Hake v. Simpson
| Decision Date | 20 August 2018 |
| Docket Number | Case No.: 3:17-cv-420 |
| Parties | Nathaniel William Hake, et al., Plaintiffs, v. Sheriff Michael Simpson, et al., Defendants. |
| Court | U.S. District Court — Southern District of Ohio |
ENTRY AND ORDER GRANTING MOTION TO DISMISS FOR FAILURE TO STATE A CLAIM BY DEFENDANTS GLEN BLACKER, JAMES C. ELLIS, PAMELA JOHNSON, RANDY JOHNSON AND NOBLE OPPORTUNITY FUND II, LP, ECF 27, MOTION FOR JUDGMENT ON THE PLEADINGS MOTION BY DEFENDANT MARK FLORENCE, ECF 35, AND MOTION FOR JUDGMENT ON THE PLEADINGS BY DEFENDANTS RAYMOND HATFIELD, PAUL PLAUGHER, MICHAEL SIMPSON AND MICHAEL SPITLER, ECF 37, MOTION FOR JUDGMENT ON THE PLEADINGS BY DEFENDANTS LCNB BANK AND JEFF MEEKER, ECF 39, AND TERMINATING CASE.
Pending before the Court are Motion to Dismiss for Failure to State a Claim by Defendants Glen Blacker, James C. Ellis, Pamela Johnson, Randy Johnson and Noble Opportunity Fund II, LP, ECF 27, Motion for Judgment on the Pleadings by Defendant Mark Florence, ECF 35, Motion for Judgment on the Pleadings by Defendants Raymond Hatfield, Paul Plaugher, Michael Simpson, and Michael Spitler, ECF 37, and Motion for Judgment on the Pleadings by Defendants LCNB Bank and Jeff Meeker. ECF 39. Because Plaintiff's claims are barred by the Rooker-Feldman doctrine, claim preclusion and failure to state a claim, the motions will be granted.
In 2014, Defendant LCNB Bank filed an action in the Preble County, Ohio Court of Common Pleas to foreclose on mortgages and collect on six promissory notes executed by Plaintiff Nathaniel William Hake ("Hake"), Plaintiff Nathan Hake Farms, LLC, and Amy L. Hake. LCNB was the corporate successor to the original creditor notes. Id. at ¶ 1. On December 16, 2014, the state court entered summary judgment in favor of LCNB, and on December 29, 2014, the Court of Common Pleas' Judgment Entry and Decree of Foreclosure followed.
What follows describes an abandoned appeal, an unsuccessful Motion to Vacate, a Motion to Reconsider, this action, and seven separate petitions in bankruptcy that were each dismissed, filed to avoid the consequences of the December 29, 2014 Judgment Entry and Decree for Sale.
On January 5, 2015, Hake appealed the December 29, 2014 Judgment Entry and Decree for Sale. ECF 27-1 at 10. On March 26, 2015, Hake filed a bankruptcy petition in 3:15-bk-30933. ECF 1, ¶ 31. On March 27, 2015, the state court stayed all proceedings. Id. On April 9, 2015, bankruptcy action 3:15-bk-30933 was dismissed. ECF 1, ¶ 32.
LCNB sold its interest in the notes, mortgages and other collateral documents to Defendant Greenwich Investors XLVIII Trust 2014-1.
On April 10, 2015, Nathaniel Hake filed a bankruptcy petition in 3:15-bk-31131. ECF 1, ¶ 33. On August 13, 2015, Hake's appeal of the December 29, 2014 Judgment Entry and Decree for Sale was dismissed with prejudice for failure to prosecute. ECF 27-12. On July 7, 2016, Greenwich obtained relief from stay and the Bankruptcy Court dismissed Hake's bankruptcy. ECF 27 Ex. A-4. On November 18, 2016, bankruptcy action 3:15-bk-31131 was dismissed. ECF 1, ¶ 34.
Greenwich eventually sold its interest in the notes, mortgages, and other collateral documents to Defendant Noble Opportunity Fund II, LP and on January 13, 2017, Noble filed a motion to reactivate the case and be substituted as the party plaintiff. ECF 27 Ex. A-4.
On January 18, 2017, the Preble County court issued an Order reactivating the foreclosure action on its docket and substituting Noble Opportunity Fund II, LP for LCNB National Bank as the plaintiff therein. ECF 27-1 at 16. On March 2, 2017, the Preble County court issued Orders of Sale and related Praecipes for the real property at 0 and 8392 Crawfordsville-Campbellstown Rd. and 0 Wolverton Rd. ECF 27-1 at 16.
On April 4, 2017, Nathaniel Hake filed a bankruptcy petition in 3:17-bk-31079. ECF 1, ¶ 35. On April 11, 2017, Hake gave the state court notice that he filed another bankruptcy. On April 19, 2017, bankruptcy action 3:17-bk-31079 was dismissed, ECF 1, ¶ 36, and on April 20, 2017, the Preble County court reactivated the foreclosure action again. ECF 27-1 at 17.
On the same date, April 20, 2017, Amy Hake, Nathaniel Hake's then-wife, filed a bankruptcy petition in 3:17-bk-31277. ECF 1, ¶ 37, ECF 27 Ex. A. This case would be dismissed on July 18, 2017, for failure to file information. ECF 1, ¶ 38; 3:17-bk-31277 (docket).
On May 4, 2017, Ms. Hake refiled her other bankruptcy petition, 3:17-bk-31454. ECF 1, ¶ 39. On June 5, 2017, the stay in bankruptcy action 3:17-bk-31454 was lifted as to Noble, ECF 1, ¶ 40, and on June 26, 2017, the state court reactivated the foreclosure. ECF 27 Ex. A, ECF 27-1 at 17.
