Administrative Management Services, Ltd., Inc. v. Royal American Managers, Inc., the Omaha Indemnity Company, a Corporation

854 F.2d 1272, 1988 U.S. App. LEXIS 12620, 1988 WL 88427
CourtCourt of Appeals for the Eleventh Circuit
DecidedSeptember 14, 1988
Docket87-5573
StatusPublished
Cited by14 cases

This text of 854 F.2d 1272 (Administrative Management Services, Ltd., Inc. v. Royal American Managers, Inc., the Omaha Indemnity Company, a Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Administrative Management Services, Ltd., Inc. v. Royal American Managers, Inc., the Omaha Indemnity Company, a Corporation, 854 F.2d 1272, 1988 U.S. App. LEXIS 12620, 1988 WL 88427 (11th Cir. 1988).

Opinion

ESCHBACH, Senior Circuit Judge:

The appellant, Omaha Indemnity Company, appeals the district court’s order denying its motion to compel arbitration under § 4 of the Arbitration Act, 9 U.S.C. § 4. The parties to a retrocessional reinsurance agreement disagree whether the arbitration provision of the contract obligates them to tripartite arbitration of their disputes. We need not address this issue since we find that this court lacks jurisdiction to consider this appeal.

I

In this diversity action, Administrative Management Services Syndicate, Ltd., Inc. (“AMS”), is suing Omaha Indemnity Company (“OI”) and Royal American Managers, Inc. (“RAM”) for breach of contract and fraud, among other claims. 1 In 1983, 01 and RAM entered a Management Agreement, whereby RAM agreed to underwrite and manage reinsurance business in OI’s name. OI, RAM and AMS entered into a retrocessional reinsurance agreement wherein a portion of the risks accepted by RAM in OI’s name pursuant to the Management Agreement were to be retro-ceded to AMS. 01 was the reinsured, and AMS was the reinsurer. This reinsurance contract was to take effect at the same time as the Management Agreement. Subsequently, 01 revoked RAM’s authority to accept reinsurance business for it, but did not notify AMS of this change. As a result, 01 allegedly underreported to AMS the volume of business that was ceded to AMS. In December of 1985, AMS ostensibly learned for the first time that RAM had written business in OI’s name that exceeded AMS’ maximum capacity to insure. The significant underwriting losses that resulted to AMS alerted the relevant Florida State authorities to order AMS to discontinue writing all insurance business.

On February 21, 1986, AMS began its suit against RAM on the reinsurance contract claims in the United States District Court for the Southern District of Florida. AMS later added as defendants 01, and two *1274 individuals, James R. Wining and Willie A. Schonacher, Jr. Wining and Schonacher were RAM’s principals who negotiated the reinsurance contract. On April 3, 1986, 01 began its suit against RAM, AMS, Wining and Schonacher for injunctive relief and damages in federal district court in Missouri. RAM and 01 have subsequently agreed to arbitrate their differences pursuant to their Management Agreement. OI’s complaint against RAM has been stayed in the federal district court in Missouri pending the arbitration hearing, although the discovery in that case has not been stayed.

01 requested AMS and RAM to submit to arbitration pursuant to the arbitration provision of the reinsurance contract. When AMS refused, 01 petitioned the federal district court in Florida under § 4 of the Arbitration Act to compel arbitration against AMS and RAM. 2 The district court denied OI’s motion because it found the arbitration provision void for lack of consideration and for indefiniteness. Although the arbitration provision is ambiguous as to which parties are covered by it, the court concluded that RAM was a party to both the reinsurance agreement and to the arbitration clause contained therein. Because the parties were not able to agree on one interpretation of the arbitration provision, the court was not able to reform the provision consistent with the parties’ intent.

01 appeals the district court’s denial of its motion to compel arbitration against AMS. 3 AMS contends that we lack jurisdiction to consider this appeal. After oral argument, we requested both parties to submit supplemental briefs on the question of our jurisdiction. Omaha Indemnity alleges that we have jurisdiction in this action because it is appealable as a final order under 28 U.S.C. § 1291, or as an exception to § 1291 under the collateral-order doctrine, or as an interlocutory order under 28 U.S.C. § 1292. We conclude otherwise, and now dismiss this appeal for lack of jurisdiction.

II

In support of its allegations that this Court has jurisdiction under § 1291, 01 contends that its petition to compel arbitration was an independent action because it was originally filed in a federal district court in Nebraska before it was transferred to the federal district court in Florida. 01 thus seeks to characterize its petition as an “offensive” motion, rather than as a “defensive” motion filed in a pending suit. Although OI’s characterization of its motion may be questionable, the distinction 01 seeks to draw is irrelevant to our analysis. The dispositive factor in this case is whether all of the claims are included in OI’s § 4 motion. Since not only some of the claims, but also some of the parties, are not included in OI’s motion, this Court cannot assert appellate jurisdiction here without contravening the very policy behind § 1291.

The overarching concern behind § 1291 is to avoid piecemeal litigation of claims. As the Supreme Court noted long ago:

From the very foundation of our judicial system the object and policy of the acts of congress in relation to appeals and writs of error ... have been to save the expense and delays of repeated appeals in the same suit, and to have the whole case and every matter in controversy in it decided in a single appeal.

McLish v. Roff, 141 U.S. 661, 665-66, 12 S.Ct. 118, 120, 35 L.Ed. 893 (1891). Most recently, the Supreme Court has reiterated that “as a general rule a district court’s decision is appealable under this section only when the decision ‘ends the litigation on the merits and leaves nothing for the court to do but execute the judgment.’ ” *1275 Gulfstream Aerospace Corp. v. Mayacamas Corp., — U.S. -, 108 S.Ct. 1133, 1136, 99 L.Ed.2d 296 (1988) (quoting Catlin v. United States, 324 U.S. 229, 233, 65 S.Ct. 631, 633, 89 L.Ed. 911 (1945)).

Our past decisions are consistent with this principle against piecemeal litigation. From the text of past opinions in which we have asserted § 1291 jurisdiction, it readily ascertainable that all of the claims in the underlying action were included the § 4 motion. In Seaboard Coast Line R.R. Co. v. Trailer Train Co., 690 F.2d 1343 (11th Cir.1982), we asserted jurisdiction over a district court order denying arbitration. Id. at 1344-45 n. 1. The plaintiff had sued the Trailer Train Company for breach of contract in failing to provide the plaintiff with documents it needed to support its claim for an investment tax credit. In the same complaint, the plaintiff requested the district court to stay the suit and compel arbitration, which the district court denied. The motion to compel arbitration encompassed the very claim before the court, such that all of the underlying claims were included.

In La Nacional Platanera v. North American Fruit & Steamship Corp.,

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854 F.2d 1272, 1988 U.S. App. LEXIS 12620, 1988 WL 88427, Counsel Stack Legal Research, https://law.counselstack.com/opinion/administrative-management-services-ltd-inc-v-royal-american-managers-ca11-1988.