Keith Fuqua v. Lindsey Management Co., Inc.

FILED
United States Court of Appeals
Tenth Circuit
March 31, 2009
UNITED STATES COURT OF APPEALS
Elisabeth A. Shumaker
Clerk of Court
FOR THE TENTH CIRCUIT
KEITH FUQUA, an individual;
STACY FUQUA, an individual and on
behalf of themselves and all others
similarly situated,
Plaintiffs-Appellants, No. 08-6165
(D.C. No. 5:07-CV-00827-HE)
v. (W.D. Okla.)
LINDSEY MANAGEMENT CO.,
INC.,
Defendant-Appellee.
ORDER AND JUDGMENT *
Before TACHA, MURPHY, and HARTZ, Circuit Judges.
Stacy and Keith Fuqua appeal from the district court’s decision granting
summary judgment in favor of Lindsey Management Co., Inc. We affirm.
*
After examining the briefs and appellate record, this panel has determined
unanimously to grant the parties’ request for a decision on the briefs without oral
argument. See Fed. R. App. P. 34(f); 10th Cir. R. 34.1(G). The case is therefore
ordered submitted without oral argument. This order and judgment is not binding
precedent, except under the doctrines of law of the case, res judicata, and
collateral estoppel. It may be cited, however, for its persuasive value consistent
with Fed. R. App. P. 32.1 and 10th Cir. R. 32.1.
I. Background
The Fuquas filed an action against Lindsey, alleging that Lindsey violated
the Oklahoma Residential Landlord and Tenant Act (ORLTA) and the Oklahoma
Consumer Protection Act (OCPA), and breached the implied covenant of good
faith and fair dealing by including unlawful and unconscionable terms in its lease
agreements. The Fuquas filed the action as a class action on behalf of themselves
and other similarly situated persons who had entered into residential lease
agreements with Lindsey or an entity owned and/or operated by Lindsey. The
case was originally filed in state court but was later removed to federal court.
In its answer, Lindsey asserted that it was not a contracting party to any of
the lease agreements and that it did not own or operate any of the entities that
were contracting parties. After the initial status conference, the district court
entered an order allowing discovery limited to the issue of whether Lindsey was
properly named as a defendant and staying all other discovery. The order also set
a deadline for Lindsey to file a summary judgment motion on the proper
defendant issue. After the close of the discovery period, Lindsey moved for
summary judgment, arguing that it was not a proper defendant in the Fuquas’
class action. The district court granted the motion as to all claims. The Fuquas
have appealed the district court’s decision as to the OCPA and good faith claims,
but they have not appealed as to the ORLTA claim.
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II. Discussion
We review de novo the district court’s summary judgment ruling. See
Simms v. Okla. ex rel. Dep’t of Mental Health & Substance Abuse Servs.,
165 F.3d 1321, 1326 (10th Cir. 1999). Summary judgment is proper if there is no
genuine issue of material fact and the moving party is entitled to judgment as a
matter of law. Id.In their petition, the Fuquas alleged that they “entered into an Apartment
Lease Contract with The Greens at Moore, an entity which [the Fuquas] are
informed and believe and thereon allege is owned and/or operated [by Lindsey].” 1
Aplt. App. at 1. Based on this alleged legal relationship between Lindsey and
The Greens at Moore, the Fuquas sought to establish Lindsey’s liability for the
allegedly unlawful terms in the lease agreement that the Fuquas entered into with
The Greens at Moore. Specifically, the Fuquas alleged that “[t]his case arises out
of certain provisions in [Lindsey’s] lease agreement[],” id. at 3; that “the
inclusion of the ‘liquidated damages’ provision, the notice provision, and the
automatic renewal provision in [Lindsey’s] lease[]” violated the OCPA, id. at 9;
and that “[Lindsey] breached the implied covenant of good faith and fair dealing”
by “enforcing” those provisions, id. at 12.
1
Although the petition includes allegations on behalf of all potential class
members, the Fuquas’ response to Lindsey’s summary judgment motion was
limited for the most part to the Fuquas’ claims. Accordingly, we will focus our
discussion on the Fuquas’ claims.
