480 F. App'x 764
5th Cir.2012Background
- Renobato, pro se, appeals district court's dismissal of a consolidated case for failure to prosecute.
- In 2006, Renobato purchased five 13-week T-Bills, par value $1,000 each; matured proceeds went to his Compass account.
- Renobato believed the matured funds were $1,000,000 per T-Bill and sued Compass for $5,004,000 in 2007.
- The district court compelled arbitration under a deposit account agreement; progress updates were never provided to the court.
- In 2010, the district court dismissed the first suit without prejudice for failure to prosecute; ordered arbitration initiation within 20 days if reconsidered.
- Renobato attempted arbitration with NAF (rejected) and then filed a second nearly identical suit in 2011, which was consolidated.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was dismissal with prejudice proper for failure to prosecute? | Renobato | Compass | No abuse; delay and contumacious conduct supported dismissal |
| Did due process require notice/hearing before dismissal? | Renobato | Compass | No; discretionary to dismiss without notice given conduct |
| Were lesser sanctions futile before dismissal with prejudice? | Renobato | Compass | Yes; lesser sanctions futile under record |
Key Cases Cited
- Stearman v. Comm’r, 436 F.3d 533 (5th Cir. 2006) (advance sanctions analysis for failure to prosecute)
- Tello v. Comm’r, 410 F.3d 743 (5th Cir. 2005) (three-factor test for dismissals due to delay)
- Link v. Wabash R.R. Co., 370 U.S. 626 (1962) (notice and hearing not always required for dismissal)