Opinion ID: 779517
Heading Depth: 3
Heading Rank: 1

Heading: Relitigation of Subject Matter Jurisdiction

Text: 28 Plaintiffs contend that we lack jurisdiction over this action because the district court erroneously concluded that Count Two is completely preempted by ERISA. Equitable argues that Plaintiffs never appealed the judgment, and thus res judicata precludes them from challenging subject matter jurisdiction in this appeal of the attorney's fee award, a collateral post-judgment proceeding. Plaintiffs counter that they could not have appealed the judgment because they received all the relief that they sought. Because they could not appeal, Plaintiffs contend that they should not be collaterally estopped — the applicable res judicata doctrine — from raising the jurisdictional issue here. 5 29 We recently addressed whether a party could relitigate in an attorney's fee proceeding the determination of subject matter jurisdiction in the underlying action. See Zambrano v. INS, 282 F.3d 1145, 1151 (9th Cir.2002), as amended, 00-16191, 302 F.3d 909, 2002 WL 2012583 (Sept. 4, 2002). We explained that the district court had fully decided the issue of jurisdiction, and that judgment has now become final. Id. Accordingly, we held, consistent with traditional notions of issue and claim preclusion, that the plaintiffs could not relitigate jurisdiction in the fee proceedings. Id.; see also Carpenters S. Cal. Admin. Corp. v. Knight (In re Knight), 207 F.3d 1115, 1116, 1117 (9th Cir.2000) (holding that, in the attorney's fee proceeding, we must accept as true the district court's determination that it lacked subject matter jurisdiction over the case because the plaintiff did not appeal the dismissal). 30 Similarly here, Plaintiffs cannot relitigate subject matter jurisdiction in the fee proceeding. Plaintiffs had a full and fair opportunity to litigate jurisdiction before the district court. That they could not appeal does not change our conclusion. They agreed to settle Count One and consented to entry of a stipulated judgment on that claim, thus voluntarily surrender[ing] their right to further review[.] Greenleaf v. Garlock, Inc., 174 F.3d 352, 359 (3rd Cir.1999). Indeed, the terms of the settlement were consistent with the district court's jurisdictional ruling. By their voluntary settlement, Plaintiffs rendered the district court's jurisdictional ruling unreviewable. Because that ruling is final, Plaintiffs cannot now challenge subject matter jurisdiction. We therefore turn to the dispute over the attorney's fee award.