Tyson v. Equity Title & Escrow Co. of Memphis, LLC

282 F. Supp. 2d 825, 2003 WL 22218073
CourtDistrict Court, W.D. Tennessee
DecidedSeptember 19, 2003
DocketCiv. 00-2559 D/A, Civ. 01-2033 D/A
StatusPublished

This text of 282 F. Supp. 2d 825 (Tyson v. Equity Title & Escrow Co. of Memphis, LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tyson v. Equity Title & Escrow Co. of Memphis, LLC, 282 F. Supp. 2d 825, 2003 WL 22218073 (W.D. Tenn. 2003).

Opinion

ORDER AFFIRMING IN PART AND REVERSING IN PART MAGISTRATE JUDGE’S MAY 23, 2003 ORDER

DONALD, District Judge.

Before the Court is the motion of Equity Title Company of Memphis and Steven Winkel (“Defendants”) for reconsideration of the magistrate judge’s May 23, 2003 Order on Pending Discovery Motions (“Order”). Defendants maintain that the magistrate judge erred in striking their pretrial motions and ordering sanctions. Defendants assert that 1) their motions were not frivolous, 2) the magistrate judge did not have legal authority to award sanctions, and 3) Plaintiffs did not comply with procedural requirements for requesting sanctions. The Court has jurisdiction pursuant to 28 U.S.C. § 1331. For the following reasons, the Court AFFIRMS the magistrate judge’s Order as to denial of Defendants’ motions and REVERSES as to sanctions.

I. BACKGROUND

Plaintiffs have based their claims against Defendants, and others, on alleged predatory lending practices in connection with the sale of residences to Atlean Tyson, Mae 0. McGee, Barbara Pegues and Michael Pegues, Thelma James, Renee Echols, Ulrica Johnson, Willie D. Johnson, and Linda Haynes and Bobby Haynes (“Plaintiffs”).

On March 28, 2003, the magistrate judge issued an order requiring Defendants to the disclose a portion of their closing files. Defendants subsequently filed a motion for reconsideration of the magistrate’s order, an amended motion for protective order, and a motion for limitation of discovery. Plaintiffs responded with a memorandum in opposition to Defendants’ motions and a motion to strike and for sanctions. Defendants thereafter filed their own motion to strike and for sanctions. All motions, aside from the motion for reconsideration, 1 were referred to the magistrate judge.

On May 23, 2003, the magistrate judge denied Defendants’ motions for protective order and for limitation of discovery, granted Plaintiffs’ motion to strike and to issue sanctions, and denied Defendants’ motion to strike and to issue sanctions. *827 The Court now considers Defendants’ objections to the magistrate judge’s Order.

II. STANDARD OF REVIEW

Title 28, Section 636(b)(1)(A) permits a judge to “designate a magistrate to hear and determine any pretrial matter pending before the court” except those matters that are dispositive. A district court may reconsider any pretrial matter ruled upon by a magistrate judge “where it has been shown that the magistrate’s order is clearly erroneous or contrary to law.” 28 U.S.C. § 636(b)(1)(A). When reviewing a magistrate judge’s ruling made pursuant to 28 U.S.C. § 636(b)(1)(A), “the district court is not permitted to receive further evidence; it is bound by the clearly erroneous rule in reviewing questions of fact.” Haines v. Liggett Group, Inc., 975 F.2d 81, 91 (3d Cir.1992).

III. ANALYSIS

A. Defendants’ Motions

Defendants argue that their amended motion for protective order and motion for limitation of discovery were not frivolous and should not have been stricken. The magistrate judge denied the motions because Defendants already had the opportunity to argue against disclosure of the closing files when they presented their original motion for protective order and when they responded to Plaintiffs’ motion to compel. 2 The magistrate judge determined that Defendants could file a motion for reconsideration but not redundant motions. He noted that the amended motion for protective order contained information which was available at the time of filing the original motion. The magistrate judge found all of Defendants’ motions without merit and denied them.

Section 636(b)(1) provides for reconsideration of magistrate court rulings by federal district courts when parties disagree with a magistrate’s ruling. Parties are not entitled to file redundant motions in addition to their reconsideration motion. As the magistrate judge noted, “defendants are not entitled to unlimited bites at the apple.” (Order at 3.) Defendants’ motion for limitation of discovery, motion to strike Plaintiffs’ motion to strike, and “amended” motion for protective order are merely repetitions of previous motions, which have already been denied. Therefore, the motions are frivolous.

Having reviewed the magistrate judge’s ruling and the applicable ease law, the Court concludes that the magistrate judge’s Order as to denial of Defendants’ motions was not clearly erroneous or contrary to law. Accordingly, the Court AFFIRMS the magistrate judge’s May 23, 2003 order as to the denial of all of Defendants’ motions: motion for limitation of discovery, motion to file an amended motion for protective order, and motion to strike Plaintiffs’ motion and for sanctions.

B. Plaintiffs’ Motion for Sanctions

Defendant next argues that sanctions were inappropriate because the magistrate judge did not have the legal authority nor follow the proper procedures for issuing sanctions. When issuing sanctions, the magistrate judge pointed to the repetition and impropriety of Defendants’ motions: “Plaintiffs are justified in seeking sanctions. Defendants have every right to appeal my decision, and this appeal [motion for reconsideration] is pending. They do not have the right to file another motion, presenting the same arguments, with proof *828 they should have presented previously, requiring plaintiffs to respond thereto.” (Order at 3.) The magistrate judge did not state a legal basis for sanctions.

There are a variety of legal foundations allowing courts to issue sanctions. Federal Rule of Civil Procedure 37 provides for sanctions when a party has failed to disclose necessary information in discovery or has faded to comply with a discovery order. Rule 11 “affords the district court the discretion to award sanctions when a party submits to the court pleadings, motions or papers that are presented for an improper purpose, are not warranted by existing law or a nonfrivolous extension of the law, or if the allegations and factual contentions do not have evidentiary support.” First Bank of Marietta v. Hartford Underwriters Ins. Co., 307 F.3d 501, 510 (6th Cir.2002). An attorney may also be liable for excessive costs for multiplying litigation “unreasonably and vexatiously.” 28 U.S.C. § 1927.

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Bluebook (online)
282 F. Supp. 2d 825, 2003 WL 22218073, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tyson-v-equity-title-escrow-co-of-memphis-llc-tnwd-2003.