Thomas S. Tufts v. Edward C. Hay, Jr.
977 F.3d 1204
| 11th Cir. | 2020Background
- Tufts (Florida lawyer and firm) and Hay (North Carolina lawyer and firm) both represented Biltmore in related matters; Hay told Tufts a bankruptcy-court “bench order” authorized Tufts as special counsel, but no bench order existed.
- Relying on Hay’s representations, Tufts performed work (transferred litigation, disbursed settlement funds, appealed a comfort order); the Bankruptcy Court later ordered disgorgement of fees and held Tufts in civil contempt.
- Biltmore’s Chapter 11 case was later dismissed by consent; Tufts sued Hay in district court for negligent and intentional misrepresentation and indemnification.
- District Court first denied Hay’s motion to dismiss for lack of personal jurisdiction, then granted Hay’s second motion to dismiss under the Barton doctrine for lack of subject-matter jurisdiction (failure to obtain leave from the Bankruptcy Court).
- On appeal, the Eleventh Circuit reversed the dismissal: it held Barton did not apply because the Bankruptcy Court lacked jurisdiction after the Chapter 11 dismissal (parties conceded no conceivable effect on the estate) and remanded.
- The Eleventh Circuit also affirmed the District Court’s denial of Hay’s personal-jurisdiction motion, finding Florida’s long-arm statute and due-process requirements satisfied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Barton doctrine bars Tufts’ district-court suit (i.e., required leave from the Bankruptcy Court) | Barton does not apply because the Chapter 11 case was dismissed and the Bankruptcy Court lacks jurisdiction to adjudicate related claims | Barton requires leave before suing court-appointed or court-approved officers for acts in their official capacity; failure to obtain leave deprives district court of subject-matter jurisdiction | Reversed dismissal: Barton does not apply where the bankruptcy court lacks jurisdiction (parties agreed the suit could have no conceivable effect on the estate) |
| Whether the District Court had personal jurisdiction over Hay (Florida) | Tufts: Hay made repeated misrepresentations into Florida to a Florida-resident attorney, causing harm in Florida; Florida's long-arm and due-process tests are satisfied | Hay: insufficient minimum contacts; challenge to the District Court's purposeful-availment analysis | Affirmed: Florida’s long-arm statute covers torts committed into Florida; Hay purposefully availed (communications into Florida), but-for causation satisfied, and exercise of jurisdiction is fair and reasonable |
Key Cases Cited
- Barton v. Barbour, 104 U.S. 126 (recognizing leave-of-court requirement before suing receivers or court-appointed officers)
- Carter v. Rodgers, 220 F.3d 1249 (11th Cir.) (Barton doctrine requires leave before suing bankruptcy-court-appointed officers)
- Lawrence v. Goldberg, 573 F.3d 1265 (11th Cir.) (applied Barton to court-approved counsel functioning as court-appointed officers)
- In re Lemco Gypsum, Inc., 910 F.2d 784 (11th Cir.) ("conceivable effect" test for related-to bankruptcy jurisdiction under § 1334)
- Louis Vuitton Malletier, S.A. v. Mosseri, 736 F.3d 1339 (11th Cir.) (tests for specific personal jurisdiction in intentional-tort cases)
- Internet Sols. Corp. v. Marshall, 39 So. 3d 1201 (Fla. 2010) (Florida long-arm: tortious acts into Florida via communications can establish jurisdiction)
