Joseph Coy v. Susan Schooler and Schooler Medical Professionals, P.C.

CourtCourt of Appeals of Iowa
DecidedFebruary 5, 2025
Docket23-1622
StatusPublished

This text of Joseph Coy v. Susan Schooler and Schooler Medical Professionals, P.C. (Joseph Coy v. Susan Schooler and Schooler Medical Professionals, P.C.) is published on Counsel Stack Legal Research, covering Court of Appeals of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Joseph Coy v. Susan Schooler and Schooler Medical Professionals, P.C., (iowactapp 2025).

Opinion

IN THE COURT OF APPEALS OF IOWA

No. 23-1622 Filed February 5, 2025

JOSEPH COY, Plaintiff/Counterclaim Defendant-Appellee,

vs.

SUSAN SCHOOLER and SCHOOLER MEDICAL PROFESSIONALS, P.C., Defendants/Counterclaim Plaintiffs-Appellants. ________________________________________________________________

Appeal from the Iowa District Court for Dallas County, Patrick W.

Greenwood, Judge.

An employer appeals an order dismissing her counterclaims for breach of

fiduciary duty, breach of contract, conversion, and unjust enrichment against a

former employee. REVERSED AND REMANDED WITH DIRECTIONS.

Matthew G. Sease and Delaney Kozlowski of Sease & Wadding, Des

Moines, for appellants.

Joseph Coy, West Des Moines, self-represented appellee.

Considered by Tabor, C.J., Ahlers, J., and Bower, S.J.*

*Senior judge assigned by order pursuant to Iowa Code section 602.9206

(2025). 2

TABOR, Chief Judge.

Parties must object to misjoined actions. And they must do so by a timely

motion to sever the claims. In this case, Joseph Coy waited too long to challenge

the misjoinder of his former employer’s counterclaims to his replevin action. And

the district court mistakenly dismissed those counterclaims. Thus, we reverse the

dismissal and remand for further proceedings.

I. Facts and Prior Proceedings

Coy worked as the business manager for Schooler Medical Professionals,

P.C., supervised by Susan Schooler. Schooler fired him in January 2022 after he

allegedly misused corporate funds. After his firing, Coy filed a small claims

replevin action against Schooler. In that action, he claimed that Schooler retained

two cell phones that he owned, causing him $500 in damages.

In response, Schooler filed both an answer to the replevin action and a four-

count counterclaim, alleging breach of fiduciary duty, breach of contract,

conversion, and unjust enrichment. Schooler also moved to transfer the case to

district court because those counterclaims alleged damages beyond the

jurisdictional amounts for small claims court. The magistrate ordered the case

transferred in February 2022.1

Almost five months later, in July 2022, the district court set the combined

matters for a non-jury trial on September 26, 2023. In its order setting trial, the

court required that all dispositive motions be filed no less than ninety days before

trial. In other words, the deadline was June 28, 2023. Yet not until the pretrial

1 Schooler then changed attorneys. 3

conference on September 14 did Coy—who represented himself—orally move to

dismiss the counterclaims under Iowa Code section 643.2 (2023).

Through new counsel, Schooler objected on two grounds. First, counsel

urged that Coy’s oral motion was untimely. Second, citing Iowa Rule of Civil

Procedure 1.236(2), counsel argued that dismissal of Schooler’s counterclaims

was not the proper remedy.2 Counsel argued: “[T]he Court should order that our

cause get docketed separately and that all of the deadlines that have been

previously set remain in place under this originally filed case that’s set for trial on

the 26th.”

But the district court sided with Coy and transferred his replevin case to

small claims court. And it dismissed the counterclaims without prejudice to refiling.

