Automated Data System, Inc. v. Omron Business System, Inc.

760 F. Supp. 541, 1991 U.S. Dist. LEXIS 5077, 1991 WL 54103
CourtDistrict Court, W.D. North Carolina
DecidedMarch 25, 1991
DocketST-C-89-118-P
StatusPublished
Cited by1 cases

This text of 760 F. Supp. 541 (Automated Data System, Inc. v. Omron Business System, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Automated Data System, Inc. v. Omron Business System, Inc., 760 F. Supp. 541, 1991 U.S. Dist. LEXIS 5077, 1991 WL 54103 (W.D.N.C. 1991).

Opinion

ORDER

ROBERT D. POTTER, District Judge.

THIS MATTER is before the Court on Plaintiffs motion, filed February 11, 1991, to amend a judgment previously entered in this matter in which the Court dismissed fraud claims alleged in the complaint. Plaintiff has requested that the Court certify the appeal of those dismissed claims pursuant to Rule 54(b) of the Federal Rules of Civil Procedure or 28 U.S.C. § 1292(b) prior to the disposition of the remaining claims. On March 13,1991, Plaintiff filed a memorandum of law in support of its motion to amend the judgment. Defendants, on March 12, 1991, filed a response to Plaintiffs motion.

The gist of the dispute in this matter revolves around Defendants’ alleged breach of a dealer agreement whereby Plaintiff was entitled to sell electronic cash register equipment manufactured by Defendants. Questions arose among the parties concerning the quality of Defendants’ product and Plaintiff’s territory. Plaintiff filed its complaint on July 31, 1989 in state court. Thereafter, Defendants removed this action to federal court, and the case was assigned to the Honorable Richard Voorhees.

In addition to breach of contract claims, Plaintiff alleged in its complaint that Defendants’ conduct constituted fraud. Defendants moved to dismiss the fraud claims for failure to state those claims with the particularity required by Rules 9(b) and "12(b)(6) of the Federal Rules of Civil Procedure. On May 30, 1990, United States Magistrate Toliver Davis entered a Memorandum and Recommendation in which he recommended to the district court that Defendants’ motion to dismiss the fraud claims be granted. Judge Voorhees, on February 1, 1991, entered an Order accepting that recommendation. Thereafter, this matter was reassigned to the undersigned through the random assignment procedure utilized by the Clerk.

In the motion currently before the Court, Plaintiff requests that the Court certify the dismissal of the fraud claims for immediate appeal to the Fourth Circuit Court of Appeals. Plaintiff relies on Rule 54(b) of the Federal Rules of Civil Procedure which provides in pertinent part:

(b) Judgment Upon Multiple Claims or Involving Multiple Parties. When more than one claim for relief is presented in an action, whether as a claim, counterclaim, cross-claim, or third-party claim, or when multiple parties are involved, the court may direct the entry of a final judgment as to one or more but fewer than all of the claims or parties only upon an express determination that there is no just reason for delay and upon an express direction for the entry of judgment ...

In the alternative, Plaintiff contends that 28 U.S.C. § 1292(b) permits the Court to certify the dismissal of the fraud claims for immediate appeal. That statute provides in pertinent part:

(b) When a district judge, in making in a civil action an order not otherwise ap-pealable under this section, shall be of the opinion that such order involves a controlling question of law as to which there is substantial ground for difference of opinion and that an immediate appeal *543 from the order may materially advance the ultimate termination of the litigation, he shall so state in writing in such order. The Court of Appeals which would have jurisdiction of an appeal of such action may thereupon, in its discretion, permit an appeal to be taken from such order, if application is made to it within ten days after the entry of the order ...

The primary argument made by Plaintiff in support of its motion is that the fraud claims arose out of the same factual background as the remaining claims. Therefore, Plaintiff asserts that unless the motion is granted, two (2) trials would have to be conducted, assuming that it is successful on the appeal of the fraud claims. Plaintiff argues that two (2) trials is a waste of judicial resources.

As an initial matter, the Court must note that Plaintiff is requesting the unusual. An appeal following a Rule 54(b) order is the exception rather than the rule. See 10 Wright, Miller and Kane, Federal Practice and Procedure, Civil 2d § 2654 at 37 (1983) (hereinafter “Wright & Miller”). The Rule “is meant to be applied in relatively few situations and should not be read as a significant incursion on the traditional federal policy against piecemeal appeals.” Id. at 80; see also Para-Chem Southern, Inc. v. M. Lowenstein Corp., 715 F.2d 128, 133-34 (4th Cir.1983) (Bryan, Senior J. concurring) (holding that district court decision to certify appeal was “piecemeal appeal, obviously impermissible and one to be vacated”). Thus, some courts have held that there must be some danger of hardship or injustice through delay which would be alleviated by immediate appeal. See 6 Moore’s Federal Practice, par. 54.41[3] at 54-266 (1990) (hereinafter “Moore’s”). “It follows that Rule 54(b) orders should not be entered routinely or as a courtesy or accommodation to counsel”. Id. at 54-267 (quoting from Panichella v. Pennsylvania RR, 252 F.2d 452, 455 (3d Cir.1958)); see also Wright & Miller at 100.

In evaluating a motion brought under Rule 54(b), the district court must first determine whether the claims in which immediate appeal is sought are separate from remaining claims. After this initial hurdle is met by the movant, the district court then must decide if there exists no just reason to delay the entry of judgment on the claims to which appeal is sought. See Wright & Miller at 100. No precise test exists for determining whether there is a just reason to delay the entry of judgment. Id. In fact, the United States Supreme Court has directly held that it was reversible error for the Third Circuit to utilize the “infrequent harsh case” analysis from Panichella, supra, in determining whether a claim was immediately appeal-able. See Curtiss-Wright Corp. v. General Electric Co., 446 U.S. 1, 10, 100 S.Ct. 1460, 1466, 64 L.Ed.2d 1 (1980). Instead, the district court, in exercising the wide range of discretion given to it, may consider any factor that seems relevant in deciding whether there is no just reason for delay. See Wright & Miller at 101.

Of paramount consideration in a Rule 54(b) analysis is “whether the nature of the claims already determined (is) such that no appellate court would have to decide the same issue more than once even if there (are) subsequent appeals”. See Para-Chem, 715 F.2d at 132 (citing Curtiss-Wright, 446 U.S. at 8, 100 S.Ct. at 1465).

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Bluebook (online)
760 F. Supp. 541, 1991 U.S. Dist. LEXIS 5077, 1991 WL 54103, Counsel Stack Legal Research, https://law.counselstack.com/opinion/automated-data-system-inc-v-omron-business-system-inc-ncwd-1991.