In rе: AMERIJET INTERNATIONAL, INCORPORATED, Petitioner Consolidated With 14-20522 AMERIJET INTERNATIONAL, INCORPORATED, Plaintiff - Appellant v. ZERO GRAVITY CORPORATION, Defendant - Appellee
No. 14-20521
United States Court of Appeals for the Fifth Circuit
REVISED MAY 15, 2015
Appeals from the United States District Court for the Southern
Before STEWART, Chief Judge, and KING and ELROD, Circuit Judges.
PER CURIAM:
Petitioner and Plaintiff-Appellant Amerijet International, Inc., appeals the district court’s anti-suit injunction. Amerijet has also petitioned this court for a writ of mandamus setting aside the district court’s order reopening this case after the parties purportedly settled their dispute. Amerijet alleges that the district court lacked subject matter jurisdiction as it erred in setting aside Amerijet’s voluntary dismissal under
I.
Zero Gravity Corp. owns a Boeing 727 aircraft that it uses to provide parabolic flights that simulate a weightless environment. Zero Gravity provides such flights as part of its business both to members of the public, for entertainmеnt, and to NASA, for experiments in a weightless environment. Amerijet International, Inc., is an airline company that operates specific aircraft for specific types of flights.
Zero Gravity and Amerijet entered into a contract under which Amerijet operated the parabolic flights for Zero Gravity and provided maintenance services (the “Management Services Agreement“). Amerijet leased the aircraft’s engines to Zero Gravity under a separate contract (the “Engine Lease“). The Management Services Agreement stated that it would expire on March 31, 2011, unless terminated earlier by either party on six months’ notice. The
On April 3, 2014, Amerijet sent Zerо Gravity notice that it was terminating the Management Services Agreement, effective May 4, 2014. On April 7, 2014, Amerijet sent Zero Gravity a demand letter, insisting that Zero Gravity sign a new Engine Lease or else Amerijet would take possession of the engines on April 14, 2014. Zero Gravity declined.
On April 14, 2014, Amerijet filed a petition and application for a temporary restraining order, temporary injunction, and permanent injunction in state district court in Texas. Amerijet’s petition claimed that, as the Engine Lease had expired, it had the right to the immediate possession of the engines. Amerijet’s petition also sought a declaratory judgment that it was entitled to possession of the engines. The Texas district court issued a temporary restraining order the same day.
Zero Gravity responded on April 17, 2014, by filing (also in state court) a document entitled ”ORIGINAL VERIFIED PETITION AND APPLICATION FOR TEMPORARY RESTRAINING ORDER, AND TEMPORARY AND PERMANENT INJUNCTION, AND MOTION TO DISSOLVE TEMPORARY RESTRAINING ORDER OBTAINED BY AMERIJET INTERNATIONAL, INC” (the “Filing“).1 The Filing sets out facts regarding, inter alia, the parties, proper venue, the Engine Lease and Management Services Agreement, and the demand from Amerijet and Zero Gravity’s response. The Filing then requests relief in the form of dissоlution of Amerijet’s temporary restraining order, a temporary restraining order and temporary and permanent injunctions maintaining the status quo, and a declaratory judgment that “Zero Gravity is in rightful possession of the Engines.” The filing was verified.
On April 17, 2014, the Texas state court orally dissolved the temporary restraining order. On April 19, 2014, the Texas state court issued an order enjoining the parties from interfering with the engines so as to maintain the status quo until the hearing scheduled for April 21, 2014. At that hearing, the Texas state court confirmеd the dissolution of the April 17, 2014, temporary restraining order and dissolved the April 19, 2014, sua sponte order based on a joint motion by Amerijet and Zero Gravity.
On May 6, 2014, Zero Gravity removed the case to the United States District Court for the Southern District of Texas. The following day, Amerijet filed a
On May 9, the district court issued an order setting a conference with the parties for May 12. At the May 12 hearing, Amerijet raised the
Zero Gravity and Amerijet both submitted declarations contesting which party should receive the cash bond Amerijet posted when it obtained the temporary restraining order. Zero Gravity then filed an “Initial Conference Supplement” with the district court, stating that, though Zero Gravity had “advised the court that the matter was largely resolved” at the May 12 confеrence, Amerijet had recently advised Zero Gravity that it would not release the aircraft maintenance logs to Zero Gravity due to an alleged FAA audit, though Amerijet provided no correspondence with the FAA reflecting such an audit. Zero Gravity stated that “[t]o change maintenance providers, and continue to fly for NASA, Zero Gravity needs the logs immediately.” As such, Zero Gravity requested an additional conference with the district court and requested “that this matter not be closed until this issue is resolvеd, either by conference or counterclaim.” Shortly thereafter, Zero Gravity filed an “Initial Conference Second Supplement,” advising the court that “[s]hortly after the previous request for a conference, [Amerijet] informed Zero Gravity that it would transfer the aircraft maintenance records” and withdrawing the request for a conference. Amerijet then filed a document advising the court that the engines had been returned and the maintenance records transferred. The document alsо stated that “Zero G[ravity] has reviewed the records and signed a written acknowledgment that all records required by [federal regulations] have been received, reviewed and accepted, and have been found to be complete.”
