Potter v. Mosteller

199 F.R.D. 181, 2000 U.S. Dist. LEXIS 20663, 2000 WL 33158412
CourtDistrict Court, S.D. California
DecidedMarch 21, 2000
DocketNo. CA-98-1158-22
StatusPublished
Cited by1 cases

This text of 199 F.R.D. 181 (Potter v. Mosteller) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Potter v. Mosteller, 199 F.R.D. 181, 2000 U.S. Dist. LEXIS 20663, 2000 WL 33158412 (S.D. Cal. 2000).

Opinion

ORDER

CURRIE, District Judge.

This matter is before the court on the pro se Plaintiffs’ “Motion for Rule 60 Relief,” filed May 6, 1999, and the Petition for Attorney Fees, filed April 13, 1999, by Defendants Stanley McGuffin, Sinkler & Boyd, P.A. law firm, and Wachovia Bank, N.A. (hereinafter “the McGuffin Defendants”). Plaintiffs also filed a separate document with their objections to the attorneys’ fee petition on May 6, 1999.

Previously by opinion filed March 24,1999, the court addressed the substantive merits of Plaintiffs’ claims and granted several defense motions for summary judgment. The March 24, 1999, order also granted the McGuffin Defendants’ Motion for Sanctions and directed Defendants to file a petition for attorney fees, and Plaintiff to respond to it. The March 24, 1999, order expressly directed the Clerk to withhold entry of final judgment until the court entered a final decision on Defendants’ request for sanctions.

Notwithstanding the absence of a final resolution on the sanctions question or the lack of entry of any judgment, Plaintiffs, on April 21, 1999, noticed their immediate appeal of this court’s March 24,1999, order. By order of June 21,1999, the Fourth Circuit Court of Appeals granted Defendants/Appellees’ Motion to Dismiss Plaintiffs’ appeal as prema[183]*183turely filed. The Record on Appeal was returned from the Fourth Circuit on July 15, 1999. Accordingly, the outstanding Rule 60, FRCP, motion and Defendants’ attorneys’ fee petition are now ripe for resolution in this court.

I. PROCEDURAL HISTORY

The March 24, 1999, order, as well as the numerous reported and unreported Potter opinions referenced therein and in the Magistrate Judge’s underlying Order and Recommendation, fully recited the protracted litigation advanced by Plaintiffs in South Carolina state and federal trial and appellate courts over their 1991 purchase of a golf course. Indisputably, Plaintiffs have been “frequent filers” of litigation concerning Crestwood Golf Course in South Carolina courts. The chronology of Plaintiffs’ litigation is repeated here only where relevant to the sanctions award and prefiling injunction questions.

The present litigation is the sixth such case instituted by Plaintiffs in this district court concerning the Crestwood Golf Club. Pursuant to a Local Rule referring all matters with pro se parties to a United States Magistrate Judge for pretrial screening, the instant case, Potter et al. v. Mosteller, III. et al., C.A. No. 5:98-1158-22, dubbed “Potter IV,” was referred to United States Magistrate Judge Joseph R. McCrorey, Jr., for pretrial handling. Magistrate Judge McCrorey has long experience in Potter litigation, having handled numerous pretrial matters in Potter II and Potter III. Magistrate Judge McCrorey issued an Order and Recommendation on January 27, 1999, denying Plaintiffs’ motion to amend and recommending that Defendants’ motions for summary judgment be granted but that the motion for sanctions be denied.

Matters came to this court for review on objections by several parties. With regard to the substantive merits of Potter TV, the March 24, 1999, opinion agreed with Magistrate Judge McCrorey that all defense summary judgment motions should be granted, and that Plaintiffs’ motion to amend should be denied as futile. Therefore, the Order and Recommendation was adopted and incorporated to that extent.

In granting summary judgment to Defendants on all claims related to dismissal of Dale Potter’s counterclaims (generieally referred to as “the misrepresentation-type claims”), the court reasoned that Dale Potter’s lack of due diligence in failing to appear at the April 24,1995, state court hearing and failing to appeal on her own behalf the state court foreclosure action to the state Supreme Court precluded the Potters from proving the extrinsic fraud necessary to launch a collateral attack on the state court judgment. Thus, under the undisputed facts, Plaintiffs could not prevail on an extrinsic fraud claim under any misrepresentation-type theory. As to Plaintiffs’ second category of Potter TV claims based on alleged receiver mismanagement, the court held,1 consistent with its prior ruling, that such claims could not be litigated in federal court. These were the bases for the court’s rulings that Defendants were entitled to summary judgment on both categories of claims.

Nevertheless, the court found that the Recommendation had erred in one respect. The Magistrate Judge had overlooked record evidence of Defendants’ timely service upon Plaintiffs of their notice of intent to move for sanctions under Rule 11, FRCP. Rule 11(c)(1)(A) requires that service of this notice be effected 21 days before filing the motion for sanctions in court. Defendants’ objections pointed out record evidence of their compliance. Based on this evidence and Plaintiffs’ failure to refute it, the court found Defendants had complied with the “safe harbor” provisions of Rule 11, FRCP, and therefore, that the court would further consider the McGuffin Defendants’ motion for sanctions.

In analyzing the alleged “frivolity” or baseless nature of this litigation, the court once again had to distinguish between Plaintiffs’ diverse claims: (1) those involving alleged misrepresentations before Judge Ervin in [184]*184state court; and (2) those involving alleged improprieties by receivers and Defendants as far as pilfering golf course assets. This court found both categories of claims to be groundless and wholly without legal basis or foundation in this district court.

Plaintiffs’ misrepresentation-type claims alleged that Defendants misled the state court concerning Dale Potter’s status in the federal litigation, culminating in an erroneous dismissal of Dale Potter’s counterclaims in state court Case No. 92-CP-05-76, and judgment being entered against Harry and Marguerite Potter in state court Case No. 92-CP-05-75.2 This court’s March 24 opinion found on pages 7 to 14 that Plaintiffs’ misrepresentation-type claims were barred FOR THE THIRD TIME by principles of res judicata. Indisputably, Plaintiffs’ multiple misrepresentation-type claims have been repeatedly re-presented without success, always being subject to dismissal on dispositive pretrial motion in state and federal litigation.

As to the alleged frivolity of Plaintiffs’ second category of claims based on receiver mismanagement, the court recognized receivers Tidwell and Hayes were “new faces” in the cast of characters (as Defendants) occupying the stage in Potter litigation. Plaintiffs’ present complaint charges that receivers Ryan Tidwell and Edward Hayes allegedly joined with Defendants in depleting golf course estate assets. However, in prior litigation against Kelly Cannon, an earlier receiver for the Crestwood Golf Course, Potter v. Crestwood, et al, 5:94-2047-22 (Potter II), Plaintiffs had advanced similar claims against receiver Cannon, which were dismissed on dispositive motion. This court ruled in Potter II that Plaintiffs could not press a collateral action against a receiver in this federal forum.

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Bluebook (online)
199 F.R.D. 181, 2000 U.S. Dist. LEXIS 20663, 2000 WL 33158412, Counsel Stack Legal Research, https://law.counselstack.com/opinion/potter-v-mosteller-casd-2000.