The Colorado River abstention standard applies when a party seeks both injunctive and declaratory relief, requiring a decisive weighing of factors to justify a stay.
In a diversity contract dispute, a plaintiff seeks injunctive and declaratory relief in federal court while a parallel state suit remains pending. The district court stays the federal action under the Colorado River abstention doctrine, citing the avoidance of duplicative litigation. The appellate court reviews whether the district court abused its discretion in applying the six Colorado River factors. The court holds that the balance of factors weighs decisively against abstention because no court has assumed jurisdiction over a res, the forums are equally convenient, and state law issues do not justify surrendering jurisdiction. The court further determines that because the plaintiff seeks both injunctive and declaratory relief, the Colorado River standard applies rather than the Brillhart standard. The court reverses the district court’s stay and remands for further proceedings.
At page 650 Applying Colorado River abstention factors to jurisdiction52 citing cases“the real concern at the heart of the third colorado river factor is the avoidance of piecemeal litigation, and the concomitant danger of inconsistent rulings with respect to a piece of property.”
- Wisocki, No. 3:23-cv-00597 (N.D. Tex. June 30, 2026). Cf. Black Sea Inv., 204 F.3d at 651 (“When . . . no court has assumed jurisdiction over a disputed res, there is no such danger [of inconsistent rulings with respect to a piece of property].”).
- G&G Closed Circuit Events, LLC v. 415 Trenton, L.L.C., No. 7:21-cv-00436 (S.D. Tex. Jan. 24, 2022). (Duplicative litigation, wasteful though it may be, is a necessary cost of our nation's maintenance of two separate and distinct judicial systems possessed of frequently overlapping jurisdiction. The real concern at the…)
- Driftless Area Land Conservanc v. Rebecca Valcq, 16 F.4th 508 (7th Cir. 2021).published(The Colorado River abstention doctrine is based on principles of federalism, comity, and conservation of judicial resources.)
- W. Sur. Co. v. Cook Coggin Engineers, Inc., No. 1:24-cv-00076 (N.D. Miss. Mar. 25, 2026). Black Sea Inv., Ltd. v. United Heritage Corp., 204 F.3d 647, 650 (5th Cir. 2000).
- All About Prop v. Midland Mtge, No. 24-20092 (5th Cir. Oct. 20, 2025).unpublished Black Sea Inv., Ltd. v. United Heritage Corp., 204 F.3d 647, 649 (5th Cir. 2000).
- Cooper v. Mesa Irrevocable Trust, No. 4:24-cv-04687 (S.D. Tex. May 14, 2025).See Colorado River Water Conservation Dist. v. United States, 424 U.S. 800 , 817–19 (1976); Black Sea Inv., Ltd. v. United Heritage Corp., 204 F.3d 647, 650 (5th Cir. 2000).
- Protiviti Inc. v. Davis, No. 3:24-cv-01687 (N.D. Tex. July 15, 2024).Co. v. Trejo, 39 F.3d 585, 589 (5th Cir. 1994). 18 Black Sea Inv., Ltd. v. United Heritage Corp., 204 F.3d 647, 650 (5th Cir. 2000). 19 Gray Line Motor Tours, Inc., 498 F.2d at 299 .
- Ricklin-Voronstova v. Crider, No. 1:22-cv-00333 (S.D. Miss. Mar. 28, 2024).“The Colorado River abstention doctrine is based on principles of federalism, comity, and conservation of judicial resources”
- United States Fire Ins. Co. v. Cox, No. 3:22-cv-01304 (N.D. Tex. Aug. 23, 2023). Black Sea Inv., Ltd. v. United Heritage Corp., 204 F.3d 647, 650 (5th Cir. 2000).
- Alacrity Solutions Grp., LLC v. Louisiana Citizens Prop. Ins. Co., No. 3:23-cv-00074 (M.D. La. May 4, 2023).There, the court found that, “[a]lthough substantial litigation [had] taken place in the State Court Action, nearly all of that litigation took place without the involvement of Aptim and without any party 47 Id. (quoting Black Sea Inv., Lt…
Show 41 more citing cases
- Nationwide Prop. & Cas. Ins. Co. v. Buckley, 642 F. Supp. 3d 544 (S.D. Miss. 2022).published Because its federal Complaint seeks declaratory and injunctive relief, “the trial court must apply the standards enunciated in Colorado River [Water Conservation District v. United States, 424 U.S. 800, 817 (1976)].” Id. at 14 (citing Blac…
- Lonestar Airport Holdings, LLC v. City of Austin, No. 1:22-cv-00770 (W.D. Tex. Nov. 4, 2022).Black Sea Inv., Ltd. v. United Heritage Corp., 204 F.3d 647, 650 (5th Cir. 2000).
