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Arnold v. KJD Real Estate, LLC

United States Court of Appeals, Seventh Circuit

May 20, 2014

DAN K. ARNOLD, Plaintiff-Appellant,
v.
KJD REAL ESTATE, LLC, Defendant-Appellee, Cross-Appellant,
v.
GEISSLER ROOFING CO., INC., and D & D PROPERTY MANAGEMENT, INC., Defendants-Appellees, Cross-Appellees

Argued: December 11, 2013.

Page 701

Appeals from the United States District Court for the Southern District of Illinois. No. 10-913-GPM -- G. Patrick Murphy, Judge.

For DAN K. ARNOLD, a Florida Resident, Plaintiff (12-1715): Michael Gross, Attorney, St. Louis, MO.

For KJD REAL ESTATE, an Illinois Limited Liability Company, Defendant - Appellant (12-1715): Robb E. Hellwig, Attorney, Stone, Leyton & Gershman, St. Louis, MO.

For Geissler Roofing Company, Incorporated, D & D Property Management, Incorporated, Defendants - Appellees (12-1715): P. Michael Read, Attorney, Law Office of P. Michael Read, Belleville, IL; Robert J. Sprague, Attorney, Sprague & Urban, Belleville, IL.

For DAN K. ARNOLD, a Florida Resident, Plaintiff - Appellant (12-1894): Michael Gross, Attorney, St. Louis, MO.

For KJD REAL ESTATE, an Illinois Limited Liability Company, Defendant - Appellee (12-1894): Robb E. Hellwig, Attorney, Stone, Leyton & Gershman, St. Louis, MO.

For D & D PROPERTY MANAGEMENT, INCORPORATED, an Illinois Corporation, GEISSLER ROOFING COMPANY, INCORPORATED, an Illinois Corporation, Defendants - Appellees (12-1894): P. Michael Read, Attorney, Law Office of P. Michael Read, Belleville, IL; Robert J. Sprague, Attorney, Sprague & Urban, Belleville, IL.

Before WOOD, Chief Judge, and FLAUM and SYKES, Circuit Judges.

OPINION

Page 702

Wood, Chief Judge.

The Rooker-Feldman doctrine rests on the fact that only the Supreme Court of the United States has appellate jurisdiction over state court decisions (and its authority extends only to federal questions, see 28 U.S.C. § 1257). In this case, a state court ordered Dan Arnold to deliver certain corporate stock to Geissler Roofing and D& D Property Management (collectively, the Corporate Defendants) pursuant to an earlier alleged settlement agreement. The state court did not know that Arnold had already sold the stock to a third party, KJD Real Estate (KJD). Arnold filed an interpleader action in the district court under Federal Rule of Civil Procedure 22 in which he asked the court to decide to whom he should transfer the stock. The district court dismissed the interpleader action under the Rooker-Feldman doctrine and ordered Arnold to compensate KJD in cash. We conclude that this was mistaken: the interpleader action does not attack the state court judgment itself, and so further proceedings are necessary.

I

Arnold was a former officer of both Corporate Defendants, and he ...


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