Sorenson v. Bastian

CourtDistrict Court, D. Arizona
DecidedFebruary 22, 2022
Docket3:21-cv-08121
StatusUnknown

This text of Sorenson v. Bastian (Sorenson v. Bastian) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sorenson v. Bastian, (D. Ariz. 2022).

Opinion

1 WO 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE DISTRICT OF ARIZONA

9 Charles Randall Sorenson, No. CV-21-08121-PCT-JJT

10 Plaintiff, ORDER

11 v.

12 Edward H Bastian, et al.,

13 Defendants. 14 15 At issue is Defendants’ Edward H. Bastian (“Mr. Bastian”) and Delta Family Care 16 Retirement Trust’s (“Delta Trust”) Motion to Dismiss (Doc. 17, Mot.), to which pro se 17 Plaintiff Charles Sorenson (“Mr. Sorenson”) filed a Response (Doc. 23, Resp.) and a Notice 18 that a Motion to Dismiss is Not a Responsive Pleading (Doc. 21), and Defendants filed a 19 Reply (Doc. 25, Reply). Also at issue is Plaintiff’s Motion for Default Judgment (Doc. 22), 20 to which Defendant filed a Response (Doc. 24). The Court also considers Plaintiff’s Motion 21 for Reconsideration regarding its Minute Order dated August 16, 2021 (Docs. 28, 20, 22 respectively). The Court finds these matters suitable for resolution without oral argument. 23 See LRCiv 7.2(f). 24 I. BACKGROUND 25 In his First Amended Complaint (Doc. 16, FAC), Plaintiff explains that he is a 26 retired pilot and is a beneficiary of the Delta Family Care Retirement Trust, which disperses 27 retirement funds on a monthly basis. (FAC ¶ 18.) Plaintiff alleges that he is “not liable for 28 income taxes in 2014, 2015, and 2016,” but nonetheless provided the Internal Revenue 1 Service (“IRS”) with a money order for its claims against Plaintiff. (FAC ¶ 32.) Plaintiff 2 claims that he did not hear back from the IRS until November 2, 2017, when a non-party 3 IRS Agent faxed a Notice of Levy to the Delta Trust. (FAC ¶¶ 32, 42.) After receiving the 4 Notice, the Delta Trust began transferring a portion of Plaintiff’s retirement funds to the 5 IRS. (FAC ¶ 53.) 6 Plaintiff filed the present action on May 26, 2021.1 (Doc. 1.) Plaintiff claims that 7 the IRS is an unlawful and unconstitutional organization. (FAC ¶¶ 43, 44, 49.) He alleges 8 that the Delta Trust and Mr. Bastian are not authorized to transfer his retirement funds to 9 the IRS and have been doing so negligently and without legal obligation, right, or authority. 10 (FAC ¶¶ 52, 53, 58, 59.) Plaintiff further asserts that Defendants’ negligent conduct is 11 prohibited under the Fourth and Fifth Amendments of the United States Constitution. (FAC 12 ¶ 67.) He seeks to recover $144,317.25 in actual damages and $10,000,000 in exemplary 13 and punitive damages. (FAC ¶¶ 72, 24.) 14 Defendants first brought a Motion to Dismiss on July 6, 2021 (Doc. 8), but Plaintiff 15 filed an Amended Complaint (Docs. 12, 16). Defendants filed a Notice with the Court that 16 their original Motion to Dismiss was moot (Doc. 13) and filed a second Motion to Dismiss 17 (Mot.). In their second Motion, Defendants move to dismiss the Amended Complaint with 18 prejudice pursuant to Federal Rules of Civil Procedure 8 and 12(b)(6), arguing that 19 Defendants have an absolute defense to liability for complying with the IRS levy under 20 26 U.S.C. § 6332(a). (Mot. at 7, 10.) 21 In the meantime, Plaintiff has filed two Applications for Entry of Default, alleging 22 that Defendants have failed to appear. (Docs. 19, 29.) The Court entered a Minute Order 23 on August 16, 2021, following Plaintiff’s first Application for Entry of Default, explaining 24 that the Clerk would take no action because Defendants had filed a responsive pleading. 25 (Doc. 20.) Plaintiff subsequently filed a Notice that a Motion to Dismiss is Not a 26 1 Prior to filing this action, Mr. Sorenson filed a similar claim in the District of Minnesota, 27 which was dismissed April 22, 2021. See No. 20-cv-02389-ECT-KMM, Doc. 35. In resolving the present Motions, the Court takes judicial notice of the records of the 28 Minnesota court proceedings. See Lee v. City of Los Angeles, 250 F.3d 668, 689 (9th Cir. 2001). 