Akanthos Capital Management, LLC v. Atlanticus Holdings Corporation

734 F.3d 1269, 2013 WL 5781221, 2013 U.S. App. LEXIS 21967
CourtCourt of Appeals for the Eleventh Circuit
DecidedOctober 28, 2013
Docket12-13467
StatusPublished
Cited by13 cases

This text of 734 F.3d 1269 (Akanthos Capital Management, LLC v. Atlanticus Holdings Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Akanthos Capital Management, LLC v. Atlanticus Holdings Corporation, 734 F.3d 1269, 2013 WL 5781221, 2013 U.S. App. LEXIS 21967 (11th Cir. 2013).

Opinions

PER CURIAM:

This appeal presents an issue that has already been fully litigated, and res judica-ta bars relitigation of that issue. The antitrust counterclaim of Atlanticus Holdings Corporation, formerly CompuCredit, against Akanthos Capital Management and twenty other hedge funds is identical to the complaint of Atlanticus in another antitrust lawsuit between the same parties. The district court dismissed the complaint in the other lawsuit, and we affirmed that dismissal by an equally divided vote of the en banc Court. CompuCredit Holdings Corp. v. Akanthos Capital Mgmt., LLC, 916 F.Supp.2d 1326, 1329-32 (N.D.Ga.2011), aff'd, 698 F.3d 1348, 1349 (11th Cir.2012) (en banc). The district court dismissed the counterclaim in this action for the same reason that it dismissed the complaint in the other one. When the other lawsuit was pending before the en banc Court, Atlanticus moved to consolidate the appeals in the two actions because they presented an identical issue, but we denied that motion and instead stayed this appeal. But Atlanticus was correct about the identical nature of these actions, and res judi-cata bars Atlanticus from relitigating this matter. We affirm the dismissal of the counterclaims of Atlanticus, but we deny the motion for fees and costs filed by the hedge funds.

I. BACKGROUND

Deciding this appeal demands a review of the procedural history of not only this lawsuit, but the other lawsuit that our en banc Court decided earlier. This lawsuit began when the hedge funds, as notehold-ers, sued Atlanticus in 2009 to enjoin an allegedly fraudulent transfer. Atlanticus then filed its own lawsuit against the note-holders in which it alleged that the note-holders had violated section 1 of the Sherman Act when they filed this allegedly “sham” lawsuit, boycotted the company’s tender offer, and engaged in price fixing. Both lawsuits were transferred to the district court and assigned to the same judge. In an interlocutory appeal, we ordered the district court to dismiss the complaint filed by the noteholders. Akanthos Capital Mgmt., LLC v. CompuCredit Holdings Corp., 677 F.3d 1286, 1298 (11th Cir.2012). Our decision would have ended this lawsuit except that, while the interlocutory appeal was pending, Atlanticus answered the noteholders’ complaint and incorporated by reference the complaint from its lawsuit against the noteholders. The district court construed this pleading as a counterclaim under Federal Rule of Civil Procedure 8(c). The noteholders moved to dismiss the counterclaim on the ground that Atlanticus was attempting to obtain discovery that the district court had denied in its other lawsuit against the noteholders. The noteholders did not mention the doctrine of res judicata as the antitrust claim had not yet been adjudicated, but they acknowledged the parallel litigation in their motion to dismiss.

The district court then dismissed both the antitrust complaint and the antitrust counterclaim filed by Atlanticus in the separate actions. On June 16, 2011, the dis[1271]*1271trict court issued a minute entry stating, “The Court will be issuing an order dismissing the Anti-Trust claim.” On the same day, the noteholders filed a reply in support of their motion to dismiss the counterclaim. In their reply, they acknowledged the minute entry and urged the district court to dismiss the counterclaim because the antitrust claim was identical. On June 17, 2011, the district court dismissed the antitrust lawsuit filed by Atlanticus. CompuCredit Holdings Corp. v. Akanthos Capital Mgmt., LLC, 916 F.Supp.2d 1326, 1329-32 (N.D.Ga.2011). On November 8, 2011, the district court dismissed the antitrust counterclaim in this lawsuit.

Atlanticus appealed the dismissal of its antitrust lawsuit against the noteholders. A panel of this Court affirmed the dismissal of the antitrust lawsuit, CompuCredit Holdings Corp. v. Akanthos Capital Mgmt, LLC, 661 F.3d 1312, 1315 (11th Cir.2011), but we later vacated that decision and granted a rehearing en banc. CompuCredit Holdings Corp. v. Akanthos Capital Mgmt., LLC, 677 F.3d 1042, 1043 (11th Cir.2012). After we granted the rehearing en banc, Atlanticus filed a notice of appeal in this action to appeal the dismissal of its counterclaim.

Atlanticus moved to consolidate the en banc appeal and this appeal because “[t]he sole issue” in both appeals was “identical.” The noteholders did not oppose the motion to consolidate the appeals. We denied the motion and stayed this appeal pending the en banc decision.

Sitting en banc, we affirmed the dismissal of the antitrust complaint against the noteholders. Compucredit Holdings Corp. v. Akanthos Capital Mgmt., LLC, 698 F.3d 1348, 1349 (11th Cir.2012) (en banc). We affirmed without an opinion because the en banc court was evenly divided. Id.; see United States v. Geders, 585 F.2d 1303, 1305-06 (5th Cir.1978) (en banc). After the en banc ruling, we ordered the parties to submit briefs for this appeal, and one month later, the noteholders moved to dismiss this appeal based on res judicata.

II. STANDARD OF REVIEW

We review a motion to dismiss for failure to state a claim de novo. Timson v. Sampson, 518 F.3d 870, 872 (11th Cir.2008). We may affirm a judgment based on any grounds supported by the record. Molinos Valle Del Cibao, C. por A. v. Lama, 633 F.3d 1330, 1349 n. 20 (11th Cir.2011).

III. DISCUSSION

We divide our discussion in two parts. First, we explain that res judicata bars Atlanticus from pursuing this appeal. Second, we deny the noteholders’ motion for fees and costs under Federal Rule of Appellate Procedure 38.

A. Res Judicata Bars this Action.

Res judicata bars Atlanticus from obtaining relief in this action. Atlanticus litigated the identical complaint against the same parties in another action, and this Court affirmed the dismissal of that complaint. See Compucredit Holdings Corp., 698 F.3d at 1349. When a judgment is rendered for the defendant, the plaintiffs claim is extinguished; res judicata bars the plaintiff from relitigating that same claim against the same defendant. See Jaffree v. Wallace, 837 F.2d 1461, 1466-67 (11th Cir.1988) (stating that finality for purposes of res judicata is when the district court issues its judgment); see also 18 Charles Alan Wright & Arthur R. Miller, Federal Practice and Procedure § 4402 (2d ed.2002).

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Bluebook (online)
734 F.3d 1269, 2013 WL 5781221, 2013 U.S. App. LEXIS 21967, Counsel Stack Legal Research, https://law.counselstack.com/opinion/akanthos-capital-management-llc-v-atlanticus-holdings-corporation-ca11-2013.