March 10, 1986
JOHN T. HENRY AND EVELYN I. HENRY, PLAINTIFFS,
FARMER CITY STATE BANK, AN ILLINOIS BANKING CORPORATION, GEORGE E. DRAKE, DEAN BRIGHT, RICHARD K. DRAKE, ROBERT E. DRAKE, STUART B. DRAKE, F. DICK MAXWELL, ORTHELDO A. PEITHMAN, BERYL W. RUTLEDGE, JAMES E. TOBIN, WILLIAM A. RUTLEDGE, RONALD L. VANCE, CHERYL DAWSON, JOHN N. STEVENS, STEPHEN PETERS, DONALD MASSEY, JAMES W. EVANS, TERRY SCOTT, CITY OF FARMER CITY, A MUNICIPAL CORPORATION, MARVIN HAYCRAFT, JAMES RICHMOND, BILL PERHAY, BILL PERHAY CHEVROLET INC., PHILLIP R. LAMKIN, RAYMOND MOSS, OBERMEYER TRANSFER CO., DENNIS JOHNSON, OSCAR OGLE, AND THE CHAMPAIGN NATIONAL BANK, A NATIONAL BANKING ASSOCIATION, DEFENDANTS.
The opinion of the court was delivered by: Mills, District Judge.
Can this Court enjoin state proceedings on the identical facts
filed after a final decision in this case has been handed down
and while that final decision is on appeal?
This case began as a common, garden variety bank foreclosure
and has ended as a civil RICO action (18 U.S.C. § 1964),
dismissed with prejudice by this Court.
Involved here is a bankrupt tire and service dealer who fought
foreclosure in the state court and then filed a RICO action
alleging that the bank, et al (FCSB) had fraudulently drawn up a
letter of direction to Plaintiff's land trustees ordering them to
encumber their property with a second mortgage.
Plaintiffs have appealed our dismissal to the Seventh Circuit
Court of Appeals, and then — while the appeal is pending —
instituted another factually identical case in the 6th Judicial
Circuit Court of Illinois, alleging the same common law fraud
causes of action that were the basis of the RICO action here in
On December 17, 1985, we dismissed this case on the merits by
finding that no pattern of racketeering had been adequately pled,
in that a single allegation of one act of forgery and fraud
cannot sustain the pattern of racketeering requirement of Sedima
S.P.R.L. v. Imrex Co., Inc., ___ U.S. ___, 105 S.Ct. 3275, 3285,
fn. 14, 87 L.Ed.2d 346 (1985); Fleet Management Systems, Inc.,
d/b/a Logistic Systems v. Archer-Daniels-Midland Co., Inc., and
NIMS Associates, Inc., 627 F. Supp. 550 (C.D.Ill., 1986).
It was also determined that the allegations that Defendants
were collecting an illegal debt were patently false.
Now Plaintiff has sought to do an end-run around the federal
judiciary which they initially invoked. They do this by filing
the state court action after our final order and during the
appeal to the United States Court of Appeals for the Seventh
Circuit. This they cannot do.
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