Cleveland Hair Clinic, Inc. v. Puig

106 F.3d 165, 1997 WL 47610
Court of Appeals for the Seventh Circuit·Decided January 27, 1997·No. No. 97-1178·Published·Cited by 1 cases

Opinion

EASTERBROOK, Circuit Judge.

Last November the district court, after concluding that defendants and their lawyer Michael Tinaglia engaged in sanction-able misconduct, directed Tinaglia and his firm to remit approximately $100,000, in partial payment of an obligation still to be calculated. Tinaglia and his firm (collectively Ti-naglia) filed a notice of appeal, which we dismissed for lack of jurisdiction. Cleveland Hair Clinic, Inc. v. Puig, 104 F.3d 123 (7th Cir.1997). Back in the district court, Tinag-lia flatly refused to pay. He did not give a reason; he simply informed the court that he would not comply. The judge did not cotton to defiance and has held lawyer and law firm in contempt, adding a daily fine of $300 to the principal obligation until payment has been made. Use of the contempt power is an appropriate way to enforce a sanction for misconduct, which is not an ordinary money judgment. See Alpern v. Lieb, 11 F.3d 689 (7th Cir.1993). Again Tinaglia appealed. He asked us to stay the order on condition that he post a supersedeas bond. This was a condition we imposed last time—apparently without success, for if Tinaglia had posted a proper bond his adversaries would not now need his cooperation to collect. At all events, neither a stay nor a bond is appropriate, for there is still no jurisdiction. We dismissed Tinaglia’s second appeal on January 27 with the notation that an explanation would follow. This is the promised explanation.

Our prior opinion gave two principal reasons why an appeal must wait. First, the amount of the sanction remains to be determined, and the award therefore is not a “final” decision. Second, Tinaglia and the defendants have been held jointly and severally liable for the sanction. Because the defendants must wait until the final judgment to file their own appeal, Tinaglia can file his own appeal at the same time and obtain complete relief, so this interlocutory appeal does not satisfy the requirements of the collateral-order doctrine. We added that the requirement of immediate payment does not make the order appealable, because the recipients are solvent and can repay if Tinag-lia prevails in the end.

[167]*167An adjudication of civil contempt used to enforce a judicial order is not appealable if the underlying order is itself not appealable. Fox v. Capital Co., 299 U.S. 105, 57 S.Ct. 57, 81 L.Ed. 67 (1936); Doyle v. London Guarantee & Accident Co., 204 U.S. 599, 27 S.Ct. 313, 51 L.Ed. 641 (1907); In re Christensen Engineering Co., 194 U.S. 458, 24 S.Ct. 729, 48 L.Ed. 1072 (1904) (dictum); Hayes v. Fischer, 102 U.S. 121, 26 L.Ed. 95 (1880); In re Rimsat, Ltd., 98 F.3d 956, 963 (7th Cir.1996); Powers v. Chicago Transit Authority, 846 F.2d 1139, 1141 (7th Cir.1988). This principle is an essential complement to the final-decision rule. Tinaglia’s conduct shows what an inroad on that rule would be made if all someone had to do, to obtain appellate review of an interlocutory order, was to defy it. Ensuing appeals would prolong and complicate litigation at the same time as they would undermine district judges’ ability to manage their cases. Accepting an appeal from this decision would split a single issue into at least four appellate units: (i) whether Tinaglia engaged in any sanctionable misconduct (the only question now open); (ii) how much the plaintiff is entitled to receive (the question sure to come up on the next appeal, if the first should be resolved adversely to Tinaglia); (iii) whether the defendants also are responsible for any portion of the misconduct (a subject that they can present at the end of the case); and (iv) the allocation of liability between defendants and Tinaglia (a question that Tinaglia could present by filing his own appeal from the final decision).' It was to avoid such an unacceptable multiplication of appeals, delay, and expense that we dismissed Tinaglia’s first appeal—and now he is back, asking for the very thing to which we held he is not entitled.

Tinaglia observes that non-parties usually may appeal from findings that they are in contempt of court, even though parties could not appeal from identical orders. E.g., United States Catholic Conference v. Abortion Rights Mobilization, Inc., 487 U.S. 72, 108 S.Ct. 2268, 101 L.Ed.2d 69 (1988); Cobbledick v. United States, 309 U.S. 323, 328, 60 S.Ct. 540, 542-43, 84 L.Ed. 783 (1940). Tinaglia is not a party to the case; he is not even defendants’ current lawyer. One court of appeals permitted a lawyer to appeal from an order adjudicating him in contempt. In re Murphy, 560 F.2d 326, 332-33 n. 10 (8th Cir.1977). The rationale is simple: for the non-party, the adjudication in contempt usually is the “final decision” in the case; there will never be another, more conclusive, order.

Things are otherwise for Tinaglia—the point of our first opinion, which discusses at some length the significance of his status as a non-party. Matters will not come to closure until the judge determines the full amount of the sanction; and Tinaglia will have an opportunity to obtain review at the end of the ease in an appeal with those who have been held jointly and severally liable with him. Catholic Conference recognized this exception, citing with approval, 487 U.S. at 78, 108 S.Ct. at 2271-72, an opinion holding that the non-party appeal rule “is not applicable ... if there is a substantial congruence of interests between the nonparty and a party to the action.” In re Petroleum, Products Antitrust Litigation, 747 F.2d 1303, 1305 (9th Cir.1984) (Kennedy, J.). See also Eastern Maico Distributors, Inc. v. Maico-Fahrzeugfabrik, G.m.b.H., 658 F.2d 944, 949-51 (3d Cir.1981) (an attorney may not appeal from an order requiring him to pay costs under Fed. R.Civ.P. 37). Tinaglia’s interests are more than congruent with those of the defendants; they are identical with those of the defendants, given joint-and-several liability. We agree with these decisions, with which Murphy is not at odds. The eighth circuit held that an attorney served with a subpoena for documents said to be privileged may stand in contempt in order to obtain review of the disclosure order, a position with a long pedigree. See United States v. Ryan,

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Cleveland Hair Clinic, Inc. v. Puig, 106 F.3d 165, 1997 WL 47610 (7th Cir. 1997).

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