Garnet Turner, et al v. Allstate Insurance Company

[DO NOT PUBLISH]
In the
United States Court of Appeals
For the Eleventh Circuit
____________________
No. 23-10187
Non-Argument Calendar
____________________
GARNET TURNER,
individually and on behalf of all others similarly situated,
JAMES CARTRETTE,
BILL HUFF,
KATHY SHEPHERD,
VERNON BENTLEY, et al.,
Plaintiffs-Appellants,
SUZANNE WILLINGHAM, et al.,
individually and on behalf of all others similarly situated,
Plaintiffs,
versus
ALLSTATE INSURANCE COMPANY,
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2 Opinion of the Court 23-10187
Defendant-Appellee.
____________________
Appeal from the United States District Court
for the Middle District of Alabama
D.C. Docket Nos. 2:13-cv-00685-RAH-KFP,
2:15-cv-00406-RAH-KFP
____________________
Before J ORDAN, JILL PRYOR , and B RANCH, Circuit Judges.
PER CURIAM:
After Allstate Insurance Company informed retirees that it
would no longer pay their life insurance premiums, a group of re-
tirees sued the company. The district court granted summary
judgment to Allstate, and the retirees appealed. Shortly before
oral argument in the appeal, the district court notified the parties
that the judge who issued the summary judgment order had
owned Allstate stock while the case was pending before her and
should have recused. Upon de novo review, a panel of this Court
affirmed the summary judgment order.
After this Court’s mandate issued, the retirees sought in the
district court to vacate the summary judgment order because of
the district court judge’s failure to recuse. The case was reas-
signed to a new district court judge, who denied the retirees’ mo-
tion to vacate. The retirees again have appealed. After careful
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23-10187 Opinion of the Court 3
consideration of the parties’ briefs and the record, we affirm the
denial of the motion to vacate.
I.
For many years, Allstate provided its employees with life
insurance that continued into retirement at no cost to the em-
ployee or retiree. Later, to cut costs, Allstate decided to stop pay-
ing life insurance premiums for retirees. A group of retirees sued,
claiming that this decision violated the Employee Retirement In-
come Security Act of 1974 (ERISA) and breached Allstate’s fiduci-
ary duty.
The retirees filed their lawsuit in the Middle District of Al-
abama. The case was initially assigned to Judge Mark Fuller, who
presided over the case for nearly a year before it was reassigned to
Judge W. Keith Watkins. While the case was pending before
Judge Watkins, the retirees moved for a preliminary injunction
requiring Allstate to continue paying the named plaintiffs’ life in-
surance premiums. Judge Watkins granted the motion and issued
the requested preliminary injunction.
Following discovery, Allstate moved for summary judg-
ment. While the summary judgment motion was pending, the
case was reassigned to Judge Emily Marks, who had recently been
sworn in as a district court judge for the Middle District of Ala-
bama. Approximately two years after the case was reassigned to
Judge Marks, she granted summary judgment to Allstate. The re-
tirees appealed. The appeal was fully briefed, and this Court
scheduled oral argument.
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4 Opinion of the Court 23-10187
A few weeks before oral argument, the Clerk of Court for
the Middle District of Alabama sent the parties a letter disclosing
that Judge Marks had a conflict of interest. The letter reported
that in 2019, while presiding over the case, Judge Marks “owned
fewer than ten (10) shares in The Allstate Corporation” in a man-
aged account. Doc. 460 at 1.1 The letter acknowledged that this
stock ownership “required recusal under the Code of Conduct for
United States Judges” but stated that the stock ownership “neither
affected nor impacted [Judge Marks’s] decisions in this case.” Id. A
few days after sending this letter, the clerk reassigned the case to
Judge R. Austin Huffaker.
Upon learning of Judge Marks’s conflict of interest, the re-
tirees filed motions in this Court to stay the appeal and sought a
limited remand to the district court. This Court denied the mo-
tions.
