Kellogg, Harry v. Hobson, Natalie et al

Filing 41

ORDER granting Third-party defendants United States Department of Housing and Urban Development and Secretary Benjamin S. Carson's motion for a ruling on their motion to dismiss, Dkt. 39 . Third-party defendants' motion to dismiss the clai ms against them, Dkt. 31 , is GRANTED. Plaintiff Harry Burton Kellogg III's motion to amend the complaint by removing defendant Natalie Hobson from the caption and dismissing all claims against her, Dkt. 35 , is GRANTED. HUD, Carson, and Hobson are DISMISSED from the case. Signed by District Judge James D. Peterson on 4/17/2017. (jef),(ps)

IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF WISCONSIN

HARRY BURTON KELLOGG III,
Plaintiff,
v.
NATALIE HOBSON and DEVAL LLC,
Defendants and Third-Party
Plaintiffs,

ORDER
16-cv-453-jdp

v.
BENJAMIN S. CARSON, Secretary, and
UNITED STATES DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT,
Third-Party Defendants.
Plaintiff Harry Burton Kellogg III brings this lawsuit, alleging that defendant Deval
LLC and its employee, defendant Natalie Hobson, defrauded him in servicing his mortgage
held by the United States Department of Housing and Urban Development (HUD). Deval
and Hobson filed a third-party complaint seeking indemnification by third-party defendants
HUD and then-Secretary Julian Castro. (The caption has since been amended to reflect
Benjamin S. Carson as the new HUD secretary.)
HUD and Carson have filed a motion to dismiss the third-party claims against them,
Dkt. 31, contending that only the United States Court of Federal Claims may hear those
claims because they involve more than $10,000. See U.S.C. §§ 1491 (jurisdiction over
contract disputes with United States granted to Court of Federal Claims) and 1346 (district
courts have concurrent jurisdiction over contract claims involving United States not
exceeding $10,000). HUD and Carson have also filed a motion for a ruling on this motion.

Dkt. 39. Deval and Hobson respond to the motion to dismiss by stating that they have no
objection to the motion. Dkt. 36. Because I take Deval and Hobson to be conceding that this
court cannot exercise jurisdiction over their claims, I will grant HUD and Carson’s motion to
dismiss, and dismiss them from the case.
Kellogg has filed his own motion to amend the complaint by removing Hobson as a
defendant. He states that he will instead focus on Deval, who failed to properly train
Hobson. I will grant this motion, dismiss Kellogg’s claims against Hobson, and dismiss
Hobson from the case.

ORDER
IT IS ORDERED that:
1. Third-party defendants United States Department of Housing and Urban
Development and Secretary Benjamin S. Carson’s motion for a ruling on their
motion to dismiss, Dkt. 39, is GRANTED.
2. Third-party defendants’ motion to dismiss the claims against them, Dkt. 31, is
GRANTED.
3. Plaintiff Harry Burton Kellogg III’s motion to amend the complaint by removing
defendant Natalie Hobson from the caption and dismissing all claims against her,
Dkt. 35, is GRANTED.
4. HUD, Carson, and Hobson are DISMISSED from the case.
Entered April 17, 2017.
BY THE COURT:
/s/
________________________________________
JAMES D. PETERSON
District Judge

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