PER CURIAM:
This is an appeal from a grant of a summary judgment in favor of Plaintiff-Appellee Dewey Weaver ("Weaver"), and a denial of a cross-motion for summary judgment filed by Defendant-Appellant Texas Capital Bank N.A. ("Texas Capital"). We REVERSE and RENDER judgment in favor of Defendant-Appellant Texas Capital.
Plaintiff-Appellee Weaver was a member of SL Management, a Louisiana company that bought and sold real estate in Texas. Between October 2004 and September 2006, SL Management obtained loans from Texas Capital in the form of four promissory notes totaling $978,719. The notes were secured by eleven tracts of land in Tarrant County, Texas, and Weaver and his business partner, Walter Dootson, executed personal guaranties of payment on each of the promissory notes. The guaranties unconditionally committed Weaver and Dootson to satisfy SL Management's debt on the promissory notes.
On January 16, 2008, SL Management filed a Chapter 11 bankruptcy petition in the Northern District of Texas. Texas Capital appeared as a creditor in SL Management's bankruptcy suit and filed an unobjected-to proof of claim for $756,000. On March 6, 2008, SL Management filed its plan of reorganization. This plan classified Texas Capital as a Class 10 creditor. Section 5.11 of SL Management's bankruptcy plan provided:
Under the bankruptcy plan, Class 12 claimants were to be paid by Weaver in an amount fully satisfying their claims, up to $500,000. The bankruptcy plan also contained a provision stating that the plan would be the "exclusive remedy for payment of any claims or debt so long as the [p]lan is not in default," which Weaver claims enjoined Texas Capital from separately suing to collect on the guaranty agreements.
Thus, as to Texas Capital, SL Management's bankruptcy plan provided, first, that SL Management would attempt to sell the properties in Tarrant County with which Texas Capital had secured the promissory notes, and second, if that sale did not occur, that all of the secured properties would be surrendered to Texas Capital in "full satisfaction of the Class 10
On September 2, 2008, the bankruptcy court confirmed SL Management's bankruptcy plan. SL Management did not sell the Tarrant County properties, and on October 13, 2008—the Effective Date of the plan—the properties were surrendered to Texas Capital. Neither party requested a valuation of the collateral. On December 1, 2008, Texas Capital foreclosed on the properties, leaving a deficiency of $431,659.34, plus fees, expenses, and interest. The bankruptcy action was closed on December 16, 2008.
Previously, on April 8, 2008—during the pendency of SL Management's bankruptcy case—Texas Capital filed an action in Texas state court to enforce the guaranty agreements between it and Weaver. Weaver was properly served, but he did not answer or otherwise respond, and on December 15, 2008, the Texas state court entered a default judgment against Weaver for $766,645.79, plus fees, costs, and interest. In February 2009, Texas Capital initiated collection proceedings against Weaver in Louisiana state court and registered the Texas judgment, subject to a $334,986.45 credit.
In response to the collection action, on February 27, 2009, Weaver filed the instant action in the Northern District of Texas, seeking a declaration that SL Management's debt to Texas Capital was fully satisfied by the surrender of collateral, and therefore, that any liability owed on the guaranties was also satisfied at the time of the Texas state judgment, or in the alternative, that the Texas state default judgment was fully satisfied by the bankruptcy plan. Under both theories, Weaver's case is premised on an argument that since SL Management's underlying debt to Texas Capital is paid, no payment related to the guaranties need be made to Texas Capital. The parties filed cross-motions for summary judgment, and on July 23, 2009, the action was referred to the bankruptcy court for proposed findings of fact and conclusions of law.
The district court largely adopted the bankruptcy court's proposed findings, and it denied Texas Capital's motion for summary judgment and granted in part Weaver's motion for summary judgment. Specifically, the district court held: (1) that the Texas state default judgment was entitled to preclusive effect; (2) that SL Management's surrender of the collateral properties was presumed to be in full satisfaction of its debt to Texas Capital, and that the Texas default judgment was also satisfied, but that Texas Capital could move to reopen the bankruptcy case to seek a deficiency valuation hearing; (3) that the bankruptcy plan enjoined Texas Capital from pursuing a collection action against Weaver without establishing a default under the bankruptcy plan; and (4) that the Rooker-Feldman doctrine did not deprive the court of jurisdiction.
We review a district court's grant of summary judgment de novo. Holt v. State Farm Fire & Cas. Co., 627 F.3d 188, 191 (5th Cir. 2010); Fed.R.Civ.P. 56(a). We also review a district court's rulings on questions of law, such as res judicata and subject matter jurisdiction, de novo. Gasch v. Hartford Accident & Indem. Co., 491 F.3d 278, 281 (5th Cir. 2007); Test Masters Educ. Servs., Inc. v. Singh, 428 F.3d 559, 571 (5th Cir. 2005).
Defendant-Appellant Texas Capital argues that the Rooker-Feldman doctrine deprives this Court of subject matter jurisdiction. We address this issue first because it touches upon the jurisdiction of the Court, and we conclude that the Rooker-Feldman doctrine does not apply.
