16 Am. Comp. at 5 ¶ 16; Mot. at 6 ¶ 33. In October 2015, Old Republic Surety Company, which posted the Bond on behalf of Defendant Smith & Ramirez, filed an interpleader petition in state court (“the Bond Case”) since there were multiple claimants to the Bond.17 In June 2016, the Bond Case Court allowed the Bond to be interpleaded with that Court and discharged Old Republic Surety Company from any liability to Plaintiffs or Defendants.18

The instant case arises from an April 2021 state court suit filed by Plaintiffs against Defendants, the law firm that represented Defendants in arbitration (“MGMSP&G”), three attorneys from MGMSP&G, the liability insurance carrier for Defendant Smith & Ramirez (“Evanston”), and the arbitrator (“Mr. Bluff”).19 As in the Contract Case, Plaintiffs assert claims based on fraud, fraudulent inducement, fraudulent misrepresentation, breach of contract, and promissory estoppel.20 They also seek relief under the Racketeer Influenced and Corrupt Organizations Act (“RICO”).21 MGMSP&G and its attorneys removed in May 2021.22 In June 2021, Plaintiffs amended their complaint adding as defendants the issuer of their homeowners’ policy (“Liberty Lloyds”), another law firm (“H&P”), and an attorney for H&P.23

Plaintiffs also added new causes of action based on violations of the Health Insurance Portability

17 Am. Compl. at 4 ¶¶ 11, 12 (state court case number 2015DCV3677). 18 Mot., Ex. F, “Order Granting Old Republic Surety Company’s First Amended Petition in Interpleader” 1, ECF No. 99-2, filed Oct. 3, 2022. 19 See “Complaint,” ECF No. 1-1, filed May 12, 2021 (state court case number 2021DCV1187). 20 See generally id. 21 See generally id. 22 See “Notice of Removal Under 28 U.S.C. §1441(a) and § 1331 (Federal Question),” ECF No. 1, filed May 12, 2021. 23 See Am. Compl. at 1. and Accountability Act (“HIPAA”) and the Texas Medical Privacy Act.24 Liberty Lloyds, H&P, and H&P’s attorney have since been dismissed due to Plaintiffs’ failure to serve those parties within the timeframe required under Federal Rule of Civil Procedure (“Rule”) 4.25 Between July and December 2021, the court granted motions to dismiss by MGMSP&G and its attorneys,26 Mr. Bluff,27 and Evanston.28 Plaintiffs appealed these dismissals, which the

Fifth Circuit denied as premature since this court has yet to enter a final judgment here.29 In December 2021, Plaintiff Robert Hudnall also filed suit in state court (“the Conspiracy Case”) against Defendant Smith, Defendant Ramirez, Mr. Bluff, Evanston, the American Arbitration Association, the State of Texas, the City of El Paso, and Judge Enriquez.30 Mr. Hudnall sought relief based on claims of intimidation, coercion, denial of due process and equal protection, “legal abuse syndrome,” elder abuse, conspiracy, “abuse of process,” fraud, exploitation, invasion of privacy, breach of contract, forgery, extortion, bribery, conflict of interest, denial of third party beneficiary rights, and violations of the Americans with Disability Act, Americans with Disability Act Amendment Act of 2008, and the Texas Human Resources Code.31

24 Id. at 39. 25 “Order Dismissing Defendants Catherine Hanna, Hanna and Plaut LLP, and Liberty Lloyds of Texas Insurance Company” 1-2, ECF No. 106, entered Jan. 5, 2023. 26 “Order Granting Motion to Dismiss” 8, ECF No. 48, entered, July 9, 2021. 27 “Order Granting Guy M. Bluff’s Motion to Dismiss” 10, ECF No. 68, entered Aug. 10, 2021.

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Hudnall v. Smith, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hudnall-v-smith-txwd-2023.