Givens v. Washington Mutual, No. 5:2009cv00076 - Document 29 (W.D. Va. 2012)

Court Description: MEMORANDUM OPINION. Signed by District Judge Michael F. Urbanski on 7/27/12. (kld)
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M EM O M NDU M OPI NION Thi m ateri bef e t cour on t m oton ofW as ngt M ut ,l Li da i s t s or he t he i hi on ual nc. qui tng Tr t a s c eso i i er tt W a hi t Muua,l (ole tveyrfre t heei a us, s u c s r n nt es o s ngon t l nc.c lci l eerd o r n s û ahi tnMutal't dimisplitf Veo c 1Gi s c mpl n purua tt t Fe r t s ngo W u ' o s s anif rnia . ven ' o ait s n o he deal ) Rul ofCi lPr e ur 1 b ( ,4lb)or i tealenai ,1 c)1Fo t ras stf t es vi oc d e 2()6) ( , ,n h tr tve 2( . r he e ons e orh beo t d f n ntsmo i t dimis( t #24)Gi ns c ant te t d a amotonf lw, he e e da ' ton o s s Dk . ve ' ompli , r a e s i or s ummayj gme ,i GRANTED a tecaei DI SSED wihprj c r ud nt s nd h s s SMI t eudie. 1 . On Sept ber26,2008,W as ngt M ut vol ariy fl f Chapt 11 Bankr cy em hi on ual unt l ied or er upt i t Unied St esBankr cy Cour f t D it c ofDel e,2ti i an aut atc say n he t at upt t or he srit awar rggerng om i t < pplc et ale tte of- ()t c i iabl o l niis a l he omme e n o c tnuai ..ofaj cal nc me t r oni ton . udii , adm i s r tve,orot acton orpr nit a i her i oceedi agai tt debt t wasorcoul have been ng ns he or hat d c omme e beor t commen eme toft c s u rt stte. 1lU. C. 3 a ( ) On nc d f e he c n he a e nde hi il ' ' S. j 62( ) l . Sept be 29,2009,pl ntf V er ca 1 G i em r ai if oni . vens,pr oceedi pr K ,f l t i t com pl nt ng o ied he nsant ai . lI s por oft moton t dim is de e ntr e st pl a ngsfl d i t ba upt y cou ti D e a r As n up t he i o s s , f nda ef r o e di ie n he nkr c r n l wa e. s c t i mo ini te td a o ef rs mma yj d me tu d r l 5 .S eFe . Ci P 1 ( ) u h h s t s rae s n o u r u g n n e Rue 6 e d R. v. 2 d . o 2Cas i a i se ed unde c s nu be 08 1 e s dm nit r r a e m r - 2229. alegi i erala,vi atonsofThe N a i Bank Act Alhough t com pl nti difcul t l ng, nt i ol i tonal . t he ai s fi t o par e,Gi s vensappear t alege t tW as ngt M ut vi at t 1 by i pr l assgni so l ha hi on ual ol ed he aw m opery i ng 3 ober8, 2009,W as ngt M ut f l a Sugges i ofBankr cy wih herm orgage. O n O ct t hi on ual ied ton upt t t scour . hi t O n Oc ober l3,2009,t cour s a t scas pendi t concl i ofbankr cy t he t t yed hi e ng he uson upt pr oceedi i vi W as ngt M ut and r r couns t fl quarery sat r port ngs nvol ng hi on ual equied el o ie t l t us e s. The courtalo r r t Gi s equied hat venst e a notce i ca i w het s s ilw ihed t pr 5l i ndi tng her he tl s o oceed dkltraba u c peii ha r ule i rh c eben sa dfrapei ofa latone safe nkrpty tton s es td n te) as ig tye o rod t e s ye r' ( t # 5) Gi nshasfld nos no ie; ahe ,o M ar 26,201 s fld a a . Dk . . ve ' ie uch tc r t r n ch 0, he ie iN otce f Se tem e ,Cl e a Ter i i ' t appea t have been a s tem entofer t i or tl nt osur nd m natons' hat rs o etl f . The courtdeni G i ed vens'm oton becaus t s ay r ai i ef ect i e he t em ned n f . On Febr y 24,201 t Bankrupt Cour ent red