Derrick Price and IHip Hop, LLC v. Independence Federal Savings Bank
110 A.3d 567
D.C.2015Background
- Price owns a mixed-use property and the LLC is its commercial tenant; Independence loaned $545,000 in 2007 via promissory note and deed of trust.
- Independence issued notices of default in 2008, accelerated the loan, foreclosed in November 2008, and sold the property to itself for $100,000.
- Independence initiated LT1 for unpaid rent in 2009; LLC redeemed the property in 2009, and a writ of eviction was canceled.
- Independence filed LT2 in 2010 seeking possession; Price appeared as LLC member but was told he could not represent the LLC; non-redeemable possession judgment entered.
- Price and the LLC filed suit in 2011 asserting wrongful foreclosure and related claims; the trial court dismissed Counts I–IV as res judicata in 2012; CPPA counts were amended in 2013 but later dismissed as not consumers.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether res judicata bars Counts I–IV due to privity | Price/LLC contend no privity; Patton requires different interests and lack of control by Price. | Independence asserts LLC and Price are in privity due to control/representative conduct and Taylor exceptions. | Privity exists; Counts I–IV barred by res judicata. |
| Whether CPPA applies to Price and the LLC as consumers | Price/LLC are consumers under CPPA since motives can be pecuniary and not purely personal. | No consumer-merchant relationship; transaction is commercial and not within CPPA scope. | CPPA does not apply; Price and LLC are not consumers. |
Key Cases Cited
- Patton v. Klein, 746 A.2d 866 (D.C. 1999) (privity framework for res judicata in DC)
- Taylor v. Sturgell, 553 U.S. 880 (S. Ct. 2008) (nonparty preclusion and six exceptions framework)
- Franco v. District of Columbia, 3 A.3d 300 (D.C. 2010) (Taylor exception-based privity discussion in DC)
- EDCare Management, Inc. v. DeLisi, 50 A.3d 448 (D.C. 2012) (agency/privy considerations in res judicata)
- Ford v. Chartone, Inc., 908 A.2d 72 (D.C. 2006) (CPPA scope; merchants vs consumers)
- Adam A. Weschler & Son, Inc. v. Klank, 561 A.2d 1003 (D.C. 1989) (business purchaser not within CPPA when resale)
- Smith v. Jenkins, 562 A.2d 610 (D.C. 1989) (definition of privy in res judicata)