Wells v. Rockefeller

19 V.I. 481, 97 F.R.D. 42, 37 Fed. R. Serv. 2d 1315, 1983 U.S. Dist. LEXIS 18893
CourtDistrict Court, Virgin Islands
DecidedMarch 2, 1983
DocketCivil No. 82-212
StatusPublished
Cited by5 cases

This text of 19 V.I. 481 (Wells v. Rockefeller) is published on Counsel Stack Legal Research, covering District Court, Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wells v. Rockefeller, 19 V.I. 481, 97 F.R.D. 42, 37 Fed. R. Serv. 2d 1315, 1983 U.S. Dist. LEXIS 18893 (vid 1983).

Opinion

O’BRIEN, Judge

MEMORANDUM OPINION

The defendants in this action moved to dismiss the plaintiff’s complaint, asserting that Fed. R. Civ. P. 13(a) required the plaintiff to file the pleading herein as a compulsory counterclaim to an earlier action filed by one of the defendants. The Court finds that Rule 13(a) does in fact apply, for the reasons stated herein the defendants’ motion will be granted, without prejudice to an appropriate application for relief from a default judgment in the earlier case between the plaintiff and one of the defendants.

I. FACTS

The genesis of this dispute dates back to the 1960’s, when the brothers Rockefeller undertook the Fountain Valley project on St. Croix which is now the internationally renowned Fountain Valley Golf Course. It was originally anticipated that the golf course would be the centerpiece for an even larger project, including homes and a resort hotel on the 4,000 acres purchased by David and Laurance Rockefeller. The Plaintiff, Patrick Wells (“Wells”), was in the-landscaping business in Florida, and was in part responsible for the landscaping at Fountain Valley.

On April 1, 1968, Defendant Fountain Valley Corporation (“FVC”) and Wells entered into a lease for a 64-acre portion of the 4,000 acres, on which Wells located his landscaping facilities. In the action herein, Wells claims that defendants had agreed to a joint venture for development of the entire 4,000 acres, and that he was “duped” and “coerced” into the lease.

He seeks damages for rescission of the lease, conspiracy, malicious interference with business relationships, an equitable lien, and an accounting upon dissolution of a joint venture. There are also allegations of fraud and deceit, all apparently antedating the lease, although there is a claim of an on-going conspiracy dating from 1971.

The complaint was filed in September 1982.

Earlier, in a separate action (Civ. No. 81/310), FVC had filed a complaint against Wells for possession of real property unlawfully detained, citing 28 V.I.C. §§ 782 and 785. The lease had expired, and FVC sought possession of the property. Apparently, although serv[483]*483ice by publication was made as of March 27, 1982, Wells was not given service by certified mail, return receipt requested, until July 19, 1982.

A default was sought on August 23,1982, notice of which was also sent to Wells, and, finally, an order was entered on September 29, 1982, granting restitution of the 64-acre parcel to FVC, Wells never having appeared in that action in any manner, shape or form. His response to that action was the filing of his separate suit before entry of the default judgment granting restitution of the premises.

II. DISCUSSION

A. Does Rule 13(a) Apply?

The defendants argue in this motion that Wells should have filed a counterclaim in the earlier action, and because he did not, he is barred from maintaining this action. Wells states that he did not think he had a legal right to file a counterclaim in an action for forcible entry and detainer under Virgin Islands law, and thus he filed separately.

This Court need not spend a great deal of time discussing whether the allegations contained in the instant complaint by Wells fall within the parameters of Rule 13(a) Fed. R. Civ. P. Obviously they do, and the attempt by Wells to argue otherwise is but elegant sophistry. The 46 paragraphs of Wells’ complaint repeat, over and over, variations on a central theme: he was bilked in an occurrence and transaction involving the 64 acres which formed the lease between himself and FVC. His prayer for relief seeks rescission of that lease, an equitable lien and constructive trust over the same 64-acre parcel, damages for wrongful eviction, and restitution of the property to himself. He even describes his own version of how and why the lease came about.

In short, Wells’ complaint in the instant action (1) arises out of the transaction or occurrence which was the subject matter of the earlier action by FVC; (2) it is against “opposing” parties in the prior action; (3) he had these claims at the time the prior action was commenced and (4) the assertion of these claims in the prior action would not have required the presence of third parties over which this Court could not acquire jurisdiction.

As such, it should have been asserted in the original action brought by FVC concerning the lease. Great Lakes Rubber Corp. v. Herbert Cooper Co., 286 F.2d 631, 634 (3rd Cir. 1961); Xerox Corp. v. SCM Corp., 576 F.2d 1057, 1059 (3rd Cir. 1978). Where an action [484]*484is brought on a lease, a tort claim arising out of the circumstances by which such lease came into being is a compulsory counterclaim. National Equipment Rental, Ltd. v. Fowler, 287 F.2d 43, 45 (2d Cir. 1961); Rosamund Harper v. Govt. of the Virgin Islands et al., 1982 St.C. Supp. (O’Brien, J., Dec. 7, 1982).

B. Must the Complaint Be Dismissed ?

As indicated earlier, the defendants maintain that since Rule 13(a) applies, and was not complied with, the instant complaint must be dismissed. The plaintiff argues that he could not acquire jurisdiction over all necessary parties, a claim that is frivolous in light of the fact that all necessary parties are before the Court in the instant action brought by Wells. What he did in this case, he could have accomplished earlier as well. He also suggests that because the original action resulted in a default judgment, Rule 13(a) should not apply. This is likewise frivolous.

But plaintiff makes one argument which requires discussion. He states that proceedings for forcible entry and detainer under 28 V.I.C. § 782 are summary in nature, and under § 785 of that statute, the summons is returnable within three days of service. Under the practice in the Territorial Court of the Virgin Islands, he correctly notes, no counterclaims are allowed; the case is tried on the plaintiff’s complaint and any affirmative defenses which could be raised by a defendant.

Ordinarily, the Court would give short shrift to such an argument, since the rule applies only to cases brought in the Territorial Court. Indeed, actions in the District Court are governed by the Federal Rules of Civil Procedure, under § 25 of the Revised Organic Act of 1954 (48 U.S.C. § 1615). Thus, Rule 13(a) would apply, and under ordinary circumstances, the failure to assert the compulsory counterclaim earlier should result in dismissal of this later action. Every attorney practicing in this jurisdiction knows, or should know, about the applicability of the federal rules to District Court.

But matters do not end there.

This Court is reluctant to grant the defendants’ motion because FVC itself did not comply with the same

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19 V.I. 481, 97 F.R.D. 42, 37 Fed. R. Serv. 2d 1315, 1983 U.S. Dist. LEXIS 18893, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wells-v-rockefeller-vid-1983.