LOUISE W. FLANAGAN, District Judge.
This matter is before the court on defendants' motions to dismiss for lack of subject matter jurisdiction and failure to state a claim upon which relief can be granted, pursuant to Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6). (DE 15, 22). Plaintiffs failed to respond to these motions, and the time for doing so has elapsed. Also before the court is plaintiffs' motion for partial summary judgment (DE 30), defendants' motion to strike (DE 34), and defendants' motion to extend case management order deadlines (DE 36). In this posture, the issues raised are ripe for ruling. For the following reasons, the court grants defendants' motions to dismiss, denies as moot plaintiffs' motion for partial summary judgment and defendants' motion to extend case management order deadlines, and denies as moot in part defendants' motion to strike.
Plaintiffs initiated this action on February 16, 2019, filing complaint pursuant to 42 U.S.C. § 1983 seeking declaratory judgment, preliminary and permanent injunction, and damages, asserting as follows:
(Compl. (DE 1) ¶ 1). More specifically, plaintiffs bring 18 claims against defendant Town of Wrightsville Beach ("Town"), defendant Timothy Owens ("Owens"), the Town manager, and defendant John Wessell ("Wessell"), the Town attorney, based on the above allegations, including claims for violation of plaintiffs' federal constitutional right to freedom of speech, and North Carolina-based claims for civil conspiracy and defamation.
On May 24, 2019, defendant Wessell filed the instant motion to dismiss, arguing plaintiffs' claims 1) are barred under the
Plaintiffs failed to respond to defendants' motions. However, on October 23, 2019, plaintiffs moved for partial summary judgment on plaintiffs' first, third, and fourth claims for relief. In support, plaintiffs rely on statement of material facts, memorandum of law, and appendix including a deed of gift and a satellite map of boat access area. Thereafter, defendants moved to strike plaintiffs' motion for partial summary judgment and requested an award of reasonable costs and attorneys' fees. Finally, defendants filed motion to extend case management order deadlines on November 15, 2019.
The facts alleged by plaintiffs as relevant to the instant motions may be summarized as follows.
For over 17 years, plaintiff Mangum operated plaintiff WBJSR, utilizing the state-owned public boating access area in Wrightsville Beach to launch rented jet skis into the public waterway. (Compl. (DE 1) ¶¶ 13, 25). In or around July 2015, defendant Town began issuing plaintiff Mangum citations with $50.00 civil penalties for alleged zoning violations when he and/or his jet skis were seen in or around the North Carolina Wildlife Commission Public Boating Access Area ("public boating access area"), the adjacent North Carolina Department of Transportation ("DOT") drawbridge right-of-way, and the adjoining Atlantic Intracoastal Waterway. (
Plaintiff Mangum alleges he refused to pay $500.00 to appeal a $50.00 civil penalty and continued his attempts to appeal each violation by following the procedures set forth on the citations provided to him, which appeals were rejected. (DE 20 at 4 (citing Compl. (DE 1) ¶ 54)). Plaintiffs allege that after initially informing plaintiff Mangum the civil penalties were to be sent for collection under the state debt-setoff procedures, defendant Town filed a lawsuit against him and plaintiff WBJSR in the General Court of Justice, Superior Court Division, of the County of New Hanover ("state court") to recover the civil penalties and enjoin his use of the aforementioned areas. (Compl. (DE 1) ¶¶ 71, 73-82). Thereafter, plaintiffs Mangum and WBJSR entered into a consent judgment with defendant Town.
To mitigate losses resulting from the consent judgment, plaintiff Mangum leased his jet ski equipment to plaintiff Seitter, the owner and operator of plaintiff CCW, and appeared at the public boating access area to "ensure [plaintiff] Seitter safely and properly launched the leased equipment into the intracoastal waterway." (
On July 26, 2018, defendant Town filed motion to hold plaintiff Mangum in civil contempt of court, alleging his presence and activity at the public boating access area violated the consent judgment. (
"To survive a motion to dismiss" under Rule 12(b)(6), "`a complaint must contain sufficient factual matter, accepted as true, to `state a claim to relief that is plausible on its face.'"
Defendants argue the consent judgment entered in state court precludes litigation of plaintiffs' claims in this court under the doctrine of res judicata. As an initial matter, when considering whether to give preclusive effect to a North Carolina state court judgment, this court must apply North Carolina law.
According to North Carolina law, "[u]nder the doctrine of res judicata or claim preclusion, a final judgment on the merits in one action precludes a second suit based on the same cause of action between the same parties or their privies."