isFi ngsofFact Concl i of uar 2, he cy t e t ndi , usons La ,and Or Confim i t Sevent A m ended J ntPl ofAf iit Debt Pur uantt w der r ng he h oi an fla ed ors s o Chapt 11oft Unied St esBankrupt Code,efec i M ar 19,2012. Thi pl er he t at cy f tve ch s an es abls t W as ngt M ut Li datng Tr tt lqui t and diti e W ashi on t ihed he hi on ual qui i us o i da e srbut ngt M ut ' r ai ng ass sas oft efectve dat uals em ni et he f i e. On A prll7,2012,def i endantm oved t dim i G i o s ss vens'com pl ntpurs t Feder ai uant o al Rul ofCi lPr e r l b)6 , ( ,ori t atr tve 1 c .Tha s meda tec t es vi oc due 2( () 4lb) ,n he lenai , 2() ta y,h our is d an iep s n t Ros bo ov.Ga rs 5 F. 309, 0 ( h Ci.1 75 ,a vii s ue otc ur ua t o e r rion, 28 2d 31 4t r 9 ) d sng G i ofherri t fl m at i r ponsest def vens ght o ie eral es o endantsdipostve moton. A ddii l t ' s ii i tonaly, he cour s G i t ent vensa l t da ed Apr ll9,2012 as ng hert cont tcham ber by M ay 11,2012 eter t i ki o ac s 3Gi nsa tona l na J hn A. a el Pr sde a Chi Ope a i Of ie ,o as i e a J C.Dug n, ve ddii ly mes o M ci , e i nt nd ef r tng fc r r s gne , nd ohn a Co p r l rofCur e y,i t c ton ofherc m tole r nc n he ap i ompli t Gi nsr f r t M a ela a a ntofW a hi t a n . ve e e s o ci s n ge s ng on M ut al a t ale i a a t be d r t d a hi i hi o fc a c pa iy.Alhou D u n i lse a a u , nd he l gatons ppe r o iec e t m n s f i i l a c t t gh ga s it d s s r t de e n i t c ton oft c epa a e f nda t n he ap i he ompl i t Gi nsdoe nota a t a l a y c a msaga ns hi i t a n , ve s ppe r o lege n l i i t m n he b oft c ody he ompl i t a h wasne rs ve a n , nd e ve er d. i s wa e t s he e a h rng on t m o i n t dim i s G i f he nt d o c dul ea i he to o s s . vensn t rfl d a r s e t eihe ie e pons o t m oton norcont ed t cour t s i dow n f hearng. The m oton t dim i s i he i act he t o et t or i i o s s s, t rf e,i f adudi ton. heeor rpe or j cai 1 I. Dee n ag t tGi ns cai s dbedimisdpurua t Rul l b)6 or fnda t rues ha ve ' l ms houl s se s nt o e 2( () Rul l c f rt f l ngt e r as .Fis, f nda tas e t t ts c i 412 a 413of e 2( ) o he olowi hr e e ons rt de e n s rs ha e tons . nd . t Sevent Am ended J ntPl ofA f ii ed Debt sdi he h oi an flat or schar W ashi on M ut fom any ge ngt ual r a allabiiyrltngt t sc ea e j nplitf fom p o ee ngast W ahi on nd l i l eai o hi as nd noi anif r r c di t o s ngt M ut . Second,W as ngt M ut ar ual hi on ual guest t t e entGi hat o he xt vens s eekst r o ecoverf or actons arsng bef e t com m encem entofW as ngt M ut ' Chapt llpetton,such i ii or he hi on uals er ii acton w ascom m enced i vi aton oft aut atc say,and al actonst i n ol i he om i t l i aken i vi aton oft n ol i he s ay ar voi Thid,W as ngt M ut cl m st ti i a i pr t e d. r hi on ual ai ha t s n m operdef endanti t sac i n hi ton r dl ofisbankr cy becaus asa f m ers ngsand l hol ng company,W as ngt egar ess t upt e, or avi oan di hi on M ut wasnotdiecty engaged i t m orgage-endi orser ci busness i plcat i ual r l n he t l ng vi ng i es m i ed n t com pl nt he ai . A lhough pl ngs fl by a pr K pary m us be (lber