Stanley v. Finnegan
Stanley v. Finnegan
Opinion of the Court
Before the Court is Separate Defendant Katherine Finnegan's motion (Doc. 46) for judgment on the pleadings and brief (Doc. 47) in support of her motion. Plaintiffs Hal and Michelle Stanley (collectively "the Stanleys") filed a response (Doc. 52) in opposition and a brief (Doc. 53) in support of their response. Finnegan filed a reply (Doc. 57) without leave of Court. Finnegan then filed a motion (Doc. 63) for leave to file a reply and a brief (Doc. 64) in support of her motion. The Court denied Finnegan's motion (Doc. 65) for leave and will not consider her reply. There is also pending a motion
The Stanleys brought damages claims pursuant to
I. Legal Standard
When considering a Rule 12(c) motion for judgment on the pleadings, the Court uses the same standard as that for a motion to dismiss for failure to state a claim under Rule 12(b)(6). Ashley Cnty., Ark. v. Pfizer, Inc. ,
*784Bell Atlantic Corp. v. Twombly ,
II. Discussion
At the outset, the Stanleys assert Finnegan's arguments of issue preclusion, claim preclusion, and collateral-attack should be struck under Rule 12(f) as redundant because the Court ruled on the same issues in Finnegan's earlier Rule 12(b)(6) motion and Finnegan failed to appeal those grounds. The Court previously denied Finnegan's motion to dismiss on these grounds because the arguments were, at that time, unsupported by the record. Finnegan has since supplemented her Rule 12(c) motion with additional factual allegations and documents specifically in regard to the remaining claim against her. Moreover, the Court's earlier decision on these grounds was not subject to interlocutory review. Plaintiffs offer no legal support for the proposition that Finnegan is prohibited from raising these arguments in her Rule 12(c) motion under these circumstances. The Court will therefore address each of Finnegan's claims.
A. Rooker-Feldman Doctrine
Finnegan argues that the Court lacks subject-matter jurisdiction over the Stanleys' claim pursuant to the Rooker-Feldman doctrine. Because Rooker-Feldman implicates a jurisdictional question, it must be addressed at the outset. Silverman v. Silverman ,
The Rooker-Feldman doctrine applies only in the limited circumstance in which a party "seeks to take an appeal of an unfavorable state court decision to a lower federal court." Lance v. Dennis ,
Finnegan argues that the Stanleys claim is inextricably intertwined with the state court judgment because "whether [the Stanleys] are entitled to relief hinges upon finding that [the state court orders] were wrongly decided." (Doc. 47, p. 14). She further argues that the Stanleys had a reasonable opportunity to present their constitutional challenges at the juvenile proceedings and therefore subject-matter jurisdiction is presently lacking. The issue the Court must decide is whether the Stanleys' remaining claim, that Finnegan ordered the removal of the children without an adequate basis, is inextricably intertwined with the state court judgment such that it precludes subject-matter jurisdiction.
*785After the children were removed from the Stanleys' custody, a hearing was conducted to determine whether probable cause justified the removal of the children. The juvenile court which held the hearing ultimately found probable cause existed at the time the children were removed. The basis of the Stanleys' remaining federal claim asserts the opposite-Finnegan removed the children without probable cause. On its face, the claim certainly appears to be inextricably intertwined with the state court's findings. However, "not every federal claim which would cast doubt on a state court judgment is barred by Rooker-Feldman. " Simes ,
Although the Eighth Circuit has not addressed this factual scenario, the Seventh Circuit addressed the issue in Jensen v. Foley ,
There is no disputing that the Stanleys are not state court losers asking the Court to review the state court decision.
*786The Stanleys ultimately prevailed at the state court. Nor is this a claim that is inextricably intertwined with a state court decision as Finnegan argues. Instead, this case is directly on point with Jensen -the Stanleys assert a claim for the alleged unlawful taking of their children independent of the state court judgment. The law is clear that the Stanleys may bring such a claim, even if it denies a legal conclusion reached in the state court. In this case, the Stanleys' claim is premised on a lack of probable cause, and although the state court determined probable cause existed, the Court has jurisdiction to hear the Stanleys' constitutional challenge. The more appropriate inquiry, as the Seventh Circuit discussed in the Jensen reasoning, is grounded not in Rooker-Feldman , but in state preclusion grounds. Because this action does not fall under the narrow purview of Rooker-Feldman , the Court has subject-matter jurisdiction.
