Covey v. C. I. T. Corp.

71 F.R.D. 487, 1975 U.S. Dist. LEXIS 14789
CourtDistrict Court, E.D. Oklahoma
DecidedDecember 17, 1975
DocketNos. CIV-71-124, CIV-73-65
StatusPublished
Cited by7 cases

This text of 71 F.R.D. 487 (Covey v. C. I. T. Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Covey v. C. I. T. Corp., 71 F.R.D. 487, 1975 U.S. Dist. LEXIS 14789 (E.D. Okla. 1975).

Opinion

MEMORANDUM OPINION AND ORDER

BOHANON, District Judge.

This matter came on before the Court on December 12, 1975, on plaintiffs’ Motions to Vacate Orders of Dismissal. The Orders sought to be vacated were entered by Judges Langley and Eubanks on December 19, 1972, upon plaintiffs’ Applications for Dismissal as to C.I.T. Corporation and Capital International Airways, Inc. The Applications for Dismissal stated:

“Comes now the plaintiff and moves the Court for an Order of Dismissal Without Prejudice as against the defendants, C.I.T. Corporation, a corporation, and Capital International Airways, Inc. a corporation, only, and at cost to plaintiff, for the reason that all claims against the defendants, C.I.T. Corporation, a corporation, and Capital International Airways, Inc. a corporation, have been satisfied.”

The Orders of Dismissal stated:

[489]*489“Now on this 19th day of December, upon the application of plaintiff . for Order of Dismissal Without Prejudice as against the defendants, C.I.T. Corporation, a corporation, and Capital International Airways, Inc., a corporation, and for good cause shown, (sic)
IT IS HEREBY ORDERED that the Complaint of the plaintiff as against the defendants, C.I.T. Corporation, a corporation, and Capital International Airways, Inc., a corporation, be and the same is hereby dismissed without prejudice and at cost to plaintiff.”

These actions arise out of certain undisputed facts. In essence, the plaintiffs’ tort cases arise from an airplane crash which occurred on November 27, 1970. Both plaintiffs, members of the Armed Services, were aboard a DC-8 jetliner which was carrying 229 persons to Viet-Nam, by way of Anchorage, Alaska, and Japan. In takeoff from Anchorage, the plane crashed and 47 of the passengers were killed. Both plaintiffs suffered injury, Conway bringing suit for $700,000 and Covey for $1,500,000.

Initially, nine parties were named defendants, the Complaint charging them primarily with negligence and breach of warranty. The C.I.T. Corporation was lessor to Capital Airways of the DC-8 which crashed, Capital being the operator of the aircraft. All defendants filed Answers, C.I.T. and Capital separately answering and alleging, inter alia, that the flight in question was being operated as a flight in international transportation, originating in the United States and terminating in the Republic of South Viet-Nam, and that the rights and liabilities in suit were to be determined solely in accordance with the provisions of the Warsaw Convention of 1929, the Hague Amendments of 1955 and the Intercarrier Agreement CAB No. 18900 (The Montreal Agreement). Arguably, the agreements cited would have the effect of limiting liability to $75,000.

Because of the issue of applicability of the cited Agreements, the claims were compromised and thus brought about the above-quoted Applications for, and Orders of Dismissal, dismissing without prejudice.

On February 3, 1975, each plaintiff filed Motion to Add Additional Parties Defendant and to file Amended Complaints. The Motion requested that C.I.T. and Capital be reinstated as parties defendant for reason that, “. . .on January 17, 1975, it was discovered that the aforesaid settlement was induced by misrepresentations of both fact and law as evidenced by the Affidavits and a letter from John Adler, Attorney at Law . . . .”

The Motions of C.I.T. and Capital to Dismiss the aforesaid Amended Complaints were overruled. Thereafter, plaintiffs filed Motions to Vacate the Orders of Dismissal pursuant to Rule 60(b) Federal Rules of Civil Procedure and cited as grounds for relief mistake of fact, fraud and misrepresentation by an adverse party. Plaintiffs and proposed defendants then submitted Replies and Responses with briefs, all relating to the propriety of vacating the dismissal under the authority of Rule 60(b).

Upon hearing argument, the Court reviewed the pleadings, briefs and relevant authorities and has concluded that Rule 60(b) is not controlling as to the issue of whether C.I.T. and Capital may be properly made parties defendant after the dismissals.

Rule 60(b) grants authority, in the proper circumstances, to the District Court to grant relief from a final judgment, order or proceeding. The posture of these cases is such that the dismissal without prejudice of plaintiffs’ Complaints, upon plaintiffs’ Motions, was effected by an interlocutory rather than final order. As interlocutory orders, the Orders of Dismissal are, under the doctrine of John Simmons Co. v. Grier Bros. Co., 258 U.S. 82, 42 S.Ct. 196, 66 L.Ed. 475 (1922), subject to the plenary power of the Court. An examination of Rules 41(a)(2), 54(b) and 60(b) requires this conclusion.

In 5 Moore’s Federal Practice ¶ 41.05[2] (2 ed. 1964) it is stated:

[490]*490“A dismissal without prejudice leaves the situation so far as procedures therein are concerned the same as though the suit had never been brought [citing, inter alia, Humphreys v. U. S., 272 F.2d 411 (C.A. 9, 1959)] . . . . The district court should not, therefore, set aside a judgment of dismissal without prejudice, for the purpose of reinstating the action . . Seemingly, this proposition is subject to the provisions of Rule 60(b), for relief from a judgment, if the plaintiff can bring himself within any of its provisions.”

On the arguments made, it appears at this time that plaintiffs cannot bring themselves within the final order requirement of Rule 60(b), thus plaintiffs bear the substantial burden of showing that the proper circumstances exist for the Court to set aside an order of dismissal without prejudice based on the Court’s equitable power hereinafter referred to.

An additional factor is the general proposition that where the District Court allows the plaintiff to dismiss his action without prejudice under Rule 41(a)(2), the Court has exercised its discretion and a final judgment results which qualifies the cause for appeal. One limitation upon such a general proposition is, however, that the plaintiff normally may not appeal such an order as the order does not constitute an involuntary adverse judgment, Scholl v. Felmont Oil Corp., 327 F.2d 697 (C.A. 6, 1964). Such an order may be appealed by defendant if he has resisted the Motion to Dismiss, American Cyanamid Co. v. McGhee, 317 F.2d 295 (C.A. 5, 1963). As the instant Orders were predicated on settlement of claims, the Motions to Dismiss were not resisted. Thus, as a practical matter the Orders were not appealable, although a determination of appealability is not commensurate with a determination of finality.

The conclusion that the Dismissal Orders were final, although not appealable is prevented by the operation of Rule 54(b). When these causes were filed, nine entities were named as parties defendant, of which C.I.T. and Capital were the first two.

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Bluebook (online)
71 F.R.D. 487, 1975 U.S. Dist. LEXIS 14789, Counsel Stack Legal Research, https://law.counselstack.com/opinion/covey-v-c-i-t-corp-oked-1975.