Johns v. Rozet

141 F.R.D. 211, 1992 U.S. Dist. LEXIS 1109, 1992 WL 20335
CourtDistrict Court, District of Columbia
DecidedFebruary 3, 1992
DocketCiv. A. No. 91-130
StatusPublished
Cited by23 cases

This text of 141 F.R.D. 211 (Johns v. Rozet) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johns v. Rozet, 141 F.R.D. 211, 1992 U.S. Dist. LEXIS 1109, 1992 WL 20335 (D.D.C. 1992).

Opinion

OPINION

CHARLES R. RICHEY, District Judge.

Before the Court are the plaintiffs’ Motion for Class Certification and Motion to Dismiss Counterclaim and to Strike Affirmative Defenses. The Court has carefully considered the submissions of the parties, the applicable law, and the entire record herein, and concludes that the Motion for Class Certification shall be granted, and the Motion to Dismiss Counterclaim and to Strike Affirmative Defenses shall be granted in part, and denied in part.

I. Background

This case has a long and complicated history. A related case was filed in March 1987 in the District of Columbia Superior Court. The plaintiffs, low-income tenants in a housing project, the Tyler House, sought redress from their landlords and its management company for allegedly substandard and unhabitable living conditions. Trial was eventually set for June 26, 1989. On the eve of trial, the three owner defendants filed for bankruptcy in California. Plaintiffs were then granted leave to file a second amended complaint naming two affiliates of the bankrupt owner defendants—the National Investment Development Corporation (“NIDC”) and Housing Resources Management, Inc. (“HRM”). Trial was rescheduled for September 12, 1990. In March 1990, the plaintiffs were denied leave to file a third amended complaint adding an additional defendant, the Associated Financial Corporation (“AFC”), a corporate affiliate of NIDC and HRM. One week before trial was to begin, NIDC filed for bankruptcy in California. The next day, defendant Moses removed the case to federal court and moved to transfer venue to California. Judge Jackson remanded the case back to Superior Court and held in abeyance a ruling on the issue of sanctions against the defendant pending completion of the trial.

The issue of plaintiffs’ class certification was litigated by the plaintiffs in the Superi- or Court case. Six separate motions and responses on the issue were submitted in 1989, and on April 27, 1989, Judge Greene certified the class consisting of all tenants residing in Tyler House as of July 27, 1988. See Tyler House Tenant Counsel v. Tyler House Apartments, Ltd, No. 1636-87, Elaine Johns v. Tyler House Apartments, Ltd, No. 660-88, Memorandum and Order (D.C.Super.Ct. April 27, 1989) (“Certification Order”).

On HRM’s representations of imminent bankruptcy, the Superior Court again continued the case. By Order of October 3, 1990, denying HRM’s motion to reopen discovery on class certification, the court stated:

The Court previously advised HRM’s counsel in a conference call ... that the coupling of HRM’s settlement offer with its threat of bankruptcy raised questions about the good faith of both of these representations____ In short, HRM does not come to this motion with clean hands; under all circumstances, its protestations [214]*214of concern about the tenant class do not gibe with its continuing actions, which effectively are denying those tenants their day in court.

The plaintiffs allegedly discovered who had been the true owners of the Tyler House since 1986, and on October 1, 1990, plaintiffs moved to amend their Superior Court complaint to add Mr. Rozet, Mr. Ross, and AFC—the defendants now before this Court. Judge Taylor denied plaintiffs the opportunity to amend their complaint, in part because she feared it would delay the trial, require reopening discovery, and disrupt intensive mediation.1

The plaintiffs then turned to this Court to proceed against Ross, Rozet and AFC. The plaintiffs allege that Ross, Rozet and AFC are the true owners of Tyler House through a web of shell corporations designed solely to insulate the defendants from accountability to their tenants. The plaintiffs claim that the defendants breached the warranty of habitability, were negligent in their operation of Tyler House, and fraudulently promised to repair and maintain the building.

This Court denied the defendants’ Motion to Dismiss based on the Colorado River doctrine in an Opinion filed July 15, 1991, 770 F.Supp. 11.

On January 8, 1992, the Superior Court approved a class settlement which involved an entry of a large judgment against the remaining defendants.

II. Analysis

A. Motion for Class Certification

Plaintiffs Elaine Johns and Julia Ann Simpson, on behalf of themselves and as representatives of a class comprised of all current tenants of Tyler House who were residents there as of July 27, 1988, seek to have said class certified by this Court pursuant to Fed.R.Civ.P. 23 and Local Rule 203. Plaintiffs argue that the Superior Court’s previous class certification bars re-litigation of the issue under the doctrine of issue preclusion, and that even if the issue is relitigated, the proposed class meets the requirements of Fed.R.Civ.P. 23(a) and Fed.R.Civ.P. 23(b)(3). The defendants maintain that the doctrine of issue preclusion does not apply, and that the proposed class action fails to meet the requirements of Fed.R.Civ.P. 23.

1) The Issue of Class Certification Has Been Conclusively Decided by the Superior Court. The Doctrine of Collateral Estoppel Bars this Court’s Reconsideration of the Issue

Under the doctrine of collateral estoppel, a “right, question or fact distinctly put in issue and directly determined by a court of competent jurisdiction ... cannot be disputed in a subsequent suit between the same parties or their privies ...” Montana v. United States, 440 U.S. 147, 153, 99 S.Ct. 970, 973, 59 L.Ed.2d 210 (1979). For the doctrine to apply, three requirements must be met:

(1) [T]he issue must have been actually litigated, that is, contested by the parties and submitted for determination by the court.

(2) [T]he issue must have been “actually and necessarily determined by a court of competent jurisdiction” in the first trial.

(3) [Pjreclusion in the second trial must not work an unfairness.

Jack Faucett Associates, Inc. v. AT & T, 744 F.2d 118, 125 (D.C.Cir.1984), cert. denied 469 U.S. 1196, 105 S.Ct. 980, 83 L.Ed.2d 982 (1985) (citing Otherson v. Dep’t of Justice, INS, 711 F.2d 267, 273 (D.C.Cir.1983)). The offensive use of collateral estoppel is within the discretion of the trial judge. Faucett at 126, citing Parklane Hosiery Co. v. Shore, 439 U.S. 322, 99 S.Ct. 645, 58 L.Ed.2d 552 (1979). As an equitable doctrine, notions of fairness to both parties must be considered. Faucett at 125.

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Cite This Page — Counsel Stack

Bluebook (online)
141 F.R.D. 211, 1992 U.S. Dist. LEXIS 1109, 1992 WL 20335, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johns-v-rozet-dcd-1992.