B. Article III Standing
Finnegan next argues that the Stanleys lack Article III standing. Article III standing, a threshold question in every federal court case, requires a plaintiff to demonstrate the three elements of injury in fact, causation, and redressability. E.L. by White v. Voluntary Interdistrict Choice Co. ,
Neither party disputes the redressability element is satisfied. Finnegan argues "there is no injury fairly traceable to [her] conduct as required to confer Article III standing." (Doc. 47, p. 12). It is clear Finnegan contends the causation element is not satisfied, but it is somewhat unclear whether Finnegan also asserts the injury-in fact element is in dispute. She claims "[t]here is no clearly established right under federal law to be free from child-abuse investigations as authorized by state law or to be free from defending child-abuse allegations in state juvenile court." (Doc. 47, p. 12). In the interest of prudence, the Court interprets this as an argument in support of the proposition that the Stanleys do not assert a concrete or particularized legally protected interest. Finnegan's argument on this element misses the point of the Stanley's claim. The injury they complain of is not an investigation, but the removal of their children. As the Eighth Circuit clearly stated in its order affirming this Court's earlier decision, "it is clearly established that the removal of children from their parents' custody violates a constitutional right if the removal occurs without reasonable suspicion of child abuse." (Doc. 51-2, p. 5). Accepting the factual allegations as true, the Stanleys plead a concrete and particularized constitutional injury as their children were removed from their custody allegedly without probable cause. Because this is the basis for the Stanleys' claim, the first element of standing is satisfied.
*787Regarding Finnegan's next argument, she asserts "[b]ecuase Plaintiffs cannot attack the state court's order ... there is no injury fairly traceable to the conduct of Finnegan as required to confer Article III standing." (Doc. 47, p. 12). In essence, Finnegan seemingly contends there is no traceable injury because no constitutional violation occurred. Such circular reasoning, if accepted, would create a standing issue in any case where a defendant challenges a plaintiff's allegations. The appropriate inquiry is whether the alleged constitutional violation, here the unlawful removal of the Stanley children, can be traced to the defendant's conduct.
The Stanleys argue their injury occurred because Finnegan insisted the children be removed from the home without evidence corroborating the accusations of abuse and neglect, and without evidence of maltreatment. (Doc. 1, ¶ 30). Although DHS ultimately removed the children, the Stanleys allege DHS did so at the direction of Finnegan. (Doc. 1, ¶ 30). The law requires that child abuse investigators possess a reasonable suspicion of child abuse before ordering the removal of children. Heartland Acad. Cmty. Church v. Waddle ,
C. Collateral-Attack
Finnegan next argues that the Stanleys' claim is a collateral-attack on the state court juvenile proceedings. In Arkansas, a facially valid judgment is not subject to collateral attack. Purser v. Corpus Christi State Nat'l Bank ,
Finnegan's collateral-attack argument is without merit. Finnegan argues that the Stanleys may not collaterally attack the state court "proceedings." (Doc. 47, p. 16). But the collateral-attack doctrine is concerned with the state court judgment, not the proceedings that were involved. In this case, the Stanleys prevailed at the state court. The juvenile court did not find evidence of abuse or maltreatment, and ordered the children be returned to the Stanleys' custody in its final judgment. It is this determination and not the probable cause finding at the probable cause hearing which operates as the final judgment. The Stanleys do not offer the final judgment as the basis of their claim. Nor do they seek to overturn or impeach the final judgment that allowed their children to return to their care. Finnegan's motion on this ground will be denied.
D. Claim Preclusion and Issue Preclusion
Finnegan's final arguments are that the Stanleys' claim is barred by res judicata and collateral estoppel. The doctrine of res judicata has two components-claim preclusion and issue preclusion. Barclay v. Waters ,
*788Stephens v. Jessup ,
1. Claim Preclusion
Claim preclusion "bars a claim in a second suit when five elements are satisfied: (1) the first suit resulted in a final judgment on the merits; (2) the first suit was based upon proper jurisdiction; (3) the first suit was fully contested in good faith; (4) both suits involve the same claim or cause of action; and (5) both suits involve the same parties or their privities." Stephens ,
Finnegan asserts the Stanleys' claim is precluded because all issues related to the legality of the seizure of the Stanley children were or could have been raised in state court. (Doc. 47, p. 18). The present action, however, does not involve the same claim or cause of action that was litigated in state court. The Stanleys present an independent claim based on the alleged unlawful taking of their children. See supra Part II.A. This is not a case where a party has brought a claim against a defendant in state court and later files the same action in federal court. Nor is this a case where a party filed a cause of action in state court, only to file a different cause of action in federal court based on the same events. This is the first time the Stanleys have brought any action against Finnegan.