The court reasoned that the counterclaims “should never have been permitted to

be joined. They’re not of the same kind of replevin, and it wasn’t permitted by the

code. It was, in essence, void when it happened.”3

Schooler appeals.4

2 Schooler’s counsel described the prejudice his client would suffer from dismissal,

even without prejudice to refile: My concern with requiring Ms. Schooler to refile this action is that Mr. Coy has not engaged in any discovery whatsoever in this case, and he has not filed any pretrial exhibits or witness list in this case that’s set for trial [in twelve days], which is in violation of the rules as well. And allowing Mr. Coy to have a second bite of the apple as to all new discovery and depositions or the like can seriously disadvantage Ms. Schooler after we have engaged in at least written discovery. 3 The court was critical of Schooler’s prior counsel: “frankly, [counsel] should have

known better and [Schooler] shouldn’t be permitted to benefit by that by now prohibiting Mr. Coy from having any opportunity at discovery in that particular case.” 4 After asking for jurisdictional statements from the parties, our supreme court ruled

that the dismissal was an appealable final order. After that order, Schooler filed 4

II. Scope and Standard of Review

We review the district court’s interpretation of the joinder rules for the

correction of legal error. Neill v. Western Inns, Inc., 595 N.W.2d 121, 123 (Iowa

1999). The same standard applies to the dismissal order. Id.

III. Analysis

From the top, Schooler recognizes that a replevin action may not be joined

with other claims for recovery. See Iowa Code § 643.2 (“[T]here shall be no joinder

of any cause of action not of the same kind, nor shall there be allowed any

counterclaim.”). But she disputes the implications of misjoinder. She notes that

“misjoinder is not jurisdictional.” Capitol City Drywall Corp. v. C. G. Smith Const.

Co., 270 N.W.2d 608, 611 (Iowa 1978). So, in her view, Coy waived the right to

complain when he did not attack the misjoinder in a timely motion. See id.; see

also Royce v. Hoening, 423 N.W.2d 198, 202 n.1 (Iowa 1988).

And beyond asserting Coy’s waiver, Schooler submits that dismissal of her

counterclaims was improper. See Roush v. Mahaska State Bank, 605 N.W.2d 6,

10 (Iowa 2000) (holding that, though replevin claim cannot be joined with another

cause of action, the court wrongly dismissed the suit). Instead, under Iowa Rule

of Civil Procedure 1.236(2), the remedy for misjoinder of actions is to “either order

the causes docketed separately or strike those causes which should be stricken,

always retaining at least one cause docketed in the original case.” Schooler

contends that in striking her counterclaims, the district court violated rule 1.236(2)

because it did not retain at least one cause docketed in the original case. She

an appellant’s brief. But Coy did not file an appellee’s brief. See Iowa R. App. P. 6.903(3). 5

explains, “[w]hen this case was removed to district court in February 2022, a new

docket was created and was based solely on Schoolers’ claims—not Coy’s

claims.” Schooler asserts that remanding Coy’s replevin action to small claims

court may have been “an appropriate response to a misjoinder.” But she maintains

that once the court severed the two actions, her counterclaims could have

proceeded to trial.

Finally, Schooler suggests that the district court “gave preferential treatment

to Coy” because he was self-represented. See Metro. Jacobson Dev. Venture v.

Bd. of Rev.

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Related

Royce v. Hoening
423 N.W.2d 198 (Supreme Court of Iowa, 1988)
Klinge v. Bentien
725 N.W.2d 13 (Supreme Court of Iowa, 2006)
Ranch v. Boyl
760 N.W.2d 208 (Court of Appeals of Iowa, 2008)
Capitol City Drywall Corp. v. C. G. Smith Construction Co.
270 N.W.2d 608 (Supreme Court of Iowa, 1978)
Roush v. Mahaska State Bank
605 N.W.2d 6 (Supreme Court of Iowa, 2000)
Neill v. Western Inns, Inc.
595 N.W.2d 121 (Supreme Court of Iowa, 1999)

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Joseph Coy v. Susan Schooler and Schooler Medical Professionals, P.C., Counsel Stack Legal Research, https://law.counselstack.com/opinion/joseph-coy-v-susan-schooler-and-schooler-medical-professionals-pc-iowactapp-2025.