MARBURY LAW GROUP, PLLC v. Carl

799 F. Supp. 2d 66, 2011 U.S. Dist. LEXIS 83723, 2011 WL 3267171
District Court, District of Columbia·Decided August 1, 2011·No. Civil Action 09-01402 (CKK)·Published·Cited by 3 cases

Opinion

MEMORANDUM OPINION

COLLEEN KOLLAR-KOTELLY, District Judge.

Before this action began, Plaintiff/Counter-Defendant Marbury Law Group, PLLC (“Marbury”) brought suit against DefendanVCounter-Plaintiff Bernard J. Carl (“Carl”) in the Fairfax County Circuit Court of the Commonwealth of Virginia seeking to collect unpaid fees for the legal services that it provided to Carl while representing him in connection with two legal actions. When Carl failed to defend against the Virginia action, the Fairfax County Circuit Court entered a default judgment against him. Shortly thereafter, Marbury commenced this action with the aim of registering the default judgment with this Court. Carl appeared prose, 1 answered the [1] Complaint, and asserted a handful of counterclaims against Mar-bury.

Subsequently, Marbury realized that this Court lacked jurisdiction to register the default judgment entered by the Fair-fax County Circuit Court and moved this Court to dismiss the Complaint. The Court did so, which left only Carl’s counterclaims against Marbury as live claims in this action. Thereafter, with the Court’s leave, Carl filed a [33] First Amended Counterclaim, in which he narrowed his claims against Marbury to three counterclaims sounding in legal malpractice and breach of fiduciary duty, all of which challenge, in one way or another, the adequacy of Marbury’s legal representation of him in connection with the same two legal actions that underlay Marbury’s action to collect unpaid fees in the Fairfax County Circuit Court. Now, those three counterclaims are the only claims that remain at issue in this action.

There are presently two motions pending before the Court: Marbury’s [35] Motion for Summary Judgment and Carl’s [45] Motion for Relief Under Rule 60(b). In the first motion, Marbury seeks the dismissal of Carl’s First Amended Counterclaim, contending that Carl’s three counterclaims (a) could have and should have been raised in the action before the Fairfax County Circuit Court and are accordingly barred by the doctrine of res judicata, and (b) fail on the merits. In the second motion, Carl petitions this Court for relief from the default judgment entered by the Fairfax County Circuit Court, contending more or less that his failure to defend against the Virginia action was the product of excusable neglect.

*69 Both motions will be denied. Marbury’s Motion for Summary Judgment fails to fully account for two important principles that circumscribe the reach of the preclusive effect of the default judgment entered by the Fairfax County Circuit Court— specifically, (a) the general rule that a party failing to assert a permissive counterclaim in a prior action ordinarily will not be barred from bringing a future suit on that claim, and (b) all counterclaims are permissive under Virginia law. Marbury’s alternative contention that Carl’s counterclaims fail on merits will not be considered because Marbury has failed to comply with the procedural requirements for presenting a motion for summary judgment in this Court. Finally, Carl’s Motion for Relief Under Rule 60(b) is fundamentally infirm, as Rule 60(b) does not provide a vehicle for seeking relief from a state-court judgment.

I. BACKGROUND

On March 6, 2009, Marbury brought suit against Carl in the Fairfax County Circuit Court (the “Virginia action”), seeking to collect unpaid fees for the legal services that it provided to Carl in connection with two legal actions. See Compl., ECF No. [1], ¶ 5; Answer, ECF No. [6], ¶5. On April 15, 2009, though he was yet to be formally served with a copy of the complaint in the Virginia action, Carl sent Marbury a draft pleading in which he responded to the allegations raised in the complaint and stated counterclaims against Marbury for breach of contract and legal malpractice. See Decl. of John F. Mardula in Supp. of Counter-Def.’s Mot. for Summ. J. (“Mardula Decl.”), ECF No. [35-1], ¶2 & Ex. A; Compl. ¶ 5; Answer ¶ 5. Despite having sent Marbury this draft and being on notice of the pendency of the Virginia action, Carl never actually filed that document — or, for that matter, any other responsive pleading — with the Fairfax County Circuit Court. See Decl. of Bernard J. Carl in Supp. of Counter-PL’s Resp. to Counter-Def.’s Mot. for Summ. J. (“Carl Decl.”), ECF No. [40], ¶¶ 110-11; Mardula Decl. ¶ 2. On May 29, 2009, the Fairfax County Circuit Court entered a default judgment in Marbury’s favor, awarding Marbury (a) damages in the amount of $134,133.42, (b) post-judgment interest at the rate of 6% per annum from May 14, 2009, and (c) $262.00 in costs. See Order of J. as to Def. Bernard J. Carl, Marbury Law Grp., PLLC v. Carl, Civ. Action No. 2009-3375 (Va.Cir.Ct. May 29, 2009).

