Opinion ID: 481372
Heading Depth: 1
Heading Rank: 4

Heading: The Order Enjoining Prosecution of the Pending State Court Action

Text: 47 While their appeal of the district court's dismissal of their amended complaint was pending, the Henrys filed a suit in Illinois state court against the Bank and seven other federal court defendants. The facts underlying the state court suit were the same as those underlying the federal court suit, but the state court complaint alleged common law fraud, conspiracy, trespass, and legal malpractice causes of action. On February 13, 1986, the state court defendants filed a motion with the federal district court seeking to enjoin the state court proceeding, arguing that it was barred as res judicata by the federal court action. On March 10, 1986, the district court granted the defendants' motion and issued an order enjoining the Illinois circuit court from proceeding further with the Henrys' pending suit, directing the Henrys to file a motion with the circuit court to dismiss their suit, and prohibiting the Henrys from filing additional suits against any of the federal court defendants based on the same facts presented by the federal court litigation. 48 Although we sympathize with the defendants' frustration in having to continue to defend themselves against litigation which at this point appears to be without merit, the district court's grant of the injunction must be set aside for want of jurisdiction to enter the order. The Henrys filed their notice of appeal on December 27, 1985, and a supplemental notice of appeal on January 21, 1986. The filing of a timely notice of appeal confers jurisdiction over the matter on the court of appeals and divests the district court of its control over those aspects of the case involved in the appeal. Griggs v. Provident Consumer Discount Co., 459 U.S. 56, 58, 103 S.Ct. 400, 402, 74 L.Ed.2d 225 (1982); Asher v. Harrington, 461 F.2d 890, 895 (7th Cir.1972); Nicol v. Gulf Fleet Supply Vessels, 743 F.2d 298, 299 (5th Cir.1984). If an appeal is taken from a judgment which determines the entire action, upon the filing of the notice of appeal the district court loses its power to take any further action in the proceeding except in aid of the appeal, to correct clerical mistakes under Fed.R.Civ.P. 60(a), or in aid of execution of a judgment that has not been stayed or superseded. 9 Moore's Federal Practice p 203.11, at 3-44 to 3-46. Further proceedings in the district court cannot take place without leave of the court of appeals. Asher, 461 F.2d at 895. 49 Because the district court was divested of its jurisdiction over the entire action at the very latest on January 21, 1986, when the Henrys filed their supplemental notice of appeal, it had no power to issue the order granting the defendants' request on March 10, 1986. The district court relied on Wood v. Santa Barbara Chamber of Commerce, Inc., 705 F.2d 1515 (9th Cir.1983), certiorari denied, 465 U.S. 1081, 104 S.Ct. 1446, 79 L.Ed.2d 765 (1984), for the proposition that a district court retains jurisdiction to enjoin relitigation of the facts of a case even when there is an appeal pending. As the defendants concede in their brief, however, the Ninth Circuit never mentioned that the notice of appeal had been filed before the district court entered the injunction. Moreover, the appellants in Wood had filed the notice of appeal while their Fed.R.Civ.P. 59 motion to alter or amend the judgment was still pending. A notice of appeal is ineffective if it is filed while a timely Rule 59 motion is still pending. Griggs v. Provident Consumer Discount Co., 459 U.S. at 61, 103 S.Ct. at 403; Fed.R.App.P. 4(a)(4); 16 C. Wright, A. Miller & E. Cooper, Federal Practice & Procedure Sec. 3950 (Supp.1986). Because the notice of appeal in Wood was ineffective, it did not divest the district court of its jurisdiction over the action and it therefore had the power to issue the injunction. 50 The district court here contended that by enjoining the Illinois circuit court from relitigating the facts of the instant case, it was acting  'to aid the appeal,' by the necessity of protecting and effectuating our judgment pursuant to the Anti-Injunction Act (28 U.S.C. Sec. 2283). Henry v. Farmer City State Bank, 630 F.Supp. 844, 846 (C.D.Ill.1986). The Supreme Court in Griggs emphasized, however, that a federal district court and a federal court of appeals should not attempt to assert jurisdiction over a case simultaneously. 459 U.S. at 58, 103 S.Ct. at 402. This case illustrates the potential danger of their attempting to do so. 51 In issuing its injunction, the district court naturally assumed that its rulings would be upheld on appeal. At the time that the notice of appeal was filed, however, it was possible that the district court would be reversed. Had we reversed the dismissal of the amended complaint, the district court would then have been in the unenviable position of having issued an injunction to protect and effectuate a judgment reversed on appeal. It is precisely such conflicting rulings that the rule transferring jurisdiction from the district to the appellate court upon the filing of a notice of appeal is designed to prevent. 52 Our holding does not mean that the state court defendants were left without recourse in the federal courts. The defendants should have filed their motion for an injunction with this Court. 8 We then could have considered the motion with the appeal or, if a quicker resolution was required, remanded the case to the district court directing it to rule on the motion. Because the district court failed to seek leave of this Court before it proceeded, it was without jurisdiction to grant the defendants any relief after January 21, 1986.