- Parada v. Sandhill Shores Prop. Owners Ass'n, 604 F. Supp. 3d 567 (S.D. Tex. 2022).publishedThe court pays heed to the oft-repeated admonition that federal abstention should be “exceptional.” Black Sea Inv., Ltd. v. United Heritage Corp., 204 F.3d 647, 650 (5th Cir. 2000).
- Cantrell v. Bank of Am., N.A., No. 4:20-cv-00711 (E.D. Tex. July 19, 2021). Tex. Jan. 27, 2021) (citing Black Sea Inv., Ltd. v. United Heritage Corp., 204 F.3d 647, 650 (5th Cir. 2000)).
- Vertical Holdings LLC v. LocatorX Inc, No. 3:20-cv-02770 (N.D. Tex. Jan. 27, 2021). Black Sea Inv., Ltd. v. United Heritage Corp., 204 F.3d 647, 650 (5th Cir. 2000).
- LM Ins. Corp. v. Circle T, Ltd., No. 1:20-cv-00311 (S.D. Miss. Jan. 12, 2021). When, as here, no court has assumed jurisdiction over a disputed res, there is no such danger.” Black Sea Inv., Ltd. v. United Heritage Corp., 204 F.3d 647, 650-51 (5th Cir. 2000); see also African Methodist Episcopal Church, 756 F.3d at 8…
- Washington Int'l Ins. Co. v. Keeney, No. 4:19-cv-00632 (E.D. Tex. July 28, 2020). Black Sea Inv., Ltd. v. United Heritage Corp., 204 F.3d 647, 651 (5th Cir. 2000).
- Life Church of Oak Grove Inc v. Guideone Mut. Ins. Co, No. 3:18-cv-01167 (W.D. La. Sept. 30, 2019).“danger of inconsistent rulings with respect to a piece of property”
- Ictech-Bendeck v. Waste Connections Bayou, Inc., No. 2:18-cv-07889 (E.D. La. Aug. 29, 2019).La. 2004) (quoting Black Sea Investment, Ltd. v. United Heritage Corp., 204 F.3d 647, 650 (5th Cir. 2000)). 85 Miss. Power & Light Co., 532 F.2d at 419 . referral is unwarranted, one of which arises anytime the “agency’s position is suffic…
- Safway Servs., LLC v. P.A.L. Env't Saf. Corp, No. 4:19-cv-00008 (N.D. Miss. Aug. 13, 2019). When duplicative litigation is permitted, Colorado River prevents “piecemeal litigation, and the concomitant danger of inconsistent rulings with respect to a piece of property.” Stewart, 438 F.3d at 492 ; citing Black Sea Inv. v. United He…
- Nat'l Cas. Co. v. Alice Gonzalez, 637 F. App'x 812 (5th Cir. 2016).unpublishedBlack Sea Inv., Ltd. v. United Heritage Corp., 204 F.3d 647, 650-51 (5th Cir.2000). (4) The order in which jurisdiction was obtained by the concurrent forums.
- African Methodist Episcopal v. Willard Lucien, Jr., 756 F.3d 788 (5th Cir. 2014).publishedBlack Sea Inv., Ltd. v. United Heritage Corp., 204 F.3d 647, 650-51 (5th Cir.2000) (citing Evanston, 844 F.2d at 1192 ) (emphasis in original). 46 .
- Biel v. Bekmukhamedova, 964 F. Supp. 2d 631 (E.D. La. 2013).published“The Colorado River abstention doctrine is based on principles of federalism, comity, and conservation of judicial resources”
- Bates v. Laminack, 938 F. Supp. 2d 649 (S.D. Tex. 2013).published Cone Memorial Hospital v. Mercury Construction Corp., 460 U.S. 1, 16 , 103 S.Ct. 927 , 74 L.Ed.2d 765 (1983); Black Sea Investment, Ltd. v. United Heritage Corp., 204 F.3d 647, 650 (5th Cir.2000).
- E. Cornell Malone Corp. v. Sisters of the Holy Fam., 922 F. Supp. 2d 550 (E.D. La. 2013).publishedStewart, 438 F.3d at 492 (quoting Black Sea Inv. v. United Heritage Corp., 204 F.3d 647, 650-51 (5th Cir.2000)). .
- Morris v. SWDI, LLC, 872 F. Supp. 2d 499 (E.D. La. 2012).publishedLtd. v. United Heritage Corp., 204 F.3d 647, 650 (5th Cir.2000). .
