Ortiz v. Garza

Filing 55

ORDER Denying Plaintiff's 54 Motion to Void Settlement for Lack of Jurisdiction, signed by Magistrate Judge Jennifer L. Thurston on 8/3/17. (Gonzalez, R)

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UNITED STATES DISTRICT COURT

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EASTERN DISTRICT OF CALIFORNIA

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Plaintiff,

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Case No. 1:15-cv-01370-DAD-JLT (PC)

JOSE A. ORTIZ,

v.
B. GARZA,

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ORDER DENYING PLAINTIFF’S
MOTION TO VOID SETTLEMENT
FOR LACK OF JURISDICTION
(Doc. 41)

Defendant.

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I.

Procedural History
The parties filed a stipulation to dismiss this action with prejudice pursuant to Fed.R.Civ.

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P.41 (a)(1). (Docs. 52. 53.) More than three months after the Court closed the action, Plaintiff

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filed a motion to void the settlement based on “trickery and misrepresentation.” (Doc. 54.)

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Because this Court lacks jurisdiction to consider the motion, it is DENIED.

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II.

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Discussion and Order
Plaintiff asserts that his July 20, 2017 inmate statement account noted that “STMNT

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Check 07-676655 of $1,904.76” had been deposited into his trust account. However, that same

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amount was noted removed and applied to his restitution that same day. Further, Plaintiff states

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that the case settled for $2,000.00, so $95.24 was missing from the settlement payment. Plaintiff

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asserts that the CDCR is only allowed to take 55% of his settlement towards his restitution debt.

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Thus, Plaintiff feels he was tricked into the settlement by misrepresentation.
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A.

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Federal courts are courts of limited jurisdiction; they possess only that power authorized

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by Constitution and statute, and it is presumed that a cause lies outside this limited jurisdiction.

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Kokkonen v. Guardian Life Ins. Co., 511 U.S. 375, 378 (1994) (quotation marks and citations

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omitted). The enforcement of a settlement agreement is more than just a continuation or renewal

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of the dismissed suit and it requires its own basis for jurisdiction. Kokkonen, 511 U.S. at 378

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(quotation marks omitted). A court may exercise ancillary jurisdiction to enforce a settlement

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agreement only where the settlement order incorporates the settlement terms, or retention

Jurisdiction

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jurisdiction is express. Kokkonen, 511 U.S. at 378; Alvarado v. Table Mountain Rancheria, 509

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F.3d 1008, 1017 (9th Cir. 2007); Ortolf v. Silver Bar Mines, Inc., 111 F.3d 85, 87-88 (9th Cir.

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1997); Hagestad v. Tragesser, 49 F.3d 1430, 1433 (9th Cir. 1995). Plaintiff fails to provide a

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copy of the settlement agreement, or any basis upon which to find that the Court has jurisdiction

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to enforce it. Consequently, Plaintiff=s motion must be denied.

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Further, Plaintiff asserts that the CDCR wrongly applied his settlement proceeds to his

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restitution debt. However, the CDCR was not a party to this action and this Court has no

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jurisdiction over it herein. Summers v. Earth Island Institute, 555 U.S. 488, 492-93 (2009);

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Mayfield v. United States, 599 F.3d 964, 969 (9th Cir. 2010). This action is simply not the proper

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vehicle for the relief Plaintiff seeks. However, Plaintiff’s distress over the discrepancies raised in

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his motion is understandable. Thus, the Warden and the Litigation coordinator at SATF are

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requested to look into the matter and provide an explanation to Plaintiff. Though Plaintiff is not

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precluded from seeking relief in the proper forum, this case shall remain closed. Even if

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jurisdiction were not lacking, Plaintiff fares no better under Rule 60 of the Federal Rules of Civil

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Procedure.

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B.

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Plaintiff’s motion may be read to asserts that his agreement to the settlement was induced

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by fraud under Rule 60(b)(3). “Courts have inherent equity power to vacate judgments obtained

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by fraud.” Hendricks & Lewis PLLC, v. Clinton, 766 F.3d 991, 1000 (9th Cir. 2014) quoting

Fraud

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United States v. Estate of Stonehill, 660 F.3d 415, 443 (9th Cir. 2011) (citing Chambers v.

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NASCO, Inc., 501 U.S. 32, 44 (1991)); see also Dixon v. Comm'r, 316 F.3d 1041, 1046 (9th

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Cir.2003) (“Courts possess the inherent power to vacate or amend a judgment obtained by fraud

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on the court.”). This power should be exercised “with restraint and discretion,” Chambers, 501

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U.S. at 44, and only when the fraud is established “by clear and convincing evidence,” England v.

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Doyle, 281 F.2d 304, 310 (9th Cir.1960).
However, “not all fraud is fraud on the court.” In re Levander, 180 F.3d 1114, 1119 (9th

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Cir. 1999). In determining whether fraud constitutes fraud on the court, the relevant inquiry is

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not whether fraudulent conduct “prejudiced the opposing party,” but whether it “ ‘harm[ed]’ the

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integrity of the judicial process.” Hendricks, 766 F.3d at 444, quoting Alexander v. Robertson,

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882 F.2d 421, 424 (9th Cir.1989). Fraud on the court involves “far more than an injury to a single

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litigant.” Id., quoting Hazel-Atlas Glass Co. v. Hartford-Empire Co., 322 U.S. 238, 246 (1976).

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One asserting fraud as a basis to void a judgment must show that the complained of act prevented

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“the judicial process from functioning in the usual manner.” Hendricks, 766 F.3d at 445. Non-

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disclosure of evidence is typically not enough to constitute fraud on the court so as to warrant

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vacating a judgment. Id. Even perjury by a party or witness by itself, is not normally fraud on

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the court. Id.
Plaintiff’s assertions pertaining to compliance/non-compliance with the terms of the

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settlement arrived at in this action do not amount to a fraud on the court to justify relief from the

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judgment entered thereon. Rather, they raise construction and enforcement issues pertaining to

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the settlement agreement which is “governed by principles of local law which apply to

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interpretation of contracts generally.” United Commercial Ins. Serv., Inc. v. Paymaster Corp.,

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962 F.2d 853, 856 (9th Cir.1992). Plaintiff’s remedy for his dispute over payment of the

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settlement proceeds is found under the laws of the State of California.

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Accordingly, Plaintiff=s motion to void the settlement agreement in this action (Doc. 54),

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is DENIED; the Clerk of the Court is directed to forward a copy of this order and Plaintiff’s

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motion to the Warden and Litigation Office at SATF.

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IT IS SO ORDERED.
Dated:

August 3, 2017

/s/ Jennifer L. Thurston
UNITED STATES MAGISTRATE JUDGE

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