l consr ' Ercks v. t eadi ied o t t çi aly tued,' i on Par ,5 U. 89, ( 07)(nen q ainsa cttonsomitd) u Rul l ( () a dus 5l S. 94 20 itral uotto nd iai te , nder e 2b)6, c an wilb dimisd ifia easc rant tg anif c npr nostoffcsta omplit l e s se f t pp r eti ha plitfj a ove e at h t t w oul s d upporthi cl m and w oul entte hi t r i .' Sm ih v.Svdnor,l84 F. 356,361 s ai d il m o elef' t 3d (t Ci.1 9) Thec t ta c ptaloft c an ' wel- e de ale tonsa viw 4h r 99 . ourmus c e l he omplits lpla d lgai nd e t em i alghtmos f or bl t t epl n if L Howe e ,hi r quie nta ple t t f cs h n i t av a e o h aitf. (. v r t s e r me p is o he a t aonea no t lga c l i .As r tv. oba,l S. .1 7,1 49 ( 09) l a ton, l nd t o e l oncusons hc of l l 29 Ct 93 9 20 . n ddii ûwher t wel- eaded f sdo notpe m i t cour t i e m or t t m er pos biiy of û e he lpl act r t he t o nf r e han he e si lt 3 mi sconduct t com pl nthasaleged -buti hasnots n t t pl , he ai l t how hat he eaderi entted t s il o r if' L a l (nt nal a i ma ksomitd) ç c u alga i mus bee gh t ele . 4. t 950 i er quotton r ' te . t t al le tons t nou o Fa r s a rghtofr i above t s aie i elef he pecul i l ,on t as pton t al oft alegatons i atve egal he sum i hat l he l i n t co ai aetu ' BelAt.Cor v.Twombl 550U. 54 555( ) ûl e db r he mpl nt r re. l l p. ' y, S. 4, 2007 . ç- a ae -hr recial oft el ent ofa cause ofac i support by m e concl or sat ent ,do not t s he em s ton, ed re us y t em s s fce.' I ,l29 S.Ct at1949. Rat ,ûonl a com pl ntt sat apl i e cl m f uf i ' nbal . her d y ai hat t es ausbl ai or r le s vi samoto t dim is' J . t1 0. eif ur ve i n o s s . #.a 95 ' Gi ns c antmus bedimisdp s a t Rul l b)6 be a eiûal t saea ve ' ompli t s se uru nto e 2( () c us tû is o tt f cl m op,whih r l fc n begr n e ' Fe R. v. 1 b ( . Fis, a higt Mu ua fld ai c ei a e a td. d. Ci P. 2()6) rt W s n on t l ie ' f Cha er l1 Bankr cy on Sept ber26,2008,whi ti ed an aut atc s ay agai tt or pt upt em ch rgger om i t ns he c omme e ntofan j cila to t tc dh vebe nc mme e beoet ttme nc me y udi a cin ha oul a e o nc d fr ha i . Purua t l1U. C. 3 c()C) a a omai sa rmansi efc tg tlt tmea s nto S. j 62()2( , n ut tc ty e i n fe ttuni) he i di char i gr nt ordeni ' On Sept s ge s a ed ed.' ember29,2009,when Gi venscom m enced heracton, i t aut atc say r ai i ef ectbecaus no di cha had been gr ed ordeni A l he om i t em ned n f e s rge ant ed. l ac i t tons aken i vi aton ofan aut atc s ay ar voi t ef e,G i n ol i om i t e d; her or vensi notentted t r i . s il o elef Se ond,l1U. C.j l 41d)l( prvi sta t c imai ofaplndic r st d btr c S. l ( ()A) o de h the onfr ton a shage he e o fo a y de t tar s be o et daeo s h c ima in whe he o no apr ofofcli i r m n ht ha o e f r he t f uc onfr to t tr t o am s her he der uch ai ed he an. ef e, he fl d a .Fhet ornott hol ofs cl m has accept t pl Ther or ast ie nd confr aton oft Sevent A m ended Joi Pl ofAf ii t D ebt s lfed t s a i alo im i he h nt an fla ed or it he t y, t s dichar def s ged endantofany debtOccur i prort t pl sconfr aton on Febr y 24, rng i o he an' im i uar 201 Consse l s cin412oft