Maxwell v. Kaylor

District Court, N.D. California·Decided March 22, 2021·No. 5:19-cv-07832·Unknown

Opinion

NORTHERN DISTRICT OF CALIFORNIA SAN JOSE DIVISION MICHAEL T. MAXWELL, Case No. 19-CV-07832-LHK Plaintiff, ORDER GRANTING DEFENDANT’S MOTION TO DISMISS WITH v. PREJUDICE ROY KAYLOR, Defendant.

Note: Plaintiff has requested an accommodation for his visual handicap “that requires larger and bold type fonts.” Compl. at 1. The Court will file as an exhibit to the instant order a copy of the order that uses larger type and bold fonts. Before the Court is Defendant Roy Kaylor’s (“Defendant”) motion to dismiss Plaintiff Michael Maxwell’s (“Plaintiff”) First Amended Complaint. ECF No. 71 (“Mot.”). Having considered the parties’ submissions, the relevant law, and the record in this case, the Court GRANTS Defendant’s motion to dismiss with prejudice. I. BACKGROUND A. Factual Background Plaintiff Michael Maxwell is a resident of California. First Amended Complaint. ECF No. 67, at ¶ 12 (“FAC”). Defendant Roy Kaylor is a resident of Oregon. FAC at ¶ 13; Mot. at 2. The instant case originates from a dispute between Plaintiff and Defendant over a 153-acre parcel of real property located in Santa Cruz County (the “Santa Cruz property”). FAC at ¶ 18. In November of 2011, Defendant executed a contract titled “Sale of Land and Declaration of Rights in Land,” which granted Plaintiff a life estate in the Santa Cruz property as well as certain rights to harvest timber. Id; ECF No. 67-1, at 1 (Ex. A.). Plaintiff alleges that after the contract was signed, Defendant allowed another party to harvest timber and deprived Plaintiff of the proceeds. Id. Plaintiff further alleges that in October of 2018, Defendant and co-conspirators engaged in a “clever contrivance of false and fraudulent allegations, at meetings and telephone conferences, emails and facsimile transmission, while in the State of California to the State of Oregon, to carry- out false claims of elder abuse as against plaintiff in the Oregon Circuit Court.” Id. at ¶ 20. Plaintiff alleges that the purpose of this “conspiracy” was to deprive Plaintiff of the benefits of the life estate for the Santa Cruz property by means of a restraining order for elder abuse against Plaintiff. Id. at ¶¶ 4, 21. At the beginning of November 2018, Defendant filed an elder abuse charge in Oregon state court, and the Oregon state court issued a restraining order against Plaintiff. Id. at ¶¶ 21–26. The restraining order required Plaintiff to refrain from contacting Defendant or transfer Defendant’s property. ECF No. 67-3. The Oregon Circuit Court later retracted the elder abuse order and dismissed the case. Id. at ¶ 27. Plaintiff alleges that Defendant sought the restraining order in order to “gain an unjust and fraudulently obtained advantage” over Plaintiff in a dispute over the Santa Cruz property. Id. at ¶ 23. B. Procedural Background 1. Maxwell v. Kaylor, Case No. 5:18-CV-06121-NC (N.D. Cal. filed Oct. 4, 2018) On October 4, 2018, Plaintiff, who was represented by counsel, filed a lawsuit in the United States District Court for the Northern District of California against Defendant. Plaintiff asserted nine state law claims, including a number of property claims, contract claims, and a claim for abuse of process for Defendant’s pursuit of the “elder abuse” case in Oregon. ECF No. 25-2, at 1–2 (Ex. B). On June 4, 2019, the United States Magistrate Judge Nathanael Cousins dismissed the case for lack of subject matter jurisdiction because Plaintiff had failed to substantiate the $75,000 amount in controversy requirement for diversity jurisdiction. Id. 9. Plaintiff filed an appeal on June 23, 2019, and the appeal is pending in the Ninth Circuit. ECF No. 25-1, at 9 (Ex. A). 