Nathaniel Hake v. Michael Simpson

CourtCourt of Appeals for the Sixth Circuit
DecidedMay 1, 2019
Docket18-3785
StatusUnpublished

This text of Nathaniel Hake v. Michael Simpson (Nathaniel Hake v. Michael Simpson) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nathaniel Hake v. Michael Simpson, (6th Cir. 2019).

Opinion

NOT RECOMMENDED FOR FULL-TEXT PUBLICATION File Name: 19a0234n.06

No. 18-3785

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT FILED May 01, 2019 NATHANIEL HAKE, DEBORAH S. HUNT, Clerk Plaintiff-Appellant,

NATHAN HAKE FARMS, LLC, et al., ON APPEAL FROM THE UNITED Plaintiffs, STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF OHIO v.

MICHAEL SIMPSON, et al., Defendants-Appellees.

BEFORE: CLAY, GILMAN, and KETHLEDGE, Circuit Judges.

CLAY, Circuit Judge. Plaintiff Nathaniel Hake appeals the district court’s August 20,

2018 order granting Defendants’ respective motions to dismiss Plaintiff’s complaint pursuant to

Federal Rule of Civil Procedure 12(b)(6) and for judgment on the pleadings pursuant to Federal

Rule of Civil Procedure 12(c). Plaintiff’s complaint alleges in relevant part that Defendants

contravened a bankruptcy stay in violation of his substantive due process rights under the 14th

amendment to the United States Constitution. For the reasons set forth below, we AFFIRM the

district court’s order.

BACKGROUND Factual Background

Plaintiff, his wife, and Nathan Hake Farms, LLC obtained mortgages on four properties in

Preble County, Ohio. Defendant LCNB Bank was the initial holder of the mortgages. In May 2014, Case No. 18-3785, Hake v. Simpson, et al.

Plaintiff defaulted on the mortgages, and LCNB Bank initiated foreclosure proceedings in Ohio

state court. In December 2014, the state court granted summary judgment in favor of LCNB Bank,

and entered a decree of foreclosure.

Over the next three years, Plaintiff, his wife, and Nathan Hake Farms, LLC engaged in

numerous abandoned or unsuccessful attempts to avoid the foreclosure. For instance, Plaintiff

appealed the state court’s grant of summary judgment in the foreclosure proceedings, but his

appeal was dismissed for want of prosecution. Plaintiff also moved the state court to vacate its

grant of summary judgment in the foreclosure proceedings, but his motion was denied as untimely.

Plaintiff, his wife, and Nathan Hake Farms, LLC also filed at least seven separate petitions

for bankruptcy. For instance, Plaintiff first filed a petition for bankruptcy in March 2015. And

Plaintiff’s wife first filed a petition for bankruptcy in April 2017. Typically, the state court

responded to these petitions by temporarily staying the foreclosure proceedings. However, in each

instance, the bankruptcy court either lifted the stay or dismissed the petition, allowing the

foreclosure proceedings to continue.

Against this backdrop, the three specific pleadings underlying this case can be addressed.

First, on October 19, 2017, the state court issued an order stating that, pursuant to its December

2014 decree of foreclosure, Defendant Noble Opportunity Fund II, LP (“Noble”)—the new holder

of Plaintiff’s mortgages—was entitled to possession of crops being grown on Plaintiff’s properties.

Second, on November 25, 2017, Nathan Hake Farms, LLC filed a petition for bankruptcy. And

2 Case No. 18-3785, Hake v. Simpson, et al.

third, on November 28, 2017, the state court issued an order stating that Nathan Hake Farms’

bankruptcy petition did not stay the order entitling Noble to possession of the crops.1

On December 11, 2017, the Preble County Sheriff’s Office, through its employees

Defendants Michael Simpson, Michael Spitler, Paul Plaugher, and Raymond Hatfield, harvested

and sold the crops being grown on Plaintiff’s properties.

Procedural History On December 14, 2017, Plaintiff filed a complaint against Defendants in the United States

Court for the Southern District of Ohio. Plaintiff’s complaint alleges in relevant part that

Defendants contravened a bankruptcy stay in violation of his substantive due process rights under

the 14th amendment to the United States Constitution. On August 20, 2018, the district court issued

an order granting Defendants’ respective motions to dismiss Plaintiff’s complaint pursuant to

Federal Rule of Civil Procedure 12(b)(6) and for judgment on the pleadings pursuant to Federal

Rule of Civil Procedure 12(c), and terminating the case.

This appeal followed.

DISCUSSION I. Standard of Review We review de novo both a district court’s dismissal of a complaint pursuant to Federal Rule

of Civil Procedure 12(b)(6) and a district court’s grant of judgment on the pleadings pursuant to

Federal Rule of Civil Procedure 12(c). Jackson v. Prof’l Radiology Inc., 864 F.3d 463, 465–66

(6th Cir. 2017). In doing so, we construe the record in the light most favorable to the non-moving

1 The court reasoned, pursuant to 11 U.S.C. § 1201, (1) that Plaintiff was a co-debtor rather than the bankrupt debtor because Nathan Hake Farms, LLC filed the bankruptcy petition, (2) that a co-debtor stay exists only if the action sought to be stayed is an action to collect a consumer debt, and (3) that Nathan Hake Farms’ debt was not a consumer debt. The bankruptcy court subsequently reached the same conclusion, stating, in its dismissal of the bankruptcy petition, that no co-debtor stay under 11 U.S.C. § 1201 existed to stay any actions taken by Noble in the state foreclosure case.

3 Case No. 18-3785, Hake v. Simpson, et al.

party and accept all well-pled factual allegations as true. Engler v. Arnold, 862 F.3d 571, 574–75

(6th Cir. 2017); Philadelphia Indem. Ins. Co. v. Youth Alive, Inc., 732 F.3d 645, 649 (6th Cir.

2013). To survive either motion, the complaint must contain sufficient factual matter to state a

claim for relief that is plausible on its face. Machisa v. Columbus City Bd. of Educ., 563 F. App’x

458, 461 (6th Cir. 2014).

II. Analysis Plaintiff’s complaint alleges in relevant part that Defendants contravened a bankruptcy stay

in violation of his substantive due process rights under the 14th amendment to the United States

Constitution.2 The district court dismissed Plaintiff’s substantive due process claim on the grounds

that the claim was barred by the Rooker-Feldman doctrine, and, alternatively, by the doctrine of

res judicata. On appeal, Plaintiff argues that neither doctrine is applicable. We hold that the

Rooker-Feldman doctrine prevents the district court from exercising subject matter jurisdiction

over Plaintiff’s substantive due process claim, and as a result, we need not address the applicability

of the doctrine of res judicata.

Rooker-Feldman “precludes federal district courts from hearing ‘cases brought by state-

court losers complaining of injuries caused by state-court judgments.’” Brent v. Wayne Cty. Dep’t

of Human Servs., 901 F.3d 656, 674 (6th Cir. 2018) (quotation omitted). “We determine ‘whether

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