United States v. Sid-Mars Restaurant & Lounge, Inc., No. 09-30869 (5th Cir. 2011)
Annotate this CaseDefendant filed suit in state court demanding compensation from the State of Louisiana for the commandeering of its real property following Hurricane Katrina. While the state court litigation was pending, the United States initiated condemnation proceedings involving part of the same property in federal district court. To avoid potentially conflicting judgments, the United States sought a stay of the state court proceedings. The district court entered a stay and defendant appealed. At issue was whether the Anti-Injunction Act, 28 U.S.C. 2283, precluded the issuance of the stay and even if not prohibited, the issuance of the stay was not proper on the facts of the case. The court found that, in light of Leiter Minerals, Inc. v. United States, the uncertainty surrounding the ownership of the property at issue and the extent of the United States' interest militated in favor of enjoining the state court litigation. Accordingly, the court affirmed the judgment of the district court. The court noted that the district court would need to determine the best manner in which to proceed in reaching an answer to the title questions that arose because of the commandeering. The court concluded that the district court might resolve the question itself, lift the stay for the limited purpose of allowing the state court to determine title, or take other steps to avoid the potential for inconsistent rulings in the two proceedings.
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