MEMORANDUM OPINION
Before this action began, Plaintiff/Counter-Defendant Marbury Law Group, PLLC (“Marbury”) brought suit against DefendanVCounter-Plaintiff Bernard J. Carl (“Carl”) in the Fairfax County Circuit Court of the Commonwealth of Virginia seeking to collect unpaid fees for the legal services that it provided to Carl while representing him in connection with two legal actions. When Carl failed to defend against the Virginia action, the Fairfax County Circuit Court entered a default judgment against him. Shortly thereafter, Marbury commenced this action with the aim of registering the default judgment with this Court. Carl appeared prose, 1 answered the [1] Complaint, and asserted a handful of counterclaims against Mar-bury.
Subsequently, Marbury realized that this Court lacked jurisdiction to register the default judgment entered by the Fair-fax County Circuit Court and moved this Court to dismiss the Complaint. The Court did so, which left only Carl’s counterclaims against Marbury as live claims in this action. Thereafter, with the Court’s leave, Carl filed a [33] First Amended Counterclaim, in which he narrowed his claims against Marbury to three counterclaims sounding in legal malpractice and breach of fiduciary duty, all of which challenge, in one way or another, the adequacy of Marbury’s legal representation of him in connection with the same two legal actions that underlay Marbury’s action to collect unpaid fees in the Fairfax County Circuit Court. Now, those three counterclaims are the only claims that remain at issue in this action.
There are presently two motions pending before the Court: Marbury’s [35] Motion for Summary Judgment and Carl’s [45] Motion for Relief Under Rule 60(b). In the first motion, Marbury seeks the dismissal of Carl’s First Amended Counterclaim, contending that Carl’s three counterclaims (a) could have and should have been raised in the action before the Fairfax County Circuit Court and are accordingly barred by the doctrine of res judicata, and (b) fail on the merits. In the second motion, Carl petitions this Court for relief from the default judgment entered by the Fairfax County Circuit Court, contending more or less that his failure to defend against the Virginia action was the product of excusable neglect.
I. BACKGROUND
On March 6, 2009, Marbury brought suit against Carl in the Fairfax County Circuit Court (the “Virginia action”), seeking to collect unpaid fees for the legal services that it provided to Carl in connection with two legal actions. See Compl., ECF No. [1], ¶ 5; Answer, ECF No. [6], ¶5. On April 15, 2009, though he was yet to be formally served with a copy of the complaint in the Virginia action, Carl sent Marbury a draft pleading in which he responded to the allegations raised in the complaint and stated counterclaims against Marbury for breach of contract and legal malpractice. See Decl. of John F. Mardula in Supp. of Counter-Def.’s Mot. for Summ. J. (“Mardula Decl.”), ECF No. [35-1], ¶2 & Ex. A; Compl. ¶ 5; Answer ¶ 5. Despite having sent Marbury this draft and being on notice of the pendency of the Virginia action, Carl never actually filed that document — or, for that matter, any other responsive pleading — with the Fairfax County Circuit Court. See Decl. of Bernard J. Carl in Supp. of Counter-PL’s Resp. to Counter-Def.’s Mot. for Summ. J. (“Carl Decl.”), ECF No. [40], ¶¶ 110-11; Mardula Decl. ¶ 2. On May 29, 2009, the Fairfax County Circuit Court entered a default judgment in Marbury’s favor, awarding Marbury (a) damages in the amount of $134,133.42, (b) post-judgment interest at the rate of 6% per annum from May 14, 2009, and (c) $262.00 in costs. See Order of J. as to Def. Bernard J. Carl, Marbury Law Grp., PLLC v. Carl, Civ. Action No. 2009-3375 (Va.Cir.Ct. May 29, 2009).
Carl did not appeal the default judgment. See Carl Decl. ¶¶ 118-19, 121-22. Much later, Carl filed a motion with the Fairfax County Circuit Court seeking to have the default judgment set aside. See id. ¶¶ 116, 121-22. On February 12, 2010, Carl’s motion was denied. See Order, Marbury Law Grp., PLLC v. Carl, Civ. Action No. 2009-3375 (Va.Cir.Ct. Feb. 12, 2010). Carl did not appeal that decision either. See Carl Decl. ¶ 122; Mardula Decl. ¶ 21. To date, Carl has not made any attempt to satisfy the default judgment. See Compl. ¶ 9; Answer ¶ 9.
