U.S. Bank National Ass'n v. James

772 F. Supp. 2d 302, 2010 U.S. Dist. LEXIS 100440
District Court, D. Maine·Decided September 22, 2010·No. Civil No. 09-84-P-R·Published·Cited by 1 cases

Opinion

MEMORANDUM DECISION ON PLAINTIFF’S MOTION TO DISMISS COMPLAINT

JOHN H. RICH III, United States Magistrate Judge.

The plaintiff moves to dismiss its complaint in this foreclosure action that has assumed far more than average complexity.1 The defendant vigorously opposes the motion. For the reasons that follow, the plaintiffs motion to dismiss its complaint is granted, and the plaintiffs motion for summary judgment on its complaint is terminated as moot.

Discovery in this action ended on January 27, 2010. Scheduling Order (Docket No. 30) at 2. The plaintiff represents that it has entered into a modification of the mortgage at issue and that the defendant was in compliance with the workout plan at the time that it filed this motion. Plaintiffs Motion to Dismiss Complaint (Docket No. 163) at 2-3. It is for this reason that the plaintiff seeks to dismiss its complaint without prejudice. Id. at 3. In this district, even when a plaintiffs motion to dismiss its claims is made after the discovery deadline, “the dismissal should in most instances be granted, unless the result would be to legally harm the defendant.” Holbrook v. Andersen Corp., 130 F.R.D. 516, 519 (D.Me.1990).

The defendant contends that he will be “unduly prejudiced” by a dismissal without prejudice for four reasons: he “has made a significant investment of time and money in the case” to date; the motion is brought too late in the proceedings; the case “is at a critical juncture with motions for summary judgment ready for adjudication[;]” and the plaintiffs prof[304]*304fered reason for dismissal is “insufficient and pretextual.” Defendant’s Opposition to Plaintiffs Motion to Dismiss Complaint (“Opposition”) (Docket No. 182) at 1.

I. Investment of Time and Money

The defendant protests that he has incurred “more than double” the $79,561.99 in legal expenses that the plaintiff reported it had expended at the time of its April 26, 2010, motion for summary judgment, and contends that a dismissal without prejudice at this time “would disregard [his] significant investment of time and financial resources in the case.” Id. at 4. But, as counsel for the plaintiff acknowledged at oral argument, the defendant is free to seek to recover from the plaintiff that portion of his incurred legal costs that will be rendered superfluous if this motion is granted. See, e.g., Doe v. Urohealth Sys., Inc., 216 F.3d 157, 163 (1st Cir.2000). The defendant has no doubt incurred significant legal expense in this case, but far from all of it arises from filings or other activities undertaken solely in response to filings or actions by the plaintiff.

The defendant has asserted a counterclaim and two third-party claims and has filed some 17 motions of his own. It makes little sense to force both the plaintiff, which is now represented by counsel different from those who represented it through most of this litigation and which is now offering the defendant a reworking of the underlying mortgage, and the defendant to incur further legal costs in resolving a claim that the plaintiff no longer wishes to pursue.2

Granting the plaintiffs motion to dismiss its complaint will leave intact the defen-

dant’s counterclaim against the plaintiff and his third-party claims against GMAC and Quicken. The work that has been done in pursuit of the relief sought in those claims has not been “wasted” if they remain viable. See Bath Iron Works Corp. v. Parmatic Filter Corp., 736 F.Supp. 1175, 1178 (D.Me.1990). None of the case law cited by the defendant on this point requires a different outcome. Under the circumstances of this case, I am convinced that the plaintiff does not “seek[ ] to avoid a summary judgment ruling and any res judicata effect it might have” by seeking dismissal of its own claim at this time, which was the reason for denying a motion to dismiss in Guptill v. Martin, 228 F.R.D. 62, 65 (D.Me.2005). Nor, as was the case in Holbrook, 130 F.R.D. at 519-20, does the plaintiff in this case seek dismissal days before a scheduled final pretrial conference in order to pursue a newly-commenced state-court action where it would sue defendants that it could no longer add to the federal action.

II. Untimeliness

The defendant contends that the plaintiffs motion to dismiss is a dispositive motion and that the plaintiff may not file a motion to dismiss its own complaint after the deadline for filing dispositive motions set by the court’s scheduling order has passed.3 Opposition at 3. This view of the procedural order, if adopted, would potentially impede the settlement of any case after the dispositive motion deadline has passed, forcing a significant change in the practice of civil litigation in this court that does not appear to me to be justified in the service of a superficial consistency in the interpretation of the word “dispositive.”

[305]*305Neither of the cases cited by the defendant in support of this argument may reasonably be read to do so. One involved the defendant filing, two months after the deadline for filing dispositive motions, a motion to dismiss that would have been dispositive of the entire action, if granted. Williamson v. Horizon Lines LLC, No. CV-06-119-B-W, 2008 WL 2222052, at *1 (D.Me. Feb. 11, 2008). The other involved an appeal from a dismissal of a complaint for lack of prosecution “in totally disregarding motions to dismiss and/or [for] summary judgment” filed by defendants. Martinez Class v. Caribe Hilton Hotel, 784 F.2d 12, 12 (1st Cir.1986). Not surprisingly, the First Circuit in Martinez Class described a motion to dismiss filed by the defendants before the deadline for filing of dispositive motions as a “dispositive” motion.

The plaintiffs motion to dismiss will not be denied on this basis.

III. Critical Juncture

For his third argument, the defendant asserts that the plaintiff “has exhibited excessive delay and lack of diligence in prosecuting [this] action,” and that this should foreclose it from dismissing its own complaint at this point in the proceedings, which is a “critical juncture” because summary judgment and “related” motions are pending. Opposition at 4-7. The defendant’s grievances about the plaintiffs responses to his discovery requests have already been raised in this action, although the court has not yet ruled on the defendant’s motion for sanctions, Docket No. 151, which is the appropriate means by which to seek redress for those perceived transgressions. I have not perceived any sense of urgency in resolving this action on the part of any of the participants over the past 19 months. The defendant has also resisted discovery on occasion. See, e.g., Docket No. 57.

Any alleged delay by the plaintiff in offering the defendant a workout of the underlying mortgage, id. at 5-6, might be grounds for seeking further relief in this action, but it is a matter presently extraneous to this motion, and cannot serve as a reason to deny the motion to dismiss.

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U.S. Bank National Ass'n v. James, 772 F. Supp. 2d 302, 2010 U.S. Dist. LEXIS 100440 (D. Me. 2010).

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