United States of America v. Meals, Stephen et al

Filing 30

OPINION & ORDER granting 29 Motion to Vacate Judgment and Dismiss the Complaint. The judgment is vacated, and the case is dismissed without prejudice. Signed by District Judge James D. Peterson on 6/14/2017. (kwf)

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

UNITED STATES OF AMERICA,
Plaintiff,
v.
OPINION & ORDER
STEPHEN K. MEALS, NANCY P. GRAUER,
SUPERIOR CHOICE CREDIT UNION,
MIDLAND FUNDING, LLC, and
DEERE & COMPANY,

16-cv-750-jdp

Defendants.
The United States of America filed this case seeking to foreclose on a farm owned by
defendants Stephen K. Meals and Nancy P. Grauer. The government and defendant Superior
Choice Credit Union stipulated that any proceeds from the sale of the property should be
paid first to satisfy Superior Choice’s superior lien interest. The remaining defendants
defaulted. On February 28, 2017, the court granted the government’s motion for judgment
on the pleadings and default judgment, concluded that Superior Choice was entitled to
recover $34,935.61 from the sale, and entered judgment in the amount of $125,967.68 in
the government’s favor. Dkt. 25. Now, the government and Superior Choice jointly move to
vacate that judgment under Federal Rule of Civil Procedure 60(b)(5) or (6) and dismiss the
complaint without prejudice under Rule 41(a)(2). Dkt. 29. They represent that they have
reached a resolution with Meals and Grauer and no longer wish to pursue the foreclosure
action.
“Rule 60(b) ‘is to be used to disturb the finality of judgments only on narrow grounds
and upon a showing of exceptional circumstances.’” McNeela v. United Airlines, Inc., 17 F.
App’x 407, 409 (7th Cir. 2001) (quoting Smith v. Widman Trucking & Excavating Inc., 627

F.2d 792, 795 (7th Cir. 1980)). The government and Superior Choice do not represent that
the judgment has been fully satisfied, released, or discharged, so vacatur under Rule 60(b)(5)
would be inappropriate. The court may vacate the judgment under Rule 60(b)(6) for “any
other reason that justifies relief.” Here, Meals and Grauer’s creditors no longer wish to pursue
foreclosure, and Meals and Grauer would presumably prefer not to have a judgment of
foreclosure hanging over their heads. Given the procedural history of this case, the court finds
that relief under Rule 60(b) is justified and dismissal without prejudice under Rule 41(a)(2)
is proper.

ORDER
IT IS ORDERED that:
1. Plaintiff United States of America and defendant Superior Choice Credit
Union’s motion to vacate judgment and dismiss the complaint, Dkt. 29, is
GRANTED.
2. The judgment is vacated, and the case is dismissed without prejudice.
Entered June 14, 2017.
BY THE COURT:
/s/
________________________________________
JAMES D. PETERSON
District Judge

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