- In re BFW Liquidation, LLC, 459 B.R. 757 (Bankr. N.D. Ala. 2011).publishedArms, Inc., 466 F.3d 88, 94 (2nd Cir.2006) (international abstention in favor of parallel proceeding pending in foreign court); Tyrer v. City of South Beloit, Ill, 456 F.3d 744, 756 (7th Cir.2006)(Colorado River abstention); Chase Brexton…
- LAC Real Est. Holdings, L.L.C. v. Biloxi Marsh Lands Corp., 320 F. App'x 267 (5th Cir. 2009).unpublishedLtd. v. United Heritage Corp., 204 F.3d 647, 650 (5th Cir.2000)).
- Walker Centrifuge Servs., L.L.C. v. D & D Power, L.L.C., 550 F. Supp. 2d 620 (N.D. Tex. 2008).published“[t]he prevention of duplicative litigation is not a factor to be considered in an abstention determination”
- Stewart v. W. Heritage Ins., 438 F.3d 488 (5th Cir. 2006).publishedThe Extent Federal Law Governs the Case “[T]he presence of state law issues weighs in favor of surrender only in rare circumstances.” Black Sea Inv., 204 F.3d at 651 (reversing stay in case where state law governed).
- Amer Fam Life Asuc v. Anderson, No. 00-60027 (5th Cir. July 28, 2000).unpublished
- Bank One, N.A. v. Boyd, 288 F.3d 181 (5th Cir. 2002).published
- Bank One NA v. Shields, No. 00-60806 (5th Cir. Apr. 5, 2002).published
- Bank One NA v. Reeves, No. 00-60807 (5th Cir. Apr. 5, 2002).published
- Diamond Offshore Co. v. A&B Builders, Inc., 302 F.3d 531 (5th Cir. 2002).published
- Conseco Fin. Svc v. Shinall, No. 01-60522 (5th Cir. Oct. 2, 2002).unpublished
- Liberty Mtl Fire Ins v. Strassel, No. 02-30384 (5th Cir. Dec. 30, 2002).unpublished
- Amer Motorists Ins v. Cellstar Corp., No. 02-20612 (5th Cir. Jan. 29, 2003).unpublished
- Collins v. Waller, 121 F. App'x 50 (5th Cir. 2005).unpublished
- Brown v. Pac. Life Ins., 462 F.3d 384 (5th Cir. 2006).published
- St. Bernard Citizens for Env't Quality, Inc. v. Chalmette Refining, L.L.C., 348 F. Supp. 2d 765 (E.D. La. 2004).published
- Credit Suisse First Boston Mortg. Capital LLC v. Doris, 102 F. Supp. 2d 709 (N.D. Miss. 2000).published
- Bank One, N.A. v. Coates, 125 F. Supp. 2d 819 (S.D. Miss. 2001).published
- DVI Bus. Credit Corp. v. Crowder, 193 F. Supp. 2d 1002 (S.D. Tex. 2002).published
- Acct. Outsourcing, LLC v. Verizon Wireless Pers. Commc'ns, LP, 294 F. Supp. 2d 834 (M.D. La. 2003).published
- Mourik Int'l B v. v. Reactor Servs. Int'l, Inc., 182 F. Supp. 2d 599 (S.D. Tex. 2002).published
- Stonewater Adolescent Recovery Ctr. v. Lafayette Cnty. Bd. of Supervisors, No. 3:19-cv-00231 (N.D. Miss. Apr. 9, 2020).
- Penn-Am. Ins. Co. v. Roofing Guys, L.L.C., No. 3:25-cv-00328 (W.D. La. Mar. 6, 2026).
- Langford, No. 1:24-cv-00159 (N.D. Miss. June 15, 2026).
- Moran, No. 3:25-cv-00755 (M.D. La. June 26, 2026).
- Segenvo, LLC, No. 4:19-cv-01300 (S.D. Tex. Oct. 17, 2019).
At page 649 Assessing abstention when seeking injunctive and declaratory relief22 citing casesWhen a party seeks both injunctive and declaratory relief, the appropriateness of abstention must be assessed according to the doctrine of Colorado River. . . .
- New England Ins. v. Barnett, 561 F.3d 392 (5th Cir. 2009).published (When a party seeks both injunctive and declaratory relief, the appropriateness of abstention must be assessed according to the doctrine of Colorado River. . . .)
- All About Prop v. Midland Mtge, No. 24-20092 (5th Cir. Oct. 20, 2025).unpublished Black Sea Inv., Ltd. v. United Heritage Corp., 204 F.3d 647, 649 (5th Cir. 2000).
- Cook v. Marshall, 645 F. Supp. 3d 543 (E.D. La. 2022).published“represents an ‘extraordinary and narrow exception’ to the ‘virtually unflagging obligation of the federal courts to exercise the jurisdiction given them”
- Transocean Offshore USA, Inc. v. Catrette, 239 F. App'x 9 (5th Cir. 2007).unpublishedBlack Sea Inv., Ltd. v. United Heritage Corp., 204 F.3d 647, 649-50 (5th Cir.2000); see also Stewart v. W.