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In its motion for summary judgment, Lindsey explained that it was a
property management company that managed a number of residential apartment
complexes in the states referenced in the Fuquas’ petition, including the
apartment complex where the Fuquas’ formerly resided. Lindsey presented
evidence that it was not a party to any of the lease agreements referenced in the
petition, that it did not own any of the apartment complexes that it managed, and
that it did not own or exercise control over The Greens at Moore, the property
owner and contracting party for the Fuquas’ lease agreement. Lindsey argued that
“[e]ach of [the Fuquas’] asserted causes of action is necessarily dependent upon
the assumption that [Lindsey], or an entity controlled by [Lindsey], is a
contracting party to . . . the lease agreement[].” Id. at 24. Lindsey asserted
further that
[b]ecause [Lindsey] is not a contracting party to any of the lease
agreements, it cannot be subject to liability allegedly arising from
those contractual relationships. Therefore, because each of
[the Fuquas’] stated causes of action seeks to subject [Lindsey] to
liability arising exclusively from the lease agreements, [Lindsey] is
entitled to judgment as a matter of law on each of [the Fuquas’]
claims.
Id. at 25.
In their response to summary judgment, the Fuquas did not dispute the fact
that Lindsey was not a party to the lease agreement nor did they dispute the fact
that The Greens at Moore was not owned or operated by Lindsey. See id. at 48,
50-52. Instead, the Fuquas introduced new factual allegations and a new theory
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of liability. They alleged that Lindsey drafted the lease agreement, controlled all
leasing operations for The Greens at Moore, and enforced the lease agreement.
Id. at 50-52. They argued that Lindsey, “the entity that drafted and enforced the
unlawful lease agreement[], should not be allowed to escape liability just because
it did not ‘sign’ the contract[] in question under its own name.” Id. at 48.
In Lindsey’s reply brief to its summary judgment motion, it argued that the
district court should disregard the Fuquas’ new theory of liability because it was
“not pled or even implied in” the petition. Id. at 70. The district court did not
address Lindsey’s argument in its decision. Normally a claim or theory that is not
adequately raised in the complaint will not be considered. See, e.g., Lawmaster v.
Ward, 125 F.3d 1341, 1346 n.2 (10th Cir. 1997); Charles v. Rice, 28 F.3d 1312,
1319 (1st Cir. 1994). Our cases, however, have “interpret[ed] the inclusion of
new allegations in a response to a motion for summary judgment[] as a potential
request to amend the complaint.” Martinez v. Potter, 347 F.3d 1208, 1211 (10th
Cir. 2003). Relying on this line of cases, the Fuquas argue for the first time in
their reply brief on appeal that “in response to Lindsey’s motion for summary
judgment, the Fuquas should have been permitted to amend the Petition to further
allege causation and/or an agency theory of liability.” Aplt. Reply Br. at 9 n.6.
This court generally does not consider issues that were not presented to the
district court. See United States v. Jarvis, 499 F.3d 1196, 1201 (10th Cir. 2007).
Even if we were to consider this argument, we find no abuse of discretion in the
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district court’s failure to permit the Fuquas to amend their petition because they
did not provide the district court with adequate notice that they wanted to do so.
The Fuquas never sought leave to file an amended complaint, they never asked
that their response to summary judgment be treated as a request to amend, and
they never filed an amended complaint. See Martinez, 347 F.3d at 1212 (noting
that when an amendment by summary-judgment response is permitted, “the
federal rules contemplate a formal amended complaint [and] an amended
answer”).
III. Conclusion
The Fuquas’ failure to dispute the evidence presented by Lindsey is
sufficient to affirm the district court’s summary judgment decision. The sole
focus of the summary judgment motion was on whether Lindsey was a proper
defendant. Lindsey’s alleged legal relationship with The Greens at Moore
provided the basis for the Fuquas’ petition against Lindsey and was necessary to
establish the Fuquas’ theory of liability as alleged in the petition. Because the
Fuquas failed to show that there was a genuine issue of material fact on the
question of whether Lindsey was a proper defendant as alleged in the petition,
summary judgment in Lindsey’s favor on all claims was appropriate. 2 See Celotex
2
The district court granted summary judgment on different grounds, but
“[w]e are free to affirm a district court decision on any grounds for which there is
a record sufficient to permit conclusions of law, even grounds not relied upon by
(continued...)
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Corp. v. Catrett, 477 U.S. 317, 322 (1986) (“Rule 56(c) mandates the entry of
summary judgment . . . against a party who fails to make a showing sufficient to
establish the existence of an element essential to that party’s case, and on which
that party will bear the burden of proof at trial”).
The judgment of the district court is AFFIRMED. Lindsey’s motion for
leave to file a sur-reply is DENIED.
Entered for the Court
Michael R. Murphy
Circuit Judge
2
(...continued)
the district court.” Dist. 22 United Mine Workers v. Utah, 229 F.3d 982, 990
(10th Cir. 2000) (quotation omitted).
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