John v. Barron
| Citation | 897 F.2d 1387 |
| Decision Date | 13 February 1990 |
| Docket Number | Nos. 89-1027,89-1112,89-1848 and 89-2510,s. 89-1027 |
| Parties | Harry G. JOHN, et al., Plaintiffs-Appellants, v. Honorable Michael J. BARRON, et al., Defendants-Appellees. Harry G. JOHN, et al., Plaintiffs-Appellants, v. Donald A. GALLAGHER, et al., Defendants-Appellees. |
| Court | United States Courts of Appeals. United States Court of Appeals (7th Circuit) |
Thomas J. Jeffers, Jr., Montrose, Cal., for plaintiffs-appellants.
James H. McDermott, Asst. Atty. Gen., Wisconsin Dept. of Justice, Madison, Wis., Janice A. Rhodes, Stephen E. Kravit, Kravit, Waisbren & Debruin, Charles D. Clausen, Friebert, Finerty & St. John, Milwaukee, Wis., for defendants-appellees.
Before CUMMINGS, WOOD, Jr. and COFFEY, Circuit Judges.
These are consolidated appeals arising from state court litigation involving the removal of a trustee from a charitable trust.
In 1946 Harry John established De Rance, Inc. as a foundation to fund various religious, charitable, and educational programs. By 1954 John had turned over to De Rance much of his inheritance, which consisted of a 47% stake in the Miller Brewing Company. Over the years, De Rance contributed over $100 million to primarily Catholic charities out of income from its investments.
De Rance had three trustees: Harry John, his now ex-wife Erica John, and Dr. Donald Gallagher. Both Erica and Gallagher are defendants-appellees. Having been warned that De Rance was teetering on bankruptcy, they filed suit in Wisconsin state court on October 5, 1984, in order to remove John as an officer, director, and trustee. They alleged that the foundation, at John's direction, had spent nearly $100 million of its capital in less than one year to fulfill John's dream of creating a world-wide Catholic television network and to fund deep-sea treasure hunts.
After a lengthy bench trial, Circuit Court Judge Michael Barron, another defendant-appellee, issued an oral decision on August 21, 1986, which removed John as trustee and director of De Rance. Judge Barron found that John's misconduct included securities fraud, tax fraud, perjury, self-dealing, conflicts of interest, and waste. Judge Barron also dismissed John's conspiracy counterclaim against Erica, Gallagher, and others seeking to oust Harry John from De Rance. The Wisconsin Court of Appeals affirmed Judge Barron's decision, see John v. John, 450 N.W.2d 795 (Wis.Ct.App.1989), and the Wisconsin Supreme Court denied a petition for review. See John v. John, No. 88-1507, --- N.W.2d ---- (Wis. Feb. 20, 1990).
Following the Wisconsin trial court decision, John filed three lawsuits in district court. These suits are the subject of this consolidated appeal. In John v. Barron, No. 89-1112 (Barron I ), John contests the imposition of sanctions under Rule 11 of the Federal Rules of Civil Procedure, arising out of allegations in a complaint filed pursuant to 42 U.S.C. Sec. 1983 which he later dismissed. The next two appeals arise out of a subsequently filed Sec. 1983 case against the same defendants. In John v. Barron, No. 89-1027 (Barron II ), John appeals from an order dismissing the state court judge as a defendant, and in John v. Gallagher, No. 89-2510 (Gallagher I ), John appeals from a subsequent order granting summary judgment to the remaining defendants. In John v. Gallagher, No. 89-1848 (Gallagher II ), John appeals from an order dismissing his complaint in a diversity suit against Erica and Gallagher under Rule 12(b)(6) of the Federal Rules of Civil Procedure.
In Barron I, No. 89-1112, Judge Warren sanctioned both John and his attorney, Thomas Jeffers, $1000 each and imposed joint and several liability for the defendants' attorneys' fees pursuant to Rule 11 due to the scandalous nature of the allegations in the complaint and their failure to make a reasonable inquiry into the facts. Judge Warren then transferred the determination of the amount of attorneys' fees to Judge Evans, before whom Rule 11 sanctions were pending in a nearly identical suit brought by John. (See Barron II ). John's complaint in the subsequent case has now been dismissed, but Judge Evans has not yet determined the amount of attorneys' fees.
The first issue in Barron I is whether this court has subject matter jurisdiction to consider the awarding of attorneys' fees pursuant to Rule 11 when the amount of the fees has yet to be quantified by the district court. An award of attorneys' fees which does not fix the amount of the award or specify a formula allowing the amount to be computed is not a final decision within the meaning of 28 U.S.C. Sec. 1291. Lac Courte Oreilles Chippewa Ind. v. Wisconsin, 829 F.2d 601, 603 (7th Cir.1987); Vandenplas v. City of Muskego, 797 F.2d 425, 427-428 (7th Cir.1986); Gilles v. Burton Constr. Co., 736 F.2d 1142, 1145-1146 (7th Cir.1984); Hershinow v. Bonamarte, 735 F.2d 264, 266-267 (7th Cir.1984); see also In re Ronco, Inc., 838 F.2d 212, 213-214 n. 1 (7th Cir.1988). There is an exception when the order awarding fees in an amount not yet determined can be consolidated on appeal with a final order. See Lac Courte, 829 F.2d at 603. That exception does not apply in this case because John does not appeal from any final order regarding the underlying complaint. Judge Warren's order does not conclusively determine the disputed question of attorneys' fees, and that portion of the appeal must be dismissed.
