Commodity Futures Trading Commission v. Preferred Capital Investment Company, George W. Gramer

664 F.2d 1316, 33 Fed. R. Serv. 2d 14, 1982 U.S. App. LEXIS 22802
CourtCourt of Appeals for the Fifth Circuit
DecidedJanuary 7, 1982
Docket80-1632, 80-1731
StatusPublished
Cited by21 cases

This text of 664 F.2d 1316 (Commodity Futures Trading Commission v. Preferred Capital Investment Company, George W. Gramer) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commodity Futures Trading Commission v. Preferred Capital Investment Company, George W. Gramer, 664 F.2d 1316, 33 Fed. R. Serv. 2d 14, 1982 U.S. App. LEXIS 22802 (5th Cir. 1982).

Opinions

ALVIN B. RUBIN, Circuit Judge:

Our jurisdiction, generally limited to appeals from final decisions, extends to appeals from interlocutory orders refusing injunctions. A decision to dismiss one party from a suit seeking an injunction against several parties because of the opposing party’s failure to comply with discovery orders is not an order refusing an injunction against the dismissed party. We, therefore, lack jurisdiction over this appeal from such an interlocutory order.

The Commodity Futures Trading Commission (CFTC) brought an enforcement action seeking injunctive and ancillary equitable relief against Preferred Capital Investment Company and four individuals associated with the firm including George Gram-er. After some skirmishing about discovery and settlement, a detailed account of which it would serve no purpose to recite, the district judge dismissed CFTC’s suit against Gramer alone, with prejudice on the basis of Fed.R.Civ.P. 41(b) because the court concluded that CFTC’s actions with respect to Gramer “have had the effect of thwarting the orders of the Court with respect to discovery.”1 On motion of CFTC, the court reconsidered its actions and noted that Rule 41(b) was not the proper ground for dismissal of the suit against Gramer. Accordingly, it changed its order to dismiss the suit against Gramer to have it on failure to comply with discovery orders, relying upon Fed.R.Civ.P. 37(b)(2)(C).2

CFTC filed two separate appeals, one from each order. While it is necessary to read both orders, as well as the record, to understand the second order, the district judge revoked the first order, insofar as it is not congruent with the second, merely by entry of his later order. We, therefore, dismiss the appeal from the first order in No. 80-1632 as moot.

We consider one other preliminary matter. Before this case reached oral argument, Gramer brought a motion to dismiss the appeal on the basis that the interlocutory order was not appealable absent a certificate from the district judge expressly determining that there is no just reason for delay, Fed.R.Civ.P. 54(b). A panel of this court denied the motion. The motion is, nonetheless, “also subject to scrutiny by the oral argument panel to whom the case falls.” Western Elec. Co. v. Milgo Electronic Corp., 568 F.2d 1203, 1206 n.6 (5th Cir. 1978); EEOC v. International Longshoremen’s Ass’n, 511 F.2d 273, 276 n.5 (5th Cir.), cert. denied, 423 U.S. 994, 95 S.Ct. 421, 46 L.Ed.2d 368 (1975). Accordingly, we directed counsel to discuss the issue of appealability at argument.

The basic principle of appellate jurisdiction is that appeals may be taken only from final judgments. 28 U.S.C. § 1291 (1976). The final judgment rule is based on the policy against piecemeal appeals and the inevitably attendant delay and increase in costs that result from piecemeal appeals. C. Wright, Handbook of the Law of Federal Courts § 101 (3d ed. 1976). “The history of federal appellate jurisdic[1319]*1319tion,” however, “has been one of gradual, grudging retreat from the final judgment rule.” 9 J. Moore, B. Ward & J. Lucas, Moore’s Federal Practice 1i 110.16 (1980). Appeals of interlocutory decisions are permitted, in the discretion of the court of appeals, when the district judge certifies that the “order involves a controlling question of law as to which there is a substantial ground for difference of opinion and that an immediate appeal from the order may materially advance the ultimate termination of the litigation,” 28 U.S.C. § 1292(b), or when a judgment disposes of fewer than all claims or all parties and the district judge directs the entry of final judgment, making an express determination that there is no just reason for delay, Fed.R.Civ.P. 54(b). While neither of these paths to immediate appealibility was selected by the district court,3 they help us to understand the appeal pattern. The Judicial Code now also permits appeals of orders “refusing” injunctions.4 This exception “was created to afford litigants timely relief from interlocutory orders where the danger of denying justice by delay outweighed the inconvenience and costs of piecemeal appellate review.” 5

Each exception to the final judgment rule, however, is to be construed so as to confine its application to the needs that inspired it. See 16 C. Wright, A. Miller, E. Cooper & E. Gressman, Federal Practice and Procedure § 3921, at 10 (1977). The Supreme Court recently noted that § 1292(a)(1) should be construed narrowly, and that the “general congressional policy against piecemeal review” should preclude interlocutory review unless a litigant can show both that the interlocutory order might have a “ ‘serious, perhaps irreparable, consequence,’ and that the order can be ‘effectually challenged’ only by immediate appeal.” Carson v. American Brands, Inc., 450 U.S. 79, 84, 101 S.Ct. 993, 996, 67 L.Ed.2d 59, 64 (1981) (an order denying the joint motion of the parties to enter a consent decree containing injunctive relief is an appealable interlocutory order).

Interlocutory appeals should, therefore, be limited to those that are expressly allowed, not because of finical literalness, but in order to conform to the jurisdictional pattern prescribed by Congress, which is intended to permit appeal only from orders [1320]*1320of serious, perhaps irreparable consequence, Gould v. Control Laser Corp., 650 F.2d 617 (5th Cir. 1981), and to avoid opening a floodgate to interlocutory appeals. Gardner v. Westinghouse Broadcasting Co., 437 U.S. 478, 98 S.Ct. 2451, 57 L.Ed.2d 364 (1978) (order denying class certification did not affect the plaintiff’s own claims for injunctive relief and is not appealable).

The district court order in the instant case neither refuses an injunction against Gramer nor considers in any way either the existence of a cause of action against him or the merits of the claim made.6 The dismissal of Gramer “does not settle or even tentatively decide anything about the merits of the claim.” Switzerland Cheese Ass’n v. E. Horne’s Market, Inc., 385 U.S. 23, 25, 87 S.Ct. 193, 195, 17 L.Ed.2d 23, 25 (1966) (order denying a motion for summary judgment granting a permanent injunction is not appealable).

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Bluebook (online)
664 F.2d 1316, 33 Fed. R. Serv. 2d 14, 1982 U.S. App. LEXIS 22802, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commodity-futures-trading-commission-v-preferred-capital-investment-ca5-1982.