Additionally, Finnegan fails to articulate how the Stanleys could have brought their present claim in state court. In fact, it is difficult to discern Finnegan's argument in support of this proposition, and the only such argument the Court could identify is her assertion that the lower court had jurisdiction to hear constitutional claims. While this may be true, the probable cause hearing was the only proceeding that evaluated whether probable cause existed to justify the initial removal of the children. This hearing is statutorily limited in scope to determining whether "probable cause existed to protect the juvenile." Ark. Code. Ann. § 9-27-315. Because of the limited scope, the Stanleys could not have vindicated their constitutional rights. Finnegan offers no alternative or basis as to how the state court could hear this matter at the probable cause hearing. Because Finnegan fails to meet her burden of persuasion, the Stanleys' remaining claim is not precluded.
2. Issue Preclusion
After discussing each of Finnegan's previous arguments, the Court arrives at her most compelling point-issue preclusion. Finnegan argues that because the probable cause issue was already decided by the juvenile court, this Court may not relitigate the same issue. (Doc. 47, p. 18). Issue preclusion prevents further litigation on an issue that has already been decided. Craven ,
Taken at face value, Finnegan's argument seems to hold merit as the question of probable cause was decided in the affirmative at the state court. However, the probable cause issue is not precluded under Arkansas law for two reasons. First, the probable cause determination was not essential to the state court judgment. The state court found no evidence of abuse or maltreatment and ordered the return of the children to the Stanleys' custody. Whether probable cause justified the initial removal has no bearing on the final determination of custody.
Second, the Stanleys did not have a full and fair opportunity to litigate the issue of probable cause at the probable cause hearing. There are notable distinctions between how allegations are investigated in the juvenile court and how causes of action are litigated in the court of law. The rules of evidence do not apply at the probable cause hearing,
More compelling is that issues at the state court proceedings are factually dissimilar from those in the civil case. The focus of the probable cause hearing is to protect the overall well-being of the child, hence why procedural safeguards such as the rules of evidence are more relaxed than in a typical trial. The judge at the juvenile court considers whether probable cause justified the initial removal in order to protect the children. The Stanleys' present action, however, is concerned with their constitutional rights as parents. This action asks the Court to determine whether probable cause justified the removal in a manner which did not infringe upon their constitutional rights. Although the issues seem similar in style, they are factually dissimilar and issue preclusion does not extend to the probable cause determination. See e.g. Craven ,
III. Conclusion
IT IS THEREFORE ORDERED that the motion (Doc. 50) to adopt the pleadings is GRANTED to the extent the present motion (Doc. 46) relates to claims against Separate Defendants Garland County, Arkansas, Mike McCormick, Jason Lawrence, Mike Wright, and Terry Threadgill.
IT IS FURTHER ORDERED that Defendant's motion (Doc. 46) for judgment on the pleadings is DENIED.
IT IS FURTHER ORDERED the stay on discovery is LIFTED.
IT IS SO ORDERED this 3rd day of December, 2018.
It is unclear why the Separate Defendants seek to adopt a motion for judgment on the pleadings that is tailored specifically to the remaining claim against Finnegan and no other party. Nonetheless, the Court will consider and grant their motion to adopt the pleadings.
The Court denied the motion with respect to Finnegan's collateral-attack and preclusion arguments finding that she failed to meet her burden of persuasion for those claims. (Doc. 29, p. 9).
Specifically, the remaining claim against Finnegan is that she ordered the removal of the Stanley children without a reasonable suspicion of child abuse. For purposes of this order, because the state court conducted a "probable cause hearing," the Court will use the term "probable cause" instead of "reasonable suspicion" to avoid confusion.
The Seventh Circuit ultimately affirmed the decision of dismissal. However, the court relied on state preclusion grounds, not the Rooker-Feldman doctrine, in reaching its decision. Id. at 748 ("[T]his suit implicates the preclusion doctrine, not Rooker-Feldman. ").
Reference
- Full Case Name
- Hal W. STANLEY and Michelle Stanley, Each Individually and on Behalf of B.S., J.S., P.S., C.S., and V.S., as Parents and Legal Guardians v. Katherine FINNEGAN
- Cited By
- 1 case
- Status
- Published