- Saf. Nat'l Cas. Corp. v. Bristol-Myers Squibb Co., 214 F.3d 562 (5th Cir. 2000).published
- Hadd v. LSG - Sky Chef's, 272 F.3d 298 (5th Cir. 2001).published
- Bank One NA v. Shumake, No. 01-60228 (5th Cir. Feb. 15, 2002).published
- Bank One NA v. Vaughn, No. 01-60229 (5th Cir. Feb. 15, 2002).published
- Bank One NA v. Williamson, No. 01-60230 (5th Cir. Feb. 15, 2002).published
- Bank One NA v. Sam, No. 01-60231 (5th Cir. Feb. 15, 2002).published
Show 11 more citing cases
- Bank One NA v. Willis, No. 01-60232 (5th Cir. Feb. 15, 2002).published
- Bank One NA v. Willis, No. 01-60233 (5th Cir. Feb. 15, 2002).published
- Bank One, N.A. v. Shumake, 281 F.3d 507 (5th Cir. 2002).published
- Bank One NA v. Willis, No. 01-60235 (5th Cir. Feb. 15, 2002).published
- Bank One NA v. Willis, No. 01-60236 (5th Cir. Feb. 15, 2002).published
- Bank One NA v. Thomas, No. 01-60237 (5th Cir. Feb. 15, 2002).published
- Bank One NA v. Willis, No. 01-60238 (5th Cir. Feb. 15, 2002).published
- Hermitage Ins Co v. Brewer, No. 02-60201 (5th Cir. Jan. 2, 2003).unpublished
- Am. Guarantee & Liab. Ins. v. Anco Insulations, Inc., 408 F.3d 248 (5th Cir. 2005).published
- Am. Reliable Ins. v. Cliburn ex rel. Cole, 345 F. App'x 958 (5th Cir. 2009).unpublished
- Liu v. Aventis Pasteur, Inc., 219 F. Supp. 2d 762 (W.D. Tex. 2002).published
At page 652 Determining applicability of colorado river standard for mixed claims22 citing cases“the only potential exception to this general rule arises when a party's request for injunctive relief is either frivolous or is made solely to avoid application of the brillhart standard.”
- New England Ins. v. Barnett, 561 F.3d 392 (5th Cir. 2009).published This court follows the fourth approach.“[W]hen an action contains any claim for coervice relief, the Colorado River abstention doctrine is ordinarily applicable.” Kelly Inv., Inc. v. Cont’l Common Corp., 315 F.3d 494 , 497 n.4 (5th Cir. 20…
- Hosp. Serv. Dist. No. 1 of the Par. of LaSalle v. TruBridge, Inc., No. 1:25-cv-00495 (W.D. La. Sept. 24, 2026).(holding that a party's claim for coercive relief cannot be ignored simply because it is “ancillary to its request for declaratory relief)
- Nationwide Prop. & Cas. Ins. Co. v. Buckley, 642 F. Supp. 3d 544 (S.D. Miss. 2022).published Because its federal Complaint seeks declaratory and injunctive relief, “the trial court must apply the standards enunciated in Colorado River [Water Conservation District v. United States, 424 U.S. 800, 817 (1976)].” Id. at 14 (citing Blac…
- The Est. of James Harris v. Eichelberger, No. 3:21-cv-00306 (S.D. Miss. Dec. 6, 2021).Black Sea Inv., Ltd. v. United Heritage Corp., 204 F.3d 647, 652 (5th Cir. 2000).
- LM Ins. Corp. v. Circle T, Ltd., No. 1:20-cv-00311 (S.D. Miss. Jan. 12, 2021). When, as here, no court has assumed jurisdiction over a disputed res, there is no such danger.” Black Sea Inv., Ltd. v. United Heritage Corp., 204 F.3d 647, 650-51 (5th Cir. 2000); see also African Methodist Episcopal Church, 756 F.3d at 8…
- Bryan Rarick v. Federated Serv. Ins. Co, 852 F.3d 223 (3d Cir. 2017).publishedUnder that rule, “[t]he Colorado River standard applies to all mixed claims — even when the ‘claims for coercive relief are merely “ancillary” to [a party’s] request for declaratory relief.’ ” VonRosenberg v. Lawrence, 781 F.3d 731, 735 (4…
- Nationwide Mut. Ins. v. C.R. Gurule, Inc., 148 F. Supp. 3d 1206 (D.N.M. 2015).publishedBlack Sea Inv., Ltd., v. United Heritage Corp., 204 F.3d 647, 652 (5th Cir.2000).
