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Illinois Central Railroad Co. v. Guy, et al.

June 1, 2012

Court: U.S. 5th Circuit Court of Appeals Opinion Date: May 29, 2012

A jury returned a verdict in favor of plaintiff on its claims of fraud and breach of the duty of good faith and fair dealing against defendants where defendants’ misrepresentations induced plaintiff to settle the asbestos exposure claims of two of plaintiff’s employees whom defendants represented in a state-court lawsuit. On appeal, defendants contended that the district court lacked subject matter jurisdiction over the instant case under the Rooker-Feldman doctrine, and alternatively that the case called for Burford v. Sun Oil Co. abstention. Defendants also contended that the trial evidence established their statute-of-limitations and waiver defenses as a matter of law. The court held that defendants misconceived the legal authorities relevant to their jurisdiction, abstention, and waiver arguments. Regarding the statute of limitations issue, the court concluded that a reasonable jury could have found for plaintiff. Therefore, the court affirmed the district court’s judgment.

Courtesy of Justia

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