Sini v. Citibank, N.A.

990 F. Supp. 2d 1370, 2014 WL 793085, 2014 U.S. Dist. LEXIS 27738
CourtDistrict Court, S.D. Florida
DecidedFebruary 19, 2014
DocketCase No. 13-CV-22844
StatusPublished
Cited by9 cases

This text of 990 F. Supp. 2d 1370 (Sini v. Citibank, N.A.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sini v. Citibank, N.A., 990 F. Supp. 2d 1370, 2014 WL 793085, 2014 U.S. Dist. LEXIS 27738 (S.D. Fla. 2014).

Opinion

ORDER

KATHLEEN M. WILLIAMS, District Judge.

THIS MATTER is before the Court on Defendant’s Motion to Dismiss or Stay the Case [D.E. 13]. For the reasons stated below, the Motion is GRANTED IN PART.

I. Background

This suit arises from an ongoing dispute between Plaintiff, Laura Sini, and her estranged husband, Massimo Ferrero, over approximately $750,000 held in a Citibank account in Sini’s name [D.E. 1 ¶ 5]. The dispute between Ferrero and Sini — both of whom reside in Italy, where divorce proceedings are ongoing — has given rise to two suits in Miami-Dade Circuit Court and a third suit filed before this Court, in addition to the above-styled action. Id. at ¶¶ 16-49.

Much of this litigation has focused on the 2011 sale of a Miami Beach condominium, the proceeds of which remain frozen in Sini’s Citibank account. According to her Complaint, the property was titled to Blu One Estate, LLC, a company in which both Sini and Ferrero had an interest.1 [1373]*1373Id. at ¶ 9. Following the sale of the property, the proceeds were wired to a Blu One Estate account, and a portion was then wired to Sini’s personal bank account with Citibank. Id. On November 18, 2011, Ferrero went to Citibank’s offices and urged the bank to freeze the sale proceeds in Sini’s account, alleging that Sini was not entitled to the funds because she had sold the property without his consent as required. Id. at ¶¶ 10-11. Since that date, Defendant Citibank has blocked Sini’s access to the funds in her account. Id. Citibank has asserted that it blocked access to the account pursuant to its “internal procedures” [D.E. 13-1 at 59].

On November 18, 2011 — the same date that the account was frozen — Ferrero and Blue One Estate filed suit against Sini in Miami-Dade Circuit Court, alleging that Sini had misappropriated the proceeds of the real-estate sale [D.E. 1 ¶¶ 16-17]. That suit was dismissed on October 4, 2012. Id. at ¶ 19. Subsequently, Sini wrote to Citibank demanding access to the funds in her personal account. Id. at ¶ 21.

On October 26, 2012, Citibank filed a Complaint for Interpleader Relief against Sini, Ferrero and Blue One Estate, LLC, in Miami-Dade Circuit Court, arguing that the competing claims to the funds in Sini’s account could expose the bank to multiple liability if it distributed the funds. Id. at ¶ 24-25. Sini removed that case to this Court on November 13, 2012. Citibank, N.A. v. Blu One Estate, LLC, Massimo Ferrero and Laura Sini, No. 1:12-CV-24087-KMW [D.E. 1], On December 3, 2012, Blu One Estate and Ferrero filed a crossclaim against Sini in the interpleader case alleging conversion, fraud and breach of fiduciary duty, and seeking an injunction to freeze Sini’s Citibank account.2 Id. at D.E. 11. On April 29, 2013, following a hearing on the matter, the Court dismissed Citibank’s interpleader action on the grounds that Citibank failed to demonstrate that it owed conflicting duties to the claimants or that it faced multiple liability. Id. at D.E. 39. The Court dismissed Citibank’s interpleader claim without prejudice, allowing Citibank to refile “if the remedy of interpleader becomes appropriate.” Id. at D.E. 41.

On May 1, 2013 — two days after this Court dismissed Citibank’s interpleader claim — Blu One Estate and another Ferrero- and Sini-related company, Blu One, LLC, filed yet another suit in Miami-Dade Circuit Court, naming Sini and Citibank as defendants [D.E. 13-1 at 2-16]. The suit contains eight claims against Sini, including claims that Sini defrauded Blu One Estate and that she breached her fiduciary duty to the company by selling the condominium and taking the proceeds.3 Id. The suit also includes a claim for a temporary injunction against Citibank, in an effort to prevent dissipation of the funds in the account, and a claim for a constructive trust benefiting Blu One Estate. Id. at 12-13. The day after this complaint was filed, Citibank filed an Answer and a Counterclaim and Crossclaim for Inter-pleader against Blu One Estate and Sini, [1374]*1374in which Citibank again sought interpleader relief on the grounds that it faced potential liability from the competing claims of Sini and Blu One Estate. Id. at 58-65. Citibank argues that its Interpleader claim ripened in the three days after it was dismissed by this Court because it was named as a defendant in Blu One Estate’s suit, and because it had received a demand letter from Sini on April 29, 2013, in which she threatened to file a civil theft claim. Id. at 61-62.

On August 8, 2013, Sini filed the above-styled action against Citibank for breach of contract, conversion and civil theft [D.E. 1]. Citibank then filed a motion to dismiss or stay Sini’s federal complaint because, in its view, it is duplicative of the litigation ongoing in state court [D.E. 13].

In responding to Sini’s federal claims, Citibank filed another Counterclaim for Interpleader against Sini and Blu One Estate which largely mirrors the interpleader claim Citibank filed in the pending state action [D.E. 18 at 10-20].4 Sini has filed a motion to dismiss the Interpleader Counterclaim based on res judicata and collateral estoppel [D.E. 22].

In addition, Blu One Estate filed a counterclaim against Citibank in this action, again raising claims for a temporary injunction and a constructive trust — as in the state action — but also bringing new claims for breach of contract, breach of fiduciary duty, negligence, and aiding and abetting fraud and conversion [D.E. 35 at 6-23]. Citibank has filed a motion to dismiss the newest claims in Blu One Estate’s counterclaim [D.E. 47]. Sini also has filed a motion to intervene in Blu One Estate’s counterclaim against Citibank in order to file a motion to dismiss Blu One Estate’s counterclaim [D.E. 45]. And Blu One Estate has also joined in Citibank’s motion to dismiss or stay Sini’s Complaint [D.E. 38], though Sini argues that Blu One Estate’s joinder in Citibank’s motion is improper [D.E. 44],

II. Citibank’s Motion to Dismiss or Stay This Action

Citibank argues that the above-styled action should- be dismissed under the “first-filed rule” and the Cobrado River doctrine out of deference to the state court action [D.E. 13]. Sini argues that the “first-filed rule” is inapplicable, and that the Colorado River factors do not favor dismissal or abstention [D.E. 14],

A. The “First-Filed Rule”

Under the “first-filed rule,” when parties have instituted competing or parallel litigation in separate courts, the court “initially seized of the controversy” should hear the case in the “absence of compelling circumstances.” Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Haydu, 675 F.2d 1169, 1174 (11th Cir.1982) (citing Mann Mfg., Inc. v. Hortex, Inc., 439 F.2d 403, 407 (5th Cir.1971)).

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Bluebook (online)
990 F. Supp. 2d 1370, 2014 WL 793085, 2014 U.S. Dist. LEXIS 27738, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sini-v-citibank-na-flsd-2014.