(PC) Lipsey v. Davey

District Court, E.D. California·Decided July 31, 2020·No. 1:17-cv-01706·Unknown

Opinion

1 2 3 4 5 6 UNITED STATES DISTRICT COURT 7 EASTERN DISTRICT OF CALIFORNIA 8 9 CHRISTOPHER LIPSEY, JR., 1:17-cv-01706-DAD-SAB (PC)

10 Plaintiff, ORDER DISCHARGING JULY 16, 2020 ORDER TO SHOW CAUSE 11 v. (ECF No. 75)

12 DAVEY, et al., ORDER DENYING PLAINTIFF’S MOTIONS FOR RELIEF AND ENFORCEMENT OF 13 Defendants. SETTLEMENT AGREEMENT (ECF Nos. 65, 68, 78) 14 ORDER DENYING RULE 60(b) MOTION 15 AND SUPPLEMENTAL RULE 60(b) MOTION 16 (ECF Nos. 73, 74) 17 18 I. Procedural History 19 Plaintiff Christopher Lipsey, Jr. (“Plaintiff”) is a state prisoner who proceeded pro se and 20 in forma pauperis in this civil rights action pursuant to 42 U.S.C. § 1983. 21 On July 12, 2019, a settlement conference was held before the undersigned. The terms 22 and conditions of the settlement agreement were placed on the record and the Court retained 23 jurisdiction to enforce the settlement. (ECF No. 49.) According to the terms of the settlement 24 agreement as placed on the record, Defendant was to provide Plaintiff $2,000.00, a thirteen-inch 25 television, and a box of miscellaneous property worth at least $200.00 but not more than $250.00, 26 and the parties were to file a joint stipulation of voluntary dismissal of this action. (ECF No. 56, 27 p. 7; ECF No. 58-1, ¶ 3.) CDCR was to provide payment of the $2,000.00 within 180 days of the 28 settlement agreement, which was July 12, 2019. (Id.) 1 On July 24, 2019, the parties filed a stipulation to dismiss this action with prejudice 2 pursuant to Federal Rule of Civil Procedure 41(a)(1)(A)(ii), (ECF No. 51), and the action was 3 terminated by operation of law, (ECF No. 52). 4 On March 18, 2020, Plaintiff filed a “Motion for Civil or Economic Penalties/Fines for 5 Breach of Contract/Settlement or Equitable Relief.” (ECF No. 56.) In the motion, Plaintiff 6 alleged that he had not yet received payment pursuant to the settlement agreement, despite 7 contacting defense counsel, as well as the accounting office for the Department of Justice, at least 8 four times in the prior three months inquiring about payment. Plaintiff requested an order for 9 Defendant to pay Plaintiff the agreed upon amount, as well as additional relief such as default 10 judgment and/or additional monetary sanctions. (Id.) 11 The Court construed the motion as a motion to enforce the settlement agreement and 12 ordered Defendant Randolph to file a response to the motion. (ECF No. 57.) Defendant 13 Randolph filed a response, supported by a declaration of counsel, on April 8, 2020. (ECF No. 14 58.) Defense counsel stated that during the process of securing the property pursuant to the 15 settlement agreement, he inadvertently neglected to properly process and send the settlement 16 paperwork to CDCR for payment of $2,000.00. (ECF No. 58-1, ¶ 4.) Defendant requested 17 additional time to complete payment and argued that sanctions were not warranted. (ECF No. 18 56.) Plaintiff did not file a reply. 19 On April 30, 2020, the Court granted Plaintiff’s motion to enforce the settlement 20 agreement in part, and ordered Defendant Randolph to complete payment to Plaintiff in 21 accordance with the terms of the settlement agreement and to file status reports every fourteen 22 days regarding the processing of the payment until payment was complete. (ECF No. 59.) The 23 Court also ordered Defendant to file a supplemental response more fully addressing the issues of 24 a potential breach of contract, sanctions, and damages as raised in Plaintiff’s original motion. 25 (Id.) Defendant filed the requested supplement on May 21, 2020. (ECF No. 63.) 26 Pursuant to the Court’s April 30, 2020 order, Defendant also filed status reports on May 27 14, May 28, June 11, and June 25. (ECF Nos. 62, 64, 67, 70.) Plaintiff has also since filed 28 various motions regarding the settlement agreement, enforcement of its terms, and other issues. 1 (ECF Nos. 65, 68, 73, 74.) 