Affirmed by published opinion. Judge TRAXLER wrote the opinion, in which Judge KING and Judge GREGORY joined.
Tomi Bryan filed in North Carolina state court a putative class action against BellSouth Communications, Inc. After BellSouth removed the action to federal court, the district court rejected three of Bryan’s claims on the merits, declined to exercise supplemental jurisdiction over the remaining claim, and remanded that claim to state court. On appeal, we held that the remanded claim was a federal claim that should have been dismissed on the merits as well.
See Bryan v. BellSouth Commc’ns, Inc.,
I.
Interstate telecommunication providers are “required by law to contribute a portion of [their] revenues to the federal Universal Service Fund (‘USF’) to ensure affordable telecommunications services to rural and low-income areas, schools, hospitals, and the like.”
Bryan I,
Bryan initiated a putative class action against BellSouth in North Carolina state court. Bryan alleged that BellSouth’s FUSC was excessive and that BellSouth violated North Carolina’s Unfair Trade Practices Act by not disclosing to its customers certain information about the FUSC. BellSouth removed the action to federal court, arguing that Bryan’s claims amounted to challenges to BellSouth’s tariff and were therefore federal claims. Bryan thereafter filed a First Amended Complaint in federal court. The complaint alleged that BellSouth imposed an FUSC that exceeded its required contribution to the USF, that BellSouth did not disclose how it calculated the FUSC, and that Bell-South’s use of the term “Federal Universal Service Charge” was misleading.
Bryan filed a motion to remand the complaint to state court, and BellSouth filed a Rule 12(b) motion to dismiss. BellSouth argued that all of Bryan’s claims were barred by the “filed-rate doctrine” in that they challenged BellSouth’s filed tariff.
See, e.g., American Tel. & Tel. Co. v. Central Office Tel., Inc.,
The district court concluded that removal was proper because Bryan presented a federal question by directly challenging the terms of a tariff in her allegations that BellSouth’s FUSC was excessive. The
On appeal, this court concluded that Count A also presented a federal question by challenging the tariff. Because the claim challenged the tariff, we concluded that Count A should have been dismissed under the fíled-rate doctrine. We therefore vacated the district court’s remand order and directed the district court to dismiss Count A.
See Bryan I,
While BellSouth’s appeal was pending, Count A, which had been remanded to state court by the district court, was proceeding in state court. 1 The parties engaged in various pre-trial proceedings, Bryan filed an amended complaint, and the North Carolina trial court eventually certified a class of BellSouth customers. The parties thereafter agreed to stay the state-court action.
After the Supreme Court denied Bryan’s petition for certiorari in Bryan I, Bell-South filed a motion in state court seeking dismissal of Bryan’s action. BellSouth argued that when this court vacated the district court’s remand order, that rendered the remand order a nullity and deprived the state court of jurisdiction over the case. BellSouth also contended that the action should be dismissed on res judi-cata grounds and by virtue of the filed rate doctrine. The North Carolina court denied the motion to dismiss. BellSouth then returned to federal court seeking an injunction of the state-court proceedings under the All Writs Act. See 28 U.S.C.A. § 1651(a) (West 2006).
The district court granted BellSouth’s request for an injunction. The court concluded that our prior decision vacating its remand order rendered the remand order a nullity and deprived the state court of jurisdiction over the case. Because the state court had no jurisdiction over the claim, the district court concluded that it was proper to issue an injunction barring further action on the case. It is from that order that Bryan now appeals.
II.
Bryan first contends that the injunction must be vacated because the district court lacked subject matter jurisdie
As a general rule, courts have jurisdiction to enforce their own judgments.
See Marino v. Pioneer Edsel Sales, Inc.,
III.
We turn now to Bryan’s challenges to the injunction issued by the district court under the All Writs Act. The All Writs Act provides that a court “may issue all writs necessary or appropriate in aid of their respective jurisdictions and agreeable to the usages and principles of law.” 28 U.S.C.A. § 1651(a). Use of the All Writs Act, however, is constrained by the Anti-Injunction Act, which provides that “[a] court of the United States may not grant an injunction to stay proceedings in a State court except as expressly authorized by Act of Congress, or where necessary in aid of its jurisdiction, or to protect or effectuate its judgments.” 28 U.S.C.A. § 2283 (West 2006). The injunction entered in this case is thus improper unless it falls within the reach of one of the exceptions contained in the Anti-Injunction Act. 2
The Act’s exception for injunctions that are necessary to “protect or effectuate” a court’s judgment has come to be known as the relitigation exception.
