Bailey v. Systems Innovation, Inc.

852 F.2d 93, 1988 WL 74360
CourtCourt of Appeals for the Third Circuit
DecidedJuly 21, 1988
DocketNos. 88-5091, 88-5113
StatusPublished
Cited by37 cases

This text of 852 F.2d 93 (Bailey v. Systems Innovation, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bailey v. Systems Innovation, Inc., 852 F.2d 93, 1988 WL 74360 (3d Cir. 1988).

Opinion

OPINION OF THE COURT

A. LEON HIGGINBOTHAM, JR., Circuit Judge.

An official and various employees of the Commonwealth of Pennsylvania, and two individuals, who are defendants in a pending civil action, claim that their first amendment rights to freedom of speech are violated by a district court order that imposes upon them the requirements of Middle District of Pennsylvania Local Rule 118.7 (“Rule 118.7”), governing “Extrajudicial Statements by Attorneys in Civil Cases”. They have filed both a petition for writ of mandamus and an interlocutory appeal from the district court’s order that applies the rule to these defendants and denies plaintiff-appellee’s motion for a temporary restraining order.

We hold that the district court order is appealable under 28 U.S.C. § 1292(a)(1). The appeal constitutes “other adequate means to attain the relief ... desire[d],” Kerr v. United States District Court, 426 U.S. 394, 403, 96 S.Ct. 2119, 2124, 48 L.Ed. 2d 725 (1976), and accordingly, the petition for writ of mandamus will be denied. We further hold that the provisions of Rule 118.7 as applied to the litigants in this civil suit violate their rights to freedom of speech. We will therefore vacate in part the order of the district court insofar as it imposes that rule on the litigants and remand the matter for further proceedings.

I.

Neither party disputes the relevant facts. Systems Innovation, Inc. (“SII”) is a Pennsylvania corporation that markets and services various types of law enforcement products, including speed timing devices and chemical breath-test equipment. It also repairs, services and certifies the accuracy of these devices for its customers, which are largely municipal law enforcement agencies.

The Auditor General of the Commonwealth of Pennsylvania, various employees of his Department, and two private individuals (“Commonwealth litigants”) are defendants in a civil suit brought by SII and its principal officers. The lawsuit stems from two press conferences the Auditor General held in December 1987 and January 1988 in which he announced the results of his office’s investigations into SII’s performance under state and local government contracts. Appendix at Exhibits C & D. At these conferences, the Auditor General recommended that all contracts awarded to SII be reviewed, and announced that the Pennsylvania Attorney General would be conducting an investigation into the company. Id. He also issued press releases concerning the breath test equipment. Id. at Exhibit E. Copies of these releases were subsequently widely distributed to SII’s customers.

On January 25, 1988, SII filed a complaint in federal district court for the Middle District of Pennsylvania,1 and simultaneously filed motions for a temporary restraining order (“TRO”) and for a preliminary injunction. Appendix at 116-38; 141— 48. Both the TRO motion and the motion for preliminary injunction sought to prevent the Commonwealth litigants from

(a) communicating, directly or indirectly, with customers or potential customers of plaintiffs, (b) holding additional press conferences or issuing additional press releases on the matters which have al[95]*95ready been referred to the Office of Attorney General, and (c) investigating further SII and/or its offices for criminal wrongdoing.

Id. at 139-40, 146-47. Following a hearing, the district court denied the TRO motion on January 28, 1988. The district court’s opinion addressed the testimony of SIFs president that subsequent to the press conferences and releases, sales had declined, negative press in trade journals had appeared, bids were being deferred and some contracts had been cancelled. Id. at 167, 169. Nevertheless, the district court, citing ECRI v. McGraw-Hill, Inc., 809 F.2d 223, 226 (3d Cir.1987), found that this testimony did not sufficiently establish “irreparable harm” to justify granting in-junctive relief. Appendix at 169.

The district court concluded that

Rule 118.7 of the Rules of Court for the United States District Court for the Middle District of Pennsylvania, which this court will make applicable to the litigants as well as the attorneys, will sufficiently protect the plaintiffs so that the more drastic remedy of injunctive relief will not be required.

Appendix at 169. Although the district court opinion appeared to refer to both the request for TRO and the request for a preliminary injunction, its accompanying order simply denied the TRO motion and imposed Rule 118.7 “upon the litigants of this case as well as counsel.”2 Id. at 164. On the same day that the district court issued its order, SII moved to withdraw the motion for preliminary injunction. Id. at 170. The district court granted the motion. Id. at 174.

On February 5, 1988, the Commonwealth litigants filed a petition for writ of mandamus in this Court and a notice of appeal. They request this Court to issue a writ of mandamus directing the district court to vacate that part of its order imposing Rule 118.7 upon the Commonwealth litigants, or in the alternative, to reverse that part of the order on appeal. We consolidated the petition and the appeal for disposition.

II.

The questions of whether we have mandamus jurisdiction and whether we have jurisdiction to decide this interlocutory appeal are intertwined. We may issue writs of mandamus pursuant to the All Writs Act.3 28 U.S.C. § 1651(a) (1982). This Court, as well as others, has invoked mandamus jurisdiction to strike down district court orders that were found to violate the first amendment. See Rodgers v. United States Steel Corp., 536 F.2d 1001, 1006 (3d Cir.1976) (“In our view, the district court’s order constitutes a prior restraint on the speech of petitioners’ counsel in violation of the First Amendment. A writ of mandamus is therefore appropriate in order to confine the district court to the proper sphere of its lawful power.” (footnote omitted)); accord Coles v. Marsh, 560 F.2d 186, 189 (3d Cir.), cert. denied, sub nom. Blue Cross of Western Pennsylvania v. Marsh, 434 U.S. 985, 98 S.Ct. 611, 54 L.Ed.2d 479 (1977); CBS v. Young, 522 F.2d 234, 237 (6th Cir.1975) (“our authority to review the order in question [violating the first amendment] by mandamus is unassailable.”). These decisions, however, do not indicate that we should automatically find such jur[96]*96isdiction here. The exercise of our mandamus power is limited to situations in which

the party seeking issuance of the writ ha[s] no other adequate means to attain the relief he [or she] desires ... and ... he [or she] satisfies] “the burden of showing that his [or her] right to issuance of the writ is ‘clear and indisputable.’ ”

Kerr v. United States District Court, 426 U.S. at 403, 96 S.Ct. at 2124 (citations omitted); DeMasi v. Weiss, 669 F.2d 114, 117 (3d Cir.1982).

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852 F.2d 93, 1988 WL 74360, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bailey-v-systems-innovation-inc-ca3-1988.