LAX v. ATLANTIC CITY

CourtDistrict Court, D. New Jersey
DecidedDecember 27, 2019
Docket1:19-cv-07036
StatusUnknown

This text of LAX v. ATLANTIC CITY (LAX v. ATLANTIC CITY) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
LAX v. ATLANTIC CITY, (D.N.J. 2019).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

MICHAEL J. LAX, 1:19-cv-7036-NLH-AMD

Plaintiff, OPINION

v.

CITY OF ATLANTIC CITY; THOMAS MONAHAN, ESQ.; CHRISTOPHER KHATAMI, ESQ.; and GILMORE & MONAHAN, P.A.,

Defendants.

APPEARANCES:

CHERYL L. COOPER LAW OFFICES OF CHERYL L. COOPER 342 EGG HARBOR ROAD, SUITE A-1 SEWELL, NEW JERSEY 08080

Attorneys for Plaintiff.

JESSICA ALI MAIER MCMANIMON, SCOTLAND & BAUMAN, LLC 75 LIVINGSTON AVENUE, SUITE 201 ROSELAND, NEW JERSEY 07068

RICHARD D. TRENK MCMANIMON, SCOTLAND & BAUMAN, LLC 75 LIVINGSTON AVENUE, SUITE 201 ROSELAND, NEW JERSEY 07068

Attorneys for Defendant City of Atlantic City.

JENNIFER ANN GUIDEA GORDON REES LLP 18 COLUMBIA TURNPIKE FLORHAM PARK, NJ 07932

Attorneys for Defendants Thomas E. Monahan, Esq.; Gilmore & Monahan, P.A.; and Christopher Khatami, Esq. HILLMAN, District Judge

This action1 comes before the Court on motions by all parties: (1) Defendants Thomas E. Monahan, Esq.; Christopher Khatami, Esq.; and Gilmore & Monahan, P.A.’s (the “Gilmore Defendants”) motion to dismiss Plaintiff Michael A. Lax’s (“Plaintiff”) complaint (ECF No. 10);

(2) Plaintiff’s cross-motion for leave to file an amended complaint (ECF No. 13); and

(3) Defendant City of Atlantic City’s (“Atlantic City”) unopposed motion to vacate the Clerk’s entry of default (ECF No. 19).

For the reasons discussed below, this Court will grant the Gilmore Defendants’ motion to dismiss; will deny as futile Plaintiff’s cross-motion for leave to file an amended complaint; and will deny as moot Atlantic City’s motion to vacate the entry of default.2

1 This action is related to another action, Docket No. 19-cv- 7043, filed by Gary A. Lax, arising out of the same events at issue here and naming these same Defendants (the “7043 Action”). The 7043 Action presents nearly identical pleadings and motions as are presented here, replacing Plaintiff Michael Lax with plaintiff Gary Lax. The Court will address the 7043 Action by way of separate Opinion and Order but notes the near identical nature of these actions. 2 The Court refers collectively to all defendants herein as “Defendants[.]” BACKGROUND We take our recitation of the facts from Plaintiff’s complaint. Plaintiff’s action emanates from his involvement in related litigation before this Court, City of Atlantic City v. Zemurray St. Capital, LLC, No. 14-cv-5169 (“Zemurray”).3 See (ECF No. 1 (“Comp.”) at ¶¶7-15). Plaintiff alleges that the Gilmore Defendants were retained to represent Atlantic City in the Zemurray action and “without doing any due diligence and/or investigation into what involvement, if any, Michael Lax had in the allegations that made up the [Zemurray] case[,]” named Plaintiff as a defendant in that action. (Comp. at ¶14). As a

result, Plaintiff was “forced to retain counsel and to defend the baseless allegations made” against him. (Comp. at ¶15). Plaintiff alleges that he was deposed in Zemurray and “there was no information []or facts [elicited] linking him in any way to the litigation[.]” (Comp. at ¶20). Nonetheless, the “Gilmore Defendants refused to dismiss Plaintiff from the case[.]” (Comp. at ¶20). According to Plaintiff, in Zemurray, Judge

3 Plaintiff does not explain or otherwise plead which portions of the Zemurray action are particularly relevant to the present litigation. Moreover, because the Court writes primarily for the benefit of the parties, and because all parties were involved in the Zemurray action, the full facts underlying the Zemurray action will not be discussed. Robert B. Kugler, U.S.D.J. “indicated on-the-record that there was no basis to even name Michael Lax as a Defendant, and despite” such indications, Defendants “refused to sign a stipulation of dismissal to remove [Plaintiff] from the case.” (Comp. at ¶25). All of this, Plaintiff alleges, caused him harm in various ways. DISCUSSION I. Subject Matter Jurisdiction This Court exercises subject matter jurisdiction pursuant to 28 U.S.C. § 1332.4 II. Legal Standard Despite Plaintiff’s suggestion otherwise, the present

motion to dismiss is governed by the Federal Rules of Civil Procedure, not the New Jersey Rules of Civil Procedure. See Fed. R. Civ. P. 81(c)(1) (explaining that the federal rules of civil procedure “apply to a civil action after it is removed from a state court”). When considering a motion to dismiss a complaint for failure to state a claim upon which relief can be granted pursuant to Federal Rule of Civil Procedure 12(b)(6), a court

4 While Plaintiff’s complaint does not adequately plead the citizenship of any party, the parties have executed a Joint Certification of Citizenship representing that complete diversity exists. See (ECF No. 17). must accept all well-pleaded allegations in the complaint as true and view them in the light most favorable to the plaintiff. Evancho v. Fisher, 423 F.3d 347, 351 (3d Cir. 2005). It is well settled that a pleading is sufficient if it contains “a short and plain statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ. P. 8(a)(2). “While a complaint attacked by a Rule 12(b)(6) motion to dismiss does not need detailed factual allegations, a plaintiff’s obligation to provide the ‘grounds’ of his ‘entitle[ment] to relief’ requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do . . . .” Bell Atl. Corp. v.

Twombly, 550 U.S. 544, 555 (2007) (alteration in original) (citations omitted) (first citing Conley v. Gibson, 355 U.S. 41, 47 (1957); Sanjuan v. Am. Bd. of Psychiatry & Neurology, Inc., 40 F.3d 247, 251 (7th Cir. 1994); and then citing Papasan v. Allain, 478 U.S. 265, 286 (1986)). To determine the sufficiency of a complaint, a court must take three steps. First, the court must “tak[e] note of the elements a plaintiff must plead to state a claim.” Second, the court should identify allegations that, “because they are no more than conclusions, are not entitled to the assumption of truth.” Third, “whe[n] there are well-pleaded factual allegations, a court should assume their veracity and then determine whether they plausibly give rise to an entitlement for relief.”

Malleus v. George, 641 F.3d 560, 563 (3d Cir. 2011) (alterations in original) (citations omitted) (quoting Ashcroft v. Iqbal, 556 U.S. 662, 664, 675, 679 (2009)). A district court, in weighing a motion to dismiss, asks “not whether a plaintiff will ultimately prevail but whether the claimant is entitled to offer evidence to support the claim.” Twombly, 550 U.S. at 563 n.8 (quoting Scheuer v. Rhoades, 416 U.S. 232, 236 (1974)); see also Iqbal, 556 U.S. at 684 (“Our decision in Twombly expounded the pleading standard for ‘all civil actions’ . . . .”); Fowler v.

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LAX v. ATLANTIC CITY, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lax-v-atlantic-city-njd-2019.