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Summary of Opinion: Philip P. Casale v. Martha N. Tillman, No. 08-14432 (11th Cir. Feb. 17, 2009)

Factual and Procedural Background

Philip Casale and Martha Tillman were divorced in 1991 by the Superior Court of Chatham County, Georgia. At the time of the divorce Casale was an active-duty Army warrant officer. The Georgia divorce decree awarded Tillman half of Casale's military retirement pay, provided that Casale "shall not pursue any course of action that would defeat" Tillman's right to that portion of the pay, and required Casale to make equivalent monthly payments if he took a new job that caused "a merger" of his military retirement pay. The decree did not expressly address how payments to Tillman would be affected if Casale reentered the military.

Casale later retired and began receiving retirement pay, from which he paid Tillman her share. When Casale returned to active duty in 2002, he stopped receiving retirement pay and stopped making the related payments to Tillman. Beginning in 2003 the Georgia state court issued contempt orders against Casale for failure to make the retirement and child support payments; the court issued multiple contempt orders between 2003 and 2004. Casale does not dispute that he had, or has had, the opportunity to appeal the Georgia contempt orders within the Georgia state court system; Tillman asserts he actually appealed up to the Georgia Supreme Court.

After Casale moved to Alabama, Tillman attempted to domesticate the Georgia judgment in Alabama in late 2007. Instead of raising defenses in Alabama state court, Casale filed suit in federal district court seeking to enjoin Tillman from domesticating the Georgia contempt judgment in Alabama, arguing that the Uniformed Services Former Spouses' Protection Act (FSPA), 10 U.S.C. § 1408, preempted the state courts' alleged ability to compel military personnel to retire and that the Georgia contempt orders therefore violated federal law.

The district court dismissed Casale's complaint for lack of subject matter jurisdiction. On appeal, the Eleventh Circuit affirmed, concluding the district court correctly found it lacked jurisdiction under the Rooker-Feldman doctrine.

Legal Issues Presented

  1. Whether the Rooker-Feldman doctrine barred the federal district court from reviewing and enjoining state-court contempt judgments (and their attempted domestication) issued by a Georgia court.
  2. Whether Casale's federal claim under the FSPA was "inextricably intertwined" with the state court judgment such that federal district court review was barred.
  3. Whether, in light of recent Supreme Court decisions (Exxon and Lance), Rooker-Feldman had been sufficiently narrowed so as not to apply to Casale's claim that the state court lacked jurisdiction under federal law (i.e., that the state court was wrong to decide at all because of FSPA preemption).

Arguments of the Parties

Appellant's (Casale) Arguments

  • Casale argued that the FSPA preempted a state court's ability to "compel or coerce" military personnel to retire, and that the Georgia contempt orders effectively coerced him to retire or to forgo returning to active duty.
  • He asserted that his FSPA claim challenged the state court's authority to decide the matter (jurisdiction), not the merits of the contempt orders, and therefore was not "inextricably intertwined" with the state-court judgment for purposes of Rooker-Feldman.
  • Casale contended that subsequent Supreme Court decisions (Exxon and Lance) narrowed Rooker-Feldman so that it did not apply to his situation.

