CAROL BAGLEY AMON, Chief District Judge.
Plaintiff Iryne Witek, now proceeding pro se, filed this employment discrimination action on February 29, 2012, pursuant to Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000-e et seq., and 42 U.S.C. §§ 1981, 1983. (D.E. # I, Compl.) More than three years later, resolving this action has proven a Sisyphean task. Witek has been represented by three sets of privately retained counsel in protracted settlement negotiations involving numerous conferences with the Court. Twice, the parties appeared to reach a settlement; both times, Witek reneged on the agreement, creating a conflict of interest that forced two different sets of counsel to withdraw. (
On March 2, 2015, Witek moved to reopen the case
Discovery was completed in this employment discrimination action in February 2013. (D.E. # 37.) The parties then sought to settle the case with the Court's assistance—a pursuit that, to date, has not proven successful.
On April 24, 2013, Magistrate Judge Pohorelsky conducted what was to become the first of many unsuccessful settlement conferences with the parties. (D.E. # 40.) At that time, Witek was represented by the Law Offices of Anthony J. Colleluori & Associates, PLLC ("Colleluori"). When the parties failed to reach an agreement, defendants opted to seek summary judgment. (D.E. # 41.) That motion was to be fully briefed by November 4, 2013. (D.E. dated July 10, 2013.)
While the summary judgment motion was pending, the parties attended three more settlement conferences with Magistrate Judge Pohorelsky. (
When further negotiations failed to produce an agreement, defendants moved to enforce the apparent settlement. (D.E. dated Oct. 10, 2013; D.E. dated Nov. 13, 2013.) Colleluori then moved to withdraw rather than take a position adverse to Witek as to whether the apparent settlement was enforceable and sought a stay of proceedings until that motion was decided. (D.E. # 49.) The motions for summary judgment and to enforce the apparent settlement have been held in abeyance ever since and no progress has been made on the merits of this action. (
Witek next retained and soon discharged (for reasons not made known to the Court) Aaron David Frishberg as substitute counsel. (D.E. # 62, 73;
The Settlement Agreement provided, in pertinent part:
Importantly for the instant motion to reopen, the Settlement Agreement also contained a provision permitting Witek to revoke the agreement within seven days of its execution (the "revocation period"). (
On August 25, 2014, before the revocation period had expired, the parties filed a stipulation of dismissal, (D.E. # 79), which was ordered by the Court on September 3, 2014, (D.E. # 80). In the intervening period, however, Witek exercised her right to revoke. On August 28, 2014, Witek delivered the fully executed Settlement Agreement to defendants' counsel; stapled to the Agreement was a handwritten revocation notice signed by Witek. (
Despite her revocation, Witek moved to compel enforcement of the Agreement by letter dated September 18, 2014. (D.E. # 81.) Witek specifically sought two items of information purportedly required by the Agreement: (I) confirmation of her resignation date; and (2) a phone number for prospective employers to call when seeking information about her employment. (
On October 20, 2014, Witek informed the Court for the first time that she had revoked the Agreement—the very agreement she had been seeking to enforce for nearly two months. (D.E. # 84.) When it became clear Witek would stand on that revocation, Norinsberg—like Colleluori before him—was forced to withdraw. (
While the instant motions were pending before Magistrate Judge Pohorelsky, this Court adopted in part Magistrate Judge Pohorelsky's recommendation to assess an outstanding charging lien asserted by Colleluori after he withdrew as counsel. (D.E. # 113 ("Charging Lien Order").) Specifically, the Court adopted the recommendation that Colleluori's charging lien be assessed in the
When deciding whether to adopt a report and recommendation, a district court "may accept, reject, or modify, in whole or in part, the findings or recommendations made by the magistrate judge." 28 U.S.C. § 636(b)(1). To accept those portions of the R&R to which no timely objection has been made, "a district court need only satisfy itself that there is no clear error on the face of the record."
Witek, now proceeding prose, filed a letter objecting to the R&R on April 7, 2015.