On July 29, 2009, Marbury commenced this action, seeking to register the default judgment with this Court. On October 15, 2009, Carl filed a responsive pleading, answering the allegations in the Complaint and asserting a total of seven counterclaims sounding in breach of contract, breach of fiduciary duty, and legal malpractice.
On November 2, 2009, Marbury filed a motion to dismiss its own Complaint for lack of subject matter jurisdiction, representing that “[subsequent research [ ] caused counsel to conclude that ... subject matter jurisdiction is lacking for this Court to register and enforce the judgment entered against Carl.” Counter-Def.’s Mem. in Supp. of Mot. to Dismiss,
However, on July 27, 2010, upon Carl’s motion, the Court reconsidered and vacated its prior dismissal order. See Order (July 27, 2010), ECF No. [28]; Mem. Op. (July 27, 2010), ECF No. [29]. Then, reaching the merits of the motions, the Court dismissed Marbury’s Complaint for lack of subject matter jurisdiction, but held-in-abeyance Marbury’s motion to dismiss Carl’s counterclaims pending further briefing on the threshold question of whether the Court retained jurisdiction over those claims. See Order (July 27, 2010); Mem. Op (July 27, 2010). On September 9, 2010, upon consideration of the parties’ supplemental briefing, the Court agreed with the parties that it retains jurisdiction over Carl’s counterclaims in light of the diversity of citizenship between the parties and the amount in controversy. See Order (Sept. 9, 2010), ECF No. [32], On that same date, the Court further granted Carl leave to file amended counterclaims and denied Marbury’s motion to dismiss Carl’s counterclaims without prejudice, with leave to re-file after tailoring the motion to speak to Carl’s amended counterclaims. See id.
On September 9, 2010, Carl filed his First Amended Counterclaim, in which he narrowed his claims against Marbury to a total of three counterclaims — two sounding in legal malpractice and a third sounding in breach of fiduciary duty. See First Am. Countercl., ECF No. [33]. Each of Carl’s three counterclaims challenge, in one way or another, the adequacy of Marbury’s legal representation of his interests in connection with two legal actions: (a) a civil action in the United States District Court for the Eastern District of Virginia captioned Carl v. BernardJCarl.com, Civ. Action No. 07-1128 (E.D.Va.), which the parties refer to in shorthand as the “website case”; and (b) a bankruptcy proceeding in the United States Bankruptcy Court for the Eastern District of Virginia captioned In re Logan, Case No. 07-12564 (Bankr. E.D.Va.), which the parties refer to as the “bankruptcy case,” the “Logan bankruptcy case,” or the “Kedleston matter.” In his First Counterclaim, Carl claims that Mar-bury committed legal malpractice in connection with the website case by failing to pursue legal rights on his behalf, failing to undertake necessary legal research, and failing to meet minimum professional standards for legal representation. See First Am. Countercl. ¶¶ 67-69. In his Second Counterclaim, Carl claims that Marbury committed legal malpractice in connection with the bankruptcy case by failing to be adequately prepared for discovery, failing to undertake necessary legal research, failing to file timely motions, and failing to meet minimum professional standards for legal representation. See id. ¶¶ 73-79. In his Third Counterclaim, 2 Carl claims that Marbury breached its fiduciary duty to him in connection with the bankruptcy case by failing to be adequately prepared for discovery, failing to undertake necessary legal research, failing to file timely motions, and failing to meet minimum professional standards for legal representation. See id. ¶¶ 80-86. 3
On December 23, 2010, Carl filed a motion under Rule 60(b) of the Federal Rules of Civil Procedure, seeking relief from the default judgment entered by the Fairfax County Circuit Court. See Carl’s Mem. in Supp. of Mot. for Relief Under Rule 60(b), ECF No. [45]. On January 6, 2011, Mar-bury filed an opposition. See Marbury’s Opp’n to Carl’s Mot. for Relief Under Rule 60(b), ECF No. [46]. On January 13, 2011, Carl filed his reply. See Carl’s Reply to Marbury’s Opp’n to Mot. for Relief Under Rule 60(b), ECF No. [47]. The motion is therefore fully briefed and ripe for adjudication.
II. LEGAL STANDARDS
A. Motions for Summary Judgment Under Rule 56(a)
Summary judgment is appropriate where “the movant shows that there is no genuine dispute as to any material fact and [that it] ... is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(a). The mere existence of some factual dispute is insufficient on its own to bar summary judgment; the dispute must pertain to a “material” fact, and therefore “[o]nly disputes over facts that might affect the outcome of the suit under the governing law will properly preclude the entry of summary judgment.”
