Givens v. Washington Mutual

Filing 29

MEMORANDUM OPINION. Signed by District Judge Michael F. Urbanski on 7/27/12. (kld)

'
6i . .l.p4yx xu
'à- : . ,l v.
.
r

A qq . q A
rw lpi u qk

I TIs cxl so sr r ol vm c' cocl'
x 1
r 'Arss s
r
t
r

J 3l 2 1
uL
12

FO R TH E W ESTERN DISTRICT O F VI G I IA
R N

HARRI
SONBURG DI SI
VI ON

x

c

r>

Rx

'
D PUR G

VERO NICA 1.GIVEN S,
Pl ntf ,
ai if

Cas N o.5: c 00076
e
09- vBy: H on.M i
chaelF.U rbans
ki
U nied St esD i ri Judge
t
at
st ct

W ASH I GTO N M U TU AL ,etal,
N
.
Def
endant
s.

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