Burr & Forman v. Blair

470 F.3d 1019, 2006 U.S. App. LEXIS 29133, 2006 WL 3391427
CourtCourt of Appeals for the Eleventh Circuit
DecidedNovember 27, 2006
DocketNos. 04-15585, 05-14955
StatusPublished
Cited by53 cases

This text of 470 F.3d 1019 (Burr & Forman v. Blair) 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
Burr & Forman v. Blair, 470 F.3d 1019, 2006 U.S. App. LEXIS 29133, 2006 WL 3391427 (11th Cir. 2006).

Opinions

TJOFLAT, Circuit Judge:

These consolidated appeals arise from a dispute among several groups of attorneys over the entitlement to attorney’s fees awarded in connection with the settlement [1022]*1022of a mass tort litigation in the district court, Tolbert v. Monsanto Co.1 It appears that on September 21, 1994, A. Dwight Blair and William Trussell entered into a letter agreement with D. Frank Davis obligating their then-respective law firms2 to share any attorney’s fees they might be awarded for representing the plaintiffs in two class actions brought against the Monsanto Company in Alabama state court in 1993 and 1994. Blair and Trussell3 contend that this letter agreement (the “Letter Agreement”) covers the Tolbert litigation and that they are entitled to share in the fees paid to Burr & Forman4 in that case.5 Burr & Forman disagreed, so Blair and Trussell sued Burr & Forman for breach of contract in an Alabama circuit court. Burr & Forman removed the case to the district court (where it was consolidated with Tolbert). Following a series of procedural maneuvers, which included the district court’s remanding the case to the state court for lack of subject matter jurisdiction, the district court assumed supplemental jurisdiction6 of Blair and Trussell’s attorney’s fees claim, determined that the Letter Agreement did not cover the Tolbert litigation and denied the claim, and, invoking the All Writs Act7 and the Anti-Injunction Act,8 preliminarily enjoined Blair and Trussell from prosecuting their contract action against Burr & Forman in state court. In these consolidated appeals, Blair and Trus-sell challenge the district court’s assumption of subject matter jurisdiction over their claim against Burr & Forman, and the court’s authority to enjoin them from prosecuting that claim in state court. We conclude that the district court lacked subject matter jurisdiction to adjudicate Blair and Trussell’s claim against Burr & For-man and to enter the injunction. We therefore reverse.

I.

The rulings challenged in these appeals were handed down in two separate orders, one issued on October 18, 2004, the other on August 2, 2005. The October 18, 2004 order denied Blair and Trussell’s claim under the Letter Agreement to a portion [1023]*1023of Burr & Forman’s Tolbert fees (the “Merits Order”).9 We have jurisdiction to review that order under 28 U.S.C. § 129110 because the district court, after entering the order, directed the entry of judgment pursuant to Federal Rule of Civil Procedure 54(b).11 The August 2, 2005 order preliminarily enjoined Blair and Trussell from prosecuting their contract action in state court (the “Injunction”). We have jurisdiction to review that order under 28 U.S.C. § 1292(a)(1).12

We organize this opinion as follows. In part II, we describe the events that preceded the district court’s intervention in the parties’ attorney’s fees dispute and the steps the district court took to resolve it. In part III, we explore the statutory bases relied on by the district court for its authority to issue the Injunction. In part IV, we analyze the issuance of the Injunction in the light of this statutory regime and conclude that the court lacked power to enjoin Blair and Trussell from prosecuting their state court contract action. In reaching this conclusion, we find, and hold, that the court lacked subject matter jurisdiction to issue the Merits Order. Part V concludes.

II.

The Tolbert litigation was commenced by Burr & Forman13 in May 2001 in the district court on behalf of 3,000 plaintiffs. The plaintiffs sought compensation for personal injuries and property damage arising out of the Monsanto Company’s release of contaminants into waterways in the vicinity of Anniston, Alabama. The Tolbert litigation came to an end on September 9, 2003 with the entry of a final judgment incorporating the parties’ settlement agreement. As part of the settlement, Burr & Forman Were awarded attorney’s fees, which were to be paid out of a qualified settlement fund (“QSF”) into which the settlement proceeds and attorney’s fee were deposited, to be administered by a settlement administrator under the district court’s jurisdiction.

On October 30, 2003, after Burr & For-man rejected Blair and Trussell’s demand for a portion of their attorney’s fees, Blair and Trussell filed a declaratory judgment action in the St. Clair County, Alabama circuit court,14 seeking a declaration that they were entitled under the Letter Agreement to forty percent of the attorney’s fees awarded to Burr & Forman in the Tolbert litigation.15 On November 25, [1024]*10242003, Burr & Forman removed the case to the district court, where it was consolidated with Tolbert.16 Blair and Trussell promptly moved the court to remand the case for lack of subject matter jurisdiction, contending that the diversity of citizenship required by 28 U.S.C. § 1332 was lacking.17 Rather than ruling on the motion, the court referred the parties to mediation before the settlement administrator.18 When a settlement was not reached, the court, on July 6, 2004, remanded the case to the state court on the ground that it lacked subject matter jurisdiction under section 1332.19

On August 19, 2004, Burr & Forman moved the district court to enter an order directing the settlement administrator to disburse the attorney’s fees remaining in the QSF on terms the court “deemed just.”20 The court granted the motion and, at the same time, ordered Blair and Trus-sell to show cause why they should be entitled to a portion of the fees. On receipt of the show cause order, Blair and Trussell moved the court to vacate the order, arguing that, because they had never appeared in the Tolbert litigation and had not asked the court for relief, the court lacked jurisdiction over their persons and thus the authority to adjudicate their claim under the Letter Agreement.21 Blair and Trussell argued, moreover, that the court relinquished any jurisdiction it may have had over their claim when it [1025]*1025remanded their case against Burr & For-man to the state court.

The district court disagreed. In an order entered on October 18, 2004 (the Merits Order), the court concluded that it had supplemental jurisdiction over Blair and Trussell’s contract claim pursuant to 28 U.S.C. § 136722 because, in its view, Blair and Trussell were seeking fees to be paid

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Bluebook (online)
470 F.3d 1019, 2006 U.S. App. LEXIS 29133, 2006 WL 3391427, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burr-forman-v-blair-ca11-2006.