Anderson v. Liberty Lobby, Inc.,
In order to establish that a fact is or cannot be genuinely disputed, a party must (a) cite to specific parts of the record— including deposition testimony, documentary evidence, affidavits or declarations, or other competent evidence — in support of its position, or (b) demonstrate that the materials relied upon by the opposing party do not actually establish the absence or presence of a genuine dispute. Fed. R.Civ.P. 56(c)(1). Conclusory assertions offered without any factual basis in the record cannot create a genuine dispute sufficient to survive summary judgment.
Ass’n of Flight Attendants-CWA, AFL-CIO v. U.S. Dep’t of Transp.,
When faced with a motion for summary-judgment, the district court may not make credibility determinations or weigh the evidence; instead, the evidence must be analyzed in the light most favorable to the non-movant, with all justifiable inferences drawn in his favor.
Liberty Lobby, 477
U.S. at 255,
B. Motions for Post-Judgment Relief Under Rule 60(b)
Rule 60(b) permits a federal district court to “relieve a party or its legal representative from a final judgment, order, or proceeding” on one of six enumerated grounds. Fed.R.Civ.P. 60(b). The Rule is “intended to preserve ‘the delicate balance between the sanctity of final judgments ... and the incessant command of the court’s conscience that justice be done in light of all the facts.’ ”
Good Luck Nursing Home, Inc. v. Harris,
III. DISCUSSION
The Court will begin by addressing Mar-bury’s [35] Motion for Summary Judgment. See infra Part III.A. Thereafter, the Court will address Carl’s [45] Motion for Relief Under Rule 60(b). See infra Part III.B. For the reasons set forth below, both motions will be denied.
A. Marburg’s Motion for Summary Judgment
In its [35] Motion for Summary Judgment, Marbury seeks dismissal of Carl’s [33] First Amended Counterclaim in its entirety. Marbury offers two lines of argument in support of dismissal. First, Marbury contends that Carl’s three counterclaims could have and should have been raised by Carl in the Virginia action and are accordingly barred by res judicata. See Marbury’s MSJ Mem. at 5-10; Mar-bury’s MSJ Reply at 2-4. Second, Mar-bury contends in the alternative that Carl’s three counterclaims fail on the merits. See Marbury’s MSJ Mem. at 10-15; Marbury’s MSJ Reply at 4-5. The Court addresses each line of argument in turn.
1. Marbury Has Failed To Establish That the Doctrine of Res Judicata Precludes Carl From Pursuing His Counterclaims in this Action
Federal courts must accord “full faith and credit” to the judgments of state courts, 28 U.S.C. § 1738, a command that means that state-court judgments must be
Under Virginia law, the doctrine of
res judicata
“precludes parties from relitigating a cause of action when a valid final judgment has been entered on the matter.”
Wright v. Eckhardt,
In support of its Motion for Summary Judgment, Marbury argues that Carl’s three counterclaims, which together challenge the adequacy of Marbury’s legal representation of Carl in connection with the website case and the bankruptcy case, could have and should have been raised in the Virginia action; in which Marbury successfully secured a default judgment against Carl for unpaid legal fees for services rendered in connection with the website case and the bankruptcy case. From this foundation, Marbury posits that Carl’s counterclaims in this action arise out of the same “definable factual transaction” that was at issue in the Virginia action — namely, “the accumulation of outstanding legal fees from the legal services Marbury provided to Carl in the [ ] matters it handled for him.” Marbury’s MSJ Mem. at 8. Marbury concludes that allowing Carl to pursue his counterclaims in this action would effectively condone impermissible “claim splitting.” Id. at 6. The Court finds the argument unpersuasive.
True, Marbury’s argument has some superficial appeal. It is often said that the doctrine of
res judicata
is intended to prevent not just the relitigation of claims actually raised and decided in a prior action, but also the litigation of “claim[s] that
could have been
brought in conjunction with a prior claim.”
Martin-Bangura v. Va. Dep’t of Mental Health,
There is, however, an important limitation to these principles. Under Virginia law, the general rule is that “the failure to assert a counterclaim does
not
bar a later action on the counterclaim.”