Judge Warren's order imposing monetary sanctions is a final appealable order, and we must determine whether the district court properly imposed sanctions on John and Jeffers in the amount of $1000 each. Judge Warren found that they failed to make reasonable inquiries into the facts underlying the complaint before filing suit. We agree.
The standard for reviewing decisions under Rule 11 is now settled in this circuit. In Mars Steel Corp. v. Continental Bank N.A., 880 F.2d 928 (7th Cir.1989) (en banc ), we adopted a deferential standard in reviewing a district court's decision to impose sanctions under Rule 11. Id. at 933. Because the trial court has an intimate familiarity with the relevant proceedings, its decision whether counsel has conducted the kind of inquiry required by Rule 11 and taken a position reasonable in light of the facts and governing law is reviewable only where there has been an abuse of discretion. Id. (quoting R.K. Harp Inv. Corp. v. McQuade, 825 F.2d 1101, 1103 (7th Cir.1987)); Melrose v. Shearson/American Express, 898 F.2d 1209, 1214-15 (7th Cir. 1990).
Judge Warren was disturbed by the outlandish nature of the complaint, which challenged the credibility of the entire Wisconsin legal system. 1 He ordered John and Jeffers to submit a documented summary of the factual and legal inquiry made by each prior to the filing of the lawsuit. John said that he filed the suit at the advice of his attorney. Jeffers said that his investigation consisted of sitting through the state court proceeding, reviewing the financial history of De Rance, and talking to people who knew the parties. Regarding Judge Barron, Jeffers stated that he spoke with two Circuit Court judges who said that they knew Judge Barron would rule against John. The role of the Circuit Court Clerk's Office was revealed to Jeffers by the fact that the clerk held up the assignment of more than 50 cases so that Erica's and Gallagher's case could be assigned to Judge Barron. Jeffers also stated, John v. Barron, No. 87 C 953 order at 6 (E.D.Wis. Dec. 15, 1988) (Barron I order) (quoting Jeffers' summary at 26).
Judge Warren found that John and Jeffers provided no documentation of the alleged conspiratorial meetings and agreements, the role of the Clerk's office, or the futility of presenting a case to the Wisconsin Court of Appeals. John's statement that he relied on evidence known by Jeffers conflicted with his sworn statement accompanying the complaint regarding his personal knowledge of the facts. Jeffers' "rambling submission was hardly responsive to the court order and raised further unsupported allegations." Barron I order at 7. Judge Warren called the complaint "one of the most outlandish and blatant violations of Rule 11 that this court has seen" including "allegations made by pro se plaintiffs." Id. at 8. Our review of the record supports Judge Warren's conclusion. The district court did not abuse its discretion in imposing sanctions on both John and Jeffers.
The issue in Barron II, No. 89-1027, is whether the doctrine of judicial immunity shields a state court judge from liability for damages for alleged deprivation of John's constitutional rights to a fair trial as guaranteed by the due process clause of the Fourteenth Amendment. 2 John claims that Judge Barron violated his civil rights by conspiring with others to remove him as a trustee of De Rance before and during the state court trial. John argues that judicial immunity is inapplicable to this case because Judge Barron entered the conspiracy prior to the time the state court had personal jurisdiction over him.
Judges are not liable in civil actions for their judicial acts unless they have acted in the clear absence of all jurisdiction. Stump v. Sparkman, 435 U.S. 349, 356-357, 98 S.Ct. 1099, 1104-1105, 55 L.Ed.2d 331 (1978) ); Dellenbach v. Letsinger, 889 F.2d 755, 758 (7th Cir.1989); Eades v. Sterlinske, 810 F.2d 723, 725 (7th Cir.), cert. denied, 484 U.S. 847, 108 S.Ct. 143, 98 L.Ed.2d 99. A judge will not be deprived of immunity because the action he took was in error, was done maliciously, or was in excess of his authority. Stump, 435 U.S. at 356-357, 98 S.Ct. at 1104-1105 (quoting Bradley,...
To continue reading
Request your trial
-
Williams v. Eastside Lumberyard and Supply Co.
...that "perfunctory and undeveloped arguments, and arguments that are unsupported by pertinent authority, are waived"); John v. Barron, 897 F.2d 1387, 1393 (7th Cir.1990) (noting that briefs "plainly require[] more than a one page argument unsupported by any authority"); United States v. Maso......
-
Davit v. Davit
...acts must be within the judge's jurisdiction; second, these acts must be performed in the judge's judicial capacity." John v. Barron, 897 F.2d 1387, 1391 (7th Cir.1990). If this test is met, "a judge will not be deprived of immunity even if the [complained of] action was in error, was done ......
-
Littlefield v. McGuffey
...authority, forfeits the point." Pelfresne v. Village of Williams Bay, 917 F.2d 1017, 1023 (7th Cir.); see also John v. Barron, 897 F.2d 1387, 1392-94 (7th Cir.1990), cert. denied, --- U.S. ---, 111 S.Ct. 69, 112 L.Ed.2d 43 McGuffey cites no authority for any of the three evidentiary issues ......
-
Brokaw v. Mercer County
...outside scope of immunity). Nor do C.A.'s allegations that Judge Gende joined the conspiracy alter the outcome. See John v. Barron, 897 F.2d 1387, 1393 (7th Cir. 1990) (mere allegations of conspiracy insufficient to overcome judicial immunity). Accordingly, she is absolutely immune from Sti......