Hartford Financial Systems, Inc. v. Florida Software Services, Inc.

712 F.2d 724
Court of Appeals for the First Circuit·Decided July 26, 1983·No. Nos. 82-1946, 82-1947·Published·Cited by 20 cases

Opinion

BREYER, Circuit Judge.

This case involves an arbitration order in a contract dispute between a Partnership and the Depositors Trust Co. Hartford Financial Systems, Inc. (Hartford) and Martin Marietta Corp. (Martin) were the original partners; they arranged for the Partnership to contract to supply data processing services to Depositors. Through a series of transactions, they reorganized the Partnership to include Florida Computer Services, Inc. (FCS); eventually, they transferred over 99 percent of the Partnership to FCS. When the Partnership began to send Depositors invoices for additional expenses incurred in the course of performing its duties under the Partnership/Depositors Contract, Depositors cried “breach.” It claimed that the Partnership was trying to increase its prices, and that Hartford and Martin were trying to avoid their contractual responsibilities. Depositors then refused to pay the invoices; the Partnership declared Depositors in default and the Partnership “terminated” the contract. Depositors contracted for substitute data processing services and began to prepare for the arbitration of the Partnership/Depositors Contract dispute. Hartford and Martin, however, refused arbitration. They sued Depositors to prevent it from obtaining substitute performance, and they sued FCS to force it to perform the terms of the Contract with Depositors. They also sought a general declaration of contractual rights and responsibilities. At Depositors’ request, the federal district court, 550 F.Supp. 1079 (1982), acting under the authority of the Federal Arbitration Act, stayed the suit and ordered the parties to arbitrate their “breach of contract” and related damages disputes. 9 U.S.C. §§ 3, 4. Hartford and Martin appeal, arguing that the contract [726] allows the district court to send the Partnership but not the individual partners to arbitration.

We do not reach the somewhat metaphysical question that appellants seek to raise, for we lack jurisdiction over their appeal. The jurisdictional statutes relevant to this case allow an appeal only if an order is “final,” 28 U.S.C. § 1291, or if it grants or denies an “injunction,” 28 U.S.C. § 1292(a)(1). There are no special features here that bring into play the “collateral order” doctrine, Cohen v. Beneficial Industrial Loan Corp., 337 U.S. 541, 69 S.Ct. 1221, 93 L.Ed. 1528 (1949), or that make the district court’s action something other than what it seems — namely, an ordinary postponement of court action pending arbitration. Cf., e.g., Moses H. Cone Memorial Hospital v. Mercury Construction Corp., -U.S.-,-, 103 S.Ct. 927, 933, 74 L.Ed.2d 765 (1983) (appeal allowed if plaintiff is “effectively out of court”); Idlewild Bon Voyage Liquor Corp. v. Epstein, 370 U.S. 713, 715 n. 2, 82 S.Ct. 1294,1296 n. 2, 8 L.Ed.2d 794 (1962) (per curiam) (same); Acton Corp. v. Borden, Inc., 670 F.2d 377, 381 (1st Cir.1982) (appeal allowed if orders “effectively terminate the actions in which they are granted,” or if they “deprive[ ] the federal plaintiff of any opportunity to have his claim heard on the merits”); Dellinger v. Mitchell, 442 F.2d 782, 789 (D.C.Cir.1971) (order not appealable where stay is “not so indefinite as to be the practical equivalent of a dismissal”). Under these circumstances, appealability is determined by the arcane but detailed set of rules applying the “appealability” provisions of §§ 1291 and 1292 to §§ 3 and 4 of the Arbitration Act.

A

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Hartford Financial Systems, Inc. v. Florida Software Services, Inc., 712 F.2d 724 (1st Cir. 1983).

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