Pramco II, LLC v. Cheyenne Water Service, Inc.

50 V.I. 445, 2008 WL 3200778, 2008 U.S. Dist. LEXIS 58857
CourtDistrict Court, Virgin Islands
DecidedAugust 1, 2008
DocketCiv. No. 2003-2
StatusPublished
Cited by1 cases

This text of 50 V.I. 445 (Pramco II, LLC v. Cheyenne Water Service, Inc.) is published on Counsel Stack Legal Research, covering District Court, Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pramco II, LLC v. Cheyenne Water Service, Inc., 50 V.I. 445, 2008 WL 3200778, 2008 U.S. Dist. LEXIS 58857 (vid 2008).

Opinion

GÓMEZ, Chief Judge

MEMORANDUM OPINION

(August 1, 2008)

Before the Court is the motion of defendant Shamar Greaves to dismiss the complaint of Pramco II, LLC (“Pramco”) for lack of subject matter jurisdiction, or in the alternative, for failure to state a claim.

I. Factual Background

On July 28, 2004, this Court entered a Judgment in favor of Pramco and against Cheyenne Water Service, Inc. (“Cheyenne”), Fleavioeus Greaves a/k/a Fleavious Greaves (“Fleavioueus Greaves”), Evelyn Greaves, and Kevin Greaves in the amount of $215,032.52. All liens on the property were foreclosed, and the property was ordered to be sold at a Marshal’s sale.

On May 10, 2005, Pramco filed a motion to set aside the judgment and to amend the complaint pursuant to Rule 60(b) of the Federal Rules of Civil Procedure.1 In support of its motion, Pramco stated that V.I. CODE Ann. tit. 28, § 532 requires all subordinate lienholders to be named as parties in an action for foreclosure on property. Pramco further stated that it was only after performing a title search update for purposes of executing its judgment that it became aware of junior liens whose holders were not joined as parties in the action.

Those liens include: (1) a December 1, 1997, writ of execution in favor of Island Block Corporation (“Island Block”) against Fleavioeus Greaves d/b/a Cheyenne Trucking recorded on that same day, (2) a November 28, 1997, writ of execution recorded in favor of Island Block and against Fleavioeus Greaves d/b/a Cheyenne Trucking on December 1, 1997, (3) two liens dated April 16, 1998 lien against Fleavioeus Greaves d/b/a Cheyenne Trucking in favor of the Virgin Islands Bureau of Internal Revenue (“VIBIR”) recorded on May 19, 1998, and (4) a June 22, 1998 [448]*448lien against Fleavioeus Greaves d/b/a Cheyenne Trucking recorded on July 7, 1998. Thus, Pramco averred that because the Judgment fails to include all subordinate lienholders, the Court should set aside the judgment.

By order dated August 5, 2005, and entered August 8, 2005 (the “August 8, 2005 order”), the Magistrate Judge granted Pramco’s motion and set aside the judgment for the sole purpose of allowing Pramco to amend the complaint to add junior lienholders. That order stated, in relevant part:

The Judgment is hereby set aside solely for the purpose of allowing Pramco II to amend its complaint and join the Island Block Corporation and the Virgin Islands Bureau of Internal Revenue in accordance with 28 U.S.C. § 522. No other aspect of the judgment is vacated.

(Order, August 8, 2005.)

On May 24, 2007, the Court held a status conference in this matter. At the conclusion of the status conference, the Court ordered the parties to submit briefs on how to proceed on Fleavioeus Greaves and the absence of junior lienholders.

On August 17, 2007, Pramco filed a suggestion of death for Fleavioeus Greaves.2 No briefing was submitted on how the Court should proceed in the absence of the junior lienholders. Thereafter, on September 17, 2007, Pramco filed a motion to substitute Fleavioeus Greaves’ heirs, Shamar Greaves, Andrea Jaston, and Chayanna Greaves, and John Doe (anyone having interest in the property) for Fleavioeus Greaves. The Magistrate Judge granted that motion by Order dated October 5, 2007.

On April 4, 2008, Shamar Greaves filed the instant motion to dismiss the complaint for lack of subject matter jurisdiction pursuant to Rule 12(b)(1) of the Federal Rules of Civil Procedure, or in the alternative for failure to state a claim pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure. Numerous procedural and substantive issues have been presented by the facts as outlined above. The Court will address each in turn.

[449]*449II. Discussion and Analysis

A. Authority of Magistrate Judge

Federal Magistrate Judges derive their authority from the Federal Magistrates Act. See 28 U.S.C. § 636 et. seq. “In general, a Magistrate Judge, without the consent of the parties, has the power to enter orders which do not dispose of the case.” In re U.S. Healthcare, 159 F.3d 142, 145 (3d Cir. 1998); see also FED. R. Civ. R 72 (providing guidelines for distinguishing between dispositive and non-dispositive motions).

A Magistrate Judge can adjudicate dispositive matters only upon consent of the parties, or by special designation of the district court. See 28 U.S.C. § 636 (c)(1); see also Perez v. Sec’y of Health and Human Serv., 881 F.2d 330, 336 (6th Cir. 1989) (“While the Federal Magistrates Act is intended to ease the burden on the district courts, it is not intended to permit the court to abdicate its obligations.”).

Absent consent by all parties, dispositive matters such as Pramco’s motion to set aside the July 28, 2004, Judgment may only be resolved by a district judge. See 28 U.S.C. § 636(c)(1); Chase Manhattan Bank, N.A. v. Stapleton, 49 V.I. 987, 990-991 (D.V.I. 2008) (holding that a magistrate judge is without authority to set aside the judgment of a district court); Nat’l Labor Relations Bd. v. Frazier, 966 F.2d 812, 816 n. 2 (3d Cir. 1992) (explaining that a magistrate judge may not resolve dispositive matters unless all parties to the litigation consent); Parks By and Through Parks v. Collins, 761 F.2d 1101, 1105-07 (5th Cir. 1985) (holding that the magistrate judge lacked authority to decide a Rule 60(b) motion to set aside a default judgment entered by a district judge absent consent of the parties and a referral by the district court); cf. Taylor v. Nat’l Group of Co.’s, Inc., 765 F. Supp. 411, 413-14 (N.D. Ohio 1990) (“It is simply not the case that a magistrate’s jurisdiction is, by fiat, somehow merged with that of the district judge to an extent sufficient to vest the magistrate with the authority to reconsider and set aside or alter prior decisions of the district judge.”).

There is no evidence in the record that the parties consented to the authority of the Magistrate Judge to set aside the July 28, 2004, Judgment. As such, the Magistrate Judge was without authority to set aside the July 28, 2004, Judgment, or any portion of it. See, e.g., Stapleton, 49 V.I. at 991 (finding that the magistrate judge lacked jurisdiction to set aside a [450]

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Bluebook (online)
50 V.I. 445, 2008 WL 3200778, 2008 U.S. Dist. LEXIS 58857, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pramco-ii-llc-v-cheyenne-water-service-inc-vid-2008.