2. Cty. of Santa Cruz v. Kaylor, Case No. CV168369 (Cal. Sup. Ct. filed Aug. 3, 2010) Meanwhile, in the California Superior Court for the County of Santa Cruz (“state court”), Plaintiff sought to intercede in an action brought by the County of Santa Cruz against Defendant in connection with Defendant’s use of the Santa Cruz property. ECF No. 51-1, at 2 (Ex. E). As part of the state court’s disposition of this case, the state court had appointed a receiver to sell the Santa Cruz property, and Plaintiff intervened in order to assert his own rights to the property. Id., ECF No. 51-2 (Ex. F). On May 15, 2020, at a state court hearing, Plaintiff disclosed to the state court that Plaintiff had reached a settlement with the receiver of the property. ECF No. 51-1. As a result, on the same day, the state court approved the sale of the Santa Cruz property. ECF No. 51-2. Specifically, the state court ordered the UCC Financing Statement between Plaintiff and Defendant, which Defendant had filed with the county recorder, to be “stripped and removed” from the title of the property, and further ordered that “[a]ny purported life estate, option purchase contract, timber harvesting rights, and/or any other rights that Maxwell may assert based on the Maxwell Lien are hereby terminated.” Id. ¶ 10. The state court then concluded that the receiver could sell the property “free and clear” of Plaintiff’s lien and any other encumbrances. Id. at ¶ 15. On June 19, 2020, Plaintiff signed the release agreement with the receiver and filed the agreement with the state court. ECF No. 52-3. The terms of the release required Plaintiff to deliver a quitclaim deed transferring his property interest in the Santa Cruz property and to release any and all claims on the property in exchange for a payment of $32,000.00. Id. at 2. Plaintiff also agreed “not to file any further appeal or contest” the state court order. Id. 3. Maxwell v. Kaylor, Case No. 19-CV-07832-LHK (N.D. Cal. filed Nov. 29, 2019) Plaintiff, proceeding pro se, initiated the instant case on November 29, 2019 by filing a complaint in this Court. See ECF No. 1 (“Compl.”). In the complaint, Plaintiff did not enumerate any specific causes of action for which he sought relief. See id. Instead, Plaintiff largely repeated his allegations about the Santa Cruz property dispute and about the Oregon state court “elder abuse” proceedings, which Plaintiff claimed Defendants Kaylor, Cindia Boyle, Amanda Edmondson, and Andrew Pierce fraudulently instituted against him. Id. On March 23, 2020, Defendants filed a motion to dismiss the complaint. ECF No. 24. On June 2, 2020, Plaintiff filed an opposition to the motion to dismiss. ECF No. 49. Defendants filed a reply on June 22, 2020. ECF No. 50. On August 14, 2020, the Court granted Defendants’ motion to dismiss. ECF No. 64. Specifically, the Court (1) dismissed Plaintiff’s property claims without leave to amend; (2) dismissed Plaintiff’s criminal mail and wire fraud claims with prejudice; and (3) dismissed Plaintiff’s federal civil RICO claim and state abuse of process claim with leave to amend. Id. at 18. On September 14, 2020, Plaintiff filed a First Amended Complaint against Defendant Kaylor and Does 1-100. ECF No. 67 (“FAC”). Plaintiff’s First Amended Complaint alleges causes of action for (1) violation of the Racketeer Influence and Corrupt Organizations Act (“Civil RICO”), 18 U.S.C. § 1961; (2) abuse of process; and (3) malicious prosecution. Id. at ¶¶ 28–53. On October 8, 2020, Defendant filed a motion to dismiss Plaintiff’s First Amended Complaint. ECF No. 71. On the same day, Defendant filed a request for judicial notice. ECF No. 72. On October 22, 2020, Plaintiff filed an opposition. ECF No. 77. On October 29, 2020, Defendant filed a reply. ECF No. 78. C. Request for Judicial Notice In connection with Defendant’s motion to dismiss, Defendant requests judicial notice of two documents: (1) “Order for Appointment of William James Rahal as Receiver” from the Santa Cruz Superior Court; and (2) “Order Denying Michael Maxwell’s Motion for Reconsideration of Motion to Intervene” from the Santa Cruz Superior Court. ECF No. 72, at 2 (“RJN”). Plaintiff does not oppose this request. The Court may take judi

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