Under the Rooker-Feldman doctrine, "federal district courts lack jurisdiction to entertain collateral attacks on state court judgments." Liedtke v. State Bar of Tex., 18 F.3d 315, 317 (5th Cir. 1994). A state court judgment is attacked for purposes of Rooker-Feldman "when the [federal] claims are `inextricably intertwined' with a challenged state court judgment," Richard v. Hoechst Celanese Chem. Grp., Inc., 355 F.3d 345, 350 (5th Cir. 2003), or where the losing party in a state court action seeks "what in substance would be appellate review of the state judgment." Johnson v. De Grandy, 512 U.S. 997, 1005-06, 114 S.Ct. 2647, 129 L.Ed.2d 775 (1994). The doctrine, however, does not preclude federal jurisdiction over an "independent claim," even "one that denies a legal conclusion that a state court has reached." Exxon Mobil Corp. v. Saudi Basic Indus. Corp., 544 U.S. 280, 293, 125 S.Ct. 1517, 161 L.Ed.2d 454 (2005).
In the current suit, Weaver seeks a declaration that SL Management's surrender of collateral under the bankruptcy plan satisfied any debt owed on the guaranties, and therefore, either (1) that no debt was actually owed at the time of the Texas judgment, or (2) that the Texas judgment itself has by extension also been fully satisfied. This is a close issue, but given that granting the requested relief does not actually require appellate-type review or invalidation of the Texas judgment, and also considering the narrow scope of the Rooker-Feldman doctrine, we conclude that the doctrine does not deprive us of jurisdiction. See Skinner v. Switzer, ___ U.S. ___, 131 S.Ct. 1289, 1297, 179 L.Ed.2d 233 (2011) (emphasizing narrow scope of Rooker-Feldman doctrine); Exxon Mobil, 544 U.S. at 291-93, 125 S.Ct. 1517 (same). Indeed, as we have noted in other cases, the Rooker-Feldman doctrine generally applies only where a plaintiff seeks relief that directly attacks the validity of an existing state court judgment. See, e.g., In re Bayhi, 528 F.3d 393, 402 (5th Cir. 2008) (holding that state judgment on a student loan obligation could not be entirely vacated); In re Reitnauer, 152 F.3d 341, 343-44 (5th Cir. 1998) (finding a violation of Rooker-Feldman doctrine where a district court decision invalidated a state judgment revoking homestead rights); United States v. Shepherd, 23 F.3d 923, 924-25 (5th Cir. 1994) (finding violation of Rooker-Feldman doctrine where district court invalidated state judgment confirming validity of foreclosure sale).
As previously noted, Texas Capital's primary argument for reversing the district court's judgment is that Weaver's current claim for declaratory relief is barred by res judicata. Specifically, Texas Capital argues that the current action is actually a defense to payment that should have been raised in the Texas state action and that it may not now be asserted as a separate claim for relief. The district court ruled that the Texas default judgment must be given preclusive effect, but it also ruled that the judgment was fully satisfied by SL Management's bankruptcy plan. We now conclude that Weaver's claim for declaratory judgment is barred by res judicata under Texas law.
As a preliminary matter, we will address Plaintiff-Appellee Weaver's argument that the Texas state judgment is void because it was obtained in violation of a bankruptcy stay, and it is, therefore not entitled to any preclusive effect. According to Weaver, section 10.3 of the bankruptcy plan enjoined collection efforts against guarantors so long as the bankruptcy plan was not in default. First, it is not clear from the language of the bankruptcy plan that collection efforts against third-parties were actually enjoined. However, even assuming the bankruptcy plan has this effect, actions taken in violation of an injunction are not void. Suntex Dairy v. Bergland, 591 F.2d 1063, 1068 (5th Cir. 1979) ("An injunction decree operates in personam, and an act done in violation of an injunction is not a nullity.").
Given that the Texas state default judgment is not void, we will now consider its preclusive effect. In determining the preclusive effect of an earlier state court judgment, federal courts apply the preclusion law of the state that rendered the judgment. Marrese v. Amer. Acad. of Orthopaedic Surgeons, 470 U.S. 373, 381, 105 S.Ct. 1327, 84 L.Ed.2d 274 (1985); Conn. Bank of Comm. v. Congo, 309 F.3d 240, 248 (5th Cir. 2002); 28 U.S.C. § 1738. Because the judgment at issue is from a Texas state court, Texas preclusion law applies.
Under Texas law, default judgments have preclusive effect for purposes of claim preclusion. Houtex Ready Mix Concrete & Materials v. Eagle Const. & Envtl. Servs., L.P., 226 S.W.3d 514, 519 (Tex.App.—Houston [1st Dist.] 2006, no pet.); see also Moyer v. Mathas, 458 F.2d 431, 434 (5th Cir. 1972) (noting that a prior "judgment is no less res judicata because it was obtained by default, absent any proof of fraud, collusion, or lack of jurisdiction.").
Given that it is not disputed that there is a prior final judgment issued by a court of competent jurisdiction and that the parties are identical in both actions, the only remaining issue in question is whether this action is based on the same claims that were raised in the first.
Here, not only is the current declaratory judgment action related to the Texas action, it is brought on the same exact guaranties. Additionally, the events leading to the Texas lawsuit—the signing of the guaranties and SL Management's bankruptcy—provide the same factual foundation for the instant claim. Rather than disputing his obligation to make payment on the guaranties in the Texas action, Weaver filed this lawsuit seeking a declaration that no payment needed to be
For the foregoing reasons, the Court REVERSES the judgment of the district court and RENDERS judgment in favor of Defendant-Appellant Texas Capital.
Notably, this provision does not mention Weaver, nor does it contain any language purporting to control the filing of claims on the separate guaranty agreements.