Winchester Neurological Consultants, Inc. v. Landrio,
But that is not the end of the matter. There are two widely recognized exceptions to the general rule — that is, the rule that a party failing to assert a counterclaim in a prior action will not be barred from bringing a future suit on that claim. The first exception — what the Court will refer to as the “compulsory counterclaim exception” — provides that a party generally will be precluded from bringing a future suit on a claim that could have been asserted in a prior action if “[t]he counterclaim [was] required to be interposed by a compulsory statute or rule of court.” Restatement (Second) of Judgments § 22(2)(a). The second exception — what the Court will refer to as the “nullification exception” — provides that a party will be precluded from bringing a future suit on a claim that could have been asserted in a prior action if “[t]he relationship between the counterclaim and the plaintiffs claim [in the prior action] is such that [the] successful prosecution of the second action would nullify the initial judgment or would impair rights established in the initial action.” Restatement (Second) of Judgments § 22(2)(b). Marbury has failed to show that either exception should be applied in this case.
The first exception — the compulsory counterclaim exception — clearly has no bearing in this case. Indeed, while this exception is the more expansive of the two in many jurisdictions, it is essentially irrelevant when the prior action was litigated in the Virginia courts. The reason is simple — in Virginia, the decision of whether or not to plead a counterclaim is left to the defendant’s discretion.
See
Va. Sup.Ct. R. 3:9(a); VaCode Aun. § 16.1-88.01. In other words, there is no such thing as a compulsory counterclaim in Virginia civil practice.
See Gray Diversified Asset Mgmt., Inc. v. Canellis,
The second exception — the nullification exception — also has no bearing in this case. Under this narrow exception, even a permissive counterclaim can be barred if allowing the “counterclaim to go forward would nullify the earlier judgment or impair rights established in the earlier action.”
Capitol Hill Grp. v. Pillsbury, Winthrop, Shaw, Pittman, LLC,
Marbury gives this issue remarkably short shrift in its moving papers. It argues, in conclusory fashion and with no meaningful explanation, that allowing Carl to pursue his counterclaims in this action “would nullify the initial judgment or impair rights established in the initial action.”
6
Marbury’s MS J Mem. at 9. The only token specificity provided by Marbury relates to Carl’s First Counterclaim, which Marbury construes as claiming that “in effect [Carl] was overcharged” in connection with the website case.
7
Id.
Were this
More broadly, the relationship between Carl’s counterclaims in this action and the nature of Marbury’s action before the Fairfax County Circuit Court presents no inherent conflict that would permit the Court to conclude that allowing Carl to pursue his counterclaims in this action would directly contradict or render meaningless the default judgment in the Virginia action. Marbury commenced the Virginia action to recover unpaid fees. Carl did not and was not required to assert a counterclaim, nor did he interpose a defense that put the adequacy of Marbury’s legal services at issue. The Fairfax County Circuit Court entered a default judgment because Carl never appeared and the adequacy of Marbury’s legal services was an issue that was never raised, litigated, or decided on the merits.
Coincidentally, this factual pattern is virtually identical to the hypothetical used in the Restatement (Second) of Judgments to illustrate the general rule that a party failing to assert a counterclaim in a prior action will not be barred from bringing a future suit on that claim:
A, a physician, brings an action against B for the price of medical services rendered to B. B fails to plead and judgment by default is given against him. B is not precluded from subsequently maintaining an action against A for malpractice relating to the services sued upon in the prior action.
Restatement (Second) of Judgments § 22 cmt. c., illus. 2. Consistent with the Restatement approach, the Supreme Court of Virginia has held in the collateral estoppel context that a prior judgment in favor of a professional in an action to collect fees does
not
operate as a bar against a later professional malpractice action by the
Ultimately, res judicata is an affirmative defense, and Marbury bears the burden of establishing its applicability. Simply put, based on the record before the Court and the arguments tendered by the parties, the Court can only conclude that this case falls within the general rule that a party failing to assert a counterclaim in a prior action will not be barred from bringing a future suit on that claim. There is no basis to conclude that either the compulsory counterclaim exception or the nullification exception applies in this case. Accordingly, the Court will deny Marbury’s Motion for Summary Judgment insofar as it seeks dismissal of Carl’s counterclaims based on the doctrine of res judicata.
