Hertz Corp. v. Alamo Rent-A-Car, Inc.

16 F.3d 1126, 1994 WL 62756
CourtCourt of Appeals for the Eleventh Circuit
DecidedMarch 21, 1994
DocketNo. 92-4383
StatusPublished
Cited by135 cases

This text of 16 F.3d 1126 (Hertz Corp. v. Alamo Rent-A-Car, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hertz Corp. v. Alamo Rent-A-Car, Inc., 16 F.3d 1126, 1994 WL 62756 (11th Cir. 1994).

Opinion

HOBBS, Senior District Judge:

ON PETITION FOR REHEARING

The petition for rehearing filed by appellee Alamo Rent-A-Car is denied. We have modified certain language from our previous opinion in this case, Hertz Corp. v. Alamo Rent-A-Car, Inc., 10 F.3d 768, issued January 3, 1994, which has been withdrawn from publication. The earlier opinion is vacated and withdrawn and the revised opinion is substituted therefor.

REVISED OPINION

Although the contentions and arguments in this case are cast in terms of the Federal Rules of Civil Procedure, the sole issue concerns attorney’s fees. The trial court’s dismissal without prejudice of appellant Hertz Corporation’s complaint prompted counsel for Alamo Rent-A-Car, Inc., to contemplate how to make the losing litigant pay Alamo’s attorney’s fees. Alamo determined that receiving a dismissal with prejudice was the only way to secure its status as a fee eligible, prevailing party under Florida law. Alamo subsequently convinced the trial court to change a dismissal without prejudice into a dismissal with prejudice. Hertz filed an unsuccessful 60(b)(4) motion to set aside the dismissal with prejudice.

An appeal from the dénial of Hertz’s 60(b)(4) motion brings this matter to our court. Because we are persuaded that the district court lacked jurisdiction to enter the dismissal with prejudice, we reverse.

I. BACKGROUND

Hertz filed suit under the Lanham Act, 15 U.S.C. § 1125(a), and the Florida Deceptive and Unfair Trade Practices Act, Section 501.-201, et seq., Florida Statutes (1989), against Alamo and other rental car companies, claiming that the defendant rental car companies were not complying with a Dade County ordinance.1 On December 13,1990,2 the district court dismissed the case without prejudice and granted Hertz leave to file an amended complaint on the condition that it be filed within twenty days.3 On January 2, [1128]*11281991, Hertz moved for, and on January 9 the district judge signed an order granting Hertz an extension through January 16, 1991, to amend its complaint. Hertz never filed an amended complaint. Recognizing that Hertz had permitted the time to file an amended complaint to elapse, Value Rent-A-Car, Inc., a codefendant, timely filed a Rule 59(e) motion, within the ten-day period after January 16, asking that the case be dismissed with prejudice as to Value.

On February 1, 1991, after the ten-day limit on Rule 59(e) motions had expired, Alamo also moved the district court to enter a final order dismissing the complaint as to Alamo with prejudice. On March 8, 1991, the district court ordered that the ease be dismissed with prejudice as to all defendants who had filed dismissal motions.4 On April 5, 1991, Alamo moved for attorney’s fees and costs pursuant to section 501.2105 of the Florida statute. In response, Hertz filed on April 22, 1991, a brief claiming that the district court lacked jurisdiction to grant Alamo’s motion for attorney’s fees and costs. For several months, both parties filed numerous briefs and reply briefs regarding these matters.

It was not until December 3, 1991, almost nine months after entry of the March 8 dismissal with prejudice, that Hertz filed a Rule 60(b) motion to set aside the March 8 dismissal. Hertz contended that the district court lacked jurisdiction to dismiss the case with prejudice as to Alamo because Alamo had violated Fed.R.Civ.P. 59(e)’s requirement that a motion to amend an existing judgment, ie., the judgment of dismissal without prejudice, must be filed within ten days of a judgment’s entry.

On April 10, 1992, the district court furnished two grounds for its denial of Hertz’s Rule 60(b) motion. First, the court stated that it was empowered to dismiss the case with prejudice under either Fed.R.Civ.P. 41(b) or 60(b)(6) as a sanction against Hertz for not amending its complaint upon grant of leave. Second, the court explained that even if its dismissal with prejudice as to Alamo was not justified under Rule 59(e), the order was valid because it was made pursuant to Value’s timely 59(e) motion. For the reasons hereinafter discussed, these grounds did not authorize the court to alter the judgment dismissing the case without prejudice.

II. DISCUSSION

A Dismissal as a Sanction

The trial court offered that it used Rule 60(b)(6) as a sanction against Hertz for failing to file an amended complaint. This constitutes error for two reasons. First, because a leave to amend is permissive, rather than mandatory, Briehler v. City of Miami 926 F.2d 1001, 1002 (11th Cir.1991), sanctions are inappropriate. See also Mann v. Merrill Lynch, Pierce, Fenner, and Smith, Inc., 488 F.2d 75, 76 (5th Cir.1973) (impermissible to dismiss a case under Rule 41(b) for failure to amend complaint). Second, Rule 60(b)(6) is reserved for instances of genuine injustice, and does not permit a party or a judge to circumvent the clear commands of Rules 6(b) and 59(e). Rule 6(b) forbids a court to enlarge the time within which a Rule 59(e) motion may be served; condoning the trial court’s use of Rule 60(b)(6) would serve to undermine finality, resurrect Boaz v. Mutual Life Ins. Co., 146 F.2d 321 (8th Cir.1944),5 and defeat the ends of Rules 6(b) and 59(e).

B. Effect of Value’s Timely Motion

The trial judge reasoned that because one co-defendant, Value, filed a timely Rule 59(e) motion, Alamo was excused from doing so. If this were the rule, there would be no limit — or this court would have to invent one — on the time within which a co-defen[1129]*1129dant could file a Rule 59(e) motion.6 Two cases, Sun-Tek Industries, Inc. v. Kennedy Sky Lites, Inc., 848 F.2d 179 (Fed.Cir.1988) (applying law of Eleventh Circuit), cert. denied, 488 U.S. 1009, 109 S.Ct. 793, 102 L.Ed.2d 784 (1989), and Hidle v. Geneva County Bd. of Educ., 792 F.2d 1098 (11th Cir.1986), cert. denied 479 U.S. 1088, 107 S.Ct. 1296, 94 L.Ed.2d 152 (1987), indicate that an untimely Rule 59 motion cannot be salvaged by another party’s timely Rule 59 motion. Because neither Hidle nor Sun-Tek involved multiple defendants or plaintiffs, neither squarely addressed the claim that the timeliness of one party’s motion might hinge upon the timeliness of a co-party’s motion. Although the presence of multiple parties generates a distinctive, and somewhat sever-able, analytical concern, Alamo fails to convince us that its theory of pendent party post-judgment jurisdiction can be tethered to any rule of civil or appellate procedure.

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16 F.3d 1126, 1994 WL 62756, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hertz-corp-v-alamo-rent-a-car-inc-ca11-1994.