Eniola v. Leasecomm Corp.

• Decision Date: 07 August 2002
• Docket Number: No. CIV.A. DKC 2002-0122.,CIV.A. DKC 2002-0122.
• Citation: 214 F.Supp.2d 520
• Parties: Tao ENIOLA, et al. v. LEASECOMM CORPORATION, et al.
• Court: U.S. District Court — District of Maryland

214 F.Supp.2d 520

Tao ENIOLA, et al. v. LEASECOMM CORPORATION, et al.

No. CIV.A. DKC 2002-0122.

United States District Court, D. Maryland.

August 7, 2002.

Tao Einola, Lanham, MD, pro se.

Vanilda Eniola, Lanham, MD, pro se.

Lawrence J. Gebhardt, Ramsay M. Whitworth, Gebhardt and Smith LLP, Baltimore, MD, for LeaseComm Corp.

Stanley Derwin Brown, Law Offices of Stanley Brown, Largo, MD, for Benjamin K. Nworgu.

James A. Johnson, Kenneth S. Knuckey, Semmes Bowen and Semmes, PC, Baltimore, MD, for Universal Savings. Bank.

MEMORANDUM OPINION

CHASANOW, District Judge.

Presently pending and ready for resolution in this breach of contract and unfair trade practices case are 1) the motion of Plaintiffs to dismiss Defendant Benjamin K. Nworgu, 2) the motion of Defendant Leasecomm Corp. ("Leasecomm") to dismiss Plaintiffs' complaint pursuant to Fed. R.Civ.P. 12(b)(6) and Fed.R.Civ.P. 12(b)(3), 3) the motion of Defendant Universal Savings Bank ("Bank") to dismiss for lack of subject matter jurisdiction, improper venue, bar by limitations, and failure to state a claim pursuant to Fed.R.Civ.P. 12(b), and 4) the motion by Plaintiffs for relief from the court's January 29, 2001, order dismissing Plaintiffs' earlier complaint.¹ The issues have been fully briefed and no hearing is deemed necessary. Local Rule 105.6. For reasons that follow, the court shall grant Plaintiffs' motion to dismiss, deny Plaintiffs' motion for relief, and grant the motions to dismiss of Leasecomm and Bank.

I. Background

This is not the first time this dispute arising out of the alleged breach of a lease agreement has been before this court. In November 1997, Leasecomm filed suit against Tao Eniola and Value City Thrift Store, Inc. in the Circuit Court for Prince George's County, Maryland, seeking damages for breach of contract and breach of guaranty. That action was dismissed due to the forum selection clause contained within the Leasecomm Lease Agreement. The court held that the forum selection clause is exclusive and mandatory in nature, requiring that any action arising under the lease agreement be filed in the state courts in Massachusetts. Subsequently, in January 1999, Eniola and his wife, Vanilda Eniola, filed suit against Leasecomm and others in state court in Maryland, seeking damages for alleged violations of the Consumer Protection Act, Truth in Lending Act, Fair Debt Collection Practices Act, negligence, strict liability, nuisance, misrepresentation, and a "spouse claim" identical to the one filed in the present action. After removal by Leasecomm to this court, the Plaintiffs' action was dismissed in a January 29, 2001, order due to the lease agreement's forum selection clause. Like the Circuit Court for Prince George's County before it, this court held that any actions arising under the lease agreement must be brought in state court in Massachusetts.

In February 2000, Leasecomm re-filed its previous suit against Tao Eniola and Value City in the District Court of Massachusetts, Woburn Division ("Massachusetts state court"), again seeking damages for breach of contract and breach of guaranty. Eniola defended these claims and filed counterclaims against Leasecomm for breach of contract, unconscionability, and insufficiency of process, seeking damages for attorney's fees and costs. After a full trial on the merits, the Massachusetts court entered judgment in favor of Leasecomm and against Eniola in the amount of $7,221.09, and ordered judgment in favor of Eniola on his counterclaim in the amount of $7,000.

The current action was filed on January 11, 2002, when Plaintiffs, proceeding pro se, filed this diversity action against Leasecomm, Nworgu, and Bank, seeking compensatory and punitive damages for the same conduct and transactions that were complained of by Eniola in the Massachusetts action. Bank filed a motion to dismiss on the grounds of lack of jurisdiction, improper venue, bar by limitations, and failure to state a claim. Leasecomm filed a motion to dismiss on the grounds of issue and claim preclusion. After these motions were filed, but before any Defendant answered, Plaintiffs filed a motion to dismiss Nworgu, which is opposed by both Leasecomm and Bank on the grounds that Nworgu is an indispensable party under Fed.R.Civ.P. 19(b). Finally, Plaintiffs have filed a motion for relief from the earlier judgment of this court.

