Amwest Mortgage Corporation, Doss & Cavett v. Judith Grady, Grand Capital Mortgage & Investment Co.

Plaintiffs-appellants appeal a district court order denying their motion for a permanent injunction staying state court proceedings filed against them by defendants-appellees. The appellants contend that they are entitled to injunctive relief under the relitigation exception of the Anti-Injunction Act, 28 U.S.C. § 2283 , and that the district court abused its discretion in denying that relief. We disagree and affirm the district court’s order.

FACTS AND PROCEEDINGS BELOW

In 1986, Amwest Mortgage Corporation brought a federal court suit against Grand Capital Mortgage Company and several other defendants to recover damages suffered as a result of a mortgage fraud scheme. Upon further investigation, Am-west Mortgage moved to voluntarily dismiss Grand Capital as a defendant. Grand Capital opposed the dismissal motion and requested sanctions against Amwest Mortgage pursuant to Fed.R.Civ.P. 11 for bringing the suit. The district court granted the dismissal motion and it denied Grand Capital’s Rule 11 motion after a hearing. This decision was not appealed. Subsequently, Grand Capital and its vice-president, Robert H. Schacter, (hereinafter collectively “Grand”) filed a complaint in…