Although many ofWitek's objections are not material to the recommendations of the R&R, are contradicted by the record, or raise new facts not presented to Magistrate Judge Pohorelsky, the Court has nonetheless construed Witek's submissions to raise the strongest arguments they suggest and, in an abundance of caution, has reviewed both motions de novo in their entirety. The Court addresses Witek's objections where relevant below.
While the instant motions were pending, Witek appealed this Court's Charging Lien Order. (D.E. # 115.) The Court must consider the jurisdictional implications of that appeal before adjudicating the pending motions to reopen and for appointment of counsel.
"The filing of a notice of appeal is an event of jurisdictional significance—it confers jurisdiction on the court of appeals and divests the district court of its control over those aspects of the case involved in the appeal."
Applying these principles, the Court must determine whether it retains jurisdiction over each of Witek' spending motions. Witek's motion for appointment of counsel is plainly unrelated to the questions raised and decided in the Charging Lien Order that Witek has appealed. Issues related to attorney compensation are generally treated as collateral to the merits.
The Court sees no reason for a different outcome in the inverse scenario where, as here, the appeal does not implicate the merits and concerns a wholly collateral attorney-compensation issue. The Charging Lien Order presently before the Second Circuit concerns only a collateral issue: the assessment of a charging lien asserted by Witek's former retained counsel based on the fair and reasonable value of services already rendered. By contrast, the present motion asks the Court to appoint new pro bono counsel for Witek. The order appealed from thus raises legal and factual questions distinct from and collateral to the motion for appointment of counsel. This Court therefore retains jurisdiction to resolve that motion.
Witek's motion to reopen, which the Court construes as a Rule 60(b) motion,
Witek's motion to reopen does not affect those aspects of the case implicated by the pending appeal. The motion to reopen requires the Court to consider whether the facts alleged by Witek justify the extraordinary relief of setting aside a final judgment. The appeal, which concerns the appropriate assessment of Colleluori's charging lien, requires the Second Circuit to consider only those facts relevant to the
Witek asks the Court to reopen this action, which was closed pursuant to a stipulation of dismissal entered into by the parties. Witek argues that her case should be reopened because after the stipulation was filed, she validly revoked the Settlement Agreement by delivering a written notice of revocation to defendants' counsel within the period allowed by the Agreement.
A party may seek relief from a stipulation of dismissal under Federal Rule of Civil Procedure 60(b).
Fed. R. Civ. P. 60(b). "Motions under [R]ule 60(b) are addressed to the sound discretion of the. [district] court and are generally granted only upon a showing of exceptional circumstances."
Construed liberally, Witek's submissions raise two potential grounds for relief from the stipulation of dismissal: (1) counsel for both parties erred by prematurely filing the stipulation of dismissal before the revocation period had expired; and (2) Witek validly revoked the Settlement Agreement in the manner and within the time period prescribed by its terms; accordingly, no enforceable agreement resolving this action was ever reached by the parties. The Court agrees with Magistrate Judge Pohorelsky that the only clauses of Rule 60(b) that even arguably apply to these claims are Rules 60(b)(1) and 60(b)(6). Magistrate Judge Pohorelsky concluded that Witek is likely entitled to the relief she seeks under both provisions because she validly revoked the Settlement Agreement. Nonetheless, Magistrate Judge Pohorelsky recommended that the Court decline to reopen this action for two reasons: (1) Witek effectively abandoned her revocation by seeking to enforce the Settlement Agreement for nearly two months after her purported revocation; and (2) reopening this action would reward Witek's bad faith conduct and unnecessarily prolong the already protracted proceedings in this action. (R&R at 6-7.)
Although the Court shares Magistrate Judge Pohorelsky's concerns, the Court regretfully concludes that the case must be reopened because the parties never reached an enforceable settlement agreement. "Settlement agreements are contracts and must therefore be construed according to general principles of contract law."
