Levings v. Dimont & Associates, LLC

CourtDistrict Court, E.D. Oklahoma
DecidedNovember 29, 2022
Docket6:21-cv-00021
StatusUnknown

This text of Levings v. Dimont & Associates, LLC (Levings v. Dimont & Associates, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Levings v. Dimont & Associates, LLC, (E.D. Okla. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF OKLAHOMA

MARGARET LEVINGS and ) JAMES LEVINGS, ) ) ) Plaintiffs, ) ) v. ) Case No. CIV-21-21-PRW ) DIMONT & ASSOCIATES, LLC and ) JP MORGAN CHASE BANK, NA, ) ) ) Defendants. )

ORDER This case comes before the Court on Defendant JPMorgan Chase Bank, N.A.’s Motion to Dismiss (Dkt. 8) and Defendant Dimont & Associates, LLC’s Motion to Dismiss (Dkt. 10). For the reasons that follow, the Motions (Dkts. 8 & 10) are GRANTED, and this case is DISMISSED with prejudice. Background The dispute in this case arises out of a single phone call placed in response to a single letter.1 Plaintiffs Margaret and James Levings entered into a mortgage agreement with Defendant JPMorgan for a home in Pocola, Oklahoma. In 2020, as part of bankruptcy proceedings in the Eastern District of Oklahoma, Plaintiffs entered into a settlement

1 At this stage, the Court accepts all well-pleaded allegations in Plaintiffs’ Complaint as true and views those facts in the light most favorable to Plaintiffs. See Alvarado v. KOB- TV, L.L.C., 493 F.3d 1210, 1215 (10th Cir. 2007) (quoting David v. City & Cnty. of Denver, 101 F.3d 1344, 1352 (10th Cir. 1996)). agreement with JPMorgan, in which Plaintiffs agreed to vacate the home and relinquish possession of the property to JPMorgan. About a month after Plaintiffs vacated the home,

Defendant Dimont & Associates, LLC—a third party administrator who handles hazard insurance claims on foreclosed homes on behalf of JPMorgan—sent a one and a half page letter to the Pocola Police Department regarding the home. The letter, which is the center of Plaintiffs’ claims in this lawsuit, “notif[ied]” the Police Department “of a loss caused by Theft and/or Vandalism” at the home.2 Specifically, the letter alleged the theft of a range and refrigerator—two objects that Plaintiffs allege the

settlement agreement permitted them to take when they vacated the property. The letter explained that Dimont was “obligated under insurance policy provisions to notify [the Police Department] of this Theft and/or Vandalism,” and requested that the Department “assign a case, incident report, or reference number regarding this notification.”3 Although the letter makes no reference to Plaintiffs, Plaintiffs allege that both

Defendants, acting in a “joint venture,” “fabricated the crimes described in [the letter] and made a false report to law enforcement authorities anticipating that the Pocola Police Department would threaten the [Plaintiffs] with criminal prosecution and that [Defendants] would collect on a false and fraudulent insurance claim.”4 After the letter was sent, Pocola

2 The full letter is found at JPMorgan’s Mot. (Ex. 1, Dkt. 8), at 2–3. 3 Id. 4 Pl.’s Pet. (Ex. 2, Dkt. 2), at 9. Police made a single phone call to Plaintiffs regarding the home.5 Apparently, after the phone call, nothing else came of the letter.

The letter gives rise to all of Plaintiffs’ six claims in this suit. Plaintiffs allege that the letter constituted a malicious abuse of process, libel per se, a violation of the Oklahoma Consumer Protection Act, and negligence by Defendants causing harm to Plaintiffs. Plaintiffs’ Complaint also seeks a declaratory judgment for a “determination of their rights under Oklahoma law to be protected from the transmission of a fabricated report to the police of crimes that implicate them in criminal activity.”6

In response, both Defendants filed separate motions to dismiss. Defendants argue that Plaintiffs’ claims all fail as a matter of law because Dimont’s letter notifying the police of potential crimes is privileged under Oklahoma law and absolutely immune from civil liability. Defendants also argue that, even accepting the allegations in the Complaint as true, there are several other reasons why Plaintiffs’ Complaint fails to plead any plausible

claims against Defendants upon which relief can be granted, and as such, Plaintiffs’ claims should be dismissed with prejudice pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure.

5As noted above, the letter does not name Plaintiffs, and the Complaint does not explain why the Police called Plaintiffs regarding the incident or what was said on the call. 6 Pl.’s Pet. (Ex. 2, Dkt. 2), at 15. This case was initially filed in Oklahoma state court, where a plaintiff’s initial pleading is referred to as a “Petition.” For the sake of simplicity and clarity, the Court will refer to Plaintiffs’ Petition as the “Complaint.” Legal Standard “A cause of action may be dismissed under [Rule] 12(b)(6) either when it asserts a

legal theory that is not cognizable as a matter of law, or if it fails to allege sufficient facts to support an otherwise cognizable legal claim.”7 When reviewing a Rule 12(b)(6) motion to dismiss, all well-pleaded allegations in the complaint must be accepted as true and viewed “in the light most favorable to the plaintiff.”8 “The court’s function on a Rule 12(b)(6) motion is not to weigh potential evidence that the parties might present at trial, but to assess whether the plaintiff’s complaint alone is legally sufficient to state a

claim for which relief may be granted.”9 At this stage, a plaintiff bears the “obligation to provide the grounds of [their] entitle[ment] to relief,” which requires “more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.”10 The pleaded facts must be sufficient to establish that the claim is plausible.11 Ultimately, the Court may “dismiss a claim on the basis of a[ny] dispositive

issue of law.”12

7 Engebretson v. Mahoney, 2010 WL 2683202, at *2 (D. Mont. 2010). 8 Alvarado, 493 F.3d at 1215 (quoting David, 101 F.3d at 1352). 9 Dubbs v. Head Start, Inc., 336 F.3d 1194, 1201 (10th Cir. 2003) (internal citations & quotation marks omitted). 10 Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007) (internal quotation marks & citations omitted) (alteration in original). 11 See id. Generally, a complaint will survive a Rule 12(b)(6) motion if it “state[s] a claim for relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citation omitted). 12 Neitzke v. Williams, 490 U.S. 319, 326 (1989). Discussion The parties agree that each claim in this diversity action is governed by the

substantive law of Oklahoma. As such, the Court must apply Oklahoma law as it is “declared by its Legislature in a statute or by its highest court”13—here, the Oklahoma Supreme Court. What the parties fail to discuss—but implicitly recognize—is that the Oklahoma Supreme Court has not definitively weighed in on some of the issues in this case.14 In a diversity case, “[i]f the state’s highest court has not addressed the issue presented,”15 federal courts must engage in what is often referred to as the “Erie-guess.”16

That is, “the federal court must determine what decision the state [high] court would make if faced with the same facts and issue.”17 In making the Erie-guess, the Court is “free, just as state judges are, to consider all the data the highest court of the state would use in an effort to determine how” that court would decide the issue.18 At the very least, courts “should consider state court decisions,

13 Erie R. Co. v. Tompkins, 304 U.S. 64, 78 (1938).

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Levings v. Dimont & Associates, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/levings-v-dimont-associates-llc-oked-2022.