Butler v. Continental Airlines, Inc.
Butler v. Continental Airlines, Inc.
Opinion of the Court
Lonnie W. Butler, Jr., appeals the dismissal, for lack of subject matter jurisdiction, of his claims against Continental Airlines, Inc. (“Continental”). We affirm.
In a prior lawsuit (“Butler I”), Butler sued Continental for copying and using in its computer reservation system macros he created without compensating him. The First Court of Appeals ultimately affirmed the summary judgment in that case on Butler’s fraud claim and dismissed his remaining claims (for conversion, breach of fiduciary duty, breach of contract, unjust enrichment, constructive trust, misappropriation of trade secrets, estoppel/quasi-estoppel, and quantum meruit) for lack of subject matter jurisdiction because they were either preempted by, or arose under, the Federal Copyright Act (the “Act”).
Butler then filed suit in federal District Court (Butler II) for Continental’s unauthorized use of the macros. The federal court dismissed Butler’s claims for lack of subject matter jurisdiction, holding that some of the claims had been preempted and abolished by the Act and that those remaining did not “arise under” the Act. See Butler v. Continental Airlines, Inc., No. Civ.A. 01-2194, 2001 WL 1509545, at *3, 5 (S.D.Tex. 2001). Butler did not appeal this decision but instead filed the present state court action, again asserting the claims that the federal court had held did not arise under the Act. Continental filed a motion to dismiss on the ground that the trial court lacked jurisdiction over those claims in accordance with the decision in Butler I. The trial court granted this motion and dismissed the lawsuit with prejudice.
Butler’s sole issue on appeal contends that the trial court erred in dismissing this case on the grounds that: (1) the dismissal in Butler I has no res judicata effect because it was not a determination on the merits; and (2) for him to be deprived, through no fault of his own, of any hearing of the merits of his claims
Although a dismissal for lack of subject matter jurisdiction does not preclude a party from litigating the merits of the same cause of action in a court of competent jurisdiction, it is res judicata as to the issue of whether the first court had jurisdiction.
BRISTER, C.J., dissenting.
. See 17 U.S.C.A. §§ 101-1332 (West 1996 & Supp. 2003).
. See, e.g., Cunningham v. Parkdale Bank, 660 S.W.2d 810, 813 (Tex. 1983) (noting that fundamental fairness dictates that a party be given a reasonable opportunity to be heard on the merits of his case). Butler does not contend that any of the claims he asserts in this case were not also asserted in Butler I.
. Because Butler has not cited and we have not found any portion of the trial court record at which he raised an open courts challenge in the trial court, and because he has also failed to support that contention on appeal with any authority or analysis, that challenge presents nothing for our review and is overruled.
.See, e.g., Magnus Elecs., Inc. v. La Republica Argentina, 830 F.2d 1396, 1400 (7th Cir. 1987); Daigle v. Opelousas Health Care, Inc., 774 F.2d 1344, 1348 (5th Cir. 1985); cf. Restatement (Second) of Judgments § 20 cmt. b, illus. 1 (1982) (noting that dismissal for im
.Nor could we necessarily determine from the record before us the extent to which any contradiction in the outcomes of the First Court and federal District Court decisions were the result of contradictory rulings, the manner of presentation to the respective courts, or some combination of the two.
Dissenting Opinion
dissenting.
Lonnie Butler had a single claim: that his employer took several macros he developed. For reasons perhaps known only to his lawyers, he filed the claim in the form of a dozen different causes of action. All have been tossed out — first by the First Court of Appeals,
Both courts held that half a dozen of Butler’s causes of action were preempted by the federal Copyright Act. But both also held that half a dozen others were not,
But where? The First Court held they could be brought only in federal court.
Federal courts have exclusive jurisdiction to try cases arising under the Copyright Act.
But the Restatement recognizes a limitation to the application of res judicata when inconsistent final judgments are rendered:
When in two actions inconsistent final judgments are rendered, it is the later, not the earlier, judgment that is accorded conclusive effect in a third action under the rules of res judicata.9
As the Restatement explains, the policy considerations supporting res judicata are not strong when the party claiming it has taken an inconsistent position in intervening litigation.
That is exactly what Continental did here. After urging the First Court to hold the federal courts had exclusive jurisdiction of Butler’s claims, Continental urged exactly the opposite when he filed them there. In accordance with the Restatement, I would hold that preclusive effect should be given only to the later ruling— the federal court’s decision that Butler’s claims belonged in state court. Because the Court holds otherwise, I respectfully dissent.
. See Butler v. Cont’l Airlines, Inc., 31 S.W.3d 642 (Tex.App.-Houston [1st Dist.] 2000, pet. denied) (“Butler I ”).
. See Butler v. Cont’l Airlines, Inc., No. Civ.A. 01-2194, 2001 WL 1509545 (S.D.Tex. 2001) ("Butler II”).
. Namely, breach of contract, breach of fiduciary duty, quantum meruit, estoppel, quasi-estoppel, and constructive trust.
. Butler I, 31 S.W.3d at 652.
. Butler II, 2001 WL 1509545 at *5.
. See 28 U.S.C. § 1338(a).
. Butler I, 31 S.W.3d at 652 (citing T.B. Harms Co. v. Eliscu, 339 F.2d 823, 828 (2d Cir. 1964)).
. Butler II, 2001 WL 1509545 at *5 (citing Bassett v. Mashantucket Pequot Tribe, 204 F.3d 343, 353 (2d Cir. 2000)).
. Restatement (Second) of Judgments § 15 (1982).
. Id. cmt. b.
Reference
- Full Case Name
- Lonnie W. BUTLER, Jr., Appellant, v. CONTINENTAL AIRLINES, INC., Appellee
- Cited By
- 6 cases
- Status
- Published