Illinois Central Gulf Railroad v. J & L Contractors, Inc.

121 F.R.D. 391, 1988 U.S. Dist. LEXIS 19552, 1988 WL 72650
CourtDistrict Court, C.D. Illinois
DecidedMay 17, 1988
DocketNo. 88-3017
StatusPublished
Cited by1 cases

This text of 121 F.R.D. 391 (Illinois Central Gulf Railroad v. J & L Contractors, Inc.) is published on Counsel Stack Legal Research, covering District Court, C.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Illinois Central Gulf Railroad v. J & L Contractors, Inc., 121 F.R.D. 391, 1988 U.S. Dist. LEXIS 19552, 1988 WL 72650 (C.D. Ill. 1988).

Opinion

OPINION

RICHARD MILLS, District Judge:

The substantive question here is one of res judicata.

But the real issue underpinning this case is one of procedure: the enforcement of rules and orders of the Court.

Does the dismissal of Plaintiff Illinois Central Gulf Railroad’s complaint in an earlier action for failure to prosecute a default judgment operate as an adjudication upon the merits, and hence as a bar to identical claims asserted in this subsequent suit?

It does.

I

The chronology of events here is pivotal:

September 20, 1985—Plaintiff filed its original action, ease 85-3462, for breach of contract against Defendant J & L Contractors and related parties.

May 2, 1986—Plaintiff moved for default against Defendant pursuant to Fed.R.Civ. P. 55 when J & L failed to answer the charges in accordance with Fed.R.Civ.P. 12.

October 27, 1986—The United States Magistrate entered an order of default in favor of the Railroad. That order stated in part:

THIS CAUSE WILL BE DISMISSED AS TO THIS DEFENDANT IF PLAINTIFF FAILS TO PROSECUTE A DEFAULT JUDGMENT WITHIN FOURTEEN (14) DAYS FROM ENTRY OF THIS DEFAULT IN COMPLIANCE WITH THE OCTOBER 16, 1985, STANDING ORDER OF THIS COURT.1

April 23, 1987—The Court, on its own motion, gave Plaintiff an additional 14 days to comply with the Magistrate’s default order.

May 13, 1987—'Case dismissed.

July 6, 1987—Plaintiff moved to reinstate.

July lj, 1987—The Court entered an order making findings and denied reinstatement.

The result of this recitation of events is simply this: Plaintiff did not prosecute a [393]*393default judgment within 14 days as ordered. Rather, after twenty-five weeks of the Railroad’s inattention, the Court, sua sponte, granted it an extension of another two weeks to comply with the order of default. But still, Plaintiff ignored the Court. After a third week of grace, the cause was dismissed. Then, thirty-six weeks after the initial default and eleven weeks after the Court’s extension of time, Plaintiff moved to reinstate the action on the ground that counsel was vacationing between May 1 and 10, and thus unable to file a motion for judgment on default by the May 7 extended deadline. No excuse was proffered for the failure to meet the initial deadline of November 10, 1986. Ergo, the Court in a written order made findings as required by Fed.R.Civ.P. 41(b) and denied the motion to reinstate.

No appeal was taken.

Instead, six months later, Plaintiff—represented by the same law firm and attorney—instituted this suit. The allegations of the new complaint follow word for word those against Defendant contained in the prior pleading. Consequently, when the Railroad again sought a default judgment, the Court directed counsel to show cause why the complaint should not be dismissed on the basis of res judicata and why he should not incur monetary sanctions for filing a pleading without foundation in law.

Now before the Court is Illinois Central’s motion to discharge the show cause order and for entry of judgment against Defendant.

II

A proper discussion of Plaintiff’s misfortune must begin with Fed.R.Civ.P. 41(b) which is entitled Involuntary Dismissal: Effect Thereof. Although the rule does not literally provide that a court, upon its own motion, may dismiss an action for failure to prosecute or abide by an order, it does state:

Unless the court in its order for dismissal otherwise specifies, a dismissal under this subdivision and any dismissal not provided for in this rule, other than a dismissal for lack of jurisdiction, for improper venue, or for failure to join a party under Rule 19, operates as an adjudication upon the merits.

(emphasis ours). Thus, Rule 41(b) clearly recognizes that where an order declines to otherwise provide, a sua sponte dismissal for failure to comply with court procedure serves as a final decision on the merits.

In Link v. Wabash Railroad Co., 370 U.S. 626, 629-31, 82 S.Ct. 1386, 1388-89, 8 L.Ed.2d 734 (1962), the Supreme Court established that a federal trial judge’s power to dismiss an action with prejudice because of an attorney’s nonfeasance was beyond doubt. Rejecting the notion that Rule 41(b) impliedly prohibited an involuntary dismissal save upon motion of a defendant, Justice Harlan for the majority explained: “The authority of a court to dismiss sua sponte for lack of prosecution has generally been considered an ‘inherent power,’ governed not by rule or statute but by the control necessarily vested in courts to manage their own affairs so as to achieve the orderly and expeditious disposition of cases.” Id. at 630-31, 82 S.Ct. at 1389. Accord Esteva v. House of Seagram, Inc., 314 F.2d 827, 829-30 (7th Cir.), cert. denied, 375 U.S. 826, 84 S.Ct. 70, 11 . L.Ed.2d 59 (1963).

As a logical extension of Link, courts and commentators have acknowledged what Rule 41(b) implicitly avows: To allow a plaintiff to maintain a second lawsuit on identical facts following the dismissal of an initial action for failure to prosecute would interfere with the quest for efficient docket management and strip the original sanction, albeit harsh, of any significant impact. See Kotakis v. Elgin, Joliet & Eastern Railway Co., 520 F.2d 570, 576-77 (7th Cir.), cert. denied, 423 U.S. 1016, 96 S.Ct. 451, 46 L.Ed.2d 388 (1975); Nasser v. Isthmian Lines, 331 F.2d 124, 128-29 (2d Cir.1964); Chira v. Lockheed Aircraft Corp., 520 F.Supp. 1390, 1391 (S.D.N.Y. 1981); Restatement (2d) of Judgments, § 19 comment e (1982); C. Wright, A. Miller & E. Cooper, Federal Practice & Procedure § 4440 (1981).

Citing Costello v. United States, 365 U.S. 265, 81 S.Ct. 534, 5 L.Ed.2d 551 (1961), [394]*394Plaintiff contends that dismissals on their merits for counsel’s want of diligence are limited to situations where a defendant has incurred the inconvenience and expense of trial preparation. Not so. Costello held that the dismissal of a denaturalization proceeding, based upon the Government’s failure to file an affidavit of good cause as required by statute, was within the “lack of jurisdiction” exception to Rule 41(b), and thus without prejudice.

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121 F.R.D. 391, 1988 U.S. Dist. LEXIS 19552, 1988 WL 72650, Counsel Stack Legal Research, https://law.counselstack.com/opinion/illinois-central-gulf-railroad-v-j-l-contractors-inc-ilcd-1988.