On June 4, 2014, the district court issued a “Final Dismissal.” The Final Dismissal stated: “Having been advised that a settlement has been reached, the court dismisses this case with prejudice.” The Final Dismissal also released the bond to Amerijet and advised that “[i]n the future, [Amerijet] will be more cautious about demanding emergency relief.” The Final Dismissal then stated: “This court retains jurisdiction to enforce the settlement.”
After the Final Dismissal, Zero Gravity filed a “Motion to Enforce Obligations and Representations,” alleging that important maintenance records had not yet been returned to Zero Gravity, contrary to Amerijet’s representations to the court and obligations under the parties’ settlement. The district court scheduled a hearing on the motion. Prior to the hearing, Amerijet filed a response in opposition to the motion to enforce, denying that maintenance records had been withheld and stating that Amerijet intended to raise “the issue of additional claims against Zero Gravity” at the hearing. At the hearing on June 27, the parties discussed with the court the status of the maintenance reports, as well as a claim by Amerijet that Zero Gravity was retaining custody of spare parts that belonged to Amerijet. Amerijet also briefly mentioned that Zero Gravity still owed it $160,000.00 and alleged concеrns that two pilots hired from Amerijet by Zero Gravity would disclose Amerijet trade secrets. The district court entered an order after the hearing outlining Amerijet’s obligation to deliver the maintenance records to Zero Gravity. The order also required the parties to submit status reports by July 10.
Amerijet’s status report recounted its production of maintenance records to Zero
At the status conference, the court resolved the issue of the remaining spare parts. Zero Gravity then informed the court that Amerijet had just sued Zero Gravity in federal court in Florida. After the hearing, the district court issued an order reopening the case, whiсh stated that although the case was closed “after the parties settled the dispute,” “[t]he court retained jurisdiction to enforce the settlement” and “[t]he case was reopened by the parties when [Zero Gravity] moved to enforce the terms of the settlement.” The order also stated, “[i]n conjunction with enforcing the terms of the settlement, [Amerijet] asked the court to grant it affirmative relief, including the return of its manuals, parts, tools, and money – money several times.” The same day, the cоurt issued an order to show cause directing Amerijet to “appear and explain why it should not be enjoined from asserting compulsory counterclaims in the
At the show cause hearing, the district court and the parties discussed the status of Amerijet’s flight manuals, the spare parts, and the money Amerijet claimed Zero Gravity owed, and then turned to the Florida lawsuit. The court observed that the claims in the Florida lawsuit involved a breach of the Management Sеrvices Agreement and stated that the Texas claims arose out of the related Engine Lease. The district court also observed that Amerijet had raised the issue of the money it claimed to be owed on multiple occasions. The district court then stated once again that Amerijet’s voluntary dismissal was “ineffectual because of the counterclaim.” After the show cause hearing, the district court issued an order enjoining Amerijet from suing “in Florida or elsewhere based on the same transaction.” The order stated that Amerijet’s “claims to parts, money, and intellectual property arise under the same nucleus of fact as its claims to the engines – the bailment – and were argued here.”
Amerijet then filed a petition for a writ of mandamus with this court. The mandamus petition seeks vacatur of the district court’s order reopening the case “and further directing the district court to relinquish and terminate any further exercise of power or dominion over that closed action for want of subject mаtter jurisdiction.” The mandamus petition is premised on Amerijet’s purported
II.
A district court’s injunction of parallel federal court litigation under the first-to-file rule is reviewed for abuse of discretion. See Mun. Energy Agency v. Big Rivers Elec. Corp., 804 F.2d 338, 343 (5th Cir. 1986); see also Int‘l Fidelity Ins. Co. v. Sweet Little Mexico Corp., 665 F.3d 671, 677 (5th Cir. 2011). Yet to the extent Amerijet’s challenge to the injunction is based on the effectiveness of the
III.
That document itself closes the file. There is nothing the defendant can do to fan the ashes of that action into life and the court has no role to play. This is a matter of right running to the plaintiff and may not be extinguished or circumscribed by adversary or court. There is not even a perfunctory order of court closing the file. Its alpha and omega was the doing of the plaintiff alone.
317 F.2d at 297. Accordingly, the district court may not attach any conditions to the dismissal. Williams v. Ezell, 531 F.2d 1261, 1264 (5th Cir. 1976). After the notice of voluntary dismissal is filed, the district court loses jurisdiction over the case. Qureshi, 600 F.3d at 525.3
Further, this court has determined that
This case is, as far as we can tell, unique among
”
Rule 41(a)(1) as it was drafted simplifies the court’s task by telling it whether a suit has reached the point of no return. If the defendant has served either an answer or a summary judgment motion it has; if the defendant has served neither, it has not. We
are unwilling to upset the balance struck in
Rule 41(a)(1) by adding some different test.”
