Suarez v. Camden Property Trust

CourtDistrict Court, E.D. North Carolina
DecidedSeptember 8, 2020
Docket5:18-cv-00455
StatusUnknown

This text of Suarez v. Camden Property Trust (Suarez v. Camden Property Trust) is published on Counsel Stack Legal Research, covering District Court, E.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Suarez v. Camden Property Trust, (E.D.N.C. 2020).

Opinion

-IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF NORTH CAROLINA . WESTERN DIVISION No. 5:18-CV-455-D

_ JORGE SUAREZ, ) Plaintiff,

v. ORDER CAMDEN PROPERTY TRUST, CAMDEN DEVELOPMENT, INC., ) and CSP COMMUNITY OWNER, LP, ) Defendants.

On October 9, 2019, Jorge Suarez (“Suarez” or “plaintiff’) moved to dismiss the breach of contract counterclaim of Camden Property Trust, Camden Development, Inc. (“Camden Development”), and CSP Community Owner, LP, f/k/a CSP Community Owner, LLC, d/b/a Camden Westwood (“Camden Westwood”; collectively, “defendants”) [D.E. 40] and filed a memorandum in support [D.E. 41]. On November 20, 2019, defendants amended their breach of contract counterclaim [D.E. 46]. On December 13, 2019, Suarez moved to dismiss defendants’ amended counterclaim [D.E. 47] and filed a memorandum in support [D.E. 48]. On January 3, 2020, defendants responded in opposition [D.E. 50]. On February 7, 2020, Suarez replied [D.E. 59]. As explained below, the court grants Suarez’s motion to dismiss the amended counterclaim. I, The court discussed in detail Suarez’s factual allegations and claims against defendants in the court’s order granting in part and denying in part defendants’ motion to dismiss Suarez’s amended complaint for failure to state a claim, or for lack of subject-matter jurisdiction. See [D.E.

36]. In essence, after Suarez vacated his apartment at Camden Westwood Apartments, defendants sent a Final Account Statement (a “‘statement”) to Suarez reflecting a balance of $147.76 owed to defendants. See id. at2; Am. Compl. [D.E. 20] ff 21-22, 26. The statement stated that Suarez had 30 days to satisfy the balance before it was sent to a third-party collection agency, and that once sent to the collection agency, interest began accruing immediately. See [D.E. 36] 2; Ex. A. [D.E. 20-1]. Suarez paid $82.76 of the outstanding balance, but refused to pay a $55.00 “carpet stain removal” charge and a $10.00 key replacement charge. See [D.E. 36] 2; Am. Compl. at ff 26-29. Defendants then sent Suarez another statement reflecting a $65.00 outstanding balance (i.e., the “carpet stain removal” charge and the key replacement charge). That statement also said that Suarez had 10 days to satisfy the outstanding balance before it was sent to a third-party collection agency, after which interest would accrue. See [D.E. 36] 2-3. As for the first statement, Suarez contends that he fulfilled his obligations and did not owe the amounts defendants requested. As for the second statement, Suarez alleges that defendants’ representations are deceptive. See id. at 2-3. Defendants assert a breach of contract counterclaim against Suarez based on the rental agreement he signed concerning his apartment lease at Camden Westwood. See Ans. [D.E. 46] 16-18. Defendants allege that Suarez breached the terms of the rental agreement when he failed to pay the “carpet stain removal” charge and the key replacement charge. See id. The rental agreement States: In the event that any damage or loss to Owner is caused by Resident, Occupants of the Unit or their respective guests or invitees (including contractors), Resident shall be liable for such damage or loss and shall immediately reimburse Owner for such damage or loss. See id. at 17. The rental agreement also states: [I|n the event Resident defaults under this Lease, Resident shall be liable to the fullest extent allowed by applicable law for . . . any court costs and reasonable

