Girod LoanCo, LLC v. Klein

District Court, E.D. Louisiana·Decided August 22, 2025·No. 2:25-cv-01127·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA

GIROD LOANCO, LLC CIVIL ACTION

VERSUS NO. 25-1127

HENRY L. KLEIN SECTION: D(5)

ORDER AND REASONS Before the Court is a Motion to Remand and Motion for Entry of Prefiling Injunction Against Henry L. Klein filed by Plaintiff Girod LoanCo, LLC (“Girod”).1 Defendant Henry L. Klein (“Klein”) opposes the Motion.2 After careful consideration of the parties’ memoranda, the record, and the applicable law, the Motion is GRANTED in part and DENIED in part. I. FACTUAL AND PROCEDURAL BACKGROUND This case arises from Girod’s effort to recover a post-foreclosure sale balance owed to Girod by Klein as the guarantor of a promissory note. Following the issuance of a final judgment against Klein and in the midst of post-judgment discovery regarding Klein’s assets, Klein removed this matter to this Court on October 1, 2024, under Civil Action No. 24-2366-WBV-MBN.3 The case was then remanded on December 4, 2024, after the Court determined that it did not have subject matter jurisdiction over this matter.4

1 R. Doc. 10. 2 R. Doc. 31. 3 No. 24-2366, R. Doc. 1 4 No. 24-2366, R. Doc. 30. Following remand, Girod filed a Motion for Sanctions against Klein, which the state court judge granted on January 29, 2025.5 Then, Klein filed a Motion to Recuse, and that Motion was denied on April 28, 2025.6 On June 4, 2025, Klein re-removed

the matter to this Court.7 In his Notice of Removal, Klein alleges that “[t]he most recent triggering of removal ability pursuant to 28 U.S.C. § 1446(b)(3) occurred on May 7, 2025,” although Klein does not address what exactly triggered removal.8 Klein alleges that this Court has federal question jurisdiction based on “a suspect pattern of SUMMARY DENIALS impacting the 1st Amendment right to ‘adequate, effective and meaningful access to courts.’”9 Klein also appears to allege that

violations of his Fourteenth Amendment by the judge presiding over the state court action give rise to subject matter jurisdiction.10 On June 24, 2025, Girod filed the instant Motion to Remand and Motion for Entry of Prefiling Injunction Against Henry L. Klein.11 In its Motion, Girod argues that jurisdiction is determined from the face of the plaintiff’s Petition, and because the state court Petition does not raise federal claims, Klein may not invoke federal question jurisdiction.12 Even if he could, Girod argues, the Rooker-Feldman doctrine

would bar this Court’s exercise of jurisdiction because inferior federal courts lack jurisdiction to modify or reverse state court judgments.13 Even if Girod also argues

5 R. Doc. 1-5, pp. 189-90. 6 R. Doc. 1-5, p. 192. 7 R. Doc. 1. 8 Id. at ¶ 2. 9 Id. at ¶ 3 (quoting Broudy v. Mather, 460 F.3d 106 (D.C. Cir. 2006)) (citation modified). 10 Id. 11 R. Doc. 10. 12 R. Doc. 10-1 at 6-8. 13 Id. at 11-13. that removal is untimely.14 Girod argues that the “other paper” that triggered removal appears to be the order of the Motion to Recuse, which was signed on April 25, 2025, and served on the parties via email on April 28, 2025.15 Because Klein

removed more than thirty days after receipt of the Order denying the Motion to Recuse, Girod argues, removal was untimely.16 Girod further argues that removal was procedurally improper because Klein did not provide the state court with notice stating the grounds for removal.17 Finally, Girod asks the Court to enter an order barring Klein from filing in this Court without first obtaining leave from the Chief Judge.18 Girod argues that such an order is appropriate considering Klein’s “history

of pursuing vexatious and harassing litigation in state and federal court;” his repeated attempts at removing cases absent good faith bases; the burden that these filings place on the court and opposing parties and counsel; and the fact that lesser sanctions have not deterred Klein from this continued behavior.19 II. LEGAL STANDARD “Federal courts are courts of limited jurisdiction, having the power to hear only cases that present a federal question or are between citizens of different states.”20

“The burden of subject matter jurisdiction lies with the party asserting jurisdiction, and it must be proved by a preponderance of the evidence.”21 “If the court determines

14 Id. at 8. 15 Id. at 9. 16 Id. 17 Id. at 9-11. 18 Id. at 14. 19 Id. at 14-21. 20 Quinn v. Guerreo, 863 F.3d 353, 358 (5th Cir. 2017) (citing Arbaugh v. Y&H Corp., 546 U.S. 500, 513 (2006)). 21 In re S. Recycling, LLC, 982 F.3d 374, 379 (5th Cir. 2020). at any time that it lacks subject-matter jurisdiction, the court must dismiss the action.”22 “Any ‘doubts regarding whether removal jurisdiction is proper should be resolved against federal jurisdiction.’”23

III. ANALYSIS

Girod argues that this matter must be remanded on three bases: first, because the Court lacks subject matter jurisdiction; second, because removal was untimely; and third, because removal is procedurally flawed. The Court will consider each argument in turn, beginning, as it must, with jurisdiction. A. Whether this Court Has Subject Matter Jurisdiction Klein argues that this Court has federal question jurisdiction over this matter as a result of “summary denials” in state court, which Klein alleges violate his First and Fourteenth Amendment rights.24 As this Court explained in remanding this matter the first time, however, events occurring in the course of state court litigation, even if they arguably implicate questions of federal law, do not give rise to federal question jurisdiction. Under the well-pleaded complaint rule, “a federal court has original or removal

jurisdiction only if a federal question appears on the face of the plaintiff’s well- pleaded complaint; generally, there is no federal jurisdiction if the plaintiff pleads only a state law cause of action.”25 “A case pleading only state law claims may arise

22 FED. R. CIV. P. 12(h)(3). 23 Vantage Drilling Co. v. Hsin-Chi Su, 741 F.3d 535, 537 (5th Cir. 2014) (citing Acuna v. Brown & Root, Inc., 200 F.3d 335, 339 (5th Cir. 2000)). 24 R. Doc. 1 at ¶ 3. 25 Bernhard v. Whitney Nat’l Bank, 523 F.3d 546, 551 (5th Cir. 2008). under federal law ‘where the vindication of a right under state law necessarily turns on some construction of federal law.’”26 Moreover, “a defense that raises a federal question is inadequate to confer federal jurisdiction.”27 As this Court has explained,

the Petition in this case is one for enforcement of a promissory note, which is a matter of state law. Thus, under the well-pleaded complaint rule, this Court cannot exercise federal question jurisdiction. To the extent that Klein attempts to side-step the well-pleaded complaint rule by alleging broad allegations of constitutional violations by the state court, federal courts have rejected the idea that such allegations are sufficient to confer federal

question jurisdiction. As the Fifth Circuit explained: Constitutional questions arising in state proceedings are to be resolved by state courts. If a state trial court errs the judgment is not void, it is to be reviewed and corrected by the appropriate state appellate court.

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