Aero-Colours, Inc. v. Propst, 833 F.2d 51, 52 (5th Cir. 1987) (per curiam) (quoting Winterland Concessions Co. v. Smith, 706 F.2d 793, 795 (7th Cir. 1983)); see also Exxon Corp. v. Md. Cas. Co., 599 F.2d 659, 662 (5th Cir. 1979) (“This mechanical approach to the problem is consistent with the underlying theme that the procedure imposed by the rule is simple and routine.“); cf. Pilot Freight, 506 F.2d at 916 (“But more importantly in our view, the necessity of deciding in every case ‘How much preparation is too much’? in itself demonstrates the relative undesirability of the subjective approach endorsed in Harvey as opposed to the objective standards embodied in the Rule.“). The text of the Rule itself only requires service of “an answer,” and does not explicitly requirе that, as here, a pre-removal answer comply with the provisions of The question is, therefore, whether Zero Gravity’s state-court Filing constitutes an answer under Texas law. We conclude that it does, albeit barely. The Filing alleges facts that constitute defenses to Amerijet’s claims in its petition and requests affirmative relief. See Alternatively, Amerijet contends that the district court lacked subject matter jurisdiction to enforce the settlement agreement because the district court did not incorporate the terms of the settlement agreement into the Final Dismissal. This argument is meritless. The Final Dismissal expressly stated “[t]his court retains jurisdiction to enforce the settlement.” That is sufficient to provide subject matter jurisdiction to enforce the settlement agreement. Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 381 (1994) (“The situation would be quite different if the parties’ obligation to comply Finally, Amerijet argues that the district court abused its discretion by enjoining the Florida lawsuit. “District courts have discretion to enjoin the filing of related lawsuits in other U.S. district courts.” Big Rivers, 804 F.2d at 343. “The Fifth Circuit adheres to the general rule that the court in which an action is first filed is the appropriate court to determine whether subsequently filed cases involving substantially similar issues should proceed.” Save Power Ltd. v. Syntek Fin. Corp., 121 F.3d 947, 950 (5th Cir. 1997). Under this first-to-file rule, the cases need not be identical; rather, “the crucial inquiry is one of substantial overlap.” Int‘l Fidelity, 665 F.3d at 678 (internal quotation marks and brackets omitted). “The rule rests on principles of comity and sound judicial administration” and the concern underlying the rule “manifestly is to avoid the waste of duplication, to avoid rulings which may trench upon the authority of sister courts, and to avoid piecemeal resolution of issues that call for a uniform result.” Cadle Co. v. Whataburger of Alice, Inc., 174 F.3d 599, 603 (5th Cir. 1999) (internal quotation marks omitted). Here, the district court did not err in enjoining the Florida lawsuit. The Texas case was clearly the first-filed suit. Amerijet filed its petition in Texas court on April 14, 2014, and the Florida complaint was not filed until July 28, 2014. Further, the cases substantially overlap. The Florida lawsuit expressly seeks attorney’s fees and costs that Amerijet incurred in the Texas lawsuit. It also seeks payment in quantum meruit for the period of time between the termination of the agreed extension of the Engine Lease and Zero Gravity’s return of the engines and the rental payment for the engines for May 2014. Such payments appeаr to arise directly out of the parties’ agreement regarding the engines that formed the “settlement” in the Texas case. The Florida lawsuit requests, inter alia, damages for breach of the Management Services Agreement and the Engine Lease and asserts a conversion claim (and a civil theft claim) for the manuals and spare parts retained by Zero Gravity. The Texas case arose out of a dispute over a breach of the Engine Lease—Amerijet claimed that it was entitled to immediatе possession of the engines by virtue of the Engine Lease’s expiration, and Zero Gravity claimed that the Engine Lease had been implicitly renewed by the parties’ course of dealing. Further, the parties both presented claims to—and obtained relief from—the district court regarding Amerijet’s spare parts and the manuals in the hearings relating to their settlement. As such, there is a substantial risk that rulings in Florida—or Texas—would “trench upon the authority” of the other court and could lead to “piecemeаl resolution of issues that call for a uniform result.” Cadle, 174 F.3d at 603. Amerijet contends that it cannot be enjoined from proceeding in Florida because its claim for payments due under the contracts had not arisen at the time it filed its complaint in Texas. But the cases Amerijet cites as support indicate only that a claim will not be res judicata if it could not have been brought For the foregoing reasons, thе injunction issued by the district court is AFFIRMED and the petition for a writ of mandamus is DENIED.IV.
V.
VI.
