Nguyen v. Peak Equity Group LLC

CourtDistrict Court, W.D. Oklahoma
DecidedFebruary 12, 2025
Docket5:23-cv-01195
StatusUnknown

This text of Nguyen v. Peak Equity Group LLC (Nguyen v. Peak Equity Group LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nguyen v. Peak Equity Group LLC, (W.D. Okla. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF OKLAHOMA

DAVID NGUYEN, an individual; ) THAO NGUYEN, an individual; and ) WYNN WYNN SOLUTIONS, LLC, an ) Oklahoma Limited Liability Company, ) ) Plaintiffs, ) ) v. ) Case No. CIV-23-01195-JD ) PEAK EQUITY GROUP, LLC, a ) Kansas Limited Liability Company; ) HIGH PEAKS FINANCIAL, LLC, a ) Kansas Limited Liability Company; and ) PAUL SAUER, an individual, ) ) Defendants. )

ORDER

Before the Court is Defendants Peak Equity Group, LLC and High Peaks Financial, LLC’s Motion for Sanctions (“Motion”) [Doc. No. 30]. Plaintiffs filed a response in opposition (“Response”) [Doc. No. 35], and Defendants filed a reply (“Reply”) [Doc. No. 36]. Because the Court determines that sanctions are not appropriate under 28 U.S.C. § 1927 or its inherent authority, the Court denies the Motion. I. BACKGROUND On December 28, 2023, Plaintiffs—David Nguyen, Thao Nguyen, and Wynn Wynn Solutions, LLC (collectively “Plaintiffs”)—initiated this lawsuit relating to alleged conduct regarding mortgage agreements between Plaintiffs David Nguyen and Wynn Wynn Solutions, LLC and Defendants Peak Equity Group, LLC and High Peaks Financial, LLC1 and to the foreclosure of property related to the mortgage agreements. [Doc. No. 1]. Plaintiffs asserted claims of abuse of process, breach of contract, slander of title, quiet title, fraud, and outrage. [Id.]. On January 9, 2024, with leave of Court,

Plaintiffs filed a First Amended Complaint asserting the same causes of action. [Doc. No. 6]. On April 11, 2024, the Court issued an Order to Plaintiffs to Show Cause why Plaintiffs had not timely served Defendants pursuant to the requirements of Federal Rule of Civil Procedure 4. [Doc. No. 11]. The Court requested that Plaintiffs within fourteen

days either (1) show cause why Plaintiffs had not timely served Defendants, (2) file a written proof of service or waiver of service for Defendants, or (3) file a stipulation of voluntary dismissal as to Defendants that complies with Federal Rule of Civil Procedure 41. [Id. at 2]. Plaintiffs did not file a response to the Order to Plaintiffs to Show Cause, nor did Plaintiffs file a written proof of service, waiver of service, or voluntary

dismissal. On April 19, 2024, Defendants filed a Motion to Dismiss First Amended Complaint, arguing that the Court should dismiss Plaintiffs’ claims because (1) Plaintiffs did not properly or timely serve Defendants, (2) Plaintiffs’ claims violated the rule against claim-splitting as Plaintiffs also had claims pending against Defendants in state

court, and (3) the Colorado River doctrine allowed the Court to refuse to exercise

1 “Defendants,” when used herein, refers to Defendants Peak Equity Group, LLC and High Peaks Financial, LLC. Plaintiffs named an additional Defendant, Paul Sauer, but Defendants state, and Plaintiffs do not contest, that Plaintiffs did not serve Paul Sauer. See [Doc. No. 30 at 6 n.2]. jurisdiction over Plaintiffs’ claims. [Doc. No. 12]. Plaintiffs did not file a response to Defendants’ Motion to Dismiss First Amended Complaint but filed a Second Amended Complaint on May 10, 2024. [Doc. No. 21]. In Plaintiffs’ Second Amended Complaint,

Plaintiffs asserted causes of action of abuse of process and outrage. [Id. at 4–12].2 The Court ordered the parties to file a response detailing what authorized Plaintiffs to file a Second Amended Complaint [Doc. No. 22], which both parties did. [Doc. Nos. 23 and 24]. The Court then denied Defendants’ Motion to Dismiss First Amended Complaint as moot. [Doc. No. 25 at 2].

