DEBORAH BARNES, Magistrate Judge.
Plaintiff is a state prisoner who was proceeding pro se with a civil rights action under 42 U.S.C. § 1983. This action was closed on April 15, 2019 after the parties filed a stipulation for voluntary dismissal pursuant to Federal Rule of Civil Procedure 41(a). (ECF Nos. 49, 50.) Plaintiff claimed he was not being provided with proper pain medication in violation of the Eighth Amendment. Presently before the court is plaintiff's motion for trial (ECF No. 52), defendants' opposition (ECF No. 53), and plaintiff's reply (ECF No. 55). For the reasons set forth below, the court will recommend that plaintiff's motion be dismissed for lack of jurisdiction.
Plaintiff has filed a motion requesting to have this matter heard at trial by a jury and a notice that the settlement was under duress. (ECF No. 52.) Upon review of the motion it appears plaintiff seeks to set aside the settlement agreement. Accordingly, the court construes plaintiff's motion as a request to rescind the settlement agreement.
Plaintiff alleges that he was in a psychiatric program and heavily medicated when he entered into the settlement agreement. He states he "no longer wants to settle[] this matter, at least not for the sum agreed upon." (ECF No. 52 at 1.) In support of his request he alleges he was so heavily medicated he could not sign his name properly. (
Defendants have filed an opposition to plaintiff's motion. (ECF No. 53.) In their opposition defendants argue that the court lacks jurisdiction to resolve plaintiff's motion, and alternatively, that the court should deny plaintiff's motion because the settlement agreement is valid and enforceable under California law.
In a declaration attached to the opposition, counsel for defendants set forth the following: Plaintiff's deposition was taken on March 19, 2019. (ECF No. 53-1 at 1.) Shortly thereafter, plaintiff made a verbal demand to settle the case "for $1,500 and a television, hotpot, radio, headphones, clippers, and other miscellaneous toiletry and food items." (
On May 16, 2019, counsel wrote to plaintiff and provided him with copies of the executed settlement agreement, the stipulation for dismissal, and his completed payee data record. On May 20, counsel received a letter from plaintiff acknowledging he settled the case for $1,300 and informing counsel he had been transferred to a new prison facility.
Defendants argue that the court lacks jurisdiction because the terms of the settlement agreement were not made part of the dismissal order. (ECF No. 53 at 2-3.) Defendants further claim that even if the court did have jurisdiction it should not set aside the settlement agreement because plaintiff has not provided evidence to support a claim of duress and has not provided competent evidence to support his claim that he lacked capacity. (
"Federal courts are courts of limited jurisdiction. They possess only that power authorized by Constitution and statute, which is not to be expanded by judicial decree. It is to be presumed that a cause lies outside this limited jurisdiction, and the burden of establishing the contrary rests upon the party asserting jurisdiction."
Generally, when a district court dismisses an action with prejudice, federal jurisdiction ends and a dispute arising under the settlement agreement is a separate contract dispute that requires its own independent basis for jurisdiction.
Here, the parties entered into a stipulation of dismissal with prejudice, and this action was terminated on April 15, 2019. (ECF No. 50.) The parties indicated that they "have resolved the case in its entirety," and stipulated to dismissal of this action with prejudice. (ECF No. 49.) The parties did not attach the settlement agreement, incorporate the terms of the settlement, or even reference the settlement agreement. Thus, the court did not retain jurisdiction.
"The construction and enforcement of settlement agreements are governed by principles of [state] law which apply to contracts generally."
For the reasons set forth above, IT IS HEREBY RECOMMENDED that plaintiff's motion (ECF No. 52) be denied for lack of jurisdiction.
These findings and recommendations are submitted to the United States District Judge assigned to the case, pursuant to the provisions of 28 U.S.C. § 636(b)(1). Within fourteen days after being served with these findings and recommendations, any party may file written objections with the court and serve a copy on all parties. Such a document should be captioned "Objections to Magistrate Judge's Findings and Recommendations." Any response to the objections shall be filed and served within fourteen days after service of the objections. The parties are advised that failure to file objections within the specified time may waive the right to appeal the District Court's order.