Williams v. State Indus. Ins. System
Decision Date | 23 October 1987 |
Docket Number | No. CV-N-87-301-ECR.,CV-N-87-301-ECR. |
Citation | 672 F. Supp. 459 |
Parties | Vernon L. WILLIAMS, Plaintiff, v. STATE INDUSTRIAL INSURANCE SYSTEM; and Laury M. Lewis, Individually and as Manager of the State Industrial Insurance System, Defendants. |
Court | U.S. District Court — District of Nevada |
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Vernon L. Williams, Encinitas, Cal., for plaintiff.
Pamela M. Bugge, Gen. Counsel, State Indus. Ins. System, Carson City, Nev., for defendants.
The plaintiff has filed a diversity complaint, alleging causes of action for the breach of the convenant of good faith and fair dealing, for the violation of fiduciary duties, for unfair trade practices, and for intentional infliction of emotional distress. All of these causes of action stem from the plaintiff's claims against the Nevada State Industrial Insurance Commission (formerly the Nevada Industrial Commission) which was filed in 1972. The plaintiff had filed that claim as a result of injuries he allegedly suffered while employed by an employer which carried SIIS insurance. The commission denied his claim, and the plaintiff sought review of this order in the state district court and the state supreme court. Those courts ultimately upheld the commission's denial of benefits. See Nevada Industrial Insurance Commission v. Williams, 91 Nev. 686, 541 P.2d 905 (1975).
Since that time, the plaintiff has filed a seemingly endless succession of lawsuits, all of which deal with the denial of his claim in one respect or another. See e.g., Williams v. NIC, CV-LV-77-65-RDF ( ); Williams v. Reiser, et al., CV-LV-78-214-RDF ( ); Williams v. Nusbaum, et al., CV-LV-82-214-HEC ( ); Williams v. King, et al., CV-LV-84-200-HEC ( ); Williams v. State of Nevada, CV-S-86-704-LDG ( ). All of the above actions were lawsuits against the state's industrial insurance system and other assorted defendants relating to the commission's finding that the plaintiff was not entitled to worker's compensation benefits.
The defendants in this suit have now moved to dismiss on the basis of res judicata, among other things. The Court has treated the motion to dismiss as a motion for summary judgment, in view of the evidentiary material which the defendants attached to their motion. The plaintiff has therefore been given a chance to respond to the motion for summary judgment. After careful review of all of the pleadings and evidence filed in this case, there is no doubt that the defendants are entitled to the entry of summary judgment in their favor.
The defendants first assert that the res judicata effect of the original state court judgment bars this action. That assessment is correct. When a federal district court, sitting as the second forum (F2), is called upon to give claim preclusive effect to a prior state court judgment (F1), the F2 court must analyze the F1 judgment in accordance with the F1 court's law of claim preclusion. Migra v. Warren City School Dist. Bd. of Ed., 465 U.S. 75, 80, 104 S.Ct. 892, 895, 79 L.Ed.2d 56 (1984); Brennan v. EMDE Medical Research, Inc., 652 F.Supp. 255, 260 (D.Nev.1986); 28 U.S.C. § 1738. The Court must therefore turn to Nevada's law of claim preclusion to determine the effect of the 1975 state supreme court decision. Brennan, supra.
In Nevada, a final, valid judgment rendered on the merits, is a bar to subsequent claims which were or could have been raised in the first action between the same parties or those in the privity with them upon the same cause of action. York v. York, 99 Nev. 491, 664 P.2d 967, 968 (1983); Jones v. Free, 83 Nev. 31, 422 P.2d 551, 553 cert. denied, 389 U.S. 823, 88 S.Ct. 57, 19 L.Ed.2d 76 (1967); see also Brennan, supra.
There is no doubt that the 1975 was a valid, final judgment. There are no personal jurisdiction or subject matter jurisdiction defects which could possibly render the judgment invalid as a matter of Nevada and constitutional law. See NRS § 14.065. In addition, Nevada law indicates that a judgment is final once the litigation has come to an end. Paul v. Pool, 96 Nev. 130, 605 P.2d 635, 637 (1980). In this case, the litigation is clearly at an end, as the state supreme court entered its order over ten years ago, and no review by the United States Supreme Court was ever sought.
It is clear from the face of the state supreme court's disposition of the prior case that the decision was on the merits. The plaintiff had opportunity, both at the commission level, and on review by the state district court, to submit evidence and testimony to the court for its review. The state supreme court found that no error had been committed in the lower courts, thereby reaching the merits of the case.
Id., 505 P.2d at 599. Therefore, in order to assert res judicata offensively, as the defendants seek to do in this case, the only question is whether the plaintiff was a party or privity of a party in the prior case. That all of the defendants in the present case may not have been involved in the first case is simply not relevant under Nevada law, where mutuality has been abolished.
It is clear in this case that the plaintiff was a party of the prior litigation. He was, in fact, the individual who instigated the entire lawsuit. As such, he has had his day in court, and there is no prohibition under Nevada law or the Constitution which prevents his being bound by that judgment now.
Under Nevada law, two cases involve the same claim for claim preclusion purposes when the same evidence supports the present and former causes of action. Round Hill Gen. Improv. Dist. v. B-Neva, Inc., 96 Nev. 181, 606 P.2d 176, 178 (1980). In this case, the plaintiff has failed to plead his complaint with any particularity. Indeed the complaint is merely a set of conclusory allegations, with no apparent foundation in fact. The defendants' motion for summary judgment, and the evidence filed in support thereof, however, makes clear that this complaint is indeed rooted in the same transactional nucleus of facts upon which the original state court lawsuit was based. The...
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...only requires the party against whom claim preclusion is asserted to have been a party in the prior case. Williams v. State Indus. Ins. System, 672 F.Supp. 459, 462 (D.Nev.1987) (“the only question is whether the plaintiff was a party or privity of a party in the prior case”). Here, there i......
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