Ison v. Schulman

District Court, E.D. California·Decided September 27, 2022·No. 2:21-cv-01546·Unknown

Opinion

JAMES J. ISON and THE ISON LAW No. 2:21-cv-01546-MCE-KJN FIRM, PC, Plaintiffs, v. SUPERIOR COURT OF CALIFORNIA, ETHAN P. SCHULMAN, THE TANI G. CANTIL-SAKAUYE, MERCURY CASUALTY COMPANY, INSURANCE COMPANY, RANDALL SEGAL & MURRAY, PHILIP A. SEGAL, BRYANA S. McGUIRK, TODD P. DRAKEFORD, MICHAEL S. STUART D. DIAMOND, STUART OFFICE, STACEY DIAMOND-GARCIA and DOES 1 TO 25, Defendants. Through the present case, Plaintiffs James J. Ison and his firm, The Ison Law Firm PC (“Plaintiffs”) seek relief from allegedly erroneous rulings issued by Defendant Ethan P. Schulman, a state court judge with Defendant Superior Court of California, County of San Francisco, in litigation stemming from the mediation of a personal injury lawsuit. Plaintiffs assert that Judge Schulman’s rulings in pretrial motions, as well as in imposing sanctions against Plaintiffs, violated Plaintiffs’ rights to free speech and redress of grievances under the First Amendment to the United States Constitution. Plaintiffs further assert that Defendants Judicial Council of California and Tani Cantil-Sakauye, Chief Justice of the California Supreme Court, deprived them of the due process rights under the Fourteenth Amendment by assigning Judge Schulman to sit on the appellate court which will review his decisions because of the actual bias or appearance of bias such assignment could entail, and Plaintiffs seek a declaratory judgment as to the propriety of such assignment. In addition, through additional causes of action asserted against the insurance carrier, defense firm and their representatives who participated in the mediation, as well as against the mediator himself, Plaintiffs claim their constitutional rights were deprived under color of state law pursuant to 42 U.S.C. § 1983, and further allege that said Defendants committed fraud and violated the Racketeer Influenced and Corrupt Organizations Act (“RICO”), 18 U.S.C. §§ 1961, et seq. Now before the Court for adjudication are two motions to dismiss, one brought by Defendants Schulman, Cantil-Sakauye, the Superior Court of the County of San Francisco, and the Judicial Council of California (“the Judicial Defendants”), with the second filed on behalf of the insurer Defendants, defense counsel, and their representatives and personnel (“the Non-Judicial Defendants”). The Judicial Defendants’ Motion (ECF No. 22) argues that Plaintiffs have no Article III standing to assert claims against either Justice Cantil-Sakauye or the Judicial Counsel and move to dismiss for lack of subject matter jurisdiction under Federal Rule of Civil Procedure 12(b)(1)1 on that basis. They further assert that this Court also lacks subject matter jurisdiction under the so-called Younger abstention as well, with Judge Schulman and the Superior Court immunized from liability in any event. Finally, the 1 All further references to “Rule” or “Rules” are to the Federal Rules of Civil Procedure unless otherwise noted. Judicial Defendants argue that Plaintiffs cannot state a viable claim against them in any event and are therefore entitled to dismissal under Rule 12(b)(6) as well. The Non-Judicial Defendants, for their part, contend in their Motion (ECF No. 15) that Plaintiffs cannot state a viable claim based on res judicata and collateral estoppel grounds. They further contend that permitting Plaintiffs to proceed with this litigation would amount to a de facto appeal of the underlying state court orders in contravention of the Rooker-Feldman doctrine. Finally, the Non-Judicial Defendants contend that two conspiracy-premised causes of action (the RICO and Civil Rights Act claims) do not state a viable claim. As set forth below, both Motions are GRANTED.2 On September 13, 2019, Plaintiffs filed a personal injury lawsuit in the San Mateo Superior Court on behalf of Brenda Talens arising from a motor vehicle accident. Defendant Mercury Casualty, who insured the defendants to that proceeding, retained the law firm of Kern, Segal & Murray (“Kern Segal”) as defense counsel. In the course of the Talens action, a dispute between the parties arose concerning a December 16, 2020, mediation session which concluded, after four hours, without a settlement. Plaintiffs suspected that Mercury’s adjuster, Defendant Brenda Strong, did not actually attend the mediation because the selected mediator, Defendant Stuart Diamond, kept the parties in separate rooms and Plaintiffs did not actually see Ms. Strong. Because Plaintiffs had agreed to dismiss one of Mercury’s insureds from the litigation if Mercury paid for the mediation and had a representative personally attend, Plaintiffs requested confirmation from Diamond the next day that Strong had in fact been in attendance. /// 2 Having determined that oral argument would not be of material assistance, the Court ordered these matters submitted on the briefs in accordance with E.D. Local Rule 230(g). Plaintiffs declined to dismiss Mercury’s insured because it felt the documentation provided for Strong’s presence was inadequate. According to Plaintiffs’ currently operative pleading, the First Amended Complaint (“FAC”), Mercury then “began libeling Plaintiffs and sought monetary sanctions against them because of their refusal to dismiss . . . “ FAC, ECF No. 12, ¶ 4. This prompted Plaintiffs to file a second state lawsuit, this time in San Francisco Superior Court against Mercury and Kern Segal. Plaintiffs contended in that action that the mediation was a “sham” in which the mediator went back and forth between Attorney Ison and an empty room for four hours. Plaintiffs asserted causes of action against Mercury and its counsel for defamation, abuse of process, civil rights violation, intentional infliction of emotional distress, fraud and deceit, and violations of California’s Unfair Competition Law (“UCL”), Cal. Bus. & Prof Code §§17200, et seq. In response to Plaintiffs’ new lawsuit, Mercury filed a so-called anti-SLAPP motion alleging that Plaintiffs’ lawsuit arose from Defendants’ communication and other protected litigation activity in the underlying San Mateo County personal injury action. Judge Schulman granted that motion, rejecting Plaintiffs’ contention that Defendants’ conduct was conclusively illegal and finding that Plaintiffs had not met their burden of establishing, via admissible evidence, a probability of prevailing on their claims in any event. In contrast, the court noted both the mediator and defense counsel provided sworn declarations stating that they were, in fact, physically present at the mediation. See July 12, 2021 Order, Defs.’ Request for Judicial Notice (“RJN”), ECF No. 15-4, Ex. A, pp. 3-5.3 Plaintiffs moved for reconsideration of Judge Schulman’s order, and in doing so made numerous statements that Schulman believed “impugned the integrity of the court.” Id. at ECF No. 15-6, Ex. C, 3:21-22. Among other things, Attorney Ison accused Judge Schulman “of ‘complete disregard’ for the law; ‘purposely committ[ing] clear and

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