J.P. Silverton Industries L.P. v. Sohm

243 F. App'x 82
CourtCourt of Appeals for the Sixth Circuit
DecidedJune 26, 2007
Docket06-6131
StatusUnpublished
Cited by21 cases

This text of 243 F. App'x 82 (J.P. Silverton Industries L.P. v. Sohm) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
J.P. Silverton Industries L.P. v. Sohm, 243 F. App'x 82 (6th Cir. 2007).

Opinion

OPINION

McKEAGUE, Circuit Judge.

J.P. Silverton Industries L.P. and Wayne Willis appeal the district court’s grant of summary judgment disposing of their action for violation of their constitutionally protected property rights and various causes of action under state law. For the reasons set forth below, we affirm the judgment of the district court.

I. BACKGROUND

On October 22, 2002, appellee Ward Correll obtained a judgment against L.D.R., Inc., Linda Stetler (“Stetler”), and Denny Stetler, not parties to this suit, and an order of sale for the Spring Creek Inn in satisfaction of the judgment. Appellee Sohm, the Master Commissioner of the Clinton Circuit Court, was ordered to carry out the sale, which was scheduled for June 4, 2004, at 10:00 AM. 1 Before the scheduled sale, appellant Silverton attempted to pay Correll the outstanding judgment, and thereby obtain the property, but Correll refused. Therefore, on June 3, 2004, Silverton paid $299,500 into the Clinton County Court in order to satisfy the judgment and obtain the property. The funds were deposited with the court in the name of Linda Stetler.

On June 4, appellant Wayne Willis, acting on behalf of Silverton, came to Albany, Kentucky, for the sale of the Spring Creek Inn. That morning, he paid a further $12,000 into the court, “to make sure there was more than enough to pay for” the outstanding judgment. June 21, 2004 Tr. at 12. He was accompanied by Stetler, and the two approached Sohm to discuss the scheduled sale. The parties dispute the content of the ensuing conversation; Silverton and Willis alleged in their complaint that “Mr. Sohm advised Mr. Willis and Ms. Stetler that the indebtedness secured by the mortgage had been paid, and that consequently the sale would not occur.” Amended Complaint at H 20. Following this conversation, Willis departed for Ohio. Before doing so, he filed with the *85 court a “Motion to Enjoin Sale,” but failed to file a notice of a hearing on the motion.

That morning, the Clinton County Court held a brief hearing on the motion; the court denied the motion on the basis that it failed to give notice of a time for a hearing, and that “the amount tendered to the Circuit Court Clerk is not sufficient to cover the amount in controversy, the interest, the costs, advertising costs, legal fees, ... et cetera.” June 4, 2004 Tr. at 3. The amount owed was $336,551.67, exclusive of attorney’s fees, court costs, costs of sale, appraisal fees, late charges, and insurance. Sohm was therefore ordered to proceed with the sale, and held the sale of the property at 10:00 AM as scheduled. No representative of Silverton was present at the sale, and the property was purchased by Correll. Several days later, the Kentucky Department of Financial Institutions (the “DFI”), Correll, and Charles Kincaid, another of Stetler’s creditors, instituted garnishment actions against the funds paid into the court in Stetler’s name. The court held a hearing on the garnishment actions, and determined that the $12,498.12 Kincaid sought was properly subject to garnishment, but did not order garnishment of the funds sought by Correll or the DFI.

Appellants then filed a motion to set aside the sale. At a subsequent hearing, the court denied the motion, determining that the amount paid was insufficient to satisfy the judgment and the sale was proper. Silverton and Willis thereafter filed suit in the United States District Court for the Western District of Kentucky against Sohm, Correll, the DFI, Kincaid, and other unnamed defendants. They alleged that Sohm and Correll had deprived the plaintiffs of their constitutionally protected property rights under color of state law in violation of 42 U.S.C. § 1983, and conspired to deprive the plaintiffs of those same lights. They also made state-law claims of fraud, official misconduct, interference with prospective economic advantage, abuse of process, and malicious prosecution against various of the defendants. They sought $500,000 in compensatory and $1,000,000 in punitive damages, as well as attorney’s fees.

Before discovery was conducted, the defendants filed motions to dismiss the case. The district court granted the motions as motions for summary judgment on December 28, 2005. The district court determined that the claims against the DFI were barred by sovereign immunity, and that “the evidence in the various filings provides no support for Silverton’s allegation that Mr. Sohm misled Mr. Willis and/or Ms. Stetler regarding the sale.” J. P. Silverton Indus. L.P. v. Sohm, No. 04-CV-128, 2005 WL 3556036, at *4, 2005 U.S. Dist. LEXIS 38351, at *11 (WD.Ky. Dec. 28, 2005). The district court concluded, ‘Without this, Silverton’s claims cannot stand. The civil rights claims (Counts I and II) rely on it, as does the fraud claim (Count III), as well as the violation of K. R.S. 522.020 et seq. (Count IV) [official misconduct] and the claim for interference with prospective economic advantage (Count V).” Id. The district court also concluded that the claims against Kincaid, Correll, and the DFI for abuse of process and against Correll and the DFI for malicious prosecution (Counts VI and VIII) arising out of the garnishment actions were barred by issue preclusion. Id. at *4, 2005 U.S. Dist. LEXIS 38351, at *12-13.

Silverton and Willis then filed a motion to alter or amend the denial, appending the affidavit of Linda Stetler. The district court denied the motion, concluding that the affidavit from Stetler did not materially contradict the testimony in the state court proceedings on which the court had relied in granting the motions for sum *86 mary judgment. Silverton and Willis timely appeal both the grant of summary judgment and the denial of the motion to alter or amend. They argue that the district court improperly converted appellees’ motions to motions for summary judgment, that claim and issue preclusion are not applicable, that they were denied the right to conduct discovery, and that there were disputed questions of material fact rendering summary judgment improper. They do not contest the district court’s determination that the DFI is entitled to sovereign immunity, so this opinion will not address their claims against the DFI. Sohm argues in addition that he was entitled to judicial immunity and that appellants lacked a constitutionally protected interest in the Spring Creek Inn, which appellants contest. We will address only the issues we find dispositive.

II. TREATMENT OF MOTION AS ONE FOR SUMMARY JUDGMENT

Whether a motion to dismiss can properly be considered as a motion for summary judgment is a matter of law that this court reviews de novo. United, States v. Sanford, 476 F.3d 391, 396 (6th Cir.2007) (“This court reviews questions of law de novo.”); see also Max Arnold & Sons, L.L.C. v. W.L. Hailey & Co., 452 F.3d 494, 502-04 (6th Cir.2006) (conducting de novo review of whether a motion was properly considered as a motion for summary judgment or for judgment on the pleadings).

Appellants first argue that appellee Sohm’s styling of his motion as a “motion to dismiss” or

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Bluebook (online)
243 F. App'x 82, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jp-silverton-industries-lp-v-sohm-ca6-2007.