Carl did not appeal the default judgment. See Carl Decl. ¶¶ 118-19, 121-22. Much later, Carl filed a motion with the Fairfax County Circuit Court seeking to have the default judgment set aside. See id. ¶¶ 116, 121-22. On February 12, 2010, Carl’s motion was denied. See Order, Marbury Law Grp., PLLC v. Carl, Civ. Action No. 2009-3375 (Va.Cir.Ct. Feb. 12, 2010). Carl did not appeal that decision either. See Carl Decl. ¶ 122; Mardula Decl. ¶ 21. To date, Carl has not made any attempt to satisfy the default judgment. See Compl. ¶ 9; Answer ¶ 9.

On July 29, 2009, Marbury commenced this action, seeking to register the default judgment with this Court. On October 15, 2009, Carl filed a responsive pleading, answering the allegations in the Complaint and asserting a total of seven counterclaims sounding in breach of contract, breach of fiduciary duty, and legal malpractice.

On November 2, 2009, Marbury filed a motion to dismiss its own Complaint for lack of subject matter jurisdiction, representing that “[subsequent research [ ] caused counsel to conclude that ... subject matter jurisdiction is lacking for this Court to register and enforce the judgment entered against Carl.” Counter-Def.’s Mem. in Supp. of Mot. to Dismiss, *70 ECF No. [12-1], at 1-2. Contemporaneously, Marbury moved this Court to dismiss Carl’s counterclaims, contending that Carl’s claims were either barred by the doctrine of res judicata. or failed to state a claim for relief. See Counter-Def.’s Mem. in Supp. of Mot. to Dismiss, ECF No. [13— 1]. On December 3, 2009, having received no response from Carl, the Court granted both motions as conceded and dismissed the entire action without prejudice. See Order (Dee. 3, 2009), ECF No. [15]; Mem. Op. (Dec. 3, 2009), ECF No. [16],

However, on July 27, 2010, upon Carl’s motion, the Court reconsidered and vacated its prior dismissal order. See Order (July 27, 2010), ECF No. [28]; Mem. Op. (July 27, 2010), ECF No. [29]. Then, reaching the merits of the motions, the Court dismissed Marbury’s Complaint for lack of subject matter jurisdiction, but held-in-abeyance Marbury’s motion to dismiss Carl’s counterclaims pending further briefing on the threshold question of whether the Court retained jurisdiction over those claims. See Order (July 27, 2010); Mem. Op (July 27, 2010).

Free access — add to your briefcase to read the full text and ask questions with AI

MARBURY LAW GROUP, PLLC v. Carl, 799 F. Supp. 2d 66, 2011 U.S. Dist. LEXIS 83723, 2011 WL 3267171 (D.D.C. 2011).

799 F. Supp. 2d 66 (MARBURY LAW GROUP, PLLC v. Carl) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Davenport v. Djourabchi
296 F. Supp. 3d 245 (D.C. Circuit, 2017)
DIONNE SMITH v. GREENWAY APARTMENTS LPT/A MEADOW GREEN COURTS
150 A.3d 1265 (District of Columbia Court of Appeals, 2016)
Brown v. Transurban USA, Inc.
144 F. Supp. 3d 809 (E.D. Virginia, 2015)