Womack v. Dolgencorp., Inc.

957 F. Supp. 2d 1350, 2013 WL 3965091
CourtDistrict Court, N.D. Alabama
DecidedAugust 2, 2013
DocketNos. 2:06-cv-0465-VEH-RRA, 2:08-cv-1602-VEH-RRA
StatusPublished
Cited by3 cases

This text of 957 F. Supp. 2d 1350 (Womack v. Dolgencorp., Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Womack v. Dolgencorp., Inc., 957 F. Supp. 2d 1350, 2013 WL 3965091 (N.D. Ala. 2013).

Opinion

MEMORANDUM OPINION AND ORDER

VIRGINIA EMERSON HOPKINS, District Judge.

I. INTRODUCTION

This case comes before the court on the Plaintiffs’ Motion to Enforce the Settlement Agreement and, in the Alternative, for a Declaratory Judgment. (Doc. 462). The motion actually seeks relief for plaintiffs’ counsel, as to the following respondents who were not parties to this action: Allen Schreiber; Mark Petro; Beasley, Allen, Crow, Methvin, Portis & Miles, P.C.; and Schreiber and Petro, P.C. The movants claim that “[t]he Respondents’ [sic] have demanded payment of fees from Class Counsel pursuant to the attorney’s [sic] fee portion of the Settlement Agreement the Court approved in this action.” (Doc. 462, at 3). They ask the court to determine whether the respondents are entitled to attorneys’ fees in this action. [1352]*1352The movants invoke this court’s “continuing jurisdiction to enforce the Settlement Agreement in this case (Doc. 455 at 7) and the [cjourt’s supplemental jurisdiction under 28 U.S.C. § 1367(a).” (Doc. 462, at 1).

In response to the motion, the respondents have filed a brief, an “Answer and Counterclaim,” and evidentiary materials. (Docs. 464-466). The movants have replied with another brief and evidence of their own. (Docs. 468, 469). The respondents have filed a motion for leave to file a surreply (doc. 470), which the movants have opposed (doc. 471). The respondents have filed a reply to the opposition to the motion for surreply. (Doc. 472).

Because it does not have jurisdiction over this controversy, the motions will be DENIED as MOOT.

II. BACKGROUND AND PROCEDURAL POSTURE

On July 23, 2012, this court approved an initial attorneys’ fee award for the movants in the amount of $3.25 million. (Doc. 455). Thereafter, the court approved an additional $3 million attorneys’ fee award to the movants. (Doc. 461). Respondents seek to recover from the movants a portion of the combined $6.25 million attorneys’ fee award.

Although this court’s jurisdiction is not disputed by the parties, the court always has the “power” and “obligation” to examine whether it has subject matter jurisdiction. Moreno Farms, Inc. v. Tomato Thyme Corp., 490 Fed.Appx. 187, 188 (11th Cir.2012) (citing Fitzgerald v. Seaboard Sys. R.R., Inc., 760 F.2d 1249, 1251 (11th Cir.1985) and Philbrook v. Glodgett, 421 U.S. 707, 95 S.Ct. 1893, 44 L.Ed.2d 525 (1975)).

III. ANALYSIS

A. This Court Lacks Jurisdiction

This court has “original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs, and is between ... citizens of different StatesU” 28 U.S.C. § 1332. Federal courts also have original jurisdiction to hear a controversy “arising under the Constitution, laws, or treaties of the United States.” 28 U.S.C.A. § 1331. Although the amount in controversy in this attorneys’ fee dispute is more than $75,000, jurisdiction under section 1332 fails because at least one party on both sides of the dispute is a citizen of Alabama. Further, “[attorneys’ fee arrangements ... are matters primarily of state contract law.” Novinger v. E.I. DuPont de Nemours & Co., Inc., 809 F.2d 212, 217 (3d Cir.1987). Accordingly, there is no federal question jurisdiction under section 1331.

Still, the movants insist that this court has “ancillary jurisdiction” over the dispute. “[T]he doctrine of ancillary jurisdiction ... recognizes federal courts’ jurisdiction over some matters (otherwise beyond their competence) that are incidental to other matters properly before them.” Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 378, 114 S.Ct. 1673, 1676, 128 L.Ed.2d 391 (1994). “In passing 28 U.S.C. § 1367, part of the Judicial Improvements Act of 1990, Congress codified under the name of ‘supplemental jurisdiction’ the caselaw doctrines of ‘pendent’ and ‘ancillary’ jurisdiction.” 28 U.S.C. § 1367 (commentary); see also, Palmer v. Hosp. Auth. of Randolph Cnty., 22 F.3d 1559, 1563 n. 3 (11th Cir.1994) (“Formerly known as pendent and ancillary jurisdiction, such grounds for the exercise of federal subject matter jurisdiction have now been codified in 28 U.S.C. § 1367.”). Title 28 U.S.C. § 1367 provides:

Except as provided in subsections (b) and (c) or as expressly provided otherwise by Federal statute, in any civil action of which the district courts have [1353]*1353original jurisdiction, the district courts shall have supplemental jurisdiction over all other claims that are so related to claims in the action within such original jurisdiction that they form part of the same case or controversy under Article III of the United States Constitution. Such supplemental jurisdiction shall include claims that involve the joinder or intervention of additional parties.

28 U.S.C.A. § 1367(a).

The Eleventh Circuit recognizes supplemental jurisdiction over fee disputes between attorneys and clients. In Broughten v. Voss, 634 F.2d 880 (5th Cir.1981),1 Judge Tjoflat noted that “there is a long tradition of sustaining jurisdiction to determine fees due an attorney dismissed by a client in a pending action.” Broughten, 634 F.2d at 882. He then explained:

The basis for exercise of this ancillary jurisdiction is the responsibility of the court to protect its officers ... and the power of the court “to do full and complete justice.” ... [When counsel is discharged] it is incumbent on the court to assure that the prosecution of the lawsuit before it is not disrupted by the withdrawal of counsel, and that the withdrawal of counsel is for good cause. This by itself is adequate to protect the interests of the parties before the court and assure fair treatment of the court’s officers. If, upon withdrawal, counsel is unable to secure payment for his services, the court may assume jurisdiction over a claim based on a charging lien over the proceeds of the lawsuit.

Id. at 882-83.

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Bluebook (online)
957 F. Supp. 2d 1350, 2013 WL 3965091, Counsel Stack Legal Research, https://law.counselstack.com/opinion/womack-v-dolgencorp-inc-alnd-2013.