Potter v. Ehrich

CourtCourt of Appeals of Arizona
DecidedSeptember 10, 2024
Docket1 CA-CV 23-0764
StatusUnpublished

This text of Potter v. Ehrich (Potter v. Ehrich) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Potter v. Ehrich, (Ark. Ct. App. 2024).

Opinion

NOTICE: NOT FOR OFFICIAL PUBLICATION. UNDER ARIZONA RULE OF THE SUPREME COURT 111(c), THIS DECISION IS NOT PRECEDENTIAL AND MAY BE CITED ONLY AS AUTHORIZED BY RULE.

IN THE ARIZONA COURT OF APPEALS DIVISION ONE

PHILLIP TERRY POTTER, Plaintiff/Appellant,

v.

CHRISTINE EHRICH, Defendant/Appellee.

No. 1 CA-CV 23-0764

FILED 09-10-2024

Appeal from the Superior Court in Maricopa County No. CV2021-013210 The Honorable Jay Adleman, Judge

AFFIRMED

COUNSEL

Phillip Potter, Scottsdale Plaintiff/Appellant

Mark J. DePasquale, P.C., Phoenix By Mark J. DePasquale Counsel for Defendant/Appellee

MEMORANDUM DECISION

Judge Paul J. McMurdie delivered the Court’s decision, in which Presiding Judge Jennifer B. Campbell and Judge Kent E. Cattani joined. POTTER v. EHRICH Decision of the Court

M c M U R D I E, Judge:

¶1 Phillip Potter appeals the superior court’s dismissal of his complaint against Christine Ehrich and challenges “all claims from all judgments, rulings, decisions, and orders entered” in the case. We affirm.

FACTS AND PROCEDURAL BACKGROUND

¶2 In April 2021, Potter filed a complaint in the superior court asserting claims against his ex-wife, Tasneem Doctor, and several other defendants for a claim for wrongful institution of civil proceedings and aiding and abetting.1 Ehrich was among the defendants alleged to have aided and abetted Doctor.

¶3 In August 2021, Potter filed another complaint, the cause at issue in this appeal. Potter accused several defendants of participating in a criminal enterprise. Potter sued Ehrich and other defendants for defamation per se, negligence per se, conversion, unjust enrichment, tortious interference with business relationships, conspiracy to commit each tort, conspiracy to commit wrongful institution of civil proceedings, and racketeering. Potter alleged that Ehrich worked with Doctor to bring the false civil charges, send the defamatory letter, and convert Potter’s business interest to Doctor and Ehrich’s ownership.

¶4 Potter moved to consolidate the wrongful institution case and this case, which the court denied because the second case “extend[ed] far beyond the allegations in [the wrongful institution case] and [did] not involve common questions of law or fact.” Potter also moved to amend his complaint in this case, which the court denied.

¶5 The superior court dismissed the complaint here as to several defendants and entered judgment under Arizona Rule of Civil Procedure (“Rule”) 54(b). This court affirmed the superior court’s rulings in Potter v. Meza, 1 CA-CV 22-0441, 2023 WL 6845510 (Ariz. App. Oct. 17, 2023) (mem. decision).

¶6 For the remaining defendants, Potter again moved to amend his complaint. The superior court found the amendment request moot as it related to the dismissed defendants. For the non-dismissed defendants, the

1 The “wrongful institution case” is discussed in Potter v. Ehrich, 1 CA- CV 23-0760.

2 POTTER v. EHRICH Decision of the Court

superior court found that Potter had failed to “set forth any legal or factual basis to justify yet another amended complaint” and denied the motion.

¶7 Ehrich moved to dismiss the claims against her for failure to state a claim. See Ariz. R. Civ. P. 12(b)(6). She argued that the aiding-and-abetting claim against her in the wrongful institution case abated Potter’s claim here for conspiracy to commit wrongful institution of civil proceedings. Potter agreed that the doctrine of abatement applied. He argued abatement divested the superior court of jurisdiction to review any of his claims.

