First Alabama Bank of Montgomery, N.A. v. Parsons Steel, Inc.

THORNBERRY, Senior Circuit Judge:

Appellants are appealing from a district court order enjoining them from further prosecution of an Alabama circuit court case on the grounds that, under principles of res judicata, the state action should have been barred by a prior federal court judgment. We hold that, in general, the injunction was not an abuse of discretion. We remand the case, however, with instructions that the district court make further fact findings and, if necessary, modify the existing injunction.

I. The Facts

This case involves two separate lawsuits stemming from a series of bank…