2 On July 16, 2020, the Court issued an order directing Defendant to show cause by written 3 response regarding Defendant’s failure to file a status report on July 9, including an explanation 4 why defense counsel did not feel the need to comply with the Court’s April 30, 2020 order. (ECF 5 No. 75.) The Court also provided Defendant the opportunity to file responses to any of the 6 substantive or factual arguments raised in Plaintiff’s subsequent motions. (Id.) 7 Defendant filed a status report and a response to the order to show cause on July 16, 2020, 8 after the Court’s order was docketed. (ECF Nos. 76, 77.) 9 On July 20, 2020, Plaintiff filed a further motion requesting an order regarding his prior 10 motions. (ECF No. 78.) On July 23, 2020, Defendant filed an opposition to Plaintiff’s prior 11 motions, with the exception of Plaintiff’s July 20 motion. (ECF No. 79.) The Court finds that 12 further briefing of these issues is unnecessary, and Plaintiff’s motions are deemed submitted. 13 Local Rule 230(l). 14 II. Discussion 15 A. Jurisdiction to Enforce the Settlement Agreement 16 Federal courts do not have inherent power to enforce settlement agreements entered into 17 by the parties. K.C. ex rel. Erica C. v. Torlakson, 762 F.3d 963, 967 (9th Cir. 2014). Generally, 18 when a district court dismisses an action with prejudice, federal jurisdiction ends and a dispute 19 arising under the settlement agreement is a separate contract dispute that requires its own 20 independent basis for jurisdiction. Kelly v. Wengler, 822 F.2d 1085, 1094 (9th Cir. 2016). 21 However, courts do have the authority to enforce a settlement agreement while the litigation is 22 still pending or when the settlement agreement is referenced in the dismissal order or the court 23 has retained jurisdiction to enforce the agreement. In re City Equities Anaheim, Ltd., 22 F.3d 24 954, 957 (9th Cir. 1994); Kelly, 822 F.3d at 1085. 25 Here, the terms and existence of the settlement agreement between the parties were set 26 forth on the record, and the Court specifically retained jurisdiction to enforce the settlement 27 agreement on the record. (ECF No. 49.) However, those provisions were not included in the 28 parties’ stipulation for dismissal or the Court’s dismissal order. (See ECF Nos. 51, 52.) 1 As Defendant argued in the supplemental response to Plaintiff’s motion to enforce the 2 settlement agreement, the Supreme Court has held that dismissal of a federal suit pursuant to 3 Federal Rule of Civil Procedure 41(a)(1)(A)(ii), as occurred in this case, divests the court of 4 jurisdiction over a state law breach of contract action. Kokkonen v. Guardian Life Ins. Co. of 5 America, 511 U.S. 375, 380–82 (1994). Kokkonen further held that absent the court embodying 6 the settlement contract or retaining jurisdiction over the settlement contract in the dismissal order, 7 enforcement of the settlement agreement is for state courts. Id. at 381–82. 8 As the Court finds no independent basis for federal jurisdiction over Plaintiff’s breach of 9 contract claims or requests for sanctions in this action, the Court concludes that it does not have 10 jurisdiction to enforce the settlement agreement. This is so even where, as here, the Court 11 previously stated its intention to retain jurisdiction and was aware of the terms of the settlement 12 agreement. Id. at 381 (“The judge’s mere awareness and approval of the terms of the settlement 13 agreement do not suffice to make them part of his order.”). 14 B.

Free access — add to your briefcase to read the full text and ask questions with AI

(PC) Lipsey v. Davey, (E.D. Cal. 2020).

(PC) Lipsey v. Davey ((PC) Lipsey v. Davey) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Roadway Express, Inc. v. Piper
447 U.S. 752 (Supreme Court, 1980)
Chambers v. Nasco, Inc.
501 U.S. 32 (Supreme Court, 1991)
Kokkonen v. Guardian Life Insurance Co. of America
511 U.S. 375 (Supreme Court, 1994)
Lewis v. Gillette, Co.
22 F.3d 22 (First Circuit, 1994)
Ltc. Oliver Donovan Ulmet v. The United States
822 F.2d 1079 (Federal Circuit, 1987)
Jadwin v. County of Kern
767 F. Supp. 2d 1069 (E.D. California, 2011)
Moser v. Bret Harte Union High School District
366 F. Supp. 2d 944 (E.D. California, 2005)
K.C. Ex Rel. Erica C. v. Torlakson
762 F.3d 963 (Ninth Circuit, 2014)