- Charles v. nRosenberg v. Mark Lawrence, 781 F.3d 731 (4th Cir. 2015).published The Colorado River standard applies to all mixed claims -- even when the “claims for coercive relief are merely ‘ancillary’ to [a party’s] request for declaratory relief.” Black Sea Inv., Ltd. v. United Heritage Corp., 204 F.3d 647, 652 (5…
- Wright v. Spindletop Films, L.L.C., 845 F. Supp. 2d 783 (S.D. Tex. 2012).published Black Sea Inv., Ltd. v. United Heritage Corp., 204 F.3d 647, 652 (5th Cir.2000).
- Thi of New Mexico at Las Cruces, LLC v. Fox, 727 F. Supp. 2d 1195 (D.N.M. 2010).publishedBlack Sea Inv., Ltd. v. United Heritage Corp., 204 F.3d 647, 652 (5th Cir.2000).
Show 9 more citing cases
- Royal Indem. v. Apex Oil Co., No. 06-3454 (8th Cir. Jan. 2, 2008).publishedBecause Royal Indemnity Company does not seek an injunction, Cedar Rapids does not prevent a federal court from abstaining from this lawsuit. 3 In explicitly requiring that an injunction be in good faith for Brillhart not to apply, Cedar R…
- Royal Indem. Co. v. Apex Oil Co., 511 F.3d 788 (8th Cir. 2008).publishedIn explicitly requiring that an injunction be in good faith for Brillhart not to apply, Cedar Rapids was clearly referring to an exception noted in Black Sea Investment, Ltd. v. United Heritage Corp., 204 F.3d 647, 652 (5th Cir.2000).
- Mega Life & Health Ins. Co. v. Tordion, 399 F. Supp. 2d 1366 (S.D. Fla. 2005).publishedInc. v. Continental Common Corp., 315 F.3d 494 , 497 n. 4 (5th Cir.2002) (“[Wjhen an action contains any claim for coercive relief, the Colorado River abstention doctrine is ordinarily applicable.”) (citing Black Sea Inv., Ltd. v. United H…
- Kelly Inv., Inc. v. Cont'l Common Corp., 315 F.3d 494 (5th Cir. 2003).published
- Trent v. Nat'l City Bank, 145 F. App'x 896 (5th Cir. 2005).unpublished
- Cedar Rapids Cellular Tel., L.P. Davenport Cellular Tel. Co., Wwc License, LLC Iowa Wireless Servs., L.P. v. Thomas Miller, Sued as Thomas J. Miller, Individually, in His Off. Capacity as Attorney Gen. of Iowa & Adm'r of the Iowa Consum. Credit Code, Cedar Rapids Cellular Tel., L.P. Davenport Cellular Tel. Co., Wwc License, LLC, Iowa Wireless Servs., L.P. v. Thomas Miller, Sued as Thomas J. Miller, Individually, in His Off. Capacity as Attorney Gen. of Iowa & Adm'r of the Iowa Consum. Credit Code, 280 F.3d 874 (8th Cir. 2002).published
- West Side Transp., Inc. v. Apac Mississippi, Inc., 237 F. Supp. 2d 707 (S.D. Miss. 2002).published
- Manuel Vasquez v. Tony Rackauckas, 734 F.3d 1025 (9th Cir. 2013).published
- Cedar Rapids Cellular Tel., L.P. v. Miller, 280 F.3d 874 (8th Cir. 2002).published
At page 651 Weighing Colorado River abstention factors16 citing casesWhen . . . no court has assumed jurisdiction over a disputed res, there is no such danger [of inconsistent rulings with respect to a piece of property].
- Wisocki, No. 3:23-cv-00597 (N.D. Tex. June 30, 2026). (When . . . no court has assumed jurisdiction over a disputed res, there is no such danger [of inconsistent rulings with respect to a piece of property].)
- G&G Closed Circuit Events, LLC v. 415 Trenton, L.L.C., No. 7:21-cv-00436 (S.D. Tex. Jan. 24, 2022). Serv., Inc. v. Council of City of New Orleans, 911 F.2d 993 , 1005 n.8 (5th Cir. 1990). 25 Black Sea Inv., Ltd., 204 F.3d at 650 . 26 Id. at 650-51 (“Duplicative litigation, wasteful though it may be, is a necessary cost of our nation's ma…
- All About Prop v. Midland Mtge, No. 24-20092 (5th Cir. Oct. 20, 2025).unpublished Black Sea Inv., Ltd. v. United Heritage Corp., 204 F.3d 647, 649 (5th Cir. 2000).
- Pace v. Pace, No. 3:24-cv-00468 (S.D. Miss. May 13, 2025).This factor therefore weighs against abstention.” 204 F.3d 647, 651 (5th Cir. 2000).
