Salem v. Paroli (In Re Salem)

260 B.R. 246
CourtDistrict Court, S.D. New York
DecidedMarch 26, 2001
Docket99 CIV. 2620 WCC, 00 CIV. 5974 WCC. Bankruptcy No. 00-30037 JEB
StatusPublished
Cited by18 cases

This text of 260 B.R. 246 (Salem v. Paroli (In Re Salem)) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Salem v. Paroli (In Re Salem), 260 B.R. 246 (S.D.N.Y. 2001).

Opinion

AMENDED OPINION AND ORDER

CONNER, Senior District Judge.

Pro se plaintiff Maurice J. Salem, a/k/a Maurice J. Neshewat, individually and in his capacity as Chairman of the East Fish-kill Democratic Committee, brings this civil rights action against defendants William Pároli, Jr., individually and as Dutchess County Clerk and Clerk of the Court, James D. Pagones, individually and as Acting Justice, New York State Supreme Court (collectively, the “State defendants”), Paul J. Goldstein and Michael J. Neshewat (“Michael”) (collectively, the “Individual defendants”), alleging violations of 42 U.S.C. §§ 1983 and 1985. He also raises state law claims for abuse of process, malicious prosecution, negligent and intentional infliction of emotional distress and breach of contract against the Individual defendants.

Plaintiff seeks money damages, vacatur of a default judgment, injunctive relief, and a declaratory judgment. He also requests that this Court reverse the dismissal of his adversary proceeding in a related federal bankruptcy action. 1 Defendants move to dismiss all of plaintiffs claims pursuant to FED. R. CIV. P. 12, and to affirm the Bankruptcy Court’s decision. In the interest of judicial economy, we will consider both cases together. For the reasons stated below, defendants’ motion is granted and the Bankruptcy Court’s dismissal is affirmed.

BACKGROUND

The following facts, accepted as true for the disposition of the instant motion, are gleaned from the Complaint, the Amended Complaint and defendants’ moving papers. 2 This action arises out of protracted litigation between plaintiff and his brother, Michael, a licensed medical doctor living and practicing in Michigan, and between plaintiff, a local Democrat leader, and the Republican-majority Dutchess County government (the “County”). On August 10, 1989, Paul J. Goldstein, Michael’s attorney, filed a petition in Dutchess County for conservatorship over plaintiffs ailing mother. An independent conservator was appointed and directed to collect approximately $455,000 from plaintiffs family members. Before all assets were collected, plaintiffs mother died and plaintiff was appointed executor and sole beneficiary of his mother’s estate, and declared owner of a 1989 Mercedes Benz automobile that had belonged to his mother. (Complt. ¶ 4.)

*249 Sometime in 1990, Michael reported the car stolen to his insurance company. (See State Defs. Am. Not. Mot. Dismiss, Ex. A at 3.) A short time later, plaintiff was charged by the County District Attorney, who he claims “[was] part of said Republican leadership” (Am.Complt. ¶ 17), with making a false statement under oath when he testified that he was the car’s owner. (See State Defs. Am. Not. Mot. Dismiss, Ex. A at 3.) Plaintiff then sued the County in New York Supreme Court for, inter alia, false arrest and malicious prosecution, though it is unclear when or why plaintiff was arrested. The case was before Justice Ralph Beisner, who plaintiff claims “was the former head of the ... County Republican Party and part of said Republican leadership.” (Am.Complt. ¶ 17.) In 1991, Justice Beisner denied plaintiffs motion to compel discovery in the lawsuit. Plaintiff, “realizing that his lawsuit was not going to be successful because of Justice Beisner and facing criminal prosecution” (id. ¶ 18), agreed to dismiss the action in exchange for the County’s dropping of its criminal charges against him and providing the discovery material he sought. (See id.; State Defs. Am. Not. Mot. Dismiss, Ex. A at 3.)

On August 11, 1992, plaintiff brought an action on the same claim against the County and its leaders in the Southern District of New York. See Salem v. Town of East Fishkill, No. 92-CV-6192 (GLG/BDP). In December 1992, plaintiff was declared owner of the Mercedes Benz by a New York Department of Motor Vehicles Administrative Law Judge. (Complt. ¶ 5.) The car, apparently still reported “stolen,” was “discovered” in 1993 by the insurance company when plaintiffs wife was involved in an accident while driving it. The insurance company commenced a fraud action, seeking to prevent both brothers from possessing the car and to declare the company the rightful owner. Michael paid $40,000 in restitution to the insurance company and the insurance fraud charges were dropped. (See State Defs. Am. Not. Mot. Dismiss, Ex. A at 3.) In plaintiffs federal case, the court ruled that Justice Beisner had absolute judicial immunity. (Am. Complt. ¶ 18.) The case went to trial against the other defendants, and on January 24, 1996, a jury awarded plaintiff $15,000 in damages. (Id. ¶ 21.)

On July 9, 1996, plaintiff sued Michael in New York Supreme Court (“Action # 1”), seeking damages relating to his ownership of the car. (Complt. ¶ 9.) On July 17,1996, Michael filed a separate action in the same court (“Action # 2”), alleging abuse of process and malicious prosecution, and seeking damages on the basis that plaintiff was not the owner of the vehicle. (Id. ¶ 10; Goldstein Aff. ¶ 10(a).) On July 24, 1996, Michael answered the Action # 1 Complaint, but did not raise a counterclaim. (Complt. ¶ 11.) 3 Plaintiff alleges Gold-stein testified that he did not assert a counterclaim in his Action # 1 Answer on behalf of Michael because the pleadings “crossed in the mail.” (Id. ¶ 12.) Plaintiff disputes this, claiming that “there were eight days between the two actions and the mail was never used” (id.), and that Gold-stein in fact conspired with the “Republican leadership” to bring Action #2 “not for the legitimate purpose of suing Plain *250 tiff ... but for the sole purpose of obtaining a default judgment [against plaintiff].” (Am.Complt. ¶ 23.)

When plaintiff did not answer the Action # 2 Complaint, Michael moved for a default judgment on September 21, 1996. On October 2,1996, plaintiff filed an affidavit in opposition to Michael’s default judgment motion, and mailed it with his affidavit of service to the Clerk of the Court, defendant Paroli, who plaintiff claims “is also part of said Republican leadership.” (Id.) On October 4, 1996, the clerk’s office received plaintiffs affidavit by mail and signed a receipt therefor. (Complt. ¶ 16.) Plaintiff claims that Paroli or his agent “intentionally or negligently ... failed to deliver said affidavit to Justice Bernhard [the presiding judge].” (Am.Complt. ¶ 24.) Consequently, on November 6, 1996, Justice Bernhard entered a default judgment against plaintiff, finding “no opposition” to Michael’s motion. (Complt. ¶ 17.)

Plaintiff then spoke to Justice Bern-hard’s law clerk, who instructed plaintiff to send all papers directly to him, thus bypassing Paroli and the clerk’s office altogether. Plaintiff did so, and Justice Bern-hard vacated the default judgment on June 24, 1997, but did not address the merits of the case. (Am.Complt.

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Cite This Page — Counsel Stack

Bluebook (online)
260 B.R. 246, Counsel Stack Legal Research, https://law.counselstack.com/opinion/salem-v-paroli-in-re-salem-nysd-2001.