BB CLUB, LLC v. Harmon
2:25-cv-00055
| D. Mont. | May 30, 2025Background
- Plaintiff BB Club, LLC, owner of Black Bull Golf Club in Bozeman, MT, won a state court judgment for attorney’s fees against former member Larry Harmon, after successfully defending a discrimination claim.
- The judgment stemmed from Harmon's termination as a Club member and his subsequent unsuccessful litigation under the Montana Human Rights Act.
- Plaintiff learned that the residence previously owned by Harmon (but now owned by KB Capital Corp.) was being sold and sought to preserve the judgment’s collectability from sale proceeds.
- Plaintiff’s attempts in state court to enjoin dissipation of sale proceeds failed, in part because KB Capital was not a party to the state action, and the court denied amendments to add KB as a party.
- Plaintiff filed an emergency motion in federal court for a temporary restraining order after the state court denied relief and further procedural opportunities.
- The federal court considered the Plaintiff’s request as an improper appeal of state court rulings under the Rooker-Feldman doctrine.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Jurisdiction under Rooker-Feldman | Plaintiff can seek relief in federal court after state court denial | Federal court lacks jurisdiction to review state court orders | Federal court lacks subject-matter jurisdiction |
| Enjoin dissipation of sale proceeds | Temporary restraining order needed to prevent assets from vanishing | KB Capital is not a party; State court already ruled | Relief denied; federal court can't intervene |
| Piercing the corporate veil | Amend pleadings, add KB Capital, enjoin both Defendant and KB | KB Capital a separate entity; not proper party | State court denied amendment; federal court won't revisit |
| Appealing state court rulings | Federal court may correct state court's procedural errors | Rooker-Feldman bars de facto appeals | Plaintiff’s remedy is through state appellate court |
Key Cases Cited
- Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375 (subject-matter jurisdiction is presumed lacking; burden on plaintiff to establish)
- Morrison v. Peterson, 809 F.3d 1059 (Rooker-Feldman doctrine bars de facto appeals from state court)
- Cooper v. Ramos, 704 F.3d 772 (federal courts lack jurisdiction over direct and indirect appeals of state court decisions)