OPINION
Peterson Novelties, Inc. and its owner, Harold Barman (collectively “Peterson”), appeal the district court’s dismissal of their § 1983 claims against the City of Berkley, Michigan (the “City”) and Detective/Sergeant Raymond Anger of the Berkley Public Safety Department. The district court held that the claims, which arose out of Peterson’s operation as a fireworks retailer during 1995 and 1996, were “inextricably interwined” with issues presented to a Michigan state court at that time and were thus precluded by operation of the Rooker-Feldman doctrine. On appeal, Peterson argues (1) that the Rooker-Feldman doctrine does not apply to this situation, and (2) even if it did apply to some of Peterson’s claims, it would not operate to preclude all of the claims in the suit. For the reasons that follow, we affirm the district court’s disposition.
I
This case begins as Michigan fireworks cases often do, with a fireworks retailer *389 attempting to obtain a seasonal sales license to sell fireworks in a Michigan municipality. In 1995, Peterson applied for a permit to sell consumer fireworks in Berk-ley and was denied a permit. Peterson filed suit in Oakland County Circuit Court, complaining that the denial violated various of its rights and requesting that the court order the City to grant the permit. After an evidentiary hearing, the state court issued a temporary restraining order for the 1995 season, ordering the City to grant Peterson the permit.
The 1995 case still open, Peterson filed another motion in state court in April 1996 to compel the City to process a permit application for that year. On May 9, 1996, the state court issued a temporary restraining order compelling the City to issue Peterson a seasonal sales permit for the sale of fireworks not prohibited by law. The order specifically listed fireworks that were prohibited under Michigan law, including firecrackers, torpedoes, skyrockets, roman candles, etc.
The specifics of what occurred next are disputed by the parties. However, it is clear that on or about June 24, 1996, Detective Anger, having received information regarding the possible sale by Peterson of illegal fireworks, inspected the tent out of which Peterson was operating, seized fireworks he believed to be illegal, and arrested several Peterson employees. The City alleges that Detective Anger first went to inspect the tent on June 24 and purchased $91.16 worth of fireworks he believed to be illegal, but took no further action. Then, according to the City, on June 25, the OaHand County Prosecutor issued a warrant signed by another state judge and pursuant to that warrant the City seized fireworks it determined to be offered for sale in violation of state law and arrested the Peterson employees. Peterson claims that the City undertook a warrantless raid on or about June 24, seized the fireworks and arrested the employees, and then got the warrant.
Either way, it is clear that Peterson responded by filing for an emergency show cause order, demanding that the City show why it should not be held in contempt of the court’s May 9 restraining order. In its emergency motion, Peterson argued that it had been operating legally and within the parameters of the court’s previous orders and that the City had intentionally acted contrary to the court’s order, seizing fireworks and arresting employees without a warrant. They argued that the seizures were illegal and “subjected [the plaintiffs] to irreparable harm in their business and liberty interests.” Peterson asked the court to prevent the City from applying for a warrant based “on the false claim that Plaintiffs are engaged in illegal activity” without attaching a copy of the court’s May 9 order to any such application.
The judge who issued the May 9 order was temporarily unavailable, so the parties appeared before another judge of the Oakland County Circuit Court, who directed the parties to appear before the original judge on July 1. Then, on June 26, apparently in reaction to the City’s intervening seizure and arrest, that same judge issued the show cause order, ordering the City in the meantime to return all seized consumer fireworks not needed for evidence.
The original judge held the show cause hearing on July 1, 1996, during which he took testimony and viewed demonstrative evidence. He issued an order on July 3, 1996 reaffirming his May 9 order. He held that Peterson could continue to operate its business selling consumer fireworks not specifically enumerated as illegal by the Michigan fireworks statute. However, the judge did not find the City in contempt of his May 9 order and he did not award contempt damages.
*390 Peterson then applied to the same judge for declaratory relief, seeking an order that the Michigan statute prohibiting the sale of certain fireworks was void for vagueness, and the court granted the relief. This finding was later effectively overturned by the Michigan Court of Appeals; however, based on this declaratory relief, the state district court dismissed the pending criminal charges against Barman. The prosecutor’s appeal of this dismissal was finally dismissed in July 1998, pursuant to a stipulation by the parties.
