Silcox v. United Trucking Service, Inc., No. 81-5033

• Court: United States Courts of Appeals. United States Court of Appeals (6th Circuit)
• Writing for the Court: PHILLIPS; In issuing the injunction on the present case
• Citation: 687 F.2d 848
• Parties: Irene Hurst McMahan SILCOX, Individually and as Administratrix of the estate of James Silcox, Deceased, Plaintiff-Appellee, v. UNITED TRUCKING SERVICE, INCORP., and Charles E. Lee, Defendants, v. Daniel J. TRIBELL, Attorney-Appellant.
• Docket Number: No. 81-5033
• Decision Date: 02 September 1982

Page 848

687 F.2d 848 Irene Hurst McMahan SILCOX, Individually and as
Administratrix of the estate of James Silcox,
Deceased, Plaintiff-Appellee,
v.
UNITED TRUCKING SERVICE, INCORP., and Charles E. Lee, Defendants,
v.
Daniel J. TRIBELL, Attorney-Appellant. No. 81-5033. United States Court of Appeals,
Sixth Circuit. Argued April 15, 1982.
Decided Sept. 2, 1982.

Page 849

Daniel J. Tribell, pro se.

William A. Watson, Middlesboro, Ky., Ervin L. Ball, Jr., Lentz, Ball & Kelley, P.A., Asheville, N. C., for plaintiff-appellee.

Before PHILLIPS, BROWN ^* and TUTTLE, ^** Senior Circuit Judges.

PHILLIPS, Senior Circuit Judge.

This case presents the question of whether it was proper for the district court to issue an injunction restraining the appellant from proceeding further in a state court with his claim for an attorney fee, when that issue had been decided adversely to him in the district court. For the reasons stated below, we affirm the judgment of the district court granting the injunction.

I

The original action in this controversy was a suit for wrongful death filed in the United States District Court by the plaintiff-appellee, Mrs. Irene Silcox, against defendants, Charles Lee and his employer, United Trucking Service, Inc. Jurisdiction was based on diversity of citizenship. The plaintiff's decedent, James Silcox, was killed in a collision with defendant Lee. The parties eventually agreed to a settlement of $101,000, which was paid into the district court in anticipation of the dispute as to attorney's fee at issue on this appeal. The original defendants no longer assert any interest in the settlement funds.

The present dispute is between Mrs. Silcox and the appellant, Daniel J. Tribell, her former attorney. Appellant claims an interest in the settlement funds, based on service rendered to Mrs. Silcox as her original attorney in the underlying claim against the defendants.

The defendants moved to have the funds paid into the court on March 30, 1978. Appellant Tribell filed a "Notice of Lien for Attorney's Fee" in the district court on April 3, 1978, asserting that he was entitled to one-third of the funds as his attorney's fee. District Judge Eugene E. Siler, Jr. granted the motion of defendants for payment of the funds into the registry of the court and set a date for a hearing. On May 17, 1978, the defendants were dismissed with prejudice from the action and the court held a hearing on the attorney's fee issue. Appellant Tribell appeared, argued his case and cross-examined a witness. He also filed a motion requesting that the district court action be stayed pending the outcome of a state court suit for attorney's fee filed on that same day, May 17, 1978, in the Circuit Court of Bell County, Kentucky. The district court hearing was continued by Judge Siler, pending his resolution of the question of the ancillary jurisdiction of the court to hear the dispute.

On August 24, 1979, Judge Siler issued a memorandum opinion holding that the district court had ancillary jurisdiction over the attorney's fee dispute, and that appellant was not entitled to recover the fee claimed by him because he had been suspended from practice for nonpayment of dues by the Kentucky Bar Association at the time he had rendered the services for which he sought compensation. Appellant never appealed from this decision.

Appellant's action in the state court had proceeded in the meantime. On July 6, 1978, the state court overruled Mrs. Silcox's motion to dismiss, but stayed further proceedings pending resolution of the issues by Judge Siler. After the decision of the district court, the state court overruled another motion by Mrs. Silcox to dismiss, in which she asserted that the district court judgment precluded the state court from proceeding with the attorney's fee litigation on principles of res judicata. The state court determined that it had jurisdiction over the attorney's fee question and that Tribell would be entitled to recover on a quantum meruit basis.

Page 850

Appellee Silcox then filed a motion in the district court to enjoin appellant Tribell from proceeding further with the state court action. The district court determined on December 18, 1980, that it had the authority to issue the injunction under the "relitigation exception" of the Federal Anti-Injunction Act, 28 U.S.C. § 2283. The court then enjoined Tribell from taking any further actions with reference to any state court lawsuit instituted to collect an attorney's fee for services rendered to Mrs. Silcox. From this decision Tribell appeals.

II

An examination of the record and the pleadings before the state court reveal the following undisputed or admitted facts regarding appellant Tribell's alleged representation of the Silcox estate.

Appellant Tribell originally was retained as counsel for the estate of the decedent and through his efforts Mrs. Silcox was appointed administratrix. Tribell also obtained the agreement of the underlying defendants to a $101,000 settlement. Mrs. Silcox, however, was not satisfied with this settlement and shortly thereafter discharged Tribell and retained her present counsel.

Upon his discharge, Tribell undertook to have Mrs. Silcox removed as administratrix of the estate of decedent, and have the parents of decedent appointed in her place. Pursuant to these efforts, Tribell adduced evidence undertaking to establish that Mrs. Silcox and the decedent had not participated in a valid ceremonial marriage. Meanwhile, Mrs. Silcox and the defendants ultimately agreed to a $101,000 settlement, the same amount for which Tribell originally had negotiated. Mrs. Silcox contends that this settlement was lower than it otherwise might have been, due to her weakened bargaining position as administratrix of the estate brought about by her former counsel's attempts to remove her. Tribell notified the parties of his intent to assert a one-third interest in the funds as a contingent fee for his having originally procured the settlement.

It is also undisputed that at the time Tribell served as attorney for Silcox, from May 1975 until January 1976, he was not licensed to practice law, having been suspended by the Kentucky Bar Association for nonpayment of dues in June 1970. He was not reinstated until November 24, 1976.

III

This court has recognized that the power of a district court to enjoin a litigant from proceeding in a state action, although it should be exercised sparingly, exists under the provisions of the Federal Anti-Injunction Act, 28 U.S.C. § 2283. Lamb Enterprises, Inc. v....