On July 6, 2017, the Preble County court issued Orders of Sale and related Praecipes for the real property at 0 and 8392 Crawfordsville-Campbellstown Rd. and 0 Wolverton Rd. ECF 27-1 at 17. On August 14, 2017, two Notices of Sheriff's Sale were filed in the Preble County Common Pleas Court. ECF 27-1 at 18.
On August 24, 2017, Nathaniel Hake filed a bankruptcy petition in 3:17-bk-32696. ECF 1, ¶ 42. On October 5, 2017, bankruptcy action 3:17-bk-32696 was dismissed, ECF 1, ¶ 43.
On October 11, 2017, the Preble County court reactivated the foreclosure action again. ECF 27-1 at 18. On October 19, 2017, a Praecipe for Writ of Execution and Order of Possession were filed in the Preble County court foreclosure action. ECF 27-1 at 18. Therein, the Preble County Sheriff was "directed to execute upon and take possession of" crops at 0 Wolverton Rd. and 0 and 8392 Crawfordsville-Campbellstown Rd. ECF 27-6. On the same date, October 19, 2017, the Preble County court issued Orders of Sale and related Praecipes for the real property at 0 and 8392 Crawfordsville-Campbellstown Rd. and 0 Wolverton Rd. ECF 27-1 at 18. On October 23, 2017, the Preble County court issued Orders of Sale for the real property at 0 and 8392 Crawfordsville-Campbellstown Rd. and 0 Wolverton Rd. ECF 27-1 at 19.
On October 25, 2017, Nathaniel Hake filed a Motion for Stay of Order of Possession. ECF 27-1 at 19. On October 30, 2017, the Preble County court scheduled Nathaniel Hake's Motion for Stay for hearing on November 2, 2017, ordering that no crops be harvested in the interim. ECF 27-1 at 20. On November 3, 2017, Nathaniel Hake filed a Civ. R. 60(B) Motion asking the Preble County court to vacate its December 29, 2014 Judgment Entry and Decree for Sale. ECF 34-1 and 35-1. On November 13, 2017, the Preble County court issued a Decision and Entry denying Nathaniel Hake's Civ. R. 60(B) Motion. ECF 27-8 and 35-2.
On November 13, 2017, the state court denied Hake's "Motion to Vacate a Voidable Judgment Under Civil Rule 60(b), 60(c) and 60(d) and Set Aside Judgment Under Civil Rule 55(b)and Other Relief by Vacating Judgment and Decree for Sale and Dismiss Complaint for Foreclosure under Ohio Civil Rule of Procedure 11 and the 14th Amendment to the United States Constitution." ECF 27-7. The court held that the motion was untimely, rejected Hake's Civ. R. 11 claim that LCNB's original complaint was not signed and that Hake had not been afforded due process, noting that - after review of the case files - Hake had been given every opportunity to defend against the allegations in the complaint, appeal the judgment, or otherwise attempt to avoid execution. Id. "Simply stated, the Fourteenth Amendment claim has no merit." Id.
The November 13, 2017 entry ordered the Sheriff to execute on the crops. The state court specifically authorized Noble and its designees to harvest the crops, transport, market and sell them. Id.
On November 20, 2017, Nathaniel Hake moved the Preble County court for reconsideration of its November 13, 2017 Decision and Entry denying him Civ. R. 60(B) relief. ECF 27-1 at 22. On the same date, November 20, 2017, the Preble County court denied Nathaniel Hake's Motion for Reconsideration. ECF 27-1 at 22.
On November 25, 2017, Nathan Hake Farms, LLC filed a bankruptcy petition in 3:17-bk-33681. ECF 1, ¶ 44, ECF 27-10, Ex. B. On November 27, 2017, Noble moved the Preble County court for an order finding that the bankruptcy action filed by Nathan Hake Farms did not operate as a stay of the matters before it. ECF 27-1 at 22. On November 28, 2017, the state court issued an entry finding that Nathan Hake Farms' bankruptcy did not operate as a stay against the harvesting and sale of crops. ECF 27-9, Ex. A-8. The court reasoned that Nathan Hake Farms had no interest in the crops, that Hake's request for a stay was improper because a Chapter 12 co-debtor stay only applies to consumer debts and the debt owed by Nathan Hake Farms was not sucha debt. Id. The Sheriff notified the state court that the harvesting of crops was completed on December 11, 2017. ECF 27 Ex. A.
On December 13, 2017, Notices of Sheriff's Sale were filed in the Preble County action regarding the real property at 0 and 8392 Crawfordsville-Campbellstown Rd. and 0 Wolverton Rd. ECF 27-1 at 25.
On December 12, 2017, Plaintiffs filed this action asserting that the Noble Defendants violated their constitutional rights, and committed conversion, trespass, fraud, and civil conspiracy because, in supposed violation of a stay issued by the United States Bankruptcy Court for the Southern District of Ohio, the Noble Defendants executed orders of the Preble County, Ohio, Court of Common Pleas to harvest crops from Hake's land. ECF 1, ¶¶ 1, 23, 25-26, 28-30, 47, 50, 57, 62, 66, 72. The Complaint also claims that the original creditor on one of the notes, LCNB, fraudulently concealed from the state court that LCNB did not have possession of the promissory note for one of the loans, and that Noble and Defendant Mark Ellis are liable for conspiracy by accepting an assignment of the judgment entered on the note and executing on the judgment. Id. at ¶ 69.
On December 19, 2017, Nathan Hake Farms also filed a motion in the Bankruptcy Court to hold the Noble Defendants in contempt for...
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