McCleary v. Nelmark

CourtDistrict Court, D. Montana
DecidedMay 9, 2024
Docket9:24-cv-00006
StatusUnknown

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

Bluebook
McCleary v. Nelmark, (D. Mont. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MONTANA MISSOULA DIVISION

JAYSEN McCLEARY, CV 24–06–M–DLC

Plaintiff,

vs. ORDER

DAVID NELMARK and SCOTT BEATTIE,

Defendants.

Before the Court is Defendants’ Motion to Dismiss Complaint. (Doc. 12.) Defendants move to dismiss Plaintiff Jaysen McCleary’s Complaint (Doc. 1) pursuant to Fed. R. Civ. P. 12(b)(1), 12(b)(2), and 12(b)(6). (Id. at 2.) For the reasons discussed below, the Court grants the motion and dismisses McCleary’s Complaint. FACTUAL BACKGROUND1 On December 19, 2018, Thomas William Starbuck and his daughter, Aynsley Ann Starbuck, filed a Petition with the Iowa District Court in Polk County, Iowa, alleging 33 counts of defamation and two counts of punitive damages against McCleary—Polk County Case No. LACL143177 (the

1 This factual background is derived from the Complaint (Doc. 1) and documents attached to the Complaint (Docs. 1-1 to 1-8.) This is only a limited summary of the proceedings in the Iowa District Court that underlie the instant action. “defamation action”). On November 2, 2020, Judge David Nelmark of the Iowa District Court granted the Starbucks’ motion for summary judgment and found

McCleary liable for the defamatory statements but kept the scheduled trial setting in place for the sole purpose of determining damages. On November 4, 2020, McCleary filed a brief requesting that the Iowa District Court reconsider its ruling

on summary judgment. On November 5, 2020, the Iowa District Court issued an order denying McCleary’s request and reasserting its November 2, 2020, order. On June 7, 2021, the court proceeded with the damages trial. McCleary, still proceeding pro se, did not appear and the jury awarded the Starbucks a total of

$8,000,000. On December 6, 2021, the Starbucks filed a petition for equitable relief against McCleary, alleging one count of fraudulent conveyance and one count of

piercing the corporate veil—Polk County Case No. EQCE87175 (the “collections action”). Specifically, the Starbucks alleged that McCleary transferred $65,000.00 from his personal banking account into the banking account of Bela Animal Legal Defense and Rescue—a bison rescue owned by McCleary and located in Victor,

Montana—and transferred ownership of his Jeep Gladiator to an automobile dealership after the court enjoined McCleary from transferring assets. On January 11, 2022, Judge Nelmark entered an order enjoining McCleary

from selling or transferring property owned by him. On April 5, 2022, Judge Scott Beattie of the Iowa District Court issued an Order Condemning Funds and commanding Release of Funds to the Plaintiffs (the Starbucks). A garnishment of

McCleary’s funds, including Social Security disability benefit payments, followed. On April 6, 2022, Judge Nelmark entered a supplemental order prohibiting Bela Animal Legal Defense and Rescue from spending any assets so long as its bank

account’s balance was below $60,461.13. The Starbucks filed an Application to Show Cause against McCleary on July 12, 2022, and another against Bela Animal Legal Defense and Rescue on July 13, 2022, for alleged violations of the Iowa District Court’s injunction orders. The

Iowa District Court held a hearing on the Applications on September 9, 2022. McCleary did not refute the factual allegations in the Applications but maintained that his violations were not willful. On October 20, 2022, Judge Nelmark issued

an order on the Applications finding McCleary guilty of one count of contempt of court, pursuant to Iowa Code § 664A.7. At McCleary’s request, Judge Nelmark scheduled a sentencing hearing for November 2, 2022. On October 31, 2022, McCleary appealed the defamation action judgment,

arguing that the alleged defamatory remarks were protected by litigation privilege. On November 2, 2022, the Iowa District Court held a sentencing hearing in the collections action. On November 29, 2022, Judge Nelmark issued a sentencing

order in the collections action imposing a $500 fine and sentencing McCleary to 30 days in jail, with all but seven days suspended. The court ordered that as an alternative to serving the custodial time, McCleary could provide his counsel with

$10,679.33 to be held in trust to offset the funds spent in violation of the court’s injunction. On December 29, 2023, Judge Nelmark issued an order denying McCleary’s request to vacate the 23-day contempt sentence and ordered McCleary

to report to serve his 23-day sentence no later than January 11, 2023. On February 23, 2023, the Iowa Court of Appeals issued its opinion in the appeal of the defamation action, ruling that the district court did not err in granting summary judgment in the Starbucks’ favor on McCleary’s liability for defamation.

However, the Iowa Court of Appeals vacated the district court’s judgment for damages and remanded for a new trial on damages. On March 7, 2023, Judge Beattie entered two orders recognizing that McCleary’s disability benefits are

exempt from garnishment. On June 7, 2023, the Iowa Supreme Court denied further review of the February 23, 2023, Iowa Court of Appeals opinion. On September 29, 2023, the Iowa District Court held another hearing during which it again found McCleary in contempt of Court. A sentencing order was

entered on October 2, 2023, and on October 18, 2023, the Iowa District Court imposed mittimus on the previously withheld 23-day sentence. In an order dated October 11, 2023, Judge Nelmark ordered McCleary to place the titles of all his

vehicles with the Starbucks’ attorney. On October 29, 2023, Judge Nelmark entered an order directing McCleary to place $48,136.08 in escrow with the court. On April 29, 2024, the Iowa District Court began a new trial on the issue of

damages. PROCEDURAL BACKGROUND On February 28, 2024, McCleary, proceeding pro se, filed the instant action

against Defendants Judge David Nelmark and Judge Scott Beattie, the two Iowa District Court judges who presided over the various proceedings in the underlying defamation case and collections action. (Doc. 1 ¶¶ 2–3.) McCleary claims that Defendants violated his due process rights and seeks declaratory and injunctive

relief. Although McCleary does not cite 42 U.S.C. § 1983 in his Complaint, McCleary’s claims all stem from the alleged deprivation of his Constitutional rights and therefore § 1983 provides McCleary’s right of action. 42 U.S.C. § 1983;

see also Rehberg v. Paulk, 566 U.S. 356, 361 (2012) (“Section 1983 . . . creates a private right of action to vindicate violations of ‘rights, privileges, or immunities secured by the Constitution and laws’ of the United States.”). Counts I through IV allege violations of McCleary’s due process rights

stemming from Judge Nelmark’s contempt rulings and Judge Beattie’s garnishment order. In Count I, McCleary seeks a declaratory judgment that Judge Nelmark violated his due process rights “when he paid no attention to how

McCleary used the funds he was ordered not to spend and found that McCleary’s violation was willful beyond a reasonable doubt.” (Doc. 1 ¶ 61.) In Count II, McCleary seeks a declaratory judgment that Judge Nelmark violated his due

process rights “when he chose to issue a sentence[—23 days in jail for contempt of court—]predicated on material omissions and misinformation.” (Id.

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