Saladino v. United States

63 Fed. Cl. 754, 95 A.F.T.R.2d (RIA) 797, 2005 U.S. Claims LEXIS 15, 2005 WL 242477
CourtUnited States Court of Federal Claims
DecidedJanuary 14, 2005
DocketNos. 03-2871T, 04-1367T
StatusPublished
Cited by7 cases

This text of 63 Fed. Cl. 754 (Saladino v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Saladino v. United States, 63 Fed. Cl. 754, 95 A.F.T.R.2d (RIA) 797, 2005 U.S. Claims LEXIS 15, 2005 WL 242477 (uscfc 2005).

Opinion

ORDER

CHRISTINE ODELL COOK MILLER, Judge.

The Government seeks invocation of the court’s power pursuant to RCFC 11 to sanction a pro se party for frivolous filings and contentions. The Government has successfully defended dozens of lawsuits brought in the United States Court of Federal Claims by plaintiff in his own name or on behalf of others, and some cases are still pending. The majority of these lawsuits represent a purportedly assigned claim from his clients, as plaintiff, a non-attorney, earns money by charging people to prepare their tax returns and by filing lawsuits on their behalf, a business preliminarily enjoined by a United States District Court in United States v. Saladino, CV04-2100 FMC (C.D.Cal., Oct. 18, 2004) (order enjoining, in part, Mr. Saladino from furthering his- business or other[755]*755wise encouraging taxpayers to evade assessment and collection). Each lawsuit raises the same, universally rejected contention that wages are not subject to taxation.

The particular actions that prompt defendant’s motions, consolidated ease Nos. 03-2871T and 04-1367T (“Saladino I” and “Saladino II,” respectively),1 already have been dismissed. Saladino v. United States, 62 Fed.Cl. 782 (2004). Each action remains subject to this court’s jurisdiction pending this ruling on defendant’s motions for sanctions, see Cooter & Gell v. Hartmarx Corp., 496 U.S. 384, 395-96, 110 S.Ct. 2447, 110 L.Ed.2d 359 (1990) (ruling that Fed.R.Civ.P. 11 determinations are collateral proceedings and can be determined after termination of the principal suit), filed in both actions contemporaneously with defendant’s motions to dismiss. Def.’s Mtn. filed Aug. 18, 2004 (in Saladino I); Def.’s Mtn. filed Sept. 21, 2004 (in Saladino II). Argument is deemed unnecessary.

PROCEDURAL BACKGROUND

Defendant painstakingly details the history of all the actions that plaintiff filed in his own name and those filed under different names, all listing plaintiffs own address. Relevant to defendant’s motions for sanctions is plaintiffs prosecution of other lawsuits before the Court of Federal Claims insofar as the results informed — or should have informed— plaintiffs understanding of the law prior to filing the instant actions.

Defendant begins with the undisputed fact that plaintiff initially filed fourteen separate lawsuits in the Court of Federal Claims. Saladino I, dismissed by this court on November 2, 2004, is the last of what defendant characterizes as the “first wave.” Def.’s Br. filed Aug. 18, 2004, at 6. Each lawsuit claimed that wages are not taxable, and all pursued relief owed not to plaintiff himself but to his customers.2 Defendant notes that in at least two opinions dismissing different actions, both issued prior to the filing of Saladino I and Saladino II, other judges entered orders explaining why plaintiffs claims could not proceed, both based on jurisdictional deficiencies and for failure to state a valid claim for relief. See Saladino v. United States, No. 03-1816T (Fed.Cl. Oct. 1, 2003) (unpubl.); Saladino v. United States, No. 03-2243T (Fed.Cl. Sept. 30, 2003) (unpubl.).

Plaintiff initiated a second wave of litigation3 on May 18, 2004, with the filing of Anderton v. United States, No. 04-872T (Fed. Cl. filed May 18, 2004). Although Anderton named plaintiffs other than himself, it listed Mr. Saladino’s Palmdale, California address and his telephone number as plaintiffs’ telephone number. Anderton was the first of seventy-seven similar cases. All these actions were transferred to the undersigned, and all were dismissed voluntarily after this court entered orders to show cause why de[756]*756fendant’s motions for sanctions should not be granted should plaintiffs not accept dismissal. See, e.g., Anderton, No. 04-872T (Fed. Cl. July 16, & 28, 2004).

Although a more detailed factual recitation can be found in this court’s opinion in Saladino, 62 Fed.Cl. 782, a brief summary gives the background to defendant’s present motions. Plaintiff filed Saladino I on December 30, 2003. As with all the other actions listed above and in note 2 supra, plaintiff sought the return of allegedly overpaid income taxes for several years on a theory that wages are not subject to income tax. He filed this claim on behalf of his clients, Edwin L. and Alice M. Geiersbach, the taxpayers whose income taxes were at issue and who ultimately would be entitled to the refund. Untutored by any of his prior failures, two of which were unsuccessful lawsuits seeking the same relief for the identical taxpayers — a blatant res judicata defect that served as additional fuel for defendant’s motions to dismiss — plaintiff litigated Saladino I vigorously until sometime before September 7, 2004, when he stated in his opposition brief to defendant’s motion to dismiss (pending before the judge to whom the case had been assigned) that he “was generally under the opinion that this instant case was dismissed months ago.” Pl.’s Mtn. for Leave filed Sept. 7, 2004, ¶ 1. Not only had plaintiff proceeded on the assumption that his motion for voluntary dismissal in three other actions had included Saladino I, but he already had filed Saladino II, another action on behalf the same taxpayers, on the same theory, and for the same tax years. He also stated that he “had no intention of prosecuting this instant case[,] ... [but] if the Court will grant Plaintiff leave to amend, Plaintiff wishes to keep this amended ease active.” Id. ¶¶ 6-7. Otherwise, he asked for a dismissal without prejudice.

Plaintiff nevertheless continued to prosecute his case, and he filed additional motions later in September and continued to re-brief and amend his opposition to defendant’s motion to dismiss Saladino I. This court heard argument on defendant’s motions to dismiss and ruled in favor of defendant, ruling both on defendant’s arguments against jurisdiction and on the merits of the claim, in addition to holding that principles of res judicata and collateral estoppel bar the claims ab initio. See Saladino, 62 Fed.Cl. 782. Saladino II, filed on August 20, 2004, sought essentially the same relief on the same theory. This court dismissed Saladino II for much the same reasons as it did Saladino I. See id.

Defendant now seeks the imposition of monetary sanctions consisting of an order to pay its reasonable attorneys’ fees in defending the Saladino I and II cases and an order to pay a sum into the court as a penalty. Defendant also asks for an order prohibiting plaintiff from filing on his own or another’s behalf any action raising the same objection to paying income taxes.

DISCUSSION

Defendant moves this court, pursuant to RCFC 11, for an order imposing a sanction on a pro se plaintiff. Rule 11 authorizes a court to sanction an attorney or unrepresented party for deviation from its requirements.

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Bluebook (online)
63 Fed. Cl. 754, 95 A.F.T.R.2d (RIA) 797, 2005 U.S. Claims LEXIS 15, 2005 WL 242477, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saladino-v-united-states-uscfc-2005.