Meisner v. Zymogenetics, Inc

District Court, D. South Carolina·Decided January 23, 2020·No. 3:19-cv-01555·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF SOUTH CAROLINA COLUMBIA DIVISION

Rhonda Meisner, C/A. No. 3:19-1555-CMC-PJG

Plaintiff, v.

Zymogenetics, Inc.; Zymogenetics, LLC; Bristol Myers Squibb, Inc.; Tracey Caldarazzo; Jeff Fortino; Stephanie Lewis, Opinion and Order individually, in her capacity as managing on Motion for Sanctions principal of Jackson Lewis, LLP, and in her and Application for Fees and Expenses capacity as managing principal of Jackson (ECF Nos. 6, 34) Lewis, P.C.; Ellison McCoy, individually and in his capacity as office litigation manager of Jackson Lewis P.C.; John Doe 1-10; Jane Doe 1-10,

Defendants.

This matter (“Meisner III”) is before the court on Defendants’ motion for sanctions (ECF No. 6) and related application for attorneys’ fees and expenses (ECF No. 34). The motion for sanctions primarily seeks protection against future litigation through a pre-filing injunction, though it also seeks attorneys’ fees and expenses incurred in defending this action.1 In a prior Order addressing Defendants’ motion for sanctions, the court denied the request for a pre-filing injunction and related relief but granted the request for attorneys’ fees and expenses,

1 The motion for sanctions seeks (1) a pre-filing injunction against further litigation relating to events at issue in this or two prior cases (C.A. No. 3:12-684-CMC (“Meisner I”); and C.A. No. 3:15-3523 (“Meisner II”)); (2) pre-filing judicial review of any lawsuit Plaintiff files against any Defendant to ensure compliance with the injunction (coupled with imposition of a refundable fee of $3,000); (3) relief from any obligation to respond to any lawsuit Plaintiff files against a Defendant named in Meisner I-III until the court determines the lawsuit does not violate the pre- filing injunction; and (4) an award of Defendants’ attorneys’ fees and expenses in this action. subject to later determination of the amount. ECF No. 32 § IV (pp. 9-14). That Order directed Defendants to file an application for fees and expenses (“Fee Application”), which they have now done. ECF No. 32 at 12; ECF Nos. 34, 35; see also ECF No. 36 (Plaintiff’s response); ECF No. 37 (Defendants’ reply).

After reviewing Defendants’ Fee Application and related briefing and further consideration of the standard applicable to imposing sanctions pursuant to the court’s inherent powers, the court now concludes its prior Order (ECF No. 32) did not adequately address the relevant standard. As explained below, while the court now concludes Plaintiff’s pursuit of this action demonstrates bad faith and constitutes vexatious litigation, procedural considerations weigh against an award of attorneys’ fees and expenses. The court, therefore, vacates Section IV of its prior Order and substitutes the rulings below. See ECF No. 32 at § IV (pp. 9-14). All other sections of the Order (ECF No. 32) remain in effect. BACKGROUND This action is Plaintiff’s third lawsuit seeking recovery from her former employer (and others) for alleged wrongs occurring during and relating to her prior employment.2 The first of

these actions, Meisner I, was pursued against the employer, a related entity, and one individual (a managerial employee). It was initially filed in federal court based on the assertion of a federal cause of action. Meisner I, ECF No. 1. After significant motions practice, the court granted summary judgment to Defendants. Meisner I, ECF Nos. 288, 289 (Order and Judgment entered

2 For ease of reference, citations to documents filed in Plaintiff’s earlier cases will be preceded by the designation Meisner I or Meisner II, followed by the docket entry number (“ECF No. __”). Citations to an “ECF No.” without a preceding case name refer to documents filed or entries made in this action, though the court includes a Meisner III prefix in some instances to avoid confusion.

2 September 22, 2014); see also Meisner I, ECF No. 303 (Order denying motion to alter or amend judgment entered November 25, 2014); Meisner I, ECF No. 322-33 (motion for supersedeas of judgment, related entries, and March 4, 2015 Order denying motion). The decision was affirmed on appeal. Meisner I, ECF No. 337, 338 (entered on this court’s docket August 11, 2015, and October 21, 2015 respectively). Plaintiff sought but was denied certiorari.3

Plaintiff’s second action, Meisner II, added claims and Defendants, most critically based on alleged litigation misconduct in Meisner I. Meisner II, ECF No. 1-1. The added Defendants included an attorney and law firm involved in the defense of Meisner I who were not diverse from Plaintiff. Id. On its face, Meisner II asserted only state law claims (though it effectively sought to vacate or evade rulings on federal claims). It was filed in state court and removed based on the assertion of diversity jurisdiction. ECF No. 1. The claim of complete diversity depended on an argument the attorney and law firm Defendants were fraudulently joined. Id. Plaintiff moved to remand. Meisner II, ECF No. 11. The court denied this motion based on a finding the non-diverse Defendants were fraudulently joined. Meisner II, ECF No. 22. After

further motions practice, the court held the claims in Meisner II were precluded by res judicata based on the judgment in Meisner I and, alternatively, that they were barred by the statute of limitations. Meisner II, ECF No. 53 at 15; see also Meisner II, ECF No. 65 (Order denying motion to alter or amend judgment). Both the jurisdictional and substantive rulings were affirmed on

3 The court provides only a brief history of the prior litigation here. More detail may be found in prior Reports and Orders in the earlier cases. See, e.g., Meisner I, ECF Nos. 257 at 2-4, 288 at 2- 3; Meisner II, ECF Nos. 19 at 2, 34 at 2, 53 at 4-5. Defendants also provide a useful summary of the prior cases and comparison of allegations in the various actions in their memorandum in support of dismissal in this action. See Meisner III, ECF No. 5-1 at 2-6, 12, 13.

3 appeal. Meisner II, ECF Nos. 74, 75 (entered on this court’s docket on September 20, 2017, and November 1, 2017, respectively). As in Meisner I, Plaintiff sought but was denied certiorari. See Meisner II, ECF No. 81 (addressing later history of action). On December 28, 2018, Plaintiff filed a motion to vacate the judgment in Meisner II.

Meisner II, ECF No. 76. That motion rested on allegations Defendants and their attorneys engaged in litigation misconduct, specifically non-disclosures relating to one Defendant’s citizenship, which Plaintiff argued resulted in the court’s improper exercise of jurisdiction over the matter. Id. The motion to vacate was denied by Order entered June 4, 2019. Meisner II, ECF No. 79 (holding Plaintiff’s arguments failed because they depended on an incorrect test for citizenship of an LLC with a corporate member that, in turn, depended on the wrong test for citizenship of a corporation). On July 2, 2019, Plaintiff moved to alter or amend the Order denying her motion to vacate judgment. Meisner II, ECF No. 81. In addition to opposing that motion, Defendants sought sanctions based on the court’s inherent authority. Meisner II, ECF No. 82 at 6. Plaintiff’s motion was granted in part (removing dicta from the prior order relating to timeliness of the motion to

vacate) and denied in part (as to the substantive ruling). Meisner II, ECF No. 83 (entered July 30, 2019). The court declined to sanction Plaintiff but warned her as follows: Request for Sanctions. Through their response, Defendants ask for sanctions for Plaintiff’s present motion in light of the history of this and related litigation. As Defendants note, the underlying motion to vacate denial of Plaintiff’s motion to remand was entirely unsuccessful and rested on what may be fairly characterized as a frivolous legal argument regarding the citizenship of an LLC.

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