Miell v. Eagle Bus Mfg Inc
Miell v. Eagle Bus Mfg Inc
Opinion
IN THE UNITED STATES COURT OF APPEALS
FOR THE FIFTH CIRCUIT
No. 00-40500
Summary Calendar
In The Matter Of: EAGLE BUS MANUFACTURING INC.; GREYHOUND LINES INC.; TRAILWAYS COMMUTER TRANSIT INC.; BUSLEASE INC.; GLI BUS OPERATION HOLDING CO.; GLI FOOD SERVICES; SOUTHERN GREYHOUND LINES COMPANY; GLI HOLDING COMPANY; GREYHOUND TRAVEL SERVICES INC.; EASTERN GREYHOUND; WESTERN GREYHOUND LINES CO.; CENTRAL GREYHOUND LINES COMPANY, Debtors.
LARRY D. MIELL, Appellant,
versus
EAGLE BUS MANUFACTURING INC.; GREYHOUND LINES INC.; TRAILWAYS COMMUTER TRANSIT INC.; BUSLEASE INC.; GLI BUS OPERATION HOLDING CO.; GLI FOOD SERVICES; SOUTHERN GREYHOUND LINES COMPANY; GLI HOLDING COMPANY; GREYHOUND TRAVEL SERVICES INC.; EASTERN GREYHOUND; WESTERN GREYHOUND LINES CO.; CENTRAL GREYHOUND LINES COMPANY, Appellees.
Appeal from the United States District Court For the Southern District of Texas (B-97-CV-251)
October 27, 2000
Before HIGGINBOTHAM, WIENER, and BARKSDALE, Circuit Judges.
PER CURIAM:*
* Pursuant to 5TH CIR. R. 47.5, the court has determined that this opinion should not be published and is not precedent except The debtors in this case filed for Chapter 11 reorganization
on June 4, 1990. The bankruptcy court confirmed their plan, which
became effective October 31, 1991. The Confirmation Order
discharged the debtors from any debt that arose before the
confirmation date.
In 1994, appellant Miell commenced a class action in Minnesota
state court against Greyhound, alleging breach of contract,
misrepresentation, and promissory estoppel. The complaint alleged
that in August 1990, Greyhound made known to its drivers (including
Miell) that changes in its wage system would become effective in
September 1990. Although these events occurred pre-confirmation,
neither Miell nor any member of his class filed a proof of claim.
After a voluntary dismissal, Miell re-filed the action in 1995,
seeking only damages incurred post-confirmation. Greyhound removed
the case to federal court.
At this point, Greyhound filed a motion in the bankruptcy
court to enforce the injunctions contained in the Confirmation
Order. The bankruptcy court granted the motion and enjoined the
lawsuit. (The bankruptcy court’s enforcement order has since become
final.) Miell then moved the bankruptcy court for relief from the
confirmation injunction. In his motion for relief he argued that he
“does not have the financial resources to litigate his claims in
under the limited circumstances set forth in 5TH CIR. R. 47.5.4.
2 any foreign forum.” The bankruptcy court denied the motion, and the
district court affirmed.
Miell appeals to this court, making three arguments. First, he
claims that the bankruptcy court lacks subject matter jurisdiction
over his class action claims. Second, he argues that “equity in
this matter weighs heavily in favor of ordering a remand to the
State Court in Minnesota.” Third, he argues that abstention by the
bankruptcy court is appropriate because his claims arise under
state law.
Regarding subject matter jurisdiction, Greyhound argues that
Miell cannot challenge the jurisdiction of the bankruptcy court for
two reasons: (1) the now-final bankruptcy court enforcement order
held that jurisdiction exists, and this holding acts as res
judicata, and (2) Miell consented to bankruptcy court jurisdiction
by filing the motion for relief. We address only Greyhound’s first
argument. Although subject matter jurisdiction can be raised at any
time in a proceeding, once it has been litigated and judgment
becomes final, the determination of subject matter jurisdiction has
res judicata effect. 1 Thus, Miell cannot challenge the bankruptcy
court’s subject matter jurisdiction to enter the enforcement order.
1 See Insurance Corp. of Ireland, Ltd. v. Compagnie des Bauxites de Guinee,
456 U.S. 694, 702 n.9 (1982), citing Chicot County Drainage Dist. v. Baxter State Bank,
308 U.S. 371(1940), and Stoll v. Gottlieb,
305 U.S. 165(1938).
3 Miell’s request for remand to Minnesota state court is
addressed to the wrong court. This court has no power over the
removal of actions from Minnesota courts. This issue should be
raised with the appropriate district court in Minnesota and, if
necessary, appealed to the Eighth Circuit.
Finally, abstention was not raised by Miell in the bankruptcy
court; Miell requested relief on the basis of the financial cost of
an inconvenient forum. This argument cannot be made for the first
time on appeal. In any case, section
28 U.S.C. § 1334(d) does not
allow appeal from a refusal to abstain by the bankruptcy court
under
28 U.S.C. § 1334(c)(1).2
For the foregoing reasons, the judgment of the district court
is AFFIRMED.
2
28 U.S.C. § 1334(d) (2000). The exception in section 1334(d) for abstention under section 1334(c)(2) does not apply in this case, because diversity of the parties provides an independent basis for federal jurisdiction.
4
Reference
- Status
- Unpublished