Scott v. Home Choice, Inc., CIV.A.02-2112-CM.
| Decision Date | 18 February 2004 |
| Docket Number | No. CIV.A.02-2112-CM.,CIV.A.02-2112-CM. |
| Parties | James SCOTT, Plaintiff, v. HOME CHOICE, INC. d/b/a Rentway, Defendant. |
| Court | U.S. District Court — District of Kansas |
James Scott, Grandview, MO, pro se.
Anthony J. Romano, Matthew R. O'Connor, Polsinelli, Shalton & Welte, P.C., Kansas City, MO, for Defendant.
Plaintiff James Scott filed this action bringing fraud, breach of contract and malicious use of process, abuse of process claims against defendant Home Choice, Inc. d/b/a RentWay (Rentway). This matter comes before the court on RentWay's Motion for Summary Judgment (Doc. 54), Scott's Motion for Partial Summary Judgment as to Liability but Not Damages (Doc. 58) and Scott's Motion for Summary Judgment by Plaintiff or if Not Granted, for Partial Summary Judgment (Doc. 59).
RentWay is a corporation conducting business in the State of Kansas. Scott is a resident of the State of Missouri and a former employee of RentWay. After leaving his employment with RentWay in 1998, Scott filed a Charge of Discrimination with the Equal Employment Opportunity Commission (EEOC) asserting race discrimination and harassment claims against RentWay.
On May 14, 1999, Scott executed a confidential settlement agreement and general release (the settlement agreement) to resolve his EEOC Charge and any other claims that he had or may have had against RentWay and any of its affiliated companies. The settlement agreement contains a general release and waiver of Scott's claims and a covenant not to sue RentWay. Pursuant to the settlement agreement, Scott agreed to fully and finally release and discharge RentWay from any and all actions, causes of action, suits and other similar actions, whether known or unknown, arising out of his employment with RentWay. Scott specifically agreed to never sue RentWay for any claims of discrimination, harassment, or retaliation under Title VII of the Civil Rights Act of 1964 (Title VII), or any other anti-discrimination and/or employment laws.
The settlement agreement also contains a confidentiality and non-disparagement provision, which states that Scott will "not make any statements or take any actions to disparage [RentWay], to place [RentWay] in a negative light or which are inconsistent with the interests of [RentWay]." Scott also agreed not to "instigate, cause, advise or encourage any other persons, groups of persons, corporations, partnerships or any other entity to file litigation or other claims or charges against [RentWay]." Scott was, at all times prior to executing the settlement agreement, represented by an attorney. RentWay paid Scott approximately $43,000 (in addition to attorneys' fees) as consideration for executing the settlement agreement.
On July 12, 1999, Scott filed a lawsuit in this court entitled James Scott v. Home Choice, Inc. d/b/a Rentway, Case No. 99-2311-JWL (). In the first federal lawsuit, Scott alleged that RentWay violated his rights under Title VII and 42 U.S.C. § 1981. Before even filing an answer, RentWay moved to dismiss Scott's complaint, claiming that the allegations forming the basis of the first federal lawsuit were the subject of the settlement agreement and that by filing the first federal lawsuit, Scott breached the settlement agreement. On November 19, 1999, this court held that the settlement agreement executed between the parties is an enforceable contract and dismissed the first federal lawsuit.
On February 28, 2000, RentWay filed a lawsuit against Scott in the Circuit Court of Jackson County, Missouri, entitled Home Choice, Inc. d/b/a Rent Way v. James Scott, Case No. 00-CV-205272 (the Missouri action), alleging that Scott breached the settlement agreement when he filed the first federal lawsuit and that Scott had recruited potential plaintiffs against RentWay. The Missouri action also sought to enjoin Scott from breaching the non-disparagement clauses of the settlement agreement.
RentWay filed a motion for summary judgment in the Missouri action, seeking to enforce the terms of the settlement agreement, which the court granted on October 17, 2001. The Missouri court's October 17, 2001, Order prohibited Scott from: 1) suing or bringing any other action against RentWay, whether federal, state, local or administrative, with respect to any claim arising from his employment with RentWay; 2) making any statements or taking any actions to disparage RentWay or to place RentWay in a negative light; or 3) instigating, causing, advising or encouraging any other person, groups of persons, corporations, partnerships or any other entity to file litigation or other claims or charges against RentWay. As part of ruling on RentWay's motion for summary judgment, the Missouri court held that the settlement agreement executed between the parties constitutes a valid and enforceable contract.