¶8 The court granted Ehrich’s motion. The court dismissed the count against Ehrich for conspiracy to commit wrongful institution of civil proceedings based on abatement. For the other allegations against Ehrich, the court found that Potter failed to state a claim for relief.

¶9 Ehrich moved for a Rule 54(b) judgment, which the court entered.

DISCUSSION

A. We Have Appellate Jurisdiction.

¶10 This court has appellate jurisdiction over final judgments. A.R.S. § 12-2101(A)(1). Potter argues the superior court erred by entering the Rule 54(b) judgment, so this court lacks appellate jurisdiction. We review the superior court’s final judgment determination de novo. Madrid v. Avalon Care Ctr.-Chandler, L.L.C., 236 Ariz. 221, 223, ¶ 3 (App. 2014).

¶11 If an action has multiple claims or parties, the court may enter “a final judgment as to one or more, but fewer than all, claims or parties only if the court expressly determines there is no just reason for delay and recites that the judgment is entered under Rule 54(b).” Ariz. R. Civ. P. 54(b). Here, the superior court entered judgment under Rule 54(b) because it dismissed all claims alleged against Ehrich in the case, and there was “no just reason for delay.”

¶12 Potter argues the superior court’s judgment was not final because common law preclusions would not bar his pending claims in the wrongful institution case. Potter asserts that “proceedings do not legitimately end unless the judgments preclude future litigation.” But Potter conflates a final judgment with an adjudication on the merits. The case on which he relies, 4501 Northpoint LP v. Maricopa Cnty., explains that a judgment “on the merits . . . precludes later relitigation.” 212 Ariz. 98, 101,

3 POTTER v. EHRICH Decision of the Court

¶ 16 (2006). “For claim preclusion or issue preclusion to apply, there must be a final judgment on the merits.” Banner Univ. Med. Ctr. Tucson Campus, LLC v. Gordon, 252 Ariz. 264, 266, ¶ 10 (2022). This does not mean a judgment must preclude other claims to be final and appealable. See, e.g., Laurence v. Salt River Project Agric. Improvement & Power Dist., 255 Ariz. 95, 107, ¶ 50 (2023). Even if Potter were correct that preclusion would not bar his claims, it would not affect the finality of the judgment.

¶13 For similar reasons, Potter’s argument that Arizona Revised Statutes (“A.R.S.”) § 13-2341.04(K) precludes entry of a final judgment fails. Under A.R.S. § 13-2314.04(K), a civil action for racketeering “is not limited by any other previous or subsequent civil or criminal action.” Potter argues there was no final judgment because the wrongful institution case must proceed “unfettered” by this case. Still, Potter does not dispute that the superior court in CV2021-013210, this case, dismissed all claims that Potter brought against Ehrich. See Ariz. R. Civ. P. 54(b).

¶14 Potter also argues that the Rule 54(b) judgment was improper because Ehrich did not allege, nor did the court find hardship or injustice. But when Ehrich moved for judgment under Rule 54(b), she emphasized that the case had not been scheduled for trial, and the Rule 54(b) judgment would prevent “possible injustice or delay” from the need for her to continue to participate in the litigation unnecessarily. And the court found there was “no just reason for delay,” as required by Rule 54(b). See Pulaski v. Perkins, 127 Ariz. 216, 218 (App. 1980) (“The phrase ‘no just reason for delay’ in Rule 54(b) means that ‘there must be some danger of hardship or injustice through delay which would be alleviated by immediate appeal.’”) (quoting Campbell v. Westmoreland Farm, Inc., 403 F.2d 939, 942 (2d Cir. 1968)). The superior court did not err.

¶15 Finally, Potter argues that the judgment against Ehrich was not final because related litigation remained pending in the wrongful institution case.

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Potter v. Ehrich, Counsel Stack Legal Research, https://law.counselstack.com/opinion/potter-v-ehrich-arizctapp-2024.