- Valley Forge Ins. Co v. Magnolia River Servs. Inc, No. 6:25-cv-00167 (W.D. La. Apr. 14, 2025).“Nevertheless, ‘the absence of a federal-law issue does not counsel in favor of abstention”
- TDC Specialty Ins. Co. v. Louisiana Health Care Consultants, LLC, No. 2:22-cv-02455 (E.D. La. Apr. 26, 2023).Accordingly, this matter was the first-filed. 30 Black Sea Inv., Ltd. v. United Heritage Corp., 204 F.3d 647, 651 (5th Cir. 2000). 9 New Orleans, Louisiana this 26th day of April, 2023. gf TRICHE MI UNITED STATES DISTRICT JUDGE 10
- Nationwide Prop. & Cas. Ins. Co. v. Buckley, 642 F. Supp. 3d 544 (S.D. Miss. 2022).published Because its federal Complaint seeks declaratory and injunctive relief, “the trial court must apply the standards enunciated in Colorado River [Water Conservation District v. United States, 424 U.S. 800, 817 (1976)].” Id. at 14 (citing Blac…
- Suncoast Projects, LLC v. 1031 Canal Dev., LLC, No. 2:20-cv-02791 (E.D. La. July 15, 2021).“how much progress has been made in the two actions”
- LM Ins. Corp. v. Circle T, Ltd., No. 1:20-cv-00311 (S.D. Miss. Jan. 12, 2021). When, as here, no court has assumed jurisdiction over a disputed res, there is no such danger.” Black Sea Inv., Ltd. v. United Heritage Corp., 204 F.3d 647, 650-51 (5th Cir. 2000); see also African Methodist Episcopal Church, 756 F.3d at 8…
- Washington Int'l Ins. Co. v. Keeney, No. 4:19-cv-00632 (E.D. Tex. July 28, 2020). Black Sea Inv., Ltd. v. United Heritage Corp., 204 F.3d 647, 651 (5th Cir. 2000).
Show 6 more citing cases
- Liberty Ins. Underwriters, Inc. v. LaBarre, Jr., No. 2:18-cv-08612 (E.D. La. Aug. 26, 2019). “If the progress made is just ‘jurisdictional posturing’ with little progress on the merits, the factor ‘weighs against abstention.’” Id. (quoting Black Sea Inv., Ltd v. Untied Heritage Corp., 204 F.3d 647, 651 (5th Cir. 2000)).
- Safway Servs., LLC v. P.A.L. Env't Saf. Corp, No. 4:19-cv-00008 (N.D. Miss. Aug. 13, 2019). When duplicative litigation is permitted, Colorado River prevents “piecemeal litigation, and the concomitant danger of inconsistent rulings with respect to a piece of property.” Stewart, 438 F.3d at 492 ; citing Black Sea Inv. v. United He…
- Stewart v. W. Heritage Ins., 438 F.3d 488 (5th Cir. 2006).published(reversing stay in case where state law governed)
- Gannett Co. v. Clark Constr. Grp., Inc., 286 F.3d 737 (4th Cir. 2002).published
- Gannett v. Clark, No. 01-2475 (4th Cir. Apr. 30, 2002).published
- Phillips & Jordan, Inc. v. Whitlock Air Serv., Inc., No. 4:22-cv-00864 (E.D. Tex. June 9, 2023).
v.
UNITED HERITAGE CORPORATION, Defendant-Counter Claimant-Appellee
In this diversity case arising out of a contract dispute, Plaintiff-Appellant Black Sea Investments, Ltd. (“Black Sea”) appeals the district court’s granting the motion of Defendant-Appellee United Heritage Corporation (“United Heritage”) to stay and administratively close the underlying federal action. The district court ruled that a stay was appropriate under the abstention doctrine announced by the Supreme Court in Colorado River Water Conservation District v. United States. 1 As we find that the district court’s ruling is inconsistent with the “virtually unflagging obligation of the federal courts to exercise the jurisdiction given them,” [2] we reverse and remand the case to the district court for further proceedings.
I.
Facts and Proceedings
Black Sea purchased from United Heritage 352,491 shares of United Heritage stock. The purchase agreement placed restrictions on Black Sea’s ability to sell the stock. It also promised Black Sea additional “rachet” shares of stock in the event that Black Sea sold its initial holdings for less than a specified price per share. During the following year, Black Sea sold all of its shares of United Heritage stock. Black Sea reported the sales to United Heritage, and a dispute immediately ensued. Black Sea claimed that it was entitled to receive 312,297 “rachet” shares of United Heritage stock; United Heritage claimed that Black Sea’s sale of the stock violated the terms of the purchase agreement.
