McKenzie-El v. Internal Revenue Serv.
| Decision Date | 18 March 2020 |
| Docket Number | Civil Action No. ELH-19-1956 |
| Parties | RIKER MCKENZIE-EL, Plaintiff, v. INTERNAL REVENUE SERVICE, et al., Defendants. |
| Court | U.S. District Court — District of Maryland |
In this tax dispute, the self-represented plaintiff, Riker McKenzie-El, filed suit against a host of defendants, seeking, inter alia, to enjoin the Internal Revenue Service ("IRS") from issuing notices of levy to collect unpaid income tax and to compel the disclosure of certain agency records. ECF 1 (the "Complaint"). In particular, plaintiff sued the IRS; IRS officials David Kautter, Ann Willis, and Christine L. Davis; the United States of America (collectively with the IRS defendants, the "United States" or the "Government"); the Ports America Chesapeake, LLC ("PAC"); PAC officer David Burstein; the "Steamship Trade Association/International Longshoremen's Association" ("STA")1; and STA President Michael P. Angelos. Id.2 I shall refer to PAC and Burstein collectively as the "PAC Defendants." And, I shall refer to STA and Angelos collectively, as the "STA Defendants."
On October 3, 2019, the United States moved to dismiss the Complaint, pursuant to Fed. R. Civ. P. 12(b)(1) and Rule 12(b)(6). ECF 18. Six days later, the PAC Defendants and the STA Defendants moved to dismiss under Rule 12(b)(6). ECF 22 (PAC); ECF 23 (STA). Plaintiff opposed the motions. ECF 32; ECF 33; ECF 34. And, defendants replied. ECF 35 (United States); ECF 36 (PAC); ECF 37 (STA).
By Memorandum Opinion (ECF 59) and Order (ECF 60) of February 24, 2020, I granted defendants' motions and directed the Clerk of Court to close the case. Thereafter, on March 9, 2020, plaintiff filed "Plaintiff's Motion For Reconsideration." ECF 62 (the "Motion" or "Motion to Reconsider").
No hearing is necessary to resolve the Motion to Reconsider. See Local Rule 105.6. For the reasons that follow, I shall deny the Motion.
On July 2, 2019, Mr. McKenzie-El initiated this suit for damages, declaratory judgment, and injunctive relief. ECF 1. He alleges that on October 20, 2014, he satisfied a default judgment granted to the United States on January 24, 2008, in the amount of $102,923.78. Id. ¶ 24; see also United States v. Riker (Rocky) McKenzie, JFM-07-2317, ECF 11 (D. Md.) (). Plaintiff claims that he does not owe money to the Government, the IRS has "systematically targeted [him] with illegal collection practices," and the IRS has "subjected him to numerous, unnecessary, burdensome and unlawful wage garnishments." ECF 1, ¶ 11. Further, plaintiff complains that he has repeatedly sought information from the IRS regarding his debt, but the IRS has "refused" to furnish the requested documents. Id. ¶ 28.
The Complaint contains ten counts. Count I alleges a violation of the Fair Debt Collection Practices Act ("FDCPA"), 15 U.S.C. § 1692. ECF 1, ¶¶ 36-40. In Count II, plaintiff asserts a claim under the Freedom of Information Act ("FOIA"), 5 U.S.C. § 552. ECF 1, ¶¶ 41-45. Count III alleges a claim under "18 U.S.C. 242 Deprivation of rights under the color of law." ECF 1, ¶¶ 48-53. Count IV asserts a violation of Mr. McKenzie-El's rights under the Fourth Amendment to the Constitution. Id. ¶¶ 54-61. In Count V, plaintiff asserts violations of the Fifth and Fourteenth Amendments. Id. ¶¶ 62-67. Count VI lodges a claim under 26 U.S.C. § 6103. ECF 1, ¶¶ 68-72. Count VII asserts a violation of the Administrative Procedure Act ("APA"), 5 U.S.C. § 551 et seq. ECF 1, ¶¶ 73-82. Count VIII asserts a claim for "Refund of Garnished Wages and Benefits." Id. ¶¶ 83-87. In Count IX, plaintiff alleges "Declaration Against Exclusive Representation." Id. ¶¶ 88-89. And, Count X alleges a violation of 18 U.S.C. § 241. ECF 1, ¶¶ 90-93. In addition, although not listed as a stand-alone count, plaintiff appears to lodge claims against the individual defendants under Bivens v. Six Unknown Named Agents of Federal Bureau of Narcotics, 403 U.S. 388 (1971). See ECF 1, ¶¶ 19, 64, 67.
As indicated, the United States moved to dismiss the Complaint under Rule 12(b)(1) and Rule 12(b)(6). ECF 18. The Government argued that the Anti-Injunction Act ("AIA"), 26 U.S.C. § 7421, precludes plaintiff's claims for injunctive relief with regard to the IRS's tax collection efforts and that the Declaratory Judgment Act, 28 U.S.C. § 2201, has the same effect with respect to plaintiff's claims for declaratory relief. ECF 18-1 at 4-6. The Government posited that the Court lacks jurisdiction over plaintiff's FOIA claim on the ground that plaintiff failed to exhaust his administrative remedies. Id. at 7-8. Similarly, the Government asserted that plaintiff's APA claim falters on jurisdictional grounds. Id. at 7 n.3. And, the Government contended that the Complaint does not allege viableclaims under 18 U.S.C. §§ 241 and 242; 26 U.S.C. §§ 6103 and 7431; 42 U.S.C. § 1983; and Bivens, 403 U.S. 388. ECF 18-1 at 9-10.