The opinion does not contain a detailed account of appellee Martha Tillman's specific legal arguments in the federal proceedings beyond factual statements that she sought domestication of the Georgia judgment in Alabama and that she claims Casale pursued appeals in the Georgia system.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
B.C. Court of Appeals v. Feldman, 460 U.S. 462 (1983) Foundational articulation of the Rooker-Feldman doctrine: federal district courts cannot review state court final judgments; applies to federal claims raised in state court and to claims "inextricably intertwined" with state-court judgments. Primary authority for holding that the district court lacked jurisdiction because Casale's claims were inextricably intertwined with the Georgia judgment and essentially asked the federal court to review and reverse the state court.
Rooker v. Fid. Trust Co., 263 U.S. 413 (1923) Historical source of the Rooker-Feldman principle that only the U.S. Supreme Court may review state court final judgments. Combined with Feldman as part of the Rooker-Feldman doctrinal foundation barring district court review of Casale's challenge to the Georgia judgment.
Powell v. Powell, 80 F.3d 464 (11th Cir. 1996) States that a party should raise federal preemption arguments in state proceedings because a state court's interpretation of federal law is authoritative; also recognizes a Rooker-Feldman limitation when a party had a "reasonable opportunity" to raise federal claims in state court. The district court relied on Powell to emphasize that Casale should have raised his preemption arguments in the Georgia proceedings; the Eleventh Circuit cited Powell in affirming Rooker-Feldman application.
Lockhart v. Fretwell, 506 U.S. 364 (1993) (Thomas, J., concurring) Cited in support of the federalism principle that state and federal courts may decide federal law issues for themselves. Referenced as part of the explanation that federalism supports requiring parties to raise federal-law arguments in state court proceedings.
Anders v. Hometown Mortgage Servs., Inc., 346 F.3d 1024 (11th Cir. 2003) Expresses that state and federal courts are free to decide federal law issues for themselves unless the U.S. Supreme Court settles the matter. Used to underline the principle of federalism that state courts can decide federal-law issues and that those decisions are not subject to de novo federal district court review under Rooker-Feldman.
Dale v. Moore, 121 F.3d 624 (11th Cir. 1997) States the standard of review: review de novo of a district court's finding that it lacks subject matter jurisdiction. Cited to identify the standard of review the Eleventh Circuit applied to the district court's jurisdictional ruling.
Goodman ex rel. Goodman v. Sipos, 259 F.3d 1327 (11th Cir. 2001) Defines "inextricably intertwined" as a claim that "succeeds only to the extent that the state court wrongly decided the issues." Applied to determine that Casale's federal claim was inextricably intertwined because success would require finding the state court wrongly decided issues underlying the contempt orders.
Lance v. Dennis, 546 U.S. 459 (2006) Notes the "narrowness" of the Rooker-Feldman doctrine while reaffirming its continued applicability in appropriate cases. Cited by Casale in arguing Rooker-Feldman no longer applied; the court referenced Lance to acknowledge the doctrine's narrowness but held it still controls where a state-court loser seeks federal review of a state judgment.
Exxon Mobil Corp. v. Saudi Basic Indus. Corp., 544 U.S. 280 (2005) Confirms Rooker-Feldman applies to "cases brought by state-court losers complaining of injuries caused by state-court judgments ... and inviting district court review and rejection of those judgments." Used to characterize Casale as a "state-court loser" whose suit invited district court review and rejection of the Georgia court's judgment; supported affirmance under Rooker-Feldman.
4901 Corp. v. Town of Cicero, 220 F.3d 522 (7th Cir. 2000) Recognizes an exception to Rooker-Feldman where a state court judgment is "void ab initio" due to the state court's lack of jurisdiction (Seventh Circuit authority). Mentioned as an example of other circuits' recognition of a "void ab initio" exception; Eleventh Circuit noted it has never adopted that exception and found no occasion to decide the issue because it concluded the state court had jurisdiction.
In re James, 940 F.2d 46 (3d Cir. 1991) Another circuit decision recognizing a "void ab initio" exception to Rooker-Feldman when the state court lacked jurisdiction. Noted as an example of courts recognizing such an exception elsewhere; the Eleventh Circuit observed it has not adopted that exception and did not need to decide it here.
Casale v. Tillman, No. 1:07-cv-774-WKW, 2008 WL 2782740 (M.D. Ala. July 15, 2008) Cited in a factual footnote noting that Tillman claimed Casale had appealed to the Georgia Supreme Court. Used as a factual citation supporting the statement that Tillman claimed Casale appealed the state proceedings.

Court's Reasoning and Analysis

Standard of review: the Eleventh Circuit reviewed de novo the district court's conclusion that it lacked subject matter jurisdiction.

The court began from the established Rooker-Feldman principle that federal district courts lack authority to review final judgments of state courts, a function reserved (aside from state appellate review) to the United States Supreme Court. The doctrine applies both to federal claims actually raised in state court and to claims that are "inextricably intertwined" with a state court judgment (i.e., those that would effectively nullify the state-court judgment or would succeed only to the extent the state court wrongly decided the issues).

The panel considered Casale's contention that his claim challenged the state court's jurisdiction to decide the matter under the FSPA (i.e., he argued the state court should not have decided the case at all because FSPA preempted such state-court authority) and thus was not the sort of merits attack barred by Rooker-Feldman. The court rejected this characterization.

The Eleventh Circuit explained that the Georgia contempt judgment did not order Casale to retire or to forgo returning to active duty; the judgment required him to make the payments identified in the divorce decree. Casale's attempt to treat an order requiring payment as though it compelled retirement was unpersuasive. Because the decree addressed Casale's responsibility to make payments if he became employed again (providing he would be responsible for making payments equivalent to what Tillman otherwise would have received), any argument that active-duty pay should be treated differently (and thus would terminate payments to Tillman) was an issue for the Georgia appellate process, not for a federal district court under the guise of a new federal claim.

The court reiterated that a litigant who believes a state trial court erred must pursue direct appeal in the state system; the federal courts are not an alternative forum for state-court losers to obtain review of state-court judgments. The Eleventh Circuit also noted that while some circuits have recognized an exception to Rooker-Feldman for state-court judgments that are void ab initio for lack of jurisdiction, the Eleventh Circuit has not adopted such an exception and had no occasion to do so because it concluded the Georgia state court had jurisdiction to enter the divorce and contempt judgments.