Here, the Settlement Agreement contains a provision explicitly providing Witek with "seven (7) days following her execution to revoke [the agreement]" by delivering "an originally executed written notice or revocation . . . to defendants' counsel." (Settlement Agreement ¶¶ 7-8.) The Agreement further specified that it would "not be effective and enforceable until the Revocation Period has expired." (
Although Magistrate Judge Pohorelsky likewise concluded that Witek had validly revoked the Agreement, he reasoned that she had effectively abandoned that revocation through her postrevocation conduct: namely, by seeking to enforce the Agreement. (R&R at 6-7.) Despite this result's intuitive appeal, the Court cannot discern a legal basis supporting this conclusion. The Court has analyzed, for example, whether Witek's post-revocation conduct may have operated as a ratification of the Agreement.
Moreover, in her objections, Witek attempts to provide some context for her postrevocation conduct. Witek explains that she did not realize she needed to notify the Court about her revocation because (1) by its terms, the Settlement Agreement only required that the revocation notice be delivered to defendants' counsel, and (2) Witek believed that only her counsel could contact the Court. Moreover, Witek claims that she did not know her case had been dismissed and therefore did not seek to reopen the case sooner. (Witek Obj. at 3.) These assertions fall far short of justifying Witek's conduct, particularly the fact that she affirmatively sought to enforce the Agreement she had already revoked, engaging the Court, her counsel, and defense counsel in two months of unnecessary and contentious litigation. Indeed, the Court finds Witek's objections to be somewhat disingenuous. But the Court can imagine how a represented litigant might not be aware of the precise procedural posture of her case and might hesitate to contact the Court directly. The Court is therefore reluctant to construe Witek's post-revocation conduct—indefensible as it may be—as giving rise
The Court therefore determines that no enforceable settlement agreement was entered into by the parties, a conclusion which now compels the Court to grant Witek's motion to reopen. Review of the record makes plain that the parties filed the stipulation of dismissal with the mistaken understanding that an enforceable settlement agreement had been reached. Having concluded that no such agreement was effectuated, the Court will not enforce a stipulation of dismissal unquestionably entered into and filed by counsel for both parties based on a mutual mistake of fact.
The Court is mindful that, ordinarily, "dissatisfaction in hindsight with choices deliberately made by counsel is not grounds for finding the mistake, inadvertence, surprise or excusable neglect necessary to justify Rule 60(b)(1) relief."
Of even more concern is the possibility that, given Witek's position that a settlement was not reached-a conclusion with which the Court reluctantly agrees—defendants could conceivably refuse to pay Witek the agreed-upon settlement amount. Were the Court to decline to reopen, this action could therefore result in dismissal of Witek's claims with prejudice, without any recovery or recourse for her and without an adverse adjudication on the merits. The need to avoid such an unjust outcome leads the Court to conclude that "there are extraordinary circumstances justifying relief' from the final judgment in this case.
The Court is troubled by this result, which would appear to reward Witek's vexatious and dilatory conduct throughout the course of this litigation—conduct that arguably evidences a badfaith approach in her dealings with both her counsel and defendants. The Court is also conscious that reopening the case is not entirely fair to defendants, who have exercised good-faith efforts to settle this litigation for more than three years and who continue to incur the costs of Witek's illusory commitments to resolution. Moreover, the Court, like Magistrate Judge Pohorelsky, has no confidence that reopening this action will facilitate a just resolution on the merits. Nonetheless, the legal posture of this case requires that it be reopened. The Court therefore grants Witek's motion to reopen. When litigation resumes, Witek will thus confront either reopened settlement negotiations, revived summary judgment briefing, or a renewed motion to enforce an earlier apparent settlement.
There is no right to the appointment of pro bono counsel in civil matters.
"Volunteer lawyer time is a precious commodity."
For the reasons stated above, the Court grants Witek's motion to reopen, but declines to appoint
SO ORDERED.
Instead, this Court concluded that New York law unequivocally requires that a charging lien be assessed in the
The elements of equitable estoppel are even less obviously applicable here. "A plaintiff asserting equitable estoppel must show, on the part of the party being estopped: `(1) conduct which amounts to a false representation or conceahnent of material facts; (2) intention that such conduct will be acted upon by the other party; and (3) knowledge of the real facts.'"