The parties immediately entered into settlement negotiations, but about one week later, while the negotiations were still ongoing, United Heritage filed suit in state court in Texas. United Heritage did not have Black Sea served with process, however, allegedly because it did not want to disturb the ongoing negotiations. Unaware of the state suit, Black Sea filed a diversity action against United Heritage in federal district court, seeking injunctive and declaratory relief. Black Sea had United Heritage served with process the same day.
Several weeks later, United Heritage filed a motion to stay the federal suit, arguing that the district court should abstain from exercising jurisdiction over Black Sea’s claims out of deference to the parallel state litigation. Early the following year, the district court granted United Heritage’s motion, finding that (1) the issues involved in Black Sea’s federal action are purely issues of state law, (2) the state court provides an equally convenient forum for the litigation of Black Sea’s claims, and (3) allowing the federal action to proceed would result in wasteful, duplicative litigation. Approximately six months later, the district court clarified its ruling, specifying that its granting of a stay was based on the Colorado River abstention doctrine. This appeal followed.
II.
Analysis
A. Standard of Review
We review a district court’s decision whether to stay proceedings for abuse of discretion. [3] To the extent that such a[*650] decision rests on an interpretation of law, however, our review is de novo. [4]
B. Cobrado River Abstention
The Cobrado River abstention doctrine is based on principles of federalism, comity, and conservation of judicial resources. [5] It represents an “extraordinary and narrow exception” to the “virtually unflagging obligation of the federal courts to exercise the jurisdiction given them.” [6] The Supreme Court has not prescribed a “hard and fast rule” governing the appropriateness of Colorado River abstention, but it has set forth
six factors that may be considered and weighed in determining whether exceptional circumstances exist that would permit a district court to decline exercising jurisdiction: (1) assumption by either court of jurisdiction over a res; (2) the relative inconvenience of the forums; (3) the avoidance of piecemeal litigation; (4) the order in which jurisdiction was obtained by the concurrent forums; (5) whether and to what extent federal law provides the rules of decision on the merits; and (6) the adequacy of the state proceedings in protecting the rights of the party invoking federal jurisdiction. [7]
In assessing the propriety of abstention according to these factors, a federal court must keep in mind that “the balance [should be] heavily weighted in favor of the exercise of jurisdiction.” [8] Paying heed to this admonition in applying the Colorado River factors to this case, we conclude that the balance tips decisively against abstention.
(1) Assumption by Either Court of Jurisdiction Over a Res
The case “does not involve any res or property over which any court, state or federal, has taken control.... [T]he absence of this factor weighs against abstention.” [9]
(2) Relative Inconvenience of the Forums
The federal and state courts are in approximately the same geographic location within the state. This factor therefore weighs against abstention. [10]
(3) Avoidance of Piecemeal Litigation
The district court expressly granted a stay primarily to avoid wasteful, du-plicative litigation. But “[t]he prevention of duplicative litigation is not a factor to be considered in an abstention determination.” [11] Duplicative litigation, wasteful though it may be, is a necessary cost of our nation’s maintenance of two separate and distinct judicial systems possessed of frequently overlapping jurisdiction. The real concern at the heart of the third Colorado River factor is the avoidance of piecemeal litigation, and the concomitant dan[*651] ger of inconsistent rulings with respect to a piece of property. [12] When, as here, no court has assumed jurisdiction over a disputed res, there is no such danger. This factor therefore weighs against abstention. [13]
(4) Order in Which Jurisdiction Was Obtained
“[P]riority should not be measured exclusively by which complaint was filed first, but rather in terms of how much progress has been made in the two actions.” [14] Even though, in the instant case, the state suit was filed first, no action has been taken by the state court with respect to that suit. Indeed, the defendant had not even been served when it filed the subsequent federal suit. The situation in the United States District Court is much the same: The parties have devoted substantial energy to jurisdictional posturing, but no progress has been made on the merits of the case. As the state and federal suits are proceeding at approximately the same pace, this factor weighs against abstention. [15]
(5) Whether State or Federal Law Will Be Applied
The instant case involves only issues of state law. Nevertheless, “[t]he absence of a federal-law issue does not counsel in favor of abstention.” [16] “[0]ur task in cases such as this is not to find some substantial reason for the exercise of federal jurisdiction by the district court; rather, the task is to ascertain whether there exist ‘exceptional circumstances,’ the ‘clearest of justifications,’ that can suffice under Colorado River to justify the surrender of that jurisdiction.” [17] Thus, “the presence of state law issues weighs in favor of surrender only in rare circumstances.” [18]
The district court improvidently accorded great weight to this factor. It particularly emphasized that “the dispute involved issues of state law that had only recently been addressed by the Texas Supreme Court” and that the parties disagreed “as to the effect of the Texas Supreme Court’s ruling.” Without more, however, a mere lack of clarity in applicable state law does not counsel in favor of abstention. This factor is therefore at most neutral with respect to the propriety of abstaining under Colorado River.