On June 29, 1999, Peterson and others filed a two-count complaint in federal court against the City and Detective Anger. In the first count, the Plaintiffs alleged First Amendment retaliation, the deprivation of property without due process of law in violation of the Fifth and Fourteenth Amendments, malicious prosecution in violation of the Fourth and Fourteenth Amendments, and unreasonable search and seizure in violation of the Fourth Amendment. In the second count, the plaintiffs alleged various state law causes of action. The district court dismissed the second count, and Peterson and Barman filed an amended complaint on July 29, 1999, in which they were the only plaintiffs and in which they alleged only the violations listed in the first count.
The defendants moved for summary disposition and the court held a hearing on the motion. The defendants argued that since Peterson’s claims all arose out of the same facts that formed the basis of Peterson’s emergency motion in state court seeking a finding of contempt against the City, the new claims- were precluded by Rooker-Feldman. Alternatively, the defendants argued that Peterson’s suit was barred by claim preclusion based on the earlier state court suit because all of Peterson’s claims could have been brought in the earlier suit.
The district court granted the defendants’ motion for judgment on the pleadings, holding that Peterson’s claims were “inextricably intertwined” with issues earlier presented to the state court and were therefore precluded by the
Rooker-Feldman
doctrine.
See Peterson Novelties, Inc. v. City of Berkley,
No. 99-73256,
II
The District Court’s Application of the Rooker-Feldman Doctrine
The
Rooker-Feldman
doctrine, derived from two Supreme Court cases,
Rooker v. Fidelity Trust Co.,
In defining what is meant by “inextricably interwined,” this court has adopted the reasoning of Justice Marshall and of the Eighth Circuit that:
[T]he federal claim is inextricably intertwined with the state-court judgment if the federal claim succeeds only to the extent that the state court wrongly decided the issues before it. Where federal relief can only be predicated upon a conviction that the state court was wrong, it is difficult to conceive the federal proceeding as, in substance, anything other than a prohibited appeal of the state-court judgment.
Catz v. Chalker,
The district court in the present case held that the
Rooker-Feldman
doctrine precludes Peterson’s claims in federal court because Peterson’s federal complaint merely restated many of the allegations Peterson made in the earlier state court proceedings.
See Peterson,
In trying to support the district court’s disposition on appeal, the City similarly seizes upon the fact that Peterson’s federal case and its earlier state court case arise out of a common factual nexus. In other words, according to the City, the issues in the two cases are “inextricably intertwined” because the same facts that form the basis for Peterson’s constitutional claims in federal court formed the basis for Peterson’s emergency motion in state court.
On appeal, Peterson argues that the district court erred by focusing on the common set of facts in the two cases, rather than on the issues before the state court. Peterson contends that the state court proceeding was concerned with the validity of the City’s seasonal sales licensing ordinance, the manner in which it was applied to Peterson, and what fireworks Peterson could legally sell pursuant to the license it held. On the contrary, Peterson’s federal court action focused on the City having allegedly violated Peterson’s constitutional rights by illegally seizing Peterson’s property, obtaining a false search warrant, and falsely arresting, imprisoning, and maliciously prosecuting Barman.
It is not clear that either the district court decision or the parties place the focus where it should be: on whether
*392
the federal court, if it were to adjudicate Peterson’s claims, would effectively be acting impermissibly as an appellate court reviewing the state court disposition. It is clear that the state court did not directly decide the claims presented by Peterson’s federal complaint. The question, therefore, is whether the claims Peterson now presents to the federal courts are “inextricably intertwined” with the claims decided by the state court. With respect to this question, the reasoning of Justice Marshall and the Eighth Circuit adopted by this court and quoted above makes clear that the
Rooker-Feldman
doctrine operates to deny the federal courts jurisdiction over Peterson’s claims if the federal courts could not hold that the City and Detective Anger violated Peterson’s constitutional rights without implicitly holding that “the state court wrongly decided the issues before it.”
Catz,
If the state court had, in the course of its opinion, held that the City had not acted illegally with respect to its search, seizure, and prosecution of Peterson’s property and employees, then Peterson’s federal claims could succeed “only to the extent that the state court wrongly decided the issues before it.” Ibid. However, the July 3 state court opinion does not discuss the legality of the City’s actions; it merely reaffirms the validity of the court’s earlier order while silently refusing to hold the City in contempt of that order. Therefore, the district court in the present case could give Peterson relief on its federal claims without effectively finding that the state court wrongly decided any issues before it. For this reason, the Rooker-Feld-man doctrine does not apply to bar the court’s consideration of Peterson’s claims based on the state court’s 1996 order.