See In re Am. Honda Motor Co. Dealerships Relations Litig.,
A.
Bryan contends that the relitigation exception is inapplicable because the claim she is asserting in state court is not the same as Count A that was dismissed under the filed-rate doctrine by the district court. According to Bryan, the focus of each complaint was substantially different—whereas the federal complaint challenged the FUSC as excessive, challenged the terms of the tariff, and sought to impose a different FUSC, the state court complaint focuses on BellSouth’s misrepresentations about the FUSC. Bryan thus contends that the claims are different, such that the relitigation exception to the Anti-Injunction Act does not apply. We disagree.
Contrary to Bryan’s assertion, Bryan did not explicitly challenge BellSouth’s tariff or seek to impose a different FUSC in Count A of her federal complaint. Instead, we concluded in Bryan I that Bryan’s allegations in Count A had the legal effect of challenging or seeking to change the terms of BellSouth’s tariff. Thus, the fact that Bryan in her state court complaint does not explicitly challenge BellSouth’s tariff or seek to vary the terms of the tariff is not enough to establish that the state court complaint and Count A of the federal complaint involve different claims.
In her complaint in federal court, Bryan claimed that BellSouth’s charging and collecting of the FUSC were unfair trade practices under North Carolina law. Bryan also alleged that BellSouth’s failure to disclose how it calculates the FUSC or disclose that the FUSC includes administrative costs and profit amounted to unfair trade practices. In the state-court complaint, Bryan omitted any reference to BellSouth’s charging or collecting of the FUSC as constituting an unfair trade practice, alleging instead that BellSouth’s various failures to fully disclose the relevant aspects of its FUSC amounted to unfair trade practices. An examination of the basis for our opinion in Bryan I will demonstrate that these changes to the claim asserted in state court are not enough to render the relitigation exception inapplicable.
In Bryan /, we explained why Count A was barred by the filed-rate doctrine:
BellSouth maintains that it does, asserting that, because Count A seeks damages, the court, were Bryan successful, would be put in the position of effectively refunding a portion of the FUSC to Bryan. In the circumstances presented, we are constrained to agree.
In Count A, Bryan alleges that Bell-South’s charging and collecting of the FUSC and its failure to make certain disclosures in connection therewith constitute unfair or deceptive acts or practices under North Carolina General Statute section 75-1.1.... Bryan’s prayer for damages draws no distinction between her separate counts. With no indication to the contrary, we must view Part V as seeking monetary damages for the acts alleged in Count A.
BellSouth asserts that the monetary remedy Bryan seeks is “a refund of thatportion of the FUSC that she considers she was wrongfully induced to pay” and that, in seeking such a remedy, Bryan runs afoul of the filed-rate doctrine. In actuality, Bryan does not specify the nature of her damages in Count A. Nonetheless, BellSouth maintains that any award of damages flowing from BellSouth to Bryan, no matter how calculated, would violate the filed-rate doctrine by refunding a portion of the FUSC to some consumers but not to others and by requiring the court to determine a reasonable rate....
In our view, the Complaint—read in the light most favorable to the plaintiff—nowhere purports to seek any form of damages other than a refund of some portion of the FUSC. And it pleads no facts that would put BellSouth on notice that Bryan intends to seek damages resulting from any injury other than paying the FUSC. In the “FACTS” section of the Complaint, Bryan alleges only that she is a BellSouth customer who was charged and paid the FUSC, that BellSouth charged an FUSC that was excessive, that it failed to disclose how the FUSC was calculated, and that its use of the term “FUSC” was misleading.
Bryan I,
While Bryan in her state-court complaint omitted claims that the FUSC was excessive, nothing about the nature of her damages claim has changed. Her allegations in the damages section are the same as they were in the federal complaint, 3 and both complaints include numerous allegations about misrepresentations by Bell-South. Bryan alleges that BellSouth’s FUSC charge was more than its contribution to the USF, and she alleges that she is entitled to damages. Just as with the federal complaint, there is nothing in Bryan’s state court complaint that would put BellSouth on notice that Bryan intends to seek damages resulting from any injury other than the paying of the FUSC.
