OCTOBER 2021 BAR BULLETIN OCTOBER 2021 | Page 7

BANKRUPTCY CORNER

BANKRUPTCY CORNER

The Eleventh Circuit Reigns in Rooker-Feldman

JASON S . RIGOLI
The Rooker-Feldman 1 doctrine holds that “ ‘ state court litigants do not have a right of appeal in the lower federal courts ; they cannot come to federal district courts " complaining of injuries caused by statecourt judgments rendered before the district court proceedings commenced and inviting district court review and rejection of those judgments .’ ” Behr v . Campbell , Case No . No . 18-12842 , 2021 U . S . App . LEXIS 24025 at * 6 , 2021 WL 3559339 ( 11th Cir . Aug . 12 , 2021 ) ( quoting Exxon Mobil Corp . v . Saudi Basic Industries Corp ., 544 U . S . 280 , 125 S . Ct . 1517 , 161 L . Ed . 2d 454 ( 2005 )).
According to the Eleventh Circuit , Rooker-
Feldman , as applied , has expanded beyond its limited scope , including by the Eleventh Circuit . See Behr , generally . A lot of the expansion arises from the use of the phrase “ inextricably intertwined ” to describe prohibited appeals that are couched in terms to conceal the prohibited appeal and elevate form over substance . The Eleventh Circuit had created a 4-part test for applying Rooker-Feldman . See Amos v . Glynn County Bd . of Tax Assessors , 347 F . 3d 1249 , 1266 n . 11 ( 11th Cir . 2003 ).
Then “ Exxon Mobil recognized , [ the Rooker-
Feldman doctrine ] follows naturally from the jurisdictional boundaries that Congress has set for the federal courts . First , federal district courts are courts of original jurisdiction — they generally cannot hear appeals . Id . at 291-92 ( citing 28 U . S . C . § 1331 ). And second , only the Supreme Court can ‘ reverse or modify ’ state court judgments ; neither district courts nor the circuits can touch them . Id . at 283 ( citing 28 U . S . C . § 1257 ( a ))[.]” Behr , at * 6 . After Exxon Mobil the Eleventh Circuit receded from its 4-part test , but the expansion and blanket application continued .
In Behr , the Eleventh Circuit is reigning in the continued expansion of the Rooker-Feldman doctrine and its blanket application to claims brought in federal court connected to state court judgments . When applying Rooker-Feldman courts must “ ask [] whether the claims raised … were brought by state court losers complaining of injuries caused by statecourt judgments rendered before the district court proceedings commenced and inviting district court review and rejection of those judgments .” Behr , at * 8 ( internal citations and quotations omitted ). “ The injury must be caused by the judgment itself . Period .” Id . at * 12 .
Behr , however , points out that Rooker-
Feldman doctrine is not preclusion or abstention and because Roker-Feldman does not apply does not mean that the underlying judgment does not otherwise preclude the re-litigation of claims in federal court . Behr at * 13 . Litigants in Bankruptcy Court should be ready to argue these other points of preclusion or abstention because Rooker-Feldman “ will almost never apply .” Id . at * 13 .
This article was submitted by Jason S . Rigoli , Furr and Cohen , P . A ., 2255 Glades Road , Suite 419A , Boca Raton , FL 33431 , jrigoli @ furrcohen . com .
1
So named for the two cases from which the doctrine flows : Rooker v . Fidelity Trust Co ., 263 U . S . 413 , 44 S . Ct . 149 , 68 L . Ed . 362 ( 1923 ) and D . C . Court of Appeals v . Feldman , 460 U . S . 462 , 103 S . Ct . 1303 , 75 L . Ed . 2d 206 ( 1983 ).
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