attorneys’ fees incurred by [Camden] Owner to enforce this Lease. . . See id. Defendants contend that the rental agreement required Suarez to return his keys to defendants, and that the rental agreement authorized defendants to charge Suarez a fee for carpet cleaning. See id. Because Suarez did not pay the “carpet stain removal” charge and the key replacement charge, defendants argue that Suarez breached the rental agreement. See id. at 18. IL. A motion to dismiss under Rule 12(b)(1) tests subject-matter jurisdiction, which is the court’s “statutory or constitutional power to adjudicate the case.” Steel Co. v. Citizens for a Better Env’t, 523 U.S. 83, 89 (1998) (emphasis omitted). A federal court “must determine that it □□□ subject-matter jurisdiction over [a claim] before it can pass on the merits of that [claim].” Constantine v. Rectors & Visitors of George Mason Univ., 411 F.3d 474, 479-80 (4th Cir. 2005). In making that determination, the court “may consider evidence outside the pleadings without converting the proceeding to one for summary judgment.” Velasco v. Gov’t of Indonesia, 370 F.3d 392, 398 (4th Cir. 2004); see Al Shimari vy. CACI Premier Tech., Inc., 840 F.3d 147, 154 (4th Cir. 2016); Goines v. Valley Cmty. Servs. Bd., 822 F.3d 159, 165-66 (4th Cir. 2016); In re KBR, Inc. v. Burn Pit Litig., 744 F.3d 326, 333 (4th Cir. 2015); Williams v. United States, 50 F.3d 299, 304 (4th Cir. 2005) (noting that “the court may consider the evidence beyond the scope of the pleadings

1 After Suarez moved to dismiss defendants’ counterclaim under Rule 12(b)(1), see [D.E. 40], defendants moved to amend their answer and counterclaim as of right. See [D.E. 46]; Fed R. Civ. P. 15(a)(1)(B). Thus, defendants’ original answer and counterclaim is no longer operative, and Suarez’s motion to dismiss defendants’ counterclaim is moot. See Fantasy, Inc. v. Fogarty, 984 F.2d 1524, 1529 n.2 (9th Cir. 1993), reversed on other grounds, 510 U.S. 517 (1994); Maaco Franchisor SPV, Inc. v. Kennevan, LLC, No. 3:20-cv-149-MOC-DCK, 2020 WL 2926465, at *1 (W.D.N.C. June 3, 2020) (unpublished); see also Fawzy v. Wauquiez Boats SNC, 873 F.3d 451, 455 (4th Cir. 2017); Young v. City of Mount Ranier, 238 F.3d 567, 573 (4th Cir. 2001). Accordingly, the court analyzes Suarez’s motion to dismiss defendants’ amended counterclaim.

to resolve factual disputes concerning jurisdiction.”). If, however, “jurisdictional facts are inextricably intertwined with those central to the merits, the court should resolve the relevant factual disputes only after appropriate discovery.” Kerns v. Williams, 585 F.3d 187, 193 (4th Cir. 2009); see Al Shimari, 840 F.3d at 154. Defendants, as the parties asserting that this court has subject- matter jurisdiction over the counterclaim, must prove that subject-matter jurisdiction exists. See, e.g., Steel Co., 523 U.S. at 103-04; Evans v. B.F. Perkins Co., 166 F.3d 642, 647 (4th Cir. 1999); Goldstar (Panama) S.A. v. United States, 967 F.2d 965, 967 (4th Cir. 1992); Richmond, Fredericksburg & Potomac R.R. v. United States, 945 F.2d 765, 768 (4th Cir. 1991). The court does not have diversity or federal question jurisdiction over defendants’ North Carolina state-law breach of contract counterclaim. Cf. 28 U.S.C. §§ 1331, 1332. Thus, the court must assess the counterclaim’s status as “compulsory” or “permissive.” If permissive, the court must determine whether the court has subject-matter jurisdiction over the counterclaim under 28 U.S.C. § 1367(a). See, e.g., Painter v. Harvey, 863 F.2d 329, 331 (4th Cir. 1988). The Fourth Circuit requires that a permissive counterclaim have its own “independent jurisdictional base.” Id.; see

Whigham v. Beneficial Fin. Co., 599 F.2d 1322, 1323 (4th Cir. 1979); Sue & Sam Mfg. Co. v. B-L-S Constr. Co., 538 F.2d 1048, 1051 (4th Cir. 1976).

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Suarez v. Camden Property Trust, Counsel Stack Legal Research, https://law.counselstack.com/opinion/suarez-v-camden-property-trust-nced-2020.