The PAC Defendants and the STA Defendants also sought dismissal of the Complaint. ECF 22; ECF 23. In particular, they maintained that plaintiff's suit was foreclosed by 26 U.S.C. § 6332, which they contended immunizes them from liability for complying with the IRS's garnishment of Mr. McKenzie-El's assets. ECF 22-1 at 4-5; ECF 23-1 at 4-5.
I granted defendants' motions in a Memorandum Opinion (ECF 59) and Order (ECF 60) on February 24, 2020. At the outset, plaintiff's claims for injunctive relief from the Government's tax collection efforts are barred by the AIA, which provides that "no suit for the purpose of restraining the assessment or collection of any tax shall be maintained in any court by any person, whether or not such person is the person against whom such tax was assessed." 42 U.S.C. § 7421(a); see ECF 59 at 13-16. The Court observed that the AIA contains two narrow exceptions, but "[n]either exception applies to plaintiff's case." ECF 59 at 15. Plaintiff could not establish the first exception to the AIA—that the United States could not prevail on its tax claim—in light of the default judgment entered against plaintiff in 2008. Id. Nor could plaintiff satisfy the second exception—that the AIA deprived him of judicial review—because he had several avenues to seek relief: plaintiff could pay the tax and sue for a refund pursuant to 26 U.S.C. § 7422, or he could request a hearing with the IRS and appeal any adverse decision, pursuant to 26 U.S.C. §§ 6330, 7433. ECF 59 at 15-16. Plaintiff's claims for declaratory relief were likewise subject to dismissal because the Declaratory Judgment Act does not extend to federal tax disputes. ECF 59 at 16.
With respect to plaintiff's FOIA claim, the Court found that the claim was "premature" because "there is no allegation that plaintiff exhausted his administrative remedies by seeking further review from the IRS of its initial response to his request." Id. at 19-20. And, the Court dismissedplaintiff's APA claim because the APA provides for judicial review of agency action only when "there is no other adequate remedy in a court," 5 U.S.C. § 704, and here FOIA provides for relief similar to that sought by plaintiff through his APA claim. ECF 59 at 22. Further, the Court identified defects with plaintiff's claims lodged under 18 U.S.C. §§ 241 and 242; 26 U.S.C. §§ 6103 and 7431; 42 U.S.C. § 1983; and Bivens, 403 U.S. 388. ECF 59 at 22-30. Thus, I dismissed the Government from the suit.
The Court also granted the motions filed by the PAC Defendants and the STA Defendants, concluding that they are entitled to statutory immunity. ECF 59 at 30-31. Under 26 U.S.C. § 6332(e), a custodian of property subject to an IRS levy who complies with the levy "shall be discharged from any obligation or liability to the delinquent taxpayer . . . ." It follows, the Court explained, that "§ 6332(e) shields the PAC Defendants and STA Defendants from liability arising from their compliance with the tax levy." ECF 59 at 32.
On March 9, 2020, Mr. McKenzie-El filed the Motion to Reconsider, asking the Court to vacate its decision and direct defendants to answer the suit. ECF 62.
The Federal Rules of Civil Procedure do not contain an express provision for a "motion for reconsideration" of a final judgment. Katyle v. Penn Nat'l Gaming, Inc., 637 F.3d 462, 470 n.4 (4th Cir. 2011), cert. denied, 565 U.S. 825 (2011). However, to avoid elevating form over substance, a motion to reconsider may be construed as a motion to alter or amend judgment under Fed. R. Civ. P. 59(e), or a motion for relief from judgment under Fed. R. Civ. P. 60(b). MLC Auto., LLC v. Town of S. Pines, 532 F.3d 269, 278-80 (4th Cir. 2008).
Fed. R. Civ. P. 59(e) is captioned "Motion to Alter or Amend a Judgment." It states: "A motion to alter or amend a judgment must be filed no later than 28 days after the entry of thejudgment." A motion filed outside the 28-day window set forth in Rule 59(e) is considered under Rule 60, captioned "Relief from a Judgment or Order." See In re Burnley, 988 F.2d 1, 2-4 (4th Cir. 1992) (). Fed. R. Civ. P. 60(b) sets forth a variety of grounds for relief from a final judgment or order. It permits a party to file a motion to "relieve [the] party . . . from a final judgment" for "any . . . reason that justifies relief," Fed. R. Civ. P. 60(b)(6), as well as other enumerated reasons. See Liljeberg v. Heath Serv. Acquisition Corp., 486 U.S. 847, 863 (1988) ().
The timing of the filing of the motion is the key factor in ascertaining which rule applies. The Fourth Circuit has said that "a motion filed under both Rule 59(e) and ...
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