Milgroom v. United States

Fed. Cir. decided June 10, 2016
The US Court of Appeals for the Federal Circuit affirms the United States Court of Federal Claims dismissal of the complaint for lack of subject matter jurisdiction. (disposition nonprecedential). plaintiff's claims were a collateral attack on the final judgments of the District court and the bankruptcy court.
Procedural context:
Milgroom and Martl filed a complaint for violation of the Fourth, Fifth and Tenth Amendments to the United States Constitution by entering a civil judgment against them notwithstanding the automatic bankruptcy stay. Martl was barred by claim preclusion and issue preclusion from bringing her claims for a third time. Analyzing both plaintiffs claims collectively the court concluded it lacked jurisdiction over all of the claims regardless of claim or issue preclusion. The dismissal was specifically based on the fact that those provisions are not money mandating; and that the court lack jurisdiction to review alleged taking by the district court because review of such judicial takings claim would require the Claims Court to scrutinize the merits of the district court and the bankruptcy court decisions, a task that it was without authority to undertake.
The Valvanis filed a complaint against Robert Milgroom in Norfolk Massachusetts, alleging he illegally used his influence to divert to his own benefit monies raised by mortgaging of and sale of the companies assets. Milgroom filed for bankruptcy in Hawaii but did not notify the Valvanis. When they learn about it, asked for relief from the bankruptcy court which imposed sanctions against Milgroom, granted relief from the automatic bankruptcy stay nunc pro tunc to the date of the filing of the petition, and authorized the Valvanis to pursue or continue litigation against Milgroom in any state of Federal Courts. the bankruptcy court then entered final judgment dismissing the case. Milgroom did not appeal from the bankruptcy court's final judgment.
Prost, Plager and Lourie

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