On March 13, 2002, Scott filed the present lawsuit against RentWay alleging fraud, malicious use of process, abuse of process, and breach of contract claims. Subsequently, on April 1, 2002, RentWay filed a motion in the Missouri action to hold Scott in civil contempt of court for violating the Missouri court's October 17, 2001, Order and the settlement agreement. In the contempt motion, RentWay alleged that Scott had disparaged RentWay, instigated other individuals to file litigation against RentWay, and filed another suit against RentWay in federal court. On August 20, 2002, the Missouri court held a hearing on the contempt motion, which included presentation of evidence by both Scott and RentWay. The Missouri court subsequently held Scott in contempt of court for violating its October 17, 2001, Order. On November 26, 2002, the Missouri court entered an order fining Scott $1000. Scott has requested that the Missouri court reduce the amount of the contempt fine, but did not appeal either the Missouri court's summary judgment in favor of RentWay or the Missouri court's November 26, 2002, contempt order.
In the meantime, on April 15, 2002, RentWay filed a motion to dismiss Scott's complaint in the current lawsuit pursuant to Federal Rule of Civil Procedure 12(b)(1) for lack of subject matter jurisdiction and on grounds of "judicial economy." RentWay argued that plaintiff's claims arose from the same set of facts forming the basis of litigation that was pending in Missouri state court in Jackson County at that time. RentWay also claimed the current lawsuit was an alleged violation of the settlement agreement.
In a February 20, 2003, Order, this court denied RentWay's motion to dismiss on both grounds, holding that subject matter jurisdiction was appropriate pursuant to 28 U.S.C. § 1332, and that it could find no grounds for abstaining from hearing the case. In its February 20, 2003, Order denying RentWay's motion to dismiss, this court noted:
The court is uncertain whether, in asking the court to dismiss plaintiff's complaint because it "arise[s] from the same set of facts" as the state court litigation, defendant Rent Way requests the court to abstain in light of the ongoing state proceeding, or to dismiss the case on grounds of res judicata or collateral estoppel. The court's evaluation of defendant Rent Way's argument in light of the abstention, res judicata, and collateral estoppel doctrines demonstrates that defendant Rent Way has failed to satisfy the requirements of those doctrines.
This court ruled that RentWay had not provided sufficient information to demonstrate to the court that Scott's current lawsuit was premised on the settlement agreement that formed the basis for the Missouri action and noted that "plaintiff's breach of contract claim filed in the instant action does not arise from, or mention, the Settlement Agreement."
Subsequently, on May 12, 2003, RentWay filed the current summary judgment motion arguing that 1) plaintiff should be collaterally estopped from pursuing his fraud and breach of contract claims, 2) plaintiff cannot make a prima facie case for his malicious use of process claim, and 3) plaintiff's claims are improperly before this court as they are in essence an appeal of the Missouri court's October 17, 2001, and November 26, 2002, rulings and the judgments entered against plaintiff.2
In his response to RentWay's summary judgment motion, and in his own motion for summary judgment, Scott, while denying that the settlement agreement forms the basis for his current lawsuit, admits that his current lawsuit is based on RentWay's actions (and alleged unethical behavior) in pursuing the Missouri action, as well as his challenges to various factual and legal issues surrounding both the Missouri court's October 17, 2001, Order, and the Missouri court's November 26, 2002, Order. However, Scott argues that the Missouri court's rulings are not final, and thus not appealable at this time, making the federal court an appropriate forum for his claims. Scott also appears to argue that RentWay's filing of the Missouri action was improper because RentWay should have filed a compulsory counterclaim in the first federal lawsuit, rather than filing a separate action in Missouri state court. Scott further argues that RentWay's alleged actions and omissions in the first federal lawsuit, which carried over into the Missouri action, also provide a basis for his fraud and breach of contract claims.
In Scott's suggestions in support of his Motion for Summary Judgment, he states in relevant part:
This case involves breach of contract and abuse of process claims. These claims stem from RentWay's perpetual acts of fraud which are also involved in this case.... In RentWay's Contempt Motion (Exhibit A) it successfully creates the impression that I willfully refused to obey the Court's Order.
...
The Missouri Court however agreed with RentWay's deception ....
RentWay deceptively and successfully led the Missouri Court to believe...
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