1 Responsive Pleading and a Motion for Default Judgment. (Docs. 21, 23.) He also filed a 2 Motion for Reconsideration, asking the Court to reconsider its Minute Order. (Doc. 28.) 3 The Court now resolves each pending motion. 4 II. MOTION FOR RECONSIDERATION 5 A. Legal Standard 6 Motions for reconsideration should be granted only in rare circumstances. 7 Defenders of Wildlife v. Browner, 909 F. Supp. 1342, 1351 (D. Ariz. 1995). A motion for 8 reconsideration is appropriate where the district court “(1) is presented with newly 9 discovered evidence, (2) committed clear error or the initial decision was manifestly unjust, 10 or (3) if there is an intervening change in controlling law.” School Dist. No. 1J, Multnomah 11 Cnty. v. ACandS, Inc., 5 F.3d 1255, 1263 (9th Cir. 1993). Mere disagreement with a 12 previous order is an insufficient basis for reconsideration. See Leong v. Hilton Hotels 13 Corp., 689 F. Supp. 1572, 1573 (D. Haw. 1988). A motion for reconsideration “may not 14 be used to raise arguments or present evidence for the first time when they could reasonably 15 have been raised earlier in the litigation.” Kona Enters., Inc. v. Estate of Bishop, 229 F.3d 16 877, 890 (9th Cir. 2000). Nor may a motion for reconsideration repeat any argument 17 previously made in support of or in opposition to a motion. Motorola, Inc. v. J.B. Rodgers 18 Mech. Contractors, Inc., 215 F.R.D. 581, 586 (D. Ariz. 2003). 19 B. Analysis 20 Plaintiff moves for reconsideration pursuant to Local Rule of Civil Procedure 7.2(g). 21 The crux of Plaintiff’s argument is that a Motion to Dismiss is a “dilatory plea” and not a 22 responsive pleading. (Doc. 28 ¶¶ 20-22.) Plaintiff claims that Defendants’ Motion does not 23 constitute an answer or an appearance, so Defendants have not complied with Federal Rule 24 of Civil Procedure 15(a)(3). (Doc. 28 ¶ 28.) He alleges that because Defendants have failed 25 to appear, the Court’s Minute Order stating that the Clerk would take no action on his 26 Application for Entry of Default represents a “manifest error.” (Doc. 28 ¶¶ 1, 12; see 27 Doc. 20 (Minute Order); see also Doc. 19 (Application for Entry of Default).) The Court 28 finds Plaintiff’s arguments meritless. 1 First, Plaintiff’s Motion was untimely. Motions for Reconsideration filed pursuant 2 to Rule 7.2(g) must be “filed no later than fourteen days after the date of the filing of the 3 order that is the subject of the motion.” LRCiv 7.2(g)(2). The Minute Order was entered 4 on August 16, 2021, but Plaintiff did not file a Motion for Reconsideration until 5 September 27, 2021. This alone is grounds for denial. 6 Second, even if Plaintiff’s Motion were timely, it would still fail. Federal Rule of 7 Civil Procedure 12(b) clearly provides for the filing of a motion to dismiss as a response 8 to a complaint: 9 (b) How to Present Defenses. Every defense to a claim for relief in any pleading must be asserted in the responsive 10 pleading if one is required. But a party may assert the following defenses by motion: 11 … (6) failure to state a claim upon which relief can be granted; 12 and … 13 A motion asserting any of these defenses must be made before 14 pleading if a responsive pleading is allowed. If a pleading sets out a claim for relief that does not require a responsive 15 pleading, an opposing party may assert at trial any defense to that claim. No defense or objection is waived by joining it with 16 one or more other defenses or objections in a responsive pleading or in a motion. 17 18 Fed. R. Civ. P. 12(b) (emphasis added). Additionally, in filing their Motion, Defendants 19 complied with the proper procedural rules. When a pre-answer motion is filed under 20 Rule 12, the defendant is not required to file an answer until the Court rules on the motion. 21 Fed. R. Civ. P.

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