Dulien Steel Products, Inc. v. Elbert B. Connell

252 F.2d 556
CourtCourt of Appeals for the Fifth Circuit
DecidedMay 26, 1958
Docket16753_1
StatusPublished
Cited by8 cases

This text of 252 F.2d 556 (Dulien Steel Products, Inc. v. Elbert B. Connell) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dulien Steel Products, Inc. v. Elbert B. Connell, 252 F.2d 556 (5th Cir. 1958).

Opinions

BORAH, Circuit Judge.

When this case was here on a former appeal from an order of the District Court which temporarily restrained the defendant from enforcing a state court judgment “until the final decision of the Court on Plaintiff’s Motion For Preliminary Injunction,” we held that the order was not a temporary injunction and accordingly dismissed the appeal. Thereafter, and following further proceedings which were had in the court below, the temporary restraining order was dissolved and the complaint was dismissed. As a result this second appeal followed.

The facts which give rise to this controversy are fully set forth in our prior opinion which is reported in 240 F.2d 414, and for present purposes they may be summarized as follows: On May 8, 1956, plaintiff filed its complaint praying for a temporary and permanent injunction restraining defendant, upon such terms as the court may deem just, from executing or enforcing a judgment which the latter had theretofore obtained in a Louisiana state district court on the ground that the judgment was unconscionable and based upon mutual mistake of fact. Simultaneously, a motion for preliminary injunction was filed, and on the same day at an informal hearing counsel for the defendant interposed an objection to the jurisdiction of the court, following which it was agreed by and between counsel that the court would consider the question of jurisdiction upon briefs to be submitted. On May 22nd defendant filed motions to dismiss the suit on the grounds: (1) that the court lacked jurisdiction; (2) that the judgment which was affirmed by the Louisiana Supreme Court, 228 La. 1093, 85 So.2d 3, and in which certiorari was denied by the United States Supreme Court, 351 U.S. 926, 76 S.Ct. 783, 100 L.Ed. 1456, was res judicata; and (3) for failure to set forth a claim upon which relief could be granted. Thereafter, defendant answered the complaint with reservation of his rights under the previous motions. On June 8th, the court overruled the motions to dismiss for lack of jurisdiction and for failure to state a claim; referred the plea of res judicata to the merits; and set July 9th as the date for the hearing on plaintiff’s motion for preliminary injunction. Prior to the hearing, and on June 11th, the court granted a temporary restraining order enjoining defendant from attempting to enforce, execute, or collect the judgment until the final decision on the motion for preliminary injunction. Whereupon the defendant moved to dissolve the order of [558]*558June 11th and for summary judgment. And when no action was taken thereon, defendant on June 23rd appealed.

In our consideration of the record on this prior appeal, we made the observation that the defendant “should have waited for another two weeks from the date on which he filed this appeal, at which time the trial court could have disposed of the question whether enforcement of the state judgment should be enjoined pending a full trial on the merits.” And in this connection we stated further that it was not at all clear that the court below would actually have granted a preliminary injunction, for there “are several legal questions that might well have been passed on at such a hearing.” Thereafter, and following the denial of an application for rehearing, our mandate was on March 1, 1957, filed with the clerk of the District Court. However, it was not until after the defendant had applied for and obtained from the state district court an order to show cause why the judgment in controversy should not be enforced that plaintiff was moved to action by filing in the court below a second application for an order specifically restraining the defendant from proceeding further in the state court proceeding. Upon notice to the defendant, plaintiff’s application, together with defendant’s motions to dismiss and for summary judgment, came on for hearing on April 3, 1957, at which time the court denied plaintiff’s application for a restraining order; granted defendant’s motions to dismiss and for summary judgment; and dissolved the temporary restraining order which had theretofore been granted on June 11, 1956. Thereupon, plaintiff appealed and moved for and was granted an injunction restraining enforcement of the judgment during the pendency of the appeal.

Appellant’s first and principal assignment of error is that the court erred in dismissing the action for want of jurisdiction. We do not at all agree. The only possible ground of jurisdiction in the present case is diversity of citizenship for the right of action claimed, that is, the right to be relieved from paying the full amount of an allegedly erroneous state judgment on the grounds that its enforcement would be unconscionable and inequitable, does not arise under the Constitution or a law or treaty of the United States. It exists, if at all, under a statute of the state, for diversity jurisdiction must follow state law and policy, and we look to local law to find the cause of action on which suit is brought.

Article 556 of the 1870 Code of Practice provides that:,

“Definitive judgments may be revised, set aside or reversed:

“1. By a new trial.
“2. By appeal.
“3. By action of nullity.
“4. By recission.
“This last mode can only be exercised by minors, or persons who were absent when judgment was rendered against them.”

With reference to the action of nullity, Article 607 of the Code of Practice provides that:

“A definitive judgment may be annulled in all cases where it appears that it has been obtained through fraud, or other ill practices on the part of the party in whose favor it was rendered; as if he had obtained the same by bribing the judge or the witnesses, or by producing forged documents, or by denying having received the payment of a sum, the receipt of which the defendant had lost or could not find at the time, but has found since the rendering of the judgment.”

In construing Article 607 the courts of Louisiana have declared that the action of nullity is not limited to the cases specified in the article, but, as was stated in Succession of Gilmore, 157 La. 130, 102 So. 94, 95, the courts “will not hesitate to afford relief against judgments, irrespective of any issue of inattention or neglect, when the circumstances under [559]*559which the judgment is rendered show the deprivation of legal rights of the litigant who seeks relief, and when the enforcement of the judgment would be uncon-scientious and inequitable. Our courts will follow the general principles of equity jurisprudence applied by the equity courts of the other states of this country in actions of this character.” But in Gilmore there was no appeal from the judgment sought to be annulled and what the court there said with respect to the action of nullity must be considered in the light of the construction the Supreme Court has placed upon Article 608 of the Code of Practice. This article provides, in pertinent part, that the action of nullity may be demanded only “from the same court which has rendered the [judgment,] or from the court of appeal before which the appeal from such judgment was taken.” In the landmark case of Melancton’s Heirs v. Broussard, 2 La. 8, an independent action was instituted in a state district court to annul a judgment which, as here, had been passed upon on appeal by the Louisiana Supreme Court.

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Dulien Steel Products, Inc. v. Elbert B. Connell
252 F.2d 556 (Fifth Circuit, 1958)

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Bluebook (online)
252 F.2d 556, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dulien-steel-products-inc-v-elbert-b-connell-ca5-1958.