II. Standard of Review

A Rule 12(b)(6) challenge requires a court to accept all well-pled allegations of the complaint as true and to construe the facts and reasonable inferences derived therefrom in the light most favorable to the plaintiff. Ibarra v. United States, 120 F.3d 472, 473 (4th Cir.1997). Such a motion ought not be granted unless "it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief." Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957). The court, however, need not accept unsupported legal allegations Revene v. Charles County Comm'rs, 882 F.2d 870, 873 (4th Cir.1989), or conclusory factual allegations devoid of any reference to actual events. (United Black Firefighters v. Hirst, 604 F.2d 844, 847 (4th Cir.1979). Nevertheless, neither vagueness nor lack of detail is a sufficient ground on which to grant a motion to dismiss. Hill v. Shell Oil Co., 78 F.Supp.2d 764, 775 (N.D.Ill.1999) (quoting Strauss v. City of Chicago, 760 F.2d 765, 767 (7th Cir.1985)).

III. Analysis

A. Motion for relief from judgment

Plaintiffs move that the court vacate its January 29, 2001, order dismissing its previous lawsuit against Leasecomm pursuant to Md. Rule Civ, P. 3-535(b) on the ground that dismissal was obtained based on misrepresentation, fraud and misconduct. Rule 3-535(b) does not apply in the current case because, "[u]nder the Erie doctrine, federal courts sitting in diversity apply state substantive law and federal procedural law." Gasperini v. Center for Humanities, Inc., 518 U.S. 415, 427, 116 S.Ct. 2211, 135 L.Ed.2d 659 (1996), citing Erie R. Co. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938); see also Hanna v. Plumer, 380 U.S. 460, 85 S.Ct. 1136, 14 L.Ed.2d 8 (1965). Therefore, Plaintiffs' motion will be analyzed under the analogous federal rule governing motions for relief from judgment, Fed. R.Civ.P. 60(b), which states, in pertinent part:

the court may relieve a party ... from a final judgment, order, or proceeding for the following reasons: (1) mistake, inadvertence, surprise, or excusable neglect; (2) newly discovered evidence which by due diligence could not have been discovered in time to move for a new trial under Rule 59(b); (3) fraud (whether heretofore denominated intrinsic of extrinsic), misrepresentation, or other misconduct of an adverse party.... The motion shall be made within a reasonable time, and for reasons (1), (2), and (3) not more than one year after the judgment, order, or proceeding was entered or taken.

The order Plaintiffs seek to vacate was entered on January 29, 2001, and their motion was not filed until on or about April 9, 2002, more than one year later. Accordingly, under Rule 60(b), Plaintiffs' motion for relief from judgment will be denied.

B. Plaintiffs' motion to dismiss

Plaintiffs moved to dismiss Defendant Nworgu before any answer was filed and no party has moved for summary judgment. Fed R. Civ. P. 41(a)(1) states, in pertinent part: "an action may be dismissed by the plaintiff without order of court (i) by filing a notice of dismissal at any time before service of the adverse party of an answer or of a motion for summary judgment, whichever first occurs. ..." While Leasecomm and Bank seek to oppose this motion to dismiss pursuant to Fed.R.Civ.P. 19(b) on the ground that Nworgu is an indispensable party, Plaintiffs may dismiss Nworgu by right under Rule 41(a)(1) and do not need leave of court to do so. In effect, the dismissal took place when the motion was filed. Accordingly, the oppositions filed by Leasecomm and Bank are moot and Plaintiffs' motion to dismiss Nworgu will be granted.²

C. Leasecomm's motion to dismiss

Leasecomm moves to dismiss on the ground that Plaintiff's claims should be barred by claim preclusion because they arise out of the same transaction and occurrence at issue in the action in Massachusetts.³ However, Plaintiffs contend in their opposition that Leasecomm's assertion of claim preclusion is misplaced because they are not seeking to retry the Massachusetts action:

The plaintiffs are not urging and/or requesting the Court to fully retry the Massachusetts action as the defendant's motion suggests. However, plaintiffs request is to acknowledge the difference of limitation of amount that can be awarded by the District Court in Massachusetts and the most that can be awarded by the Superior Court of the Commonwealth and to make the adjustment as the Court sees fit.

Accordingly, plaintiffs are pleased with the outcome of the trial in the Commonwealth except for the award. Because plaintiffs damages as a result of Leasecomm's violations of the laws and the abuse suffered by plaintiffs are greater than the $7000.

Paper no. 16, at 9-10. Essentially, then, Plaintiffs concede that their claims would be barred by res judicata were they seeking to retry the case, but are petitioning the court solely to modify and enlarge the judgment of the Massachusetts state court.

The attempt by Plaintiffs to have this court adjust the judgment awarded by the Massachusetts state court is barred by the Rooker-Feldman doctrine, which holds that lower federal courts lack jurisdiction to review final state court decisions. See District of Columbia Court of Appeals v. Feldman, 460 U.S. 462, 482, 103 S.Ct. 1303, 75 L.Ed.2d 206 (1983); Rooker v. Fidelity Trust Co., 263 U.S. 413, 416, 44 S.Ct. 149, 68 L.Ed. 362 (1923). The Rooker-Feldman doctrine creates a jurisdictional obstacle to collateral review of final state court judgments in federal court....