First, the earlier suit must have resulted in a final judgment on the merits. Here, the the consent judgment entered in state court constitutes a final judgment on the merits.
Next, both suits must involve the same cause of action. The application of this element is "broader. . . than a mere determination of the questions involved in the prior action. . . . It extends not only to matters actually determined, but also to other matters which in the exercise of due diligence could have been presented for determination in the prior action."
In state court, defendants sought recovery of civil penalties resulting from plaintiffs Mangum and WBJSR's zoning citations and an injunction preventing plaintiffs Mangum and WBJSR from operating a jet ski rental business within defendant Town's jurisdiction. The resulting consent judgment waived the civil penalties but enforced the injunction. Now in the instant action, plaintiffs set forth a variety of claims challenging the defendants' authority to enforce the zoning ordinance in the public boating access area, defendants' authority to issue the zoning citations, the constitutionality of zoning citation appeal process, and defendants' decision to file suit seeking recovery of civil penalties and injunctive relief.
Finally, both the party asserting res judicata and the party against whom res judicata is asserted must have been parties in the previous suit or stand in privity with those parties. Here, plaintiff Mangum, plaintiff WBJSR, and defendant Town were parties in both the state court action and the current action, but plaintiffs Seitter and CCW and defendants Owens and Wessell, were not parties in the state court action. Therefore, this element turns on whether plaintiffs Seitter and CCW were in privity with plaintiffs Mangum and WBJSR, and whether defendants Owens and Wessell were in privity with defendant Town.
According to the North Carolina Supreme Court, "the meaning of privity for purposes of res judicata is somewhat elusive."
"In general, privity involves a person so identified in interest with another that he represents the same legal right."
Here, according to plaintiffs' complaint, plaintiff Mangum "entered into a commercial equipment leasing agreement with another jet ski rental business, [plaintiff] Carolina Coast Watersports, LLC, exclusively owned and operated by [plaintiff] Seitter, in order to mitigate business income losses resulting from the restrictions in the Consent Judgment." (Compl. (DE 1) ¶ 90). Thereafter, plaintiffs Seitter and CCW launched the leased jet skis from the public boating access area into the intracoastal waterway, and "[plaintiff] Mangum was also present to ensure [plaintiff] Seitter safely and properly launched the leased equipment into the intracoastal waterway." (
Through the leasing agreement, whereby plaintiffs Seitter and CCW operated plaintiff Mangum and WBJSR's jet skis at the public boating access area, plaintiffs Seitter and CCW succeeded to the interests of plaintiffs Mangum and WBJSR, establishing a relationship of privity between the parties.
Additionally, defendants Owens and Wessell, were in privity with defendant Town because all three defendants represent the same legal right, namely the right to enforce the zoning ordinance through the issuance of citations. The fact that defendants Owens and Wessell were sued in their individual capacities and official capacities does not preclude a finding of privity.
Where the state court action involved a final judgment on the merits, the suit in state court and the instant suit involve the same cause of action, and the parties or their privies were involved in both actions, the doctrine of res judicata bars plaintiffs' claims. Accordingly, defendants' motions to dismiss plaintiffs' claims one through thirteen, as well as claims seventeen and eighteen, are granted, and these claims are dismissed with prejudice.
Federal question jurisdiction provided the basis for this court's jurisdiction over plaintiffs' claims. Having dismissed all claims arising under federal law, the court declines to exercise supplemental jurisdiction over plaintiffs' remaining state law claims (plaintiffs' fourteenth, fifteenth, and sixteenth claims), and dismisses them without prejudice.
Where all of plaintiffs' claims are dismissed, plaintiffs' motion for partial summary judgment is denied as moot. Likewise, defendants' motion to strike is denied in part as moot, except where it seeks attorneys' fees. The court defers ruling on defendants' request for attorneys' fees until the response time for the motion has run, and that remaining issue is ripe for ruling by the court. Finally, defendants' motion to extend case management order deadlines is also denied as moot.
Based on the foregoing, the court GRANTS defendants' motions to dismiss. (DE 15, 22). The court dismisses plaintiffs' claims pursuant to res judicata WITH PREJUDICE and dismisses plaintiffs' claims on jurisdictional grounds WITHOUT PREJUDICE. The court DENIES AS MOOT plaintiffs' motion for partial summary judgment (DE 30) and defendants' motion to extend case management order deadlines (DE 36). The court DENIES AS MOOT IN PART defendants' motion to strike (DE 34), and HOLDS IN ABEYANCE that part of the motion comprising defendants' request for attorneys' fees and costs, which issue will be addressed by separate order after the response time has run on the motion.
SO ORDERED.