Defendants then moved to dismiss Plaintiffs’ Second Amended Complaint, arguing the Court should dismiss Plaintiffs’ claims because (1) Plaintiffs did not properly or timely serve Defendants and (2) Plaintiffs’ claims violated the rule against claim-splitting. [Doc. No. 26]. Plaintiffs did not file a response to Defendants’ Motion to Dismiss Second Amended Complaint. The Court issued a Show Cause Order requiring

Plaintiffs to show cause by June 24, 2024, why they failed to respond. [Doc. No. 28 at 1–2]. On June 24, 2024, Plaintiffs voluntarily dismissed the case without prejudice. [Doc. No. 29]. Defendants then filed this Motion, seeking sanctions from Plaintiffs’ attorney Brittini Jagers-Johnson (“Jagers-Johnson”) pursuant to 28 U.S.C. § 1927 and the Court’s

inherent authority. [Doc. No. 30 at 18–23]. Defendants request fees totaling $25,658.98, plus additional fees related to pursuing sanctions. [Id. at 23–24]. Defendants argue they

2 The Court uses CM/ECF page numbering from the top of docket filings in this Order. are entitled to sanctions because Jagers-Johnson pursued meritless claims on behalf of Plaintiffs, which “multiplied the proceedings in this case, resulting in an increase in the cost of the proceedings,” and which was “unreasonable and vexatious.” [Id. at 20

(quoting Steinert v. Winn Group, Inc., 440 F.3d 1214, 1220–21 (10th Cir. 2006) (internal quotation marks omitted)]. Defendants contend Jagers-Johnson’s sanctionable conduct is shown by “the substantive and procedural issues repeatedly raised in Defendants’ Motions to Dismiss” and “her decision to move forward with [Plaintiffs’] claims when no clear legal basis supported them.” [Id. (internal quotation marks omitted)].

Defendants assert that Jagers-Johnson should not have asserted “bogus” claims after Defendants raised the issues of improper service and claim-splitting in their Motion to Dismiss First Amended Complaint. [Id. at 20–21]. Defendants also assert that Jagers- Johnson’s failure to comply with Court orders “manifests reckless disregard of the attorney’s duties to the court.” [Id. at 21].

Jagers-Johnson filed a Response to Defendants’ Motion for Sanctions. [Doc. No. 35]. She counters that Plaintiffs’ claims did not violate the rule against claim-splitting and that Plaintiffs’ failure to serve within ninety days does not warrant the imposition of sanctions. [Id. at 2–9]. In Defendants’ Reply, they clarify that they seek sanctions for attorneys’ fees

accrued after Defendants’ Motion to Dismiss First Amended Complaint because Defendants’ Motion to Dismiss First Amended Complaint alerted Jagers-Johnson to the defects in Plaintiffs’ case. [Doc. No. 36 at 2–3; see also id. at 8 (arguing that the Court should “grant Defendants’ Motion and impose sanctions against Attorney Jagers- Johnson by way of Defendants’ additional attorney fees and costs expended after the filing of Defendants’ Motion to Dismiss First Amended Complaint, when the service deadline had passed and the mandatory dismissal requirements of Rule 4(m) were

triggered[.]”)]. Defendants also assert in their Reply that Jagers-Johnson’s Response serves as an additional basis for sanctions because its only purpose was to harass opposing counsel, to delay the lawsuit, or to increase costs. [Id. at 10]. II. LEGAL STANDARDS A. Standard for sanctions under 28 U.S.C. § 1927

28 U.S.C. § 1927

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