Richardson v. Koch Law Firm, P.C.

Citation:
Richardson v. Koch Law Firm, P.C No. 12-3868
Tag(s):
Ruling:
Court of Appeals Holding: Since the State Court vacated the initial default judgment, justification for the District Court’s dismissal under Rooker-Feldman no longer exists. Additionally, Richardson has been entirely derelict in his own defense. He has failed on several occasions to; appear for hearings, file reply briefs, appeal court decisions properly, attend oral arguments, and failed to inform this court regarding the vacatur of the state court’s judgment. The judgment of the District Court is modified on the merits and affirmed.
Procedural context:
Procedural: District Court Decision: Richardson argued that the source of his injury is the Law Firms effort to collect the judgment not the judgment’s bare existence. The District Court treated this suit as a collateral attack on the state courts judgment and dismissed it for want of jurisdiction invoking the Rooker-Feldman doctrine. Rooker-Feldman doctrine states, The Supreme Court of the United States is the only federal court that may review judgments entered by state courts in civil litigation. The Rooker-Feldman Doctrine applies when the state court’s judgment is the source of the injury of which plaintiff complains in federal court. Bankruptcy Court: Richardson motioned the Bankruptcy Court to reopen the 2000 Bankruptcy and declare the State Court’s judgment void. The Bankruptcy Judge granted the motion to reopen and declared the judgment was invalid. However, the Bankruptcy Judge concluded any claim for damages based on efforts to enforce the judgment belongs to a trustee in bankruptcy for the benefit of Richardson creditors. Richardson had failed to declare any monetary claim based on the state-court judgment as an asset in the 2002 bankruptcy. The Judge concluded that esstoppel prevents Richardson from trying to collect for his own benefit. State Court: After the Bankruptcy decision, Indiana University asked the State Court to vacate the initial default judgment, the State Court obliged, thereby undermining the District Court’s dismissal under the Rooker-Feldman theory.
Facts:
Facts: The Koch Law Firm (“Law Firm”) filed suit on behalf of Indiana University in May 1998 against Scott Richardson (“Richardson”) in order to collect on debt owed by Richardson. Trial was set for September 7, 2000. On September 1, 2000 Richardson filed a Bankruptcy petition but he did not tell the State Court, the University, or the Law Firm. Richardson did not appear at the September 7 trial. The State Court entered a default judgment against Richardson. The Law Firm thereafter attempted to collect based on the default judgment. Richardson then claimed that the Law Firm has violated two sections of the Fair Debt Collection Practices Act, by attempting to enforce a judgment that had been entered in violation of the automatic stay under the Bankruptcy Code. Upon learning of the Bankruptcy, the Law Firm stops its collection proceeding. When Richardson’s bankruptcy ends in June of 2001, the Law Firm restarts its collection proceeding. In January 2002 Richardson begins another bankruptcy proceeding. At the conclusion of this second bankruptcy proceeding in April 2007, the Law Firm again initiates its collection proceeding.
Judge(s):
Chief Judge Wood; Judge Easterbrook; Judge Sykes

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