The City would have this court draw an inference from the circumstances that Peterson asked the state court to hold the City in contempt of its May 9 order and the court silently refused. Since the May 9 order set the legal parameters for Peterson’s business, if the prosecution, arrest, and imprisonment that Peterson challenges were illegal, it was because Peterson was acting within the bounds of that order, the City and Detective Anger knew it, and they acted in the face of it. Therefore, according to this argument, if the state court decided that the City had not violated the order, the federal court must implicitly be ruling that the state court was wrong in order to provide Peterson relief, and this is precisely what the Rook-er-Feldman doctrine disallows.
The problem with this argument is that the state court did not clearly hold that the City did not violate its May 9 order. The state court certainly could have found the City in violation of its May 9 order, and it declined the opportunity to do so. However, the July 3 state court order is not terribly explanatory, and the status of the City’s compliance with the May 9 order is simply not clear. 1 It would therefore be entirely possible for the district court in this case to provide Peterson federal relief not predicated upon a conviction that the state court was wrong, and for that reason *393 the Rooker-Feldman doctrine does not preclude the court’s adjudication.
The district court found support for its holding that the
Rooker-Feldman
doctrine applied in this case in another Eastern District of Michigan fireworks
cas
e-Bur
da Bros., Inc. v. Walsh,
There is an unpublished case of this circuit that is similarly instructive. In that case, this court vacated a district court’s application of the
Rooker-Feldman
doctrine in a situation where a plaintiff had filed in state court a suit alleging improper conduct by a city, and the state court relied on a procedural matter to refuse to consider the propriety of the city’s conduct.
See Wojcik v. City of Romulus,
No. 97-2236,
In a recent case, this court cautioned district courts against dismissing cases on the basis of
Rooker-Feldman
abstention in situations where the questions presented to the district court do not implicate issues decided by an earlier state court.
See Anderson,
Ill
Having found the
Rooker-Feldman
doctrine inapplicable, we could merely va
*394
cate the district court’s dismissal of Peterson’s action. However, it is well settled that this court may affirm a district court’s decision on any grounds supported by the record.
See Russ’ Kwik Car Wash, Inc. v. Marathon Petroleum Co.,
Peterson’s First and Fourteenth Amendment Claims
We hold that claim preclusion bars consideration of Peterson’s First and Fifth Amendment claims, because those claims could have been brought in Peterson’s earlier state court action.
The preclusive effect of a state court judgment is determined by that state’s law.
See Migra v. Warren City Sch. Dist. Bd. of Educ.,
As is evident from a reading of the third requirement, Michigan law defines claim preclusion broadly to preclude relitigation of all claims actually litigated in a prior action between the same parties and those claims arising out of the same transaction that could have been litigated.
See Pierson Sand & Gravel, Inc. v. Keeler Brass Co.,
It is obvious that the state court in the present case decided the issues before it on the merits, and that the resultant decree was final. It is equally clear that Peterson’s First Amendment retaliation claim and Fifth Amendment deprivation of property claim arose out of the same transaction as did Peterson’s state court action; Peterson’s emergency motion in state court sought a contempt finding and damages against the City for the same acts that Peterson now alleges violated its constitutional rights. Peterson could very well have brought its First, Fifth, and Fourteenth Amendment claims in that state court proceeding. Finally, it is clear, that Peterson 2 and the City of Berkley *395 were parties to the state court action. The First and Fifth Amendment claims as between these parties are therefore clearly barred by claim preclusion.
The status of Detective Anger as a defendant is not as clear, since he was not a party to the state court suit. As stated above, under Michigan law, claim preclusion applies to those in privity with parties as well as to parties.
See Sloan v. Madison Heights,
Traditionally, privity was strictly required for application of preclusion; a party could not enjoy the benefit of an earlier action unless they would have been bound by it.