2. The Court Will Not Consider Mar-bury’s Contention That Carl’s Counterclaims Fail on the Merits
In the alternative, Marbury contends that Carl’s counterclaims must fail on the merits, tendering a series of fact-based arguments as to why Carl cannot establish a genuine dispute of material fact requiring trial on his claims for legal malpractice and breach of fiduciary duty. These arguments are disjointed and cursory. More importantly, this Court strictly adheres to the dictates of Local Civil Rule 7(h), which requires a party submitting a motion for summary judgment to submit a statement of material facts as to which that party contends there is no genuine dispute, but Marbury has made no attempt — none—to comply with this requirement. This well-reasoned requirement “places the burden on the parties and their counsel, who are most familiar with the litigation and the record, to crystallize for the district court the material facts and relevant portions of the record.”
Jackson v. Finnegan, Henderson, Farabow, Garrett & Dunner,
B. Carl’s Motion for Relief Under Rule 60(b)
In his [45] Motion for Relief Under Rule 60(b), Carl petitions this Court for relief from the default judgment entered by the Fairfax County Circuit Court, contending principally that his failure to defend against' the Virginia action was the product of excusable neglect. The motion merits little attention. Rule 60(b) permits a federal district court to “relieve a party or its legal representative from a final judgment, order, or proceeding” on one of six enumerated grounds. However, Rule 60(b) “presupposes the existence of a prior federal court judgment, order, or proceeding,” 12-60 James Wm. Moore Et Al., Moore’s Federal Practice § 60.60 (3d ed. 1999), and does not provide a vehicle for seeking relief from the final decision of a state court,
Williams v. Apker,
IV. CONCLUSION
The Court has considered the remaining arguments tendered by the parties and has concluded that they are without merit. Therefore, and for the reasons stated above, the Court will deny Marbury’s [35] Motion for Summary Judgment and Carl’s [45] Motion for Relief Under Rule 60(b). The Court will also set an Initial Scheduling Conference to discuss further proceedings in this action. An appropriate Order accompanies this Memorandum Opinion.
Notes
. Although Carl is proceeding in this action
pro se,
he is an experienced attorney and is therefore presumed to have knowledge of the legal system.
Curran v. Holder,
. Carl’s Third Counterclaim is erroneously labeled as “Seventh Counterclaim.”
. Identifying the precise contours of Carl's counterclaims is not necessary for resolving the motions now pending before the Court, and the Court’s statement of Carl’s counterclaims should not be construed as anything more than a summary. In his First Amended Complaint, Carl sets forth specific allegations describing in greater detail just how Marbury allegedly failed to discharge its responsibilities in connection with the website case and the bankruptcy case.
. Virginia’s Circuit Courts are trial courts with broad general jurisdiction. See generally Va.Code Ann. § 17.1-513.
. Thai Carl may have contemplated filing counterclaims in the Virginia action does not change the fact that he never actually did.
. By using these terms of art, Marbury clearly was aware of the general rule that a party failing to assert a counterclaim in a prior action will not be barred from bringing a future suit on that claim. However, the Court notes that Marbury never bothered to bring the general rule to the Court’s attention in its moving papers. Instead, Marbury crafted its arguments to gloss over the general rule entirely, and then hedged by including language tracking one of the two widely recognized exceptions to the general rule. While the Court will not belabor the point, Marbury’s chosen approach is, to put it generously, disingenuous.
. Elsewhere, Marbury twice recites the mantra that allowing Carl to pursue his counterclaims in this action would nullify the judgment rendered in the Virginia action,
see
Marbury's MSJ Mem. at 10, but the totality of its argument in this regard is that Carl’s
. A separate and distinguishable line of authorities addresses the relationship between attorney fee awards in federal bankruptcy proceedings and subsequent claims for malpractice. In that situation, because the bankruptcy court is generally required by statute to consider "the nature, the extent, and the value of such services” when evaluating a fee application, 11 U.S.C. § 330(a)(3)(A), a bankruptcy court makes an implied finding of the quality and value of the professional services rendered. Therefore, courts have been more willing in that context to conclude that a subsequent malpractice action would nullify the earlier determination.
See Grausz v. Englander,
. Even if Marbury had complied with the applicable procedural rules, the Court would be disinclined to rule on Marbury’s fact-based arguments before the parties have had the opportunity to engage in discovery. Ordinarily. “[s]ummaiy judgment ... is proper only after tire plaintiff has been given adequate time for discovery.”
Info. Handling Servs., Inc. v. Def. Automated Printing Servs.,
. The exception to this rule, applicable in actions that have been removed from state court, has no bearing here.
See Butner v. Neustadter,
