Steed v. Bank United

Filing 8

ORDER that Defendant's 3 Motion to Dismiss is granted. Plaintiff's 1 Complaint is dismissed with prejudice. The Rule 16 Case Management conference set for February 28, 2013 at 4:30 p.m. is vacated. Signed by Judge David G Campbell on 2/28/2013.(LFIG)

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IN THE UNITED STATES DISTRICT COURT

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FOR THE DISTRICT OF ARIZONA

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Frank Steed,

No. CV-12-02643-PHX-DGC
Plaintiff,

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v.

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ORDER

BankUnited,

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Defendant.
On December 11, 2012, Plaintiff Frank Steed filed an action to quiet title to real

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property located at 1823 West Maddock Road, Phoenix, Arizona, 85086.

Doc. 1.

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Defendant BankUnited filed a motion to dismiss on January 7, 2013. Doc. 3. Plaintiff

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has failed to respond to the motion to dismiss despite the Court’s warning that such a

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failure could lead to dismissal with prejudice under Rule 41(b).

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considered the substance of the motion to dismiss and determined that Plaintiff’s suit is

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barred by res judicata and should be dismissed with prejudice.

The Court has

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On August 18, 2009, Plaintiff and his wife filed a state court action against

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BankUnited and another defendant in Maricopa County Superior Court (Case No.

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CV2009-053727) claiming breach of contract, tortious interference with the use and

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enjoyment of property, and wrongful foreclosure. Doc. 3-1 at 49-59. Though no claim

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was made to quiet title, the suit challenged the legitimacy of the deed of trust and

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Plaintiffs sought to enjoin the trustee’s sale. Doc. 3-1 at 49-59. In December 2010, the

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parties entered into a settlement agreement to resolve the suit and BankUnited filed a

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notice of settlement. Doc. 3-1 at 85. As part of the agreement, Plaintiff was required to

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dismiss the suit. When he failed to do so, BankUnited filed a motion to enforce the

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settlement agreement and dismiss the state court action with prejudice. Doc. 3-1 at 97-

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101. A hearing was held at which both parties presented oral argument on the motion to

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enforce the settlement agreement. Doc. 3-1 at 126. The superior court issued an order on

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August 6, 2012, granting BankUnited’s motion to enforce the settlement agreement and

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dismissing Plaintiff’s claims with prejudice. Doc. 3-1 at 132. BankUnited argues that

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the state court judgment precludes Plaintiff from bringing this action.

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Federal courts must give the same preclusive effect to a state court judgment that

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the state would give to its own judgments. Migra v. Warren City Sch. Dist. Bd. Of Educ.,

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465 U.S. 75, 81 (1984). In Arizona, res judicata or claim preclusion requires that

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between both suits there be (1) identity of claims, (2) a final judgment on the merits in the

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previous litigation, and (3) identity or privity between parties. In re Gen. Adjudication of

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All Rights to Use Water in Gila River Sys. & Source, 127 P.3d 882, 887-88 (2006).

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Plaintiff’s suits in state and federal court satisfy all three elements. Though the

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two claims are not styled with identical captions (the state court suit was not an action to

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“quiet title”), both suits contest the enforceability of the deed of trust and employ many

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of the same legal theories. See Doc 1 at ¶¶ 16-20; Doc. 3-1 at 53-55. Different labels on

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claims that argue the same subject matter are not sufficiently different to avoid res

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judicata. MacRae v. Betts, 14 P.2d 253, 255 (1932). The state court’s dismissal was not

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based on jurisdiction, improper venue, or failure to join, and therefore it was on the

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merits in satisfaction of the second element. Ariz R. Civ. P. 41(b). Finally, Plaintiff and

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BankUnited are parties in both actions.

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IT IS ORDERED that Defendant’s motion to dismiss (Doc. 3) is granted.

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Plaintiff’s complaint (Doc. 1) is dismissed with prejudice.

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Management conference set for February 28, 2013 at 4:30 p.m. is vacated.

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Dated this 28th day of February, 2013.

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The Rule 16 Case