See, e.g., Bigelow v. Old Dominion Copper Mining & Smelting Co.,
For this reason, and because we have no information upon which to base a finding that Detective Anger was in privity with the City in the 1996 state court action, we would be hesitant to hold on our own that Detective Anger may benefit from the claim preclusive effect of the earlier state court action. However, while this case was pending in federal court, Peterson continued to prosecute its claims against both the City and Detective Anger in Oakland County Circuit Court. In November 2001, the Michigan state court issued an opinion, which— much like this decision'—held, inter alia, that Peterson’s § 1983 claims were barred by claim preclusion, because they could have been brought as part of the first state court action. See Peterson Novelties, Inc. & Harold Barman v. City of Berkley & Raymond Anger, No. 00-027-399-CZ (Oakland County Cir.Ct. Nov. 27, 2001). Detective Anger was a named defendant in that action, and the state court in that case did not distinguish between the City and Detective Anger in its holding; therefore, the state court made a necessary, implicit holding that Detective Anger could take advantage of the claim-preclusive effect of the earlier Michigan court action, even though he was not a named defendant to that action.
The Michigan state law issue of Detective Anger’s ability to take advantage of the claim preclusive effect of the earlier state court action having been decided in the affirmative by the Michigan Circuit Court, this court is precluded from
*396
reconsidering it. Under Michigan law, issue preclusion precludes the relitigation of an issue in a subsequent cause of action between the same parties or their privies, as long as the earlier proceeding resulted in a valid, final judgment and the same issue was actually litigated and necessarily determined.
See Ditmore,
Peterson’s Fourth Amendment Claims
With respect to Peterson’s Fourth Amendment claims alleging malicious prosecution and unreasonable search and seizure, Peterson argues that, pursuant to
Heck v. Humphrey,
However, as noted above, Peterson continued to prosecute claims against the City and Detective Anger in state court. As also noted above, the Oakland County Circuit Court held in a November 2001 decision that Peterson’s § 1983 claims were barred by claim preclusion arising from Peterson’s 1996 state court action. The court, in the same decision, also addressed and rejected on the merits state law claims Peterson brought for malicious prosecution and false arrest. See Peterson Novelties, No. 00-027-399-CZ, at 3.
In light of the Michigan court’s rejection of Peterson’s state law malicious prosecution claim, the City asks this court to hold that it is precluded from considering Peterson’s malicious prosecution claim now.
In the past, the City would have been correct, as this court once defined the elements of a Fourth Amendment malicious prosecution claim in part by reference to the relevant state law analogue.
See Coogan v. Wixom,
However, this court made clear in the same case that, while the specific elements of a federal malicious prosecution claim may not be entirely clear, at the very least a plaintiff must show “that there was no probable cause to justify her arrest and prosecution.”
Id.
at 312,
*396 [T]here was ample probable cause to arrest [Barman]. Plaintiff was arrested pursuant to a warrant for selling illegal fireworks. Detective Anger observed employees at Plaintiffs business selling fireworks identified by statute to be illegal. Based upon that information, a warrant for Plaintiff[’s] and his employees[’] arrest was issued by the Oakland County Prosecutor’s Office.
*397
Peterson’s final claim, alleging unreasonable search and seizure, is also properly dismissed based on the November 2001 state court decision, though possibly for a different reason. It is not clear from the record before this court what § 1983 claims Peterson brought before the state court in that action. If he brought an unreasonable search and seizure claim, then this court would be precluded from considering that claim, much as we are estopped from reconsidering the issues of whether Detective Anger can take advantage of the claim-preclusive effect of the 1996 state court decision and whether there existed probable cause to justify Barman’s arrest. However, even if Peterson did not bring such a claim before the Oakland County Court in 2001, it is clear that Peterson’s unreasonable search and seizure claim is “based on the same transaction or events” as those at issue in that case.
See Ditmore,
IV
For the foregoing reasons, we AFFIRM the district court’s order granting the defendants’ motion for judgment on the pleadings.
Notes
. In the course of the July 3 order, the state court held unconstitutionally vague a portion of the Michigan fireworks statute. It is therefore possible that the state court refused to hold the City in contempt or award damages to Peterson because, in seizing the fireworks it believed to be illegal and arresting the Peterson employees for selling them, the City was operating pursuant to that part of the fireworks statute that the state court had just found unconstitutional. Alternatively, the court might have found the City to have violated its May 9 order but merely decided not to issue sanctions.
. Though we note that Barman was not a named plaintiff in the state court suit against the City, claim preclusion will nonetheless bar his claims, because his brief to this court makes clear that he is the owner of the named plaintiff in the state court suit, Peterson Nov *395 elties, Inc. See Appellant’s Brief at 5. In neither his filings to the district court nor to this court has Barman contended that he was not in control of Peterson at the time of the state court action.