Holding and Implications

Holding: The Eleventh Circuit affirmed the district court's dismissal for lack of subject matter jurisdiction under the Rooker-Feldman doctrine; in other words, the panel concluded that the district court correctly refused to entertain Casale's federal suit seeking to enjoin domestication of the Georgia contempt judgments.

Disposition: AFFIRMED.

Implications

The direct consequence is that Casale's attempt to obtain federal district court relief enjoining Tillman from domesticating the Georgia contempt orders was rejected and the district court's dismissal stands. The court emphasized that challenges to state-court judgments that effectively seek review or reversal of those judgments must be pursued through the state appellate process (or ultimately the U.S. Supreme Court), not by relitigation in federal district court under the Rooker-Feldman doctrine. The opinion does not announce or adopt a new exception to Rooker-Feldman and expressly notes that the Eleventh Circuit did not decide whether to adopt the "void ab initio for lack of jurisdiction" exception recognized by some other circuits.

Philip P. CASALE, Plaintiff-Appellant, v. Martha N. TILLMAN, Defendant-Appellee.

PER CURIAM:

Philip Casale appeals the dismissal of his complaint for lack of subject matter jurisdiction. In that complaint, Casale asked the district court to enjoin his former wife, Martha Tillman, from domesticating several Georgia state court contempt orders in Alabama state court because' those orders violated the Uniformed Services Former Spouses' Protection Act ("FSPA"), 10 U.S.C. § 1408. Because the district court correctly found that it lacked subject matter jurisdiction under the Rooker-Feldman doctrine, we affirm.

The district court noted two other reasons it could not consider Casale's complaint: because Casale's claim did not arise under federal law as required by 28 U.S.C. § 1331 and because the Anti-Injunction Act prohibits federal courts from enjoining state court actions unless one of three narrow exceptions, not applicable in his case, applies. Due to our Rooker-Feldman holding, we need not address Casale's arguments on these issues.

Casale and Tillman were divorced in 1991 by decree of the Superior Court of Chatham County, Georgia. At the time of the divorce, Casale was an active-duty warrant officer with the United States Army. The divorce decree awarded Tillman half of Casale's military retirement pay and noted that Casale "shall not pursue any course of action that would defeat" Tillman's right to receive her portion of that pay. It also provided that if Casale took a new job that caused "a merger" of his military retirement pay, he would be directly responsible for paying Tillman the same monthly amount she would have otherwise received from his retirement benefits. The decree did not address how the retirement payments to Tillman would be affected if Casale reentered the military.

Casale eventually retired from active duty and began drawing retirement pay, which he split with Tillman as required by the divorce decree. When Casale returned to active duty in 2002, however, he stopped receiving retirement pay and stopped making the related payments to Tillman. In 2003 Tillman sought and received a Georgia state court order holding Casale in contempt for his failure to make the military retirement and child support payments required by the decree. Between 2003 and 2004 the Georgia state court issued three more contempt orders for Casale's continued failure to pay. Casale does not argue that he is, or ever has been, unable to appeal the contempt orders within the Georgia state court system.

In fact, Tillman claims that Casale actually has appealed — all the way to the Georgia Supreme Court. See Casale v. Tillman, No. 1:07-cv-774-WKW, at 2, 2008 WL 2782740 (M.D.Ala. July 15, 2008).

At some point after the judgment that resulted from the contempt orders, Casale moved to Alabama. In late 2007, Tillman attempted to domesticate in Alabama the Georgia judgment. Instead of raising his defenses in Alabama state court, Casale filed a lawsuit in district court seeking to enjoin Tillman from pursuing the Alabama action. Casale argued that the FSPA preempted a state court's ability to compel members of the military to retire, which he asserted was the effect of the Georgia state court's decision to hold him in contempt for discontinuing retirement payments to his ex-wife. Given that preemption, he argued, the Georgia court judgment violated federal law.

The district court concluded that it lacked jurisdiction to decide Casale's case because, among other reasons, the Rooker-Feldman doctrine barred federal court review of state court final judgments — a function reserved in the federal system for the United States Supreme Court. See B.C. Court of Appeals v. Feldman, 460 U.S. 462, 482, 103 S.Ct. 1303, 1315, 75 L.Ed.2d 206 (1983); Rooker v. Fid. Trust Co., 263 U.S. 413, 415-16, 44 S.Ct. 149, 150, 68 L.Ed. 362 (1923). It noted that Casale's claim was "inextricably intertwined" with the Georgia judgment because that claim was based on his belief that the state court's ruling was wrong, and it essentially asked the district court to "review and reverse the Georgia court."

