Wyatt v. Cole

CourtCourt of Appeals for the Fifth Circuit
DecidedDecember 28, 1993
Docket90-1058
StatusPublished

This text of Wyatt v. Cole (Wyatt v. Cole) 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
Wyatt v. Cole, (5th Cir. 1993).

Opinion

IN THE UNITED STATES COURT OF APPEALS

FOR THE FIFTH CIRCUIT

No. 90-1058

HOWARD L. WYATT, Plaintiff-Appellant,

versus

BILL COLE, JOHN ROBBINS, II, Defendants-Appellees.

Appeal from the United States District Court for the Southern District of Mississippi

(June 25, 1993)

ON REMAND FROM THE SUPREME COURT OF THE UNITED STATES

Before JOHNSON, WILLIAMS, AND HIGGINBOTHAM, Circuit Judges.

HIGGINBOTHAM, Circuit Judge:

This § 1983 suit returns to this panel on remand from the

Supreme Court. In our first opinion, we affirmed the district

court's grant of qualified immunity to defendants Cole and Robbins.

Wyatt v. Cole, 928 F.2d 718 (5th Cir. 1991). The Supreme Court

reversed, holding that "qualified immunity, as enunciated in

[Harlow v. Fitzgerald, 102 S.Ct. 2727 (1982], is [not] available

for private defendants faced with § 1983 liability for invoking a

state replevin, garnishment or attachment statute." 112 S.Ct.

1827, 1834 (1992). In so doing, the Court explained that its

decision did "not foreclose the possibility" that private

defendants "could be entitled to an affirmative defense based on good faith and/or probable cause or that § 1983 suits against

private, rather than governmental, parties could require plaintiffs

to carry additional burdens." Id.

We have requested, and received, supplemental briefs from

Wyatt, Cole, and Robbins.1 In keeping with the Court's suggestion,

as well as the more explicit guidance provided by Justice Kennedy's

concurring opinion, id. at 1835-37 (Kennedy, J., concurring), and

the Chief Justice's dissent, id. at 1838-39 (Rehnquist, C.J.,

dissenting), we now hold that plaintiffs seeking to hold private

actors liable under Lugar v. Edmondson Oil Co., 102 S.Ct. 2744

(1982), must demonstrate that defendants failed to act in good

faith in invoking the unconstitutional state procedures. Because

Wyatt has not shown that Cole and Robbins either knew or should

have known that Mississippi's replevin statute was unconstitutional

prior to its invalidation in April 1989, we affirm the district

court's judgment.

I.

Howard Wyatt and Bill Cole are former business partners. Cole

sought to dissolve the partnership in July 1986. When negotiations

failed, Cole, with the assistance of his attorney, John Robbins,

II, filed a state court complaint in replevin against Wyatt

accompanied by a bond of $18,000. Pursuant to Miss.Code Ann. § 11-

37-101, a writ of replevin issued and the county circuit judge

1 The State of Mississippi and several county officials were also parties to this case in the district court and on appeal. Wyatt's claims against these defendants were resolved prior to argument in the Supreme Court and are therefore not before us.

2 signed an order directing the county sheriff to execute the writ a

few days later. The sheriff seized 24 head of cattle, a tractor,

and other property from Wyatt on July 29 and 30, 1986. The writ of

replevin and summons were served on Wyatt the next day. On October

3, 1986, after a post-seizure hearing, the circuit judge dismissed

Cole's complaint in replevin and ordered him to return the property

to Wyatt. Although Cole had not yet complied with this order, the

judge dismissed the action without prejudice on September 3, 1988.

In July 1987, Wyatt filed this § 1983 suit in U.S. District

Court for the Southern District of Mississippi, contending that the

seizure of his property without notice violated the Due Process

Clause as well as several state provisions. The district court

declared the state replevin statute unconstitutional on April 13,

1989, 710 F.Supp. 180, but held that Cole and Robbins were entitled

to qualified immunity from any damages suffered by Wyatt prior to

this date under Folsom Investment Co. v. Moore, 681 F.2d 1032 (5th

Cir. 1982). Wyatt conceded that he could not prove any damages

resulting from defendants' conduct after the statute had been

invalidated, but asserted that Cole and Robbins should be held

liable for attorney's fees. The district court denied this request

with respect to Cole and Robbins on grounds that a failure to

recover money damages from defendants precluded a recovery of

attorney's fees.

On appeal, we held that Wyatt's request for damages suffered

prior to the district court's decision in 1989 was barred by

Folsom, where this court held that "'a § 1983 defendant who has

3 invoked an attachment statute is entitled to an immunity from

monetary liability so long as he neither knew nor reasonably should

have known that the statute was unconstitutional.'" 928 F.2d 718,

721 (5th Cir. 1991) (quoting Folsom, 682 F.2d at 1037). Given our

invalidation of a similar Georgia prejudgment statute in Johnson v.

American Credit Co., 581 F.2d 526 (5th Cir. 1978), we recognized

that the reasonableness of Cole's and Robbins' invocation of the

Mississippi statute presented a close question. 928 F.2d at 721-

22. We held, however, that Cole and Robbins, as private actors,

should not be charged with the same degree of knowledge as public

officials, and that, under this more liberal standard, their

reliance on the law "was not an act of unreasonable ignorance."

Id. at 722. We therefore affirmed the district court's grant of

qualified immunity to Cole and Robbins.2

The Supreme Court then reversed, holding that qualified

immunity is not "available for private defendants faced with § 1983

2 We did reverse the district court on the issue of attorneys' fees, holding that Cole, but not Robbins, was liable for fees incurred after the district court's declaratory judgment because this decision "affected the behavior of Cole towards Wyatt by effectively requiring him to return the property seized." 928 F.2d at 723. We are no longer persuaded that this is correct. Cole offered to return the cattle soon after the district court's invalidation of the statute, but the record discloses that his overture was not accepted. Wyatt instead sought to recover damages for the loss of his share of the partnership's assets, which included the cattle. At trial, however, Wyatt conceded that he could not demonstrate that Cole's seizure resulted in a net loss, and thus could not establish any damages. Since Cole was not required to pay damages or otherwise change his behavior in any way as a result of the court's judgment, he has not been "prevailed against" and thus is not liable for attorneys' fees. See Kentucky v. Graham, 105 S.Ct. 3099, 3104 (1985).

4 liability for invoking a state replevin, garnishment or attachment

statute." 112 S.Ct. 1827, 1834 (1992). While noting that private

actors enjoyed a good-faith defense against suits for malicious

prosecution and abuse of process at common law, the Court asserted

that such history did not, by itself, entitle them to "the

qualified immunity from suit accorded governmental officials under

Harlow v. Fitzgerald, 102 S.Ct. 2727 (1982)." 112 S.Ct. at 1832

(emphasis added). To the contrary, Harlow's recognition of "such

an immunity w[as] based not simply on the existence of a good-faith

defense at common law, but on the special policy concerns involved

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