Corporacion Insular de Seguros v. Garcia

864 F.2d 208
CourtCourt of Appeals for the First Circuit
DecidedDecember 28, 1988
DocketNos. 88-1845, 88-1905
StatusPublished
Cited by1 cases

This text of 864 F.2d 208 (Corporacion Insular de Seguros v. Garcia) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Corporacion Insular de Seguros v. Garcia, 864 F.2d 208 (1st Cir. 1988).

Opinion

SELYA, Circuit Judge.

The federal district court commanded the Insurers Syndicate for the Joint Underwriting of Medico-Hospital Professional Liability Insurance (SIMED) to produce for inspection, subject to a protective order, sensitive business information (including rate filings, schedule and experience rating plans, lists of insureds, lists of producers, and data anent premium dollar distribution and reserves). SIMED, nonplussed by the decree and little comforted by the protective order, brought the matter to our attention in two ways: it petitioned for a writ of mandamus (No. 88-1845)1 and soon thereafter filed a notice of appeal (No. 88-1905). We consolidated the proceedings and granted expedited review. Because we find that petitioner-appellant’s twin challenges (1) do not come within the encincture of our appellate jurisdiction under any recognized exception to the finality principle, and (2) are not appropriate fodder for the rarely-used mandamus cannon, we pretermit the proceedings without unnecessary ado.

I. BACKDROP

SIMED was created by virtue of P.R. Laws Ann. tit. 26, § 4101 et seq. (Supp.1987) as part of the legislative response to a perceived crisis in the availability and affordability of medical malpractice coverage in Puerto Rico. We need not dwell on the mechanics of the law or SIMED’s precise structure; it suffices to acknowledge that the legislature, faced with a situation wherein a mere handful of insurers were willing to underwrite malpractice risks, attempted to stimulate the marketplace by establishing a syndicate which would actively compete for such business. The syndicate (SIMED) was created on a “compulsory participation” basis, that is, “[a]ll insurers in Puerto Rico licensed to contract any type of insurance_ shall be members of the Syndicate and their participation in it shall be an indispensable condition for them to continue underwriting insurance in the Commonwealth of Puerto Rico.” Id. at § 4104.

Whatever the merits of the plan, Corpo-ración Insular de Seguros (CIS) did not cotton to it. CIS, a licensed insurer which was itself writing medical malpractice insurance, sued in federal district court under 42 U.S.C. § 1983, challenging the constitutionality of the Commonwealth’s scheme.2 In the course of pretrial discovery, CIS sought access to confidential data pertaining to SIMED’s operations, including the information described above. After much procedural skirmishing, the district court determined the material relevant and granted the motion subject to an elaborate protective order.3 CIS v. Garcia, Civ. No. 87-0431 (RLA), slip op. (D.P.R. Aug. 15,1988). That order triggered the present proceedings.

[210]*210It is against this backdrop that we consider petitioner-appellant’s dual offerings. We look first at the appeal, focusing on its lack of a jurisdictional foundation; we then turn to the matter of mandamus, with no more propitious a result.

II. THE APPEAL

Our jurisdiction over appeals derives primarily from 28 U.S.C. § 1291, which provides that the courts of appeals may review “final decisions of the district courts of the United States.” An order is usually considered “final” only when it “resolv[es] the contested matter, leaving nothing to be done except execution of the judgment.” In re Recticel Foam Corp., 859 F.2d 1000, 1002 (1st Cir.1988) (quoting United States v. Metropolitan Dist. Comm’n, 847 F.2d 12, 14 (1st Cir.1988)). It is apodictic that “discovery orders, in general, are not final.” Recticel, 859 F.2d at 1002. See also Appeal of Licht & Semonoff, 796 F.2d 564, 568 (1st Cir.1986); Boreri v. Fiat S.P.A., 763 F.2d 17, 21 (1st Cir.1985); City of Las Vegas v. Foley, 747 F.2d 1294, 1297 (9th Cir.1984); Grinnell Corp. v. Hackett, 519 F.2d 595, 596 (1st Cir.), cert. denied, 423 U.S. 1033, 96 S.Ct. 566, 46 L.Ed.2d 407 (1975); Sheehan v. Doyle, 513 F.2d 895, 898 (1st Cir.), cert. denied, 423 U.S. 874, 96 S.Ct. 144, 46 L.Ed. 2d 106 (1975); cf. Bridge C.A.T. Scan Assocs. v. Technicare Corp., 710 F.2d 940, 943 (2d Cir.1983) (discovery orders usually not appealable under 28 U.S.C. § 1292(a)(1)). SIMED attempts to skirt this formidable barrier by bringing its plea within the collateral-order exception to the finality principle.4 See Cohen v. Beneficial Indus. Loan Corp., 337 U.S. 541, 545-47, 69 S.Ct. 1221, 1225-26, 93 L.Ed. 1528 (1949). It might as well seek to have the cow jump over the moon.

Collaterality, in the Cohen sense, requires conformity to certain hard-and-fast essentials:

The order must involve: (1) an issue essentially unrelated to the merits of the main dispute, capable of review without disrupting the main trial; (2) a complete resolution of the issue, not one that is “unfinished” or “inconclusive”; (3) a right incapable of vindication on appeal from final judgment; and (4) an important and unsettled question of controlling law, not merely a question of the proper exercise of the trial court’s discretion.

United States v. Sorren, 605 F.2d 1211, 1213 (1st Cir.1979); accord Licht v. Semonoff, 796 F.2d at 570-71; Boreri, 763 F.2d at 21. As we have recently observed, “discovery orders rarely satisfy all four of these criteria.” Recticel, 859 F.2d at 1004.

This case is not beyond the mainstream. It involves a fairly typical discovery decision, committed principally to the trial court’s sound and informed discretion. We do not balk, therefore, at barring the Cohen door by reliance upon the copious authority which has rather consistently held discovery orders compelling production of documents not appealable within the Cohen formulation. See, e.g., Iowa Beef Processors, Inc. v. Bagley, 601 F.2d 949, 953 (8th Cir.), cert. denied, 441 U.S. 907, 99 S.Ct. 1997, 60 L.Ed.2d 376 (1979); Miller v. Reighter, 581 F.2d 1181, 1181-82 (8th Cir.1978) (per curiam); Pauls v. Secretary of the Air Force, 457 F.2d 294, 298 (1st Cir. 1972); Borden Co. v. Sylk, 410 F.2d 843

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