In addition, the retirees filed a motion in the district court
seeking an indicative ruling from Judge Huffaker that he would
vacate the final judgment if the district court had jurisdiction.2
1 “Doc.” numbers refer to the district court’s docket entries.
2 When a litigant files a motion in district court that the court “lacks authori-
ty to grant” because of a pending appeal, the Federal Rules of Civil Proce-
dure authorize the district court to (1) defer considering motion, (2) deny the
motion, or (3) state “either that it would grant the motion if the court of ap-
peals remands for that purpose or that the motion raises a substantial issue.”
Fed. R. Civ. P. 62.1(a). If the district court states that it would grant the mo-
tion or that the motion raises a substantial issue, the Federal Rules of Appel-
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23-10187 Opinion of the Court 5
Judge Huffaker deferred ruling on the motion, explaining that ap-
pellate proceedings were “ongoing” and oral argument was just a
few days away. Doc. 469 at 2. Judge Huffaker indicated that he
would rule on the motion to vacate after this Court issued its
mandate.
After oral argument, a panel of this Court affirmed the
grant of summary judgment in Allstate’s favor. See Klaas v. Allstate
Ins., 21 F.4th 759 (11th Cir. 2021). The panel explained that it
reached this conclusion after de novo review. Id. at 766.
The mandate issued, and the case returned to the district
court. The parties briefed the retirees’ motion to vacate. Judge
Huffaker denied the motion. Although the retirees initially filed
their motion, which sought an indicative ruling, under Federal
Rule of Civil Procedure 62.1, Judge Huffaker construed the filing
as a Rule 60(b)(6) motion because it sought to vacate the judg-
ment.
Judge Huffaker ruled that Judge Marks had a duty to recuse
herself because she owned Allstate stock, and a judge “must dis-
qualify herself when she has a financial interest in a party to the
proceeding.” Doc. 517 at 5 (citing 28 U.S.C. § 455). But, Judge
Huffaker cautioned, the fact that Judge Marks had a duty to recu-
se did not necessarily mean that the final judgment should be va-
late Procedure permit an appellate court to “remand for further proceedings”
while retaining jurisdiction over the appeal. Fed. R. App. P. 12.1.
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6 Opinion of the Court 23-10187
cated. To decide whether to vacate the judgment, Judge Huffaker
weighed several factors: “the risk of injustice to the parties in the
particular case, the risk that the denial of relief will produce injus-
tice in other cases, and the risk of undermining the public’s confi-
dence in the judicial process.” Id. at 6 (quoting Liljeberg v. Health
Servs. Acquisition Corp., 486 U.S. 847, 864 (1988)). Because this
Court had, upon de novo review, affirmed the grant of summary
judgment, Judge Huffaker found that there was no risk of injus-
tice to the parties in this case, no risk of injustice to future liti-
gants, and no risk of undermining the public’s confidence in the
judicial process. Judge Huffaker thus concluded that Judge
Marks’s failure to recuse was harmless and denied the retirees’
motion to vacate the judgment.
The retirees again appeal.
II.
We review the district court’s denial of a Rule 60(b) motion
for abuse of discretion. See Bainbridge v. Governor of Fla., 75 F.4th
1326, 1332 (11th Cir. 2023).
III.
The issue before us in this appeal is whether Judge Huffak-
er abused his discretion in denying the retirees’ motion to vacate.
We discern no abuse of discretion.
To begin, Judge Marks was required to recuse because she
owned stock in Allstate. See 28 U.S.C. § 455(b)(4), (d)(4) (requiring
a judge to recuse when she owns stock in a party to a proceed-
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23-10187 Opinion of the Court 7
ing). But our conclusion that Judge Marks should have recused
herself does not end the inquiry.
“Although § 455 defines the circumstances that mandate
disqualification of federal judges, it neither prescribes nor prohib-
its any particular remedy for a violation of that duty.” Liljeberg,
486 U.S. at 862. When a party seeks to vacate a final judgment be-
cause the district court judge should have recused under § 455, a
court considers the following factors: “the risk of injustice to the
parties in the particular case, the risk that the denial of relief will
produce injustice in other cases, and the risk of undermining the
public’s confidence in the judicial process.” Id. at 864.
