Estate of Kyle Thomas Brennan etc. v. Church of Scientology Flag Service Organization, Inc.

Court of Appeals for the Eleventh Circuit·Decided July 7, 2011·No. 10-14967·Published

Opinion

[PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT

________________________ FILED U.S. COURT OF APPEALS

ELEVENTH CIRCUIT

No. 10-14967 JULY 7, 2011 ________________________ JOHN LEY CLERK

D. C. Docket No. 8:09-cv-00264-SDM-EAJ

ESTATE OF KYLE THOMAS BRENNAN, by and through its Administrator, Victoria L. Britton,

Plaintiff - Appellee,

versus

CHURCH OF SCIENTOLOGY FLAG SERVICE ORGANIZATION, INC., Defendant - Appellant.

Appeal from the United States District Court for the Middle District of Florida

(July 7, 2011)

Before HULL, BLACK and STAPLETON,* Circuit Judges.

*Honorable Walter K. Stapleton, United States Circuit Judge for the Third Circuit, sitting by designation.

STAPLETON, Circuit Judge:

The Church of Scientology Flag Service Organization, Inc. (“Scientology”), appeals from the District Court’s order permanently enjoining a Florida state court from sanctioning counsel for the Estate of Kyle Thomas Brennan (“the Brennan Estate”) for his continued representation of the Brennan Estate in this matter, in violation of a state court order prohibiting that representation. This appeal requires us to examine the limits imposed by the Anti-Injunction Act, 28 U.S.C. § 2283, and, more specifically, to decide whether the permanent injunction was “necessary in aid of [the District Court’s] jurisdiction.” Id. We conclude that it was not, and we will therefore reverse and vacate the District Court’s injunction.

I.

On February 13, 2009, the Brennan Estate, represented by Kennan Dandar,

Esq., named Scientology as a defendant in a wrongful death action filed in the United States District Court for the Middle District of Florida (“the Brennan Action”). The complaint alleged that three Scientology members deprived Kyle Brennan of his psychiatric medication, and that “while in a mentally deteriorated state caused by the abrupt denial of his prescription,” he shot and killed himself. Fourteen months later, on April 12, 2010, Dandar filed an “Involuntary Motion to Withdraw as Counsel” for the Brennan Estate, explaining that he had “been

ordered to withdraw by a state court judge.” (Dkt. 74 at 1.) The motion to withdraw was denied, and Dandar subsequently persuaded the District Court to enjoin enforcement of a state court order imposing sanctions on Dandar for failing to withdraw from the Brennan Action. This appeal followed.

The “state court judge” is Senior Judge Robert Beach of the Circuit Court

for Pinellas County, Florida, who presided over another wrongful death action brought against Scientology in 2000 (“the McPherson Action”). The McPherson Action ended in a May 2004 settlement (“the Settlement Agreement”) that also covered an action in Texas in which Dandar was both counsel and a named party and adversary of Scientology.

About a month after the Brennan Estate filed its federal wrongful death action, Scientology filed a motion before Judge Beach to enforce a provision of the Settlement Agreement which allegedly prohibited Dandar from participating in any way in any adversarial proceeding against Scientology. Dandar responded by arguing in his briefing before Judge Beach (1) that the Settlement Agreement did not foreclose him from representing the Brennan Estate in the Brennan Action; and (2) that, if it did have that effect, it would be unenforceable because it was in

violation of Florida Bar Rule 4-5.6(b) and public policy.1 Judge Beach held that his court had jurisdiction over the parties to the Settlement Agreement and the subject matter, that the Settlement Agreement prohibited Dandar’s representation of the Brennan Estate in the Brennan Action, and that this prohibition was enforceable. On June 10, 2009, he ordered Dandar to cease representation of all parties other than the plaintiff in the McPherson Action in all matters against Scientology. Dandar appealed this order, and Florida’s Second District Court of Appeal affirmed per curiam and without an opinion. Dandar v. Church of Scientology, 25 So. 3d 1233 (Fla. Dist. Ct. App. 2009).

1 Florida Bar Rule 4-5.6(b) provides:

A lawyer shall not participate in offering or making: . . .

(b) an agreement in which a restriction on the lawyer’s right to practice is part of the settlement of a client controversy.

In 2004, the preamble to the Rules of Professional Conduct of the Florida Bar provided:

The fact that a rule is a just basis for a lawyer’s self-assessment, or for sanctioning a lawyer under the administration of a disciplinary authority, does not imply that an antagonist in a collateral proceeding or transaction has standing to seek enforcement of the rule. Accordingly, nothing in the rules should be deemed to augment any substantive legal duty of lawyers or the extradisciplinary consequences of violating such duty.

See also Lee v. Dep’t of Ins., 586 So. 2d 1185, 1188 (Fla. Dist. Ct. App. 1991) (“To use rule 4- 5.6 as the basis for invalidating a private contractual provision is manifestly beyond the stated scope of the Rules and their intended legal effect.”)

Scientology then filed a motion before Judge Beach to enforce his June 10,

2009, order, and Dandar responded by filing a motion to void the Settlement Agreement. On February 19, 2010, Judge Beach denied Dandar’s motion to void the Settlement Agreement. On April 12, 2010, Judge Beach (1) found Dandar in civil contempt of his order of June 10, 2009, and February 19, 2010; (2) ordered Dandar to pay Scientology damages in the amount of $50,000; (3) directed Dandar to immediately file a motion to withdraw in the Brennan Action; and (4) ordered that if Dandar failed to withdraw from the Brennan Action, a civil penalty of $1,000 per day would accrue against him and his law firm.

Dandar immediately filed his “Involuntary Motion to Withdraw as Counsel”

in the Brennan Action, noting as follows:

Plaintiff objects to this motion as evidenced in the attached Declaration by Plaintiff’s Administrator, Victoria L. Britton, mother of the decedent. Both she and [Dandar] have exhausted all efforts to find substitute counsel without success.

The estate must be represented by counsel. Plaintiff is an innocent third party who will be severely damaged by having no other attorney to take over representation in this case.

(Dkt. 74 at 1-2.) On April 22, 2010, the District Court denied the motion to withdraw, noting that (1) the Middle District of Florida’s Local Rule 2.03(b)

prohibits an attorney from withdrawing from a case without leave of court; (2) the Brennan Estate “vehemently objects to Dandar’s withdrawing from the case,” because it “cannot find substitute counsel;” and (3) “[d]espite the state court’s order[,] . . . Dandar remains a member in good standing of The Florida Bar, Dandar is able and willing to represent the plaintiff, and the parties identify neither a conflict of interest nor any other legally cognizable barrier to Dandar’s continued representation in this matter.” (Dkt. 77 at 1-2.) The Brennan Action thus proceeded with Dandar as counsel for the Brennan Estate.

On May 6, 2010, however, Judge Beach directed Dandar to appear before

him to show cause why he should not be held in criminal contempt of the orders of June 10, 2009, and April 12, 2010. In response, the Brennan Estate filed an “Emergency Motion for Injunction” in the Brennan Action requesting an injunction against Scientology “and if necessary, the State Circuit Court to prohibit interference with this Court’s orderly progression of this case.” (Dkt. 104 at 1, 3.) The District Court denied the motion, ruling as follows:

Because Dandar’s withdrawal requires federal court approval, a state court injunction or other order against Dandar cannot compel his withdrawal. A court should not enter an injunction or order that cannot be enforced through coercive contempt sanctions.

***

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Estate of Kyle Thomas Brennan etc. v. Church of Scientology Flag Service Organization, Inc., (11th Cir. 2011).

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