United States ex rel. Stacy L. Erwin Oakes v. Cinnaire

CourtCourt of Appeals for the Sixth Circuit
DecidedAugust 9, 2023
Docket20-1067
StatusUnpublished

This text of United States ex rel. Stacy L. Erwin Oakes v. Cinnaire (United States ex rel. Stacy L. Erwin Oakes v. Cinnaire) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States ex rel. Stacy L. Erwin Oakes v. Cinnaire, (6th Cir. 2023).

Opinion

NOT RECOMMENDED FOR PUBLICATION File Name: 23a0366n.06

No. 20-1067

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT FILED Aug 09, 2023 DEBORAH S. HUNT, Clerk ) UNITED STATES OF AMERICA ex rel. ) STACY ERWIN OAKES, ) ON APPEAL FROM THE Relator-Appellant, ) UNITED STATES DISTRICT ) COURT FOR THE EASTERN v. ) DISTRICT OF MICHIGAN ) CINNAIRE, et al, ) OPINION Defendants-Appellees. ) )

Before: BATCHELDER, COLE, and NALBANDIAN, Circuit Judges.

NALBANDIAN, Circuit Judge. Michigan attorney Stacy Erwin Oakes filed a qui tam

complaint alleging False Claims Act (“FCA”) violations against a series of defendants. Despite

filing many motions, she never served summonses on the defendants. The district court warned

her that failure to serve would result in the dismissal of her claims for want of prosecution. Still,

she did not serve the defendants. So the court dismissed her claims. She appeals that decision,

claiming that the district court erred in dismissing her case and in denying her Rule 59(e) motion.

Because the district court did not abuse its discretion in dismissing her case and because Erwin

Oakes has not shown that she qualifies for relief under Rule 59(e), we AFFIRM.

I.

Michigan attorney Stacy Erwin Oakes filed a qui tam complaint on November 11, 2018.

She claimed that defendants Cinnaire, Michigan State Housing Authority, PNC Bank, National No. 20-1067, U.S. ex rel. Oakes v. Cinnaire

City Community Development Corp., Fifth Third Bank, and Commercial Alliance (collectively,

“defendants”) violated the FCA. Specifically, she alleged that the defendants had made a series of

false statements related to a housing development project in order to obtain federal funds and low-

income housing tax credits. She also alleged that her personal residence was one of the properties

involved.

The United States investigated Erwin Oakes’s complaint but declined to intervene. Still,

Erwin Oakes proceeded as a qui tam relator, filing a series of motions. These included motions to

amend her complaint, for instance, by adding parties and by incorporating additional filings. They

also included requests for delays and a Temporary Restraining Order. And she filed a “Notice of

Removal” for a related Michigan state-law suit.1

Because of her failure to serve process on any defendant, which was exacerbated by her

repeated and confusing filings, Erwin Oakes’s case made little progress in its first year. The court

rejected many of her motions, including her notice of removal. The district court remanded the

Michigan suit to the state courts because there was no basis for federal jurisdiction under 28 U.S.C.

§ 1446(b)(1). (R. 49, Page 4; PageID 2159).2 As a result, the case was partially remanded to

Michigan state court. In November 2019, the court instructed Erwin Oakes to show cause why

her case should not be dismissed for failure to prosecute, noting that she had not even requested

summonses be served on the defendants. Erwin Oakes finally requested summonses from the court

to notify the defendants of her planned lawsuit, which the court issued on November 20. She never

served the defendants.

1 The district court found several of these filings to have been improperly made. 2 The court lacked jurisdiction to hear the case because only a defendant may remove a civil action. 28 U.S.C. § 1446. And the court also noted that the attempted removal was “grossly untimely.” (R. 49, Page 4; PageID 2159). 2 No. 20-1067, U.S. ex rel. Oakes v. Cinnaire

Still, Erwin Oakes returned to filing motions. She asked the court to reconsider its partial

remand of her state-law claims. And she moved that it allow her to withdraw as counsel and grant

time to retain counsel. She also requested relief from serving summonses. The court denied these

motions, and again asked Erwin Oakes to show cause why her case should not be dismissed for

failure to prosecute. The court noted that in the absence of a showing of good cause, it generally

“must dismiss without prejudice any civil action in which service of process is not completed

within 90 days after commencement of the litigation.” (R. 66, Page 2; PageID 2362). And that

time, even excluding extensions granted by the court, had “long since expired.” (Id.). Erwin

Oakes responded that she had discovered that she was “identified as a Defendant,” and needed to

withdraw as counsel in order to prevent harm to the plaintiffs. (R. 72, Page 6; PageID 2439).3

And she argued that the court had inaccurately identified Michael L. Oakes (“Michael”) as a party

to the case and that a dismissal risked prejudicing Michael’s potential future claims.

The district court was unconvinced. It found that Erwin Oakes had “not established good

cause for [her] failure to complete service, nor [had she] offered any good grounds for any further

delay of the proceedings.”4 (R. 75, Page 2; PageID 2459). Even if Michael had been improperly

identified as a party, the court found that this did not explain the lack of service, since Michael was

3 Erwin Oakes has asserted that she may be a defendant in the case. (See R. 72, Page 6; PageID 2439). She claims that the IRS has identified her as the holder of a Tax Identification number that is associated with fraudulent IRS forms, though she claims that the defendants in this case were in fact responsible, as they were “illegally using [Erwin Oakes] as the uninformed straw owner of tax exempt bond projects subsidized with CDBG funds.” (R. 64, PageID 2342, 2346; Pages 4, 8.) The district court denied her motion to withdraw as counsel, finding she had failed to identify “any comprehensible basis” for the position that she was in fact a “necessary defendant” in the case. (R. 65, PageID 2357, Page 2.) 4 The district court had considered before Erwin Oakes’s motion to withdraw as counsel and had denied that motion, finding no basis for her assertion that she was a “necessary defendant.” (R. 65, Page 2; PageID 2357).

3 No. 20-1067, U.S. ex rel. Oakes v. Cinnaire

not named in the most recent pleadings. So the court dismissed the case for want of prosecution.

See Fed. R. Civ. P. 41(b).5

Erwin Oakes appealed this decision. She also moved for an injunction to prohibit the sale

of three properties and to reinstate her notice of removal. United States v. Cinnaire, No. 20-1067,

2020 U.S. App. LEXIS 3738 (6th Cir. Feb. 06, 2020). We found no error in the district court’s

dismissal of the case and denied the motion for an injunction. Id. She then moved for

reconsideration, as well as for leave to correct the case caption, to extend time to respond to district

court deadlines, and to take judicial notice. United States ex rel. Oakes v. Cinnaire, No. 20-1067,

2020 U.S. App. LEXIS 9101 (6th Cir. Mar. 23, 2020). Again, we denied her motions.6 Id.

Undeterred, Erwin Oakes continued to file a series of postjudgment motions with the

district court for an indicative ruling and for the court to vacate the judgment. And she even filed

a Rule 59(e) motion for the district court to set aside this Court’s order and reinstate her qui tam

5 Erwin Oakes also filed a motion before this court seeking relief from judgment under Federal Rule of Civil Procedure 60(b)(6) on this claim.

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