Judge Huffaker considered these factors in denying the mo-
tion to vacate. We conclude that Judge Huffaker did not abuse his
discretion. As to the first factor, the risk of injustice to the parties
in this case absent vacatur is nonexistent. After Judge Marks dis-
posed of the case by granting summary judgment, a panel of this
Court independently reviewed the judgment under a de novo
standard—meaning we reviewed the record anew, without defer-
ence to the district court—and affirmed it. In this circumstance,
we see no risk of injustice to the parties absent vacatur. See Parker
v. Connors Steel Co., 855 F.2d 1510, 1526 (11th Cir. 1988) (explain-
ing that this factor weighed against vacatur when “we have al-
ready exercised plenary review and have concluded that summary
judgment was proper”); see also Curves, LLC v. Spalding Cnty.,
685 F.3d 1284, 1288 (11th Cir. 2012) (explaining that any injustice
to the parties resulting from district court judge’s purported con-
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8 Opinion of the Court 23-10187
flict of interest was “cured by our fresh review” under a de novo
standard).3
Turning to the second factor, denying relief here will not
produce injustice to parties in future cases. As we have previously
recognized, when a district court judge who should have recused
grants a motion for summary judgment and a panel of this Court
applying de novo review later affirms, denying a motion to vacate
“will not produce any injustice in future cases.” Parker, 855 F.2d at
1527.
For the third factor, we cannot say that denying the motion
to vacate risks further undermining the public’s confidence in the
judicial process. Although Judge Marks entered the summary
judgment order while conflicted, a panel of three appellate judges,
none of whom had a conflict, gave this case a fresh look without
any deference to the district court’s decision. This procedure as-
sured that the final disposition of the case was unaffected by Judge
Marks’s conflict of interest. See Curves, LLC, 685 F.3d at 1288 (con-
cluding that public’s confidence in the judicial process was not
3 The retirees suggest that the previous panel decision holding that Allstate
was entitled to summary judgment was erroneous, arguing that “[a]n inde-
pendent review of the record would result in a denial of Allstate’s motion for
summary judgment.” Appellants’ Br. at 23. But the law of the case doctrine
bars us from revisiting the decision affirming summary judgment. See This
That & the Other Gift & Tobacco, Inc. v. Cobb Cnty., 439 F.3d 1275, 1283 (11th
Cir. 2006) (explaining that “the law-of-the-case doctrine bars relitigation of
issues that were decided either explicitly or by necessary implication” in an
earlier appeal).
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23-10187 Opinion of the Court 9
undermined by district court judge’s granting summary judgment
when appellate court reviewed the judgment under a de novo
standard and affirmed).
The retirees nevertheless argue that vacatur is required to
ensure that judges in future cases “carefully examine possible
grounds for disqualification” so that litigants do not have their
cases decided by judges with a conflict of interest. Appellants’ Br.
at 26. We agree that judges must maintain vigilance to keep ap-
prised of the stocks they own and recuse from cases when they
own stock in one of the parties. See 28 U.S.C. § 455(b)–(c). Still,
given this Court’s affirmance of the summary judgment order on
de novo review, we are not persuaded that the district court judge
abused his discretion in denying the motion to vacate. See Curves,
685 F.3d at 1288. We therefore affirm.4
AFFIRMED.
4 The retirees also argue that the district court erred in denying their request
to conduct discovery to learn the specific dates when Judge Marks purchased
and sold Allstate stock and the total number of shares that she owned. We
agree with Judge Huffaker that this discovery was unnecessary because it
was undisputed that Judge Marks owned Allstate stock and thus had a duty
to recuse. Thus, the district court did not abuse its discretion when it denied
the retirees’ request for discovery. See Jackson v. Cintas Corp., 425 F.3d 1313,
1318 (11th Cir. 2005).
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