tplnpovi st tEl pont Efe tveDae,h 2. itnty, e to . ha a r de ha dul he fci t te De t r andt Re ga z d Debor s l ()b d e d dich r e unde s c inl 4ld) 1( b o s he or nie t s hal i e e me s a g d r e to 1 ( ( )A) oft Ba upt Code and r eas f any and al Cl m s and any ot oblgatons suis he nkr cy el ed rom l ai her i i , t , 4 j me s da e , tr rghs rme e , a e ofaci o la lte . l r Was nzo udg nt, mag s debo s i t,e dis c us s ton, r ibiiis' n e hi tn ' Mut-l ,e al, 9 . nc. t .No. 7590, 1 W L l 80, t* ( nk . De,Ma .l 201 ) 20 2 5638 a 96 Ba r D. l r 9, 2 . Pur uantt s i 41. oft Pl ial Enttesw ho have hel hol orm ay hol Cl m sorany s o ecton 3 he an, c l ii d, d d ai ohe d btorla lyt ti dic r d ..aepema ntye j ne fo a atrt Efe tve t re ibii ha s shage . r r ne l noi d, rm nd fe he fci t Dae f ()co nci orc i ng, rcl ori rcl i a ma r a ya to orot r t,or a mme ng ontnui die ty ndie ty,n ny nne, n cin he prce di (ncudi wihoutlmiai a j ca,abirlad nitai o ot r o e ng i l ng, t i tton, ny udiil r ta, mi srtve r he prce dig)ofa ki o a s c Cl m o ot rde to lablt t ti dic r d-'I r o en ny nd n ny u h ai r he b r i iiy ha s shage ' n e W a hi onM ut.I , ta.No.975 201 W L 1 6388 a *97( nk . De, r 1 , s nat . nc.e l, 90, 2 5 0, t Ba r D. lMa. 9 201 .Theef e W a hi tnMut i dich r dfom a yan a1la lt arsngbeor t 2) r or, s ngo uals s age r n d l ibiiy ii f e he ef ectve dat oft pl , M ar l2,2012,i udi Gi 'pref i e he an 2009 alegatons4 l i . ch ncl ng vens Si et sa ha be nlfe purua t l U. C.j36 c()a t plnha be n nc he ty s e itd s nto 1 S. 2()2 nd he a s e confr ed,t def im he endant ar t ef e,di char f om any debtarsi bef et tm e and s e, her or s ged r i ng or hat i 5 can ha no.i lt t G i ve labii' o vens. y 11 1. De e n mo t dimisu rRul 4lb)be a e, orm or t t yeas Gi ns f nda t ves o s s nde e ( c us f e han wo r , ve ha f l d t co pl w ih t Oc o r l 200 c r o de w hi h r q r d he t tl a no i e s aie o m y t he t be 3, 9 ou t r r c e uie r o 5 e tc i catng whet s s ilw ihed t pr ndi i her he tl s o oceed ast any cl m sagai tW as ngt M ut o ai ns hi on ual tgltraba uptypeii h rs tdi (he caebengsa df ape idofa lato ûafe nkr c tton as eule n t l s i tye or ro t e s ne ye r' ( . 5 .Dee tas poit ou t tGi nsha notupd tdt c r wihh r a. Dkt# ) fndan lo ns t ha ve s ' ae he ou t t e phone num ber. 4An yssofde e ntscl m t tW as n on M u ua i a i o rde e nti notne s a y bec us t al i f nda ' ai ha hi gt t l s n mpr pe f nda s ce s r a e he de e an' Rul 1 b)6)motonwilbeganedont me isoft ohe agumens f nd ts e 2( ( i l rt he rt he t r r t. 5To t e e Gi ns c pl ntr f r nc sf a t tmi htbe p o bie f om ba kr pt y dic r u r 1 he xt nt ve ' om ai e e e e r ud ha g r hi t d r n u c s ha ge nde 1 U. C. ()2 ( , e rf rn e t fa dd n tsaeav l cam f rfa d u o wh c r l f a b g a td S. j a ( )A) h r e ee c s o r u o o tt ai li o r u p n ih ei c n e rn e . d e As c of v.I ,1 9 S. .1 ,1 ( . h r ) qbal 2 Ct 937 949 2009) t Rul 4lb)saest tûadee n ma movet dimist aci o a cai ag i ti e ( tt ha ( fnda t y o s s he ton r ny l m ans t ... (l t pli iffist pr e ut ' Fe R.Ci P. ( .Th c r hasçnhee tpo r'o if he antf al o osc e. d. v. 41b) e ou t d rn we't ' i cl r isdocke ofûcas t have r ai dor antbecaus oft i i ordiat i s of ea t t i es hat em ned m e he nacton l ornes t pa te s e ng r lef' Li v.W a as R. Co. 37 U. 626, ( 9 .