In Bryan I, we rejected Bryan’s argument that it was possible for her to recover damages that did not amount to a refund of the FUSC:
At argument, Bryan asserted that one could envision an award of damages that would not challenge the filed tariff. She posited that if BellSouth had fully disclosed all information pertaining to its FUSC, she might have chosen a different carrier that would have charged a lower FUSC, and therefore she would have been damaged in the amount of the difference between the two carriers’ FUSCs. Such an award of damages, Bryan maintained, would not require the court to determine the reasonableness of BellSouth’s FUSC and therefore would neither present a federal question nor be barred by the filed-rate doctrine. This example is purely hypothetical, however, and nothing in the Complaint suggests such an injury.
Id.
at 431. Just as there were no allegations in the federal complaint to support this theory, there is nothing in the state-court complaint that would support this theory of liability. In fact, the state
Plaintiff has set forth two damage models which she believes would be appropriate. These are: (a) The total of all monthly FUSC amounts billed to Plaintiff and every other Class member, which total sum is then trebled [under the North Carolina Unfair Trade Practices Act]; and (b) The difference between (i) the total of all monthly FUSC amounts billed to Plaintiff and every other Class member and (ii) the total of the relevant contribution factor times (x) the interstate portion of charges for telecommunications service on each customer’s bill for Plaintiff and every other Class member for every month that there was an FUSC billed. The “difference” is then trebled. Plaintiff does not claim that she is entitled to recover the difference between the federal universal service fees charged by other local carriers and the amount of BellSouth’s FUSC. Another measure of damages may be the difference between the amount charged and the amount authorized by the FCC.
J.A. 78-79 (emphasis added).
As the allegations in her complaint and the certification order demonstrate, Bryan in her state-court action is seeking damages in the form of a refund of the FUSC paid by North Carolina BellSouth customers. The claim asserted in state court is therefore functionally identical to Count A of the federal action. Because Bryan in the state-court action is seeking to litigate the very claim that we have concluded must be dismissed under the filed-rate doctrine, the requirements for the relitigation exception to the Anti-Injunction Act are satisfied.
B.
Although we have concluded that the requirements for application of the relitigation exception have been satisfied, that does not necessarily mean it would be proper to enjoin the state proceedings. As mentioned previously, BellSouth filed a motion to dismiss with the state trial court, arguing that the district court’s order dismissing Count A under the filed-rate doctrine must be given res judicata effect and that the state-court action must therefore be dismissed. The trial court denied the motion. 4
In cases where the state court has in a final order rejected the claim that the prior federal order must be given res judicata effect, the Full Faith and Credit Act requires federal courts to respect that state court order by refusing to enjoin the state proceedings. As the Supreme Court has explained, the Anti-Injunction Act does not create an exception to the requirements of the Full Faith and Credit Act:
We believe that the Anti-Injunction Act and the Full Faith and Credit Act can be construed consistently, simply by limiting the relitigation exception of the Anti-Injunction Act to those situations in which the state court has not yet ruled on the merits of the res judicata issue. Once the state court has finally rejected a claim of res judicata, then the Full Faith and Credit Act becomes applicable and federal courts must turn tostate law to determine the preclusive effect of the state court’s decision.
Parsons Steel, Inc. v. First Alabama Bank,
In this case, the North Carolina court has rejected BellSouth’s res judicata claim by denying its motion to dismiss. Under Parsons Steel, then, we must consider whether that decision (the decision of the North Carolina court) is itself entitled to res judicata effect under North Carolina law.
Under North Carolina law, a claim is barred by
res judicata
if there is “(1) a
final judgment
on the merits in an earlier suit, (2) an identity of the cause of action in both the earlier and the later suit, and (3) an identity of parties or their privies in the two suits.”
Erler v. Aon Risks Servs., Inc. of the Carolinas,
Thus, under North Carolina law, the state-court order in this case denying BellSouth’s motion to dismiss is not a final order and is not entitled to
res judicata
effect.
See Branch v. Carolina Shoe Co.,
C.
As the analysis set forth above demonstrates, an injunction against further prosecution of Bryan’s state-court action is consistent with the All Writs Act, the Anti-Injunction Act, and the Full Faith and Credit Clause. The district court in this case, however, did not follow this precise path.
