675 F. App'x 572
6th Cir.2017Background
- Plaintiffs Jerry Jones and A Renewed Mind sued Community Broadcast Group (CBG), Jesse Weatherby, and Novia Communications over the sale/assignment of a television station license, asserting minority-shareholder and related claims.
- During settlement, counsel for Novia filed a "Stipulation of Dismissal With Prejudice" which the district court entered; the stipulation stated that counsel for the other parties had consented via email.
- Plaintiffs then moved under Rule 60(b), arguing the dismissal with prejudice was a mistake/excusable neglect because they only intended Novia to be dismissed with prejudice (claims against CBG and Weatherby to be without prejudice).
- The district court denied the Rule 60(b) motion, finding the stipulation reflected counsel’s error/choice and was not a Rule 60(b) "mistake" warranting relief.
- Jones filed a Rule 59(e) motion for reconsideration, submitting affidavits (prepared after the Rule 60(b) denial) alleging his counsel never consented to the stipulation; the district court declined to treat those as newly available evidence and denied reconsideration.
- Jones appealed the denial of the Rule 59(e) motion; the Sixth Circuit affirmed, concluding the district court did not abuse its discretion in denying both the Rule 60(b) and Rule 59(e) relief.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Rule 60(b)(1) relief (for mistake/excusable neglect) should vacate the dismissal with prejudice | Jones: the stipulation was filed by mistake; he only meant Novia to be dismissed with prejudice, so Rule 60(b) relief is warranted | Defendants: the stipulation accurately reflected counsel’s filing and plaintiffs’ litigation choices; Rule 60(b) does not cover deliberate litigation choices/errors | Denied — district court did not abuse discretion; counsel’s error/choice is not a Rule 60(b) "mistake" warranting relief |
| Whether the district court abused its discretion in denying Rule 59(e) reconsideration based on post-judgment affidavits alleging lack of consent | Jones: new affidavits show counsel never consented, so reconsideration is warranted | Defendants: affidavits were not new, could have been presented earlier and merely reargue the case | Denied — affidavits were untimely/self-serving; Rule 59(e) may not be used to present evidence that could have been raised earlier |
| Whether the appeal properly brings up the underlying Rule 60(b) order/judgment | Jones: seeks review of both denials; implies appeal covers underlying denial | Defendants: appeal of Rule 59(e) usually treated as appeal of underlying judgment only; separately, review of Rule 60 order does not revive the underlying judgment | Court: resolved on the merits — no procedural error mattered because no abuse of discretion in either denial |
Key Cases Cited
- Henness v. Bagley, 766 F.3d 550 (6th Cir. 2014) (standard of review for denial of Rule 60(b) motion)
- Park W. Galleries, Inc. v. Hochman, 692 F.3d 539 (6th Cir. 2012) (Rule 60 does not relieve consequences of deliberate litigation choices)
- Evanston Ins. Co. v. Cogswell Props., LLC, 683 F.3d 684 (6th Cir. 2012) (standard of review for denial of Rule 59(e) motions)
- Sault Ste. Marie Tribe of Chippewa Indians v. Engler, 146 F.3d 367 (6th Cir. 1998) (Rule 59(e) cannot be used to re-argue issues or present arguments that could have been raised earlier)
- Crown Serv. Plaza Partners v. City of Rochester Hills, 215 F.3d 1325 (6th Cir. 2000) (treatment of appeals that cite only an order disposing of a Rule 59 motion)