Citing our decision in Powell v. Powell, 80 F.3d 464 (11th Cir. 1996), the district court emphasized that Casale should have raised his preemption arguments during the Georgia proceedings because a state court's "interpretation of federal law is no less authoritative than that of the [corresponding] federal court of appeals." Id. at 467 (internal quotation marks omitted). That principle of federalism is well settled. Id.; see also Lockhart v. Fretwell, 506 U.S. 364, 376, 113 S.Ct. 838, 846, 122 L.Ed.2d 180 (1993) (Thomas, J., concurring); Anders v. Hometown Mortgage Servs., Inc., 346 F.3d 1024, 1033 (11th Cir. 2003) ("State and federal courts are free to decide federal law issues for themselves (unless and until the United States Supreme Court settles the matter).").

We review de novo a district court's finding that it lacks subject matter jurisdiction. Dale v. Moore, 121 F.3d 624, 626 (11th Cir. 1997). The Rooker-Feldman doctrine makes clear that federal district courts cannot review state court final judgments because that task is reserved for state appellate courts or, as a last resort, the United States Supreme Court. See Feldman, 460 U.S. at 482, 103 S.Ct. at 1315. The doctrine applies both to federal claims raised in the state court and to those "inextricably intertwined" with the state court's judgment. Id. at 482 n. 16, 103 S.Ct. at 1315 n. 16. It does not apply, however, where a party did not have a "reasonable opportunity to raise his federal claim in state proceedings." Powell, 80 F.3d at 467 (internal quotation marks omitted). A claim is inextricably intertwined if it would "effectively nullify" the state court judgment, id. (internal quotation marks omitted), or it "succeeds only to the extent that the state court wrongly decided the issues." Goodman ex rel. Goodman v. Sipos, 259 F.3d 1327, 1332 (11th Cir. 2001).

While the Supreme Court's recent Rooker-Feldman decisions have noted the "narrowness" of the rule, see Lance v. Dennis, 546 U.S. 459, 464, 126 S.Ct. 1198, 1201, 163 L.Ed.2d 1059 (2006), they have also confirmed that it continues to apply with full force to "cases brought by state-court losers complaining of injuries caused by state-court judgments rendered before the district court proceedings commenced and inviting district court review and rejection of those judgments." Exxon Mobil Corp. v. Saudi Basic Indus. Corp., 544 U.S. 280, 284, 125 S.Ct. 1517, 1521-22, 161 L.Ed.2d 454 (2005). Other circuits have recognized an exception to the doctrine where the state court judgment is "void ab initio due to the state court's lack of jurisdiction," see, e.g., 4901 Corp. v. Town of Cicero, 220 F.3d 522, 528 (7th Cir. 2000); In re James, 940 F.2d 46, 52 (3d Cir. 1991), but our circuit has never adopted that exception.

Because, as we will explain, the state court had jurisdiction to issue its judgment, we have no occasion to decide whether there should be an exception where jurisdiction is lacking.

Casale now contends that Exxon and Lance have narrowed the Rooker-Feldman doctrine to the point where it is inapplicable to his case. He argues that his FSPA claim is not inextricably intertwined with the state court judgment because it challenges only the state court's jurisdictional authority and not the merits of that decision. Because the FSPA preempts a state court's ability to "compel or coerce" military personnel to retire, Casale asserts not that the court decided incorrectly — as in the typical Rooker-Feldman situation — but that the court was wrong to decide at all.

Casale's arguments fail. We do not agree that the Georgia state court ordered Casale to retire or to forgo his return to active duty. Instead, the state court judgment only required him to get current on the payments identified in the divorce decree. His attempt to characterize an order requiring payment as one directing him to retire from his employment is unpersuasive. Although the divorce decree did not specifically address how Tillman's payments would be affected if Casale reentered the military, it did address what would happen if Casale became employed again: he would be responsible for making payments to Tillman in the amount she otherwise would have received. Any argument that active-duty pay should be treated differently under the state court decree than pay from civilian jobs — and thus should cut off retirement payments to Tillman during Casale's new tour of duty — was for the state appellate court to decide in a direct attack by Casale on the validity of the contempt orders.

The state court clearly had jurisdiction over Casale and Tillman's divorce, including the power to create remedies to enforce the decree. If Casale believed the state court's result was based on a legal error, the proper response was the same one open to all litigants who are unhappy with the judgment of a trial court: direct appeal. We are not a clearinghouse for Casale's overstock arguments; if he did not offer them to the state courts — or if the state courts did not buy them — he cannot unload them by attempting to sell them to us. Casale is just the sort of "state-court loser[]" the Rooker-Feldman doctrine was designed to turn aside. See Exxon, 544 U.S. at 284, 125 S.Ct. at 1521-22. The district court's grant of Tillman's motion to dismiss for lack of subject matter jurisdiction is AFFIRMED.

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CASALE v. TILLMAN
(Feb 17, 2009)