û-h f de a he ris e ki ei . nk ' b h R. , 0 S. 630 1 62) û-e e r l l courspos s undi ed aut t t contolt rdocket and t dim ist e casest t ses sput horiy o r hei s o s s hos hat pli if f lt pos c e. Ame v.StndadOiCo.1 ) l F. D. 3 ( D. antfs ai o r e ut ' ' s a r l (nd., 08 R. 299, 01 D. C. 1 ) Ac or ngt t Coul ofApp al f t DititofColmbi,ûa)Rul 41b dimis 985 . c di o he ' t e s orhe src u aû l e () s sal i pr ri,i viw oft e e tr pr c ur lhit r o t c e t ltga thasno m a f t d s ope f n e h n ie o ed a s o y f he as , he ii n t niese r onabl dii eas e lgence i pur ng t caus ' Bom at v.For M ot Co. 761 F. 713,7l4 n sui he e.' e d or , 2d ( C. r 1 ) S i rng adim is lf rf iur t pr e u ei ahihl f c u iquiy,o D. Ci. 985 . d de i cons s s a o al e o os c t s g y a t al n r t be det m i upon a consi a i ofal pertnentcicum s ances.' A m es,1 F. D .a 302. er ned der ton 1 i r t ' 08 R. t ( lngh pei ofiaci t ma .. e ht j tf dimis u rRul 41b .. ( e ty rod n tviy y .be noug o usiy s sal nde e () . A p riulry ..i t pl n ifhasbe npr vi l wa ne t t(he mus a twih mor a tc a l . f he aitf e e ousy r d ha s l t c t e dii nc .'Smih- v v.Crp 8 F. 592,5 4 ( C.Ci.1 )(ntr lquo ai maks lge e' t Be i e, 52 2d 9 D. r 988 i e na t ton r omitd) Addii ly,ûl imis lfrfiur t pr e uei pa tc al a r it wh ns h te . , tonal ldls sa o al e o os c t s riulry ppoprae e uc a f l e i coupl w ih diobedi aiur . s ed t s ence t cour or soradi r d ofes abls r es' A mes o t der s egar t i hed ul .' , 108 F. D .at302. A dit i cour ' deci on i t sr d dw ilbe r s onl upon a fndi R. s rct ts si n hi egar s l ever ed y i ng ofabus ofdicr i ' Bom at 761F. at71 e s eton.' e, 2d 4. Gi 'c mpli mus b dimis d u rRul 41b)b a e Gi nsha f ldt vens o ant t e s s e nde e ( ec us ve s aie o pr osecut aswel asfaied t com pl w ih a courtor ed notce. G i e l l o y t - der i venshasnoti cat ndi ed whet s w ihest pr her he s o oceed ast t def o he endantf m or t t year ,s hasi ed t or e han wo s' he gnor he c r' n iepu s ntt Ros bo o v.Ga rs 5 F. 309,31 ( t Ci.1 ) a snghe ou ts otc r ua o e r rion, 28 2d 0 4 h r 975 , dvii r ofherrghtt fl m at i r ponsest def i o ie eral es o endantsdiposii m oton'and s hasnot ' s tve i , he 6 r ponded t t cour ' Aprll9,2012 lteraski hert cont cham ber by M ay l1,2012 i es o he ts i et ng o act s f s w ant t s he ed o chedul a heari on t def nt sm oton t di m i . e ng he enda ' i o s ss lV. Fort s r a ons t ede e ntsmotont dimis( t #2 ,te t d a amo i f he e e s , h f nda ' i o s s Dk . 4) r a e s ton or s ummayj r udgme und rRul l d)a 56,i GRANTED. nt e es 2( nd s An appr i e Or w ilbe ent ed. oprat der l er The Cl k i diect t s a ceri ed copy oft sM em or er s r ed o end tfi hi andum Opi on and ni accom panyi Or t t pl ntf and t counselofr d. ng der o he ai if o ecor Ent ed:Jul 27,201 er y 2 / J A .J / #p +/.m c Mi chaelF.Ur ki bans U nied St esD iti J t at srct udge