Eleventh Circuit: Payment of Sanctions or Judgment May Moot an Appeal | Practical Law

Eleventh Circuit: Payment of Sanctions or Judgment May Moot an Appeal | Practical Law

The US Court of Appeals for the Eleventh Circuit held in RES-GA Cobblestone, LLC v. Blake Construction and Development, LLC that the appellant's compliance with a district court's consent order in which he paid fees and sanctions and settled a judgment entered against him mooted his appeal of those issues.

Eleventh Circuit: Payment of Sanctions or Judgment May Moot an Appeal

Practical Law Legal Update 6-532-4044 (Approx. 3 pages)

Eleventh Circuit: Payment of Sanctions or Judgment May Moot an Appeal

by PLC Litigation
Published on 21 Jun 2013USA (National/Federal)
The US Court of Appeals for the Eleventh Circuit held in RES-GA Cobblestone, LLC v. Blake Construction and Development, LLC that the appellant's compliance with a district court's consent order in which he paid fees and sanctions and settled a judgment entered against him mooted his appeal of those issues.
On June 19, 2013, the US Court of Appeals for the Eleventh Circuit issued an opinion in RES-GA Cobblestone, LLC v. Blake Construction and Development, LLC dismissing the appellant's appeal for lack of subject matter jurisdiction. The court held that the appellant's compliance with a district court's consent order in which he paid some fees and sanctions and settled a judgment entered against him mooted his appeal of those issues.
The appellant, Grady A. Roberts, III was sued by RES-GA Cobblestone, LLC in Georgia state court on claims related to property Cobblestone purchased at a foreclosure sale. Roberts violated an injunction prohibiting him from coming near the property, prompting the state court to schedule a contempt hearing.
Roberts then twice attempted to remove the case to the US District Court for the Northern District of Georgia. The district court found these motions to be frivolous, sanctioned Roberts and awarded the plaintiffs in the underlying action costs and fees. Other sanctions for various types of misconduct followed, as well as additional awards of costs and fees to the plaintiffs. The sanctions eventually totaled $59,000 and the awarded costs and fees totaled about $55,000 plus post-judgment interest. When Roberts failed to pay, he was held in contempt, and a warrant was issued for his arrest.
Roberts appealed the district court's awards of costs and fees to Cobblestone and sanctions against Roberts to the Eleventh Circuit. However, on May 7, 2012, after his appeal was fully briefed, Roberts signed a consent order in the district court, agreeing to pay a portion of his sanctions, fines and what was owed to Cobblestone. Cobblestone, in return, agreed to accept that amount. The consent order, entered by the district court, released Roberts from custody and purged him of contempt after payment of the agreed amount.
The Eleventh Circuit determined that Roberts's appeal of the various sanctions, fees and costs awards was moot for three principal reasons:
  • Since Roberts's compliance purged him of contempt, any appeal from his contempt adjudication or the contempt sanctions was rendered moot.
  • Roberts's appeal of the district court's $2,000 FRCP 11 sanctions was moot after payment. The payment of a civil sanctions fine moots any appeal of the sanction in the Eleventh Circuit.
  • Roberts's appeal of his payments of Cobblestone's costs and fees was moot because he signed and complied with what the Eleventh Circuit characterized as effectively a "settlement agreement." The Eleventh Circuit held that, regardless of a party's subjective intent to continue an appeal, payment of a judgment moots an appeal from that judgment.
The Eleventh Circuit noted that other circuits, including the Seventh Circuit, have held that an appellant does not moot his appeal by complying with a contempt order or paying a fine levied against him, but that the law in the Eleventh Circuit was clearly the opposite.
RES-GA Cobblestone, LLC v. Blake Construction and Development, LLC demonstrates that litigants must be mindful of the appealability of contempt orders and judgments after payment if the litigant intends to appeal. Entering into an agreement to pay these fines may moot the appeal.
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