When seeking an injunction against Bryan’s continued prosecution of Count A in state court, BellSouth made two arguments: the state-court suit is barred by claim and issue preclusion, and the state-court proceedings became a “nullity” once this court vacated the district court’s remand of Count A. The district court agreed with BellSouth on the nullity argument, and the court thus did not consider BellSouth’s other argument.
BellSouth’s contention that the state-court proceedings became a nullity after our decision in
Bryan I
goes along the following path. The vacating of an order deprives the order of any effect.
See, e.g., United States v. Martin,
BellSouth’s nullity argument gives us pause. The North Carolina state courts quite clearly lost jurisdiction when Bell-South removed the case to federal court. However, it is just as clear that the state court regained jurisdiction when the district court remanded Count A to state court.
See
28 U.S.C.A. § 1447(c) (West 2006) (providing that the state court may proceed with a case once the district court mails a certified copy of the remand order to the state court). While a vacated order generally has no effect, we are not as confident as BellSouth that our vacatur of the district court’s remand order somehow retroactively deprived the state courts of jurisdiction that was returned to them by the district court.
5
After all, we did not conclude in
Bryan I
that federal courts had exclusive jurisdiction over Bryan’s claim. Instead, the claim against Bell-South was one over which state and federal courts have concurrent jurisdiction, with the filed-rate doctrine providing the rule of decision in either forum.
See Nantahala Power & Light Co. v. Thornburg,
To say that when an order is vacated it is as if the order never existed is a convenient way of describing the effect of the vacatur. When the case has always been and will remain in a single court system, that shorthand description of the result quickly conveys to the parties that the vacatur of the decision returns the parties to their original positions, before the now-vacated order was issued. But when a case has moved from the federal to the state court system, significant issues of comity arise. To conclude that a decision by a federal appeals court vacating a federal district court judgment retroactively invalidates state court proceedings that up until the moment of vacatur were entirely lawful and proper would perhaps be giving the state court system less respect than it is due.
We need not, however, resolve this difficult issue. Although the district court enjoined the state proceedings in large part because it viewed those proceedings as having been a nullity, the injunction was proper, as outlined above, under the reliti-gation exception to the Anti-Injunction Act.
See Brewster of Lynchburg, Inc. v. Dial Corp.,
We recognize that the district court suggested that it would not have enjoined the state court proceedings had they not been void.
6
Because the decision to enjoin a state court proceeding under the All Writs Act is a discretionary one,
see, e.g., In re March,
IV.
Accordingly, for the foregoing reasons, we hereby affirm the district court’s decision to enjoin Bryan from further prosecuting the state court action.
AFFIRMED
Notes
. A remand is effective when the district court mails a certified copy of the remand order to the state court,
see
28 U.S.C.A. § 1447(c) (West 2006), or, if the remand is based on the lack of subject-matter jurisdiction or a defect in the removal process, when the remand order is entered,
see In re Lowe,
. The injunction in this case is not directed to the North Carolina court itself, but instead prohibits further prosecution by Bryan and her agents and associates. The Anti-Injunction Act’s prohibition against the enjoining of state proceedings, however, extends to injunctions against parties to the state-court litigation.
See In re Am. Honda Motor Co. Dealerships Relations Litigation,
. In the federal complaint, Bryan alleged that "BellSouth's actions and omissions have been an actual, producing, direct and proximate cause of damages to Plaintiff and to Bell-South’s other North Carolina customers in an amount exceeding $10,000.” J.A. 20. The allegation in the state complaint is identical. See J.A. 64.
. BellSouth has appealed that order. As of the date of this opinion, the state appeals court has not issued an opinion.
. BellSouth also bases its nullity argument in part on language from various cases suggesting that if a remand order is reversed, everything that happened in state court before the reversal would be for naught.
See, e.g., Hernandez v. Brakegate, Ltd.,
. When addressing Bryan’s argument that the state-court claim was not the same as the dismissed Count A, the district court stated:
Had this matter turned on the issue of preclusion, the court would have been inclined, in an effort to avoid interfering with the "legitimate activities” of the state, to deny BellSouth’s request for injunctive relief. Comity concerns for the activities of the state, however, are significantly lessened by the court's determination that those activities are null and without effect. Therefore, in this case, injunctive relief minimally offends notions of comity and federalism, while fulfilling the court's obligation to exercise its jurisdiction, vindicate its authority, and protect its judgments.
J.A. 152 (emphasis added and internal citations omitted). The relitigation exception, of course, does turn on questions of preclusion.