(6)Adequate Protection in State Court
There is no indication in the instant case that Black Sea’s interests would not be adequately protected in state court. It is clear, however, that this factor “can only be a neutral factor or one that weighs against, not for, abstention.” [19] This factor therefore remains neutral.
All of the Colorado River abstention factors are either neutral with respect to abstention or counsel against it. In light of the heavy weighting of the balance in favor of the exercise of jurisdiction, Colorado River abstention in the instant case is clearly inappropriate. The district court abused its discretion in granting a stay based on the Colorado River abstention doctrine.
C. Brillhart Abstention
United Heritage contends that this case is not governed by the Colorado River abstention doctrine, but rather by the abstention doctrine announced by the Supreme Court in Brillhart v. Excess In [*652] surance Co. of America, 316 U.S. 491, 62 S.Ct. 1173, 86 L.Ed. 1620 (1942). This argument is raised by United Heritage for the first time on appeal. Nevertheless, we will address the issue, as it (1) is substantially related to Colorado River abstention and (2) speaks to the propriety of assuming federal jurisdiction over the instant case.
Brillhart abstention is applicable “[w]hen a district court is considering abstaining from exercising jurisdiction over a declaratory judgment action.” [20] “In contrast, when actions involve coercive relief the trial court must apply the standards enunciated by the Court in Colorado River.” 21 United Heritage concedes that Black Sea has requested both declaratory and injunctive relief, but argues that Brill-hart is nevertheless applicable because Black Sea’s claims for coercive relief are merely “ancillary” to its request for declaratory relief. This Circuit has rejected similar arguments on at least two occasions. [22] When a party seeks both injunc-tive and declaratory relief, the appropriateness of abstention must be assessed according to the doctrine of Colorado River; the only potential exception to this general rule arises when a party’s request for injunctive relief is either frivolous or is made solely to avoid application of the Brillhart standard. [23] As there is no indication that Black Sea’s request for injunc-tive relief is either frivolous or made in an effort to avoid the Brillhart doctrine, the appropriateness of abstention in the instant case is properly assessed under Colorado River only.
III.
Conclusion
For the reasons states above, the judgment of the district court is reversed and the case is remanded for further proceedings.
REVERSED AND REMANDED.
. 424 U.S. 800, 96 S.Ct. 1236, 47 L.Ed.2d 483 (1976)
.Murphy v. Uncle Ben's, Inc., 168 F.3d 734, 737 (5th Cir.1999).
. Evanston Ins. Co. v. Jimco, Inc., 844 F.2d 1185, 1189 (5th Cir.1988).
. Colorado River, 424 U.S. at 813, 817, 96 S.Ct. 1236.
. Murphy, 168 F.3d at 738. The Supreme Court has also emphasized the determinative role of a clear federal policy with respect to the appropriate application of these factors. A "clear federal policy ... [of] avoidance of piecemeal adjudication of water rights in a river system” was "the most important factor” in the Supreme Court’s decision to abstain in Colorado River. See Moses H. Cone Mem. Hosp. v. Mercury Const. Corp., 460 U.S. 1, 16, 103 S.Ct. 927, 74 L.Ed.2d 765 (1983). Conversely, a clear Congressional policy "to move parties to an arbitrable dispute out of court and into arbitration as quickly and as easily as possible” — a policy that was most readily given effect in federal court — decisively weighed against abstention in Moses H. Cone Mem. Hosp. Id at 22-23, 103 S.Ct. 927.
. Moses H. Cone Mem. Hosp., 460 U.S. at 16, 103 S.Ct. 927.
. Murphy, 168 F.3d at 738.
. Evanston Ins. Co., 844 F.2d at 1192.
. Moses H. Cone Mem. Hosp., 460 U.S. at 21, 103 S.Ct. 927.
. Murphy, 168 F.3d at 738-39.
. Evanston Ins. Co., 844 F.2d at 1193.
. Moses H. Cone Mem. Hosp., 460 U.S. at 26, 103 S.Ct. 927.
. Evanston Ins. Co., 844 F.2d at 1193.
. Id at 1193.
. Southwind Aviation, Inc. v. Bergen Aviation, Inc., 23 F.3d 948, 950 (5th Cir.1994).
. Id. at 951.
. See PPG Industries, Inc. v. Continental Oil Co., 478 F.2d 674 (5th Cir.1973); Southwind Aviation, Inc. v. Bergen Aviation, Inc., 23 F.3d 948 (5th Cir.1994).
. See PPG Industries, 478 F.2d at 679.