John Doe Corp. v. United States

714 F.2d 604
CourtCourt of Appeals for the Sixth Circuit
DecidedJuly 21, 1983
DocketNo. 82-5611
StatusPublished
Cited by6 cases

This text of 714 F.2d 604 (John Doe Corp. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John Doe Corp. v. United States, 714 F.2d 604 (6th Cir. 1983).

Opinion

PER CURIAM.

The John Doe Corporation appeals from the district court’s denial of its request for a temporary restraining order, a preliminary injunction, and a permanent injunction, to prevent the return of a grand jury indictment against it. In essence the corporation is attempting to enforce its plea agreement with the government which it alleges protects it from the criminal prosecution contemplated here. The district court permitted the grand jury to return an indictment, under seal, charging the corporation with conspiracy to defraud the United States in the collection of income taxes, 18 U.S.C. § 371, and with three counts of filing a false tax return, 26 U.S.C. § 7206(1). The court interpreted the language of the plea agreement to permit the present prosecution and treated its ruling, additionally, as a denial of a motion to dismiss the indictment.

[605]*605In 1975 and 1976, the corporation’s grain and agricultural commodities activities were being investigated by a grand jury in the Eastern District of Louisiana. On May 6, 1976, the corporation finalized the presently disputed plea agreement with the government. It agreed to plead nolo contendere to one count of conspiracy and thirty-six counts of making false statements. The government agreed in exchange to “terminate and foreclose the criminal prosecution of the Company by the Government for any other possible federal criminal violations in the Eastern District of Louisiana ... . ” Paragraph 4. In paragraph 5 of the agreement the government expressly reserved the government’s right to “prosecute any and all civil proceedings.” This final draft of the agreement did not expressly reserve the government’s right to bring a criminal action against the corporation any place in the country, as the original had.

There are two issues on appeal before this Court, one procedural and one substantive. The first issue is whether the district court’s decision is appealable as a final judgment pursuant to 28 U.S.C. § 1291. The second issue, if we have jurisdiction, is whether the district court’s interpretation of the plea agreement was proper. Because we find that the lower court’s order is not appealable, we do not reach the substantive issue presented.

The parties agree that federal courts of appeals have jurisdiction to hear appeals from “all final decisions of the district courts.” 28 U.S.C. § 1291. Additionally, courts have construed the statute to permit interlocutory review of a small class of cases in which post-judgment review would frustrate the interests in issue. The corporation characterizes the proceedings below as “civil” and asserts that the denial of injunctive relief is a final judgment, appeal-able pursuant to 28 U.S.C. § 1291. In the alternative the corporation contends that the order, if interlocutory, fits into that narrow class of civil and criminal cases which are exceptions to the final judgments rule. See Cohen v. Beneficial Loan Corp., 337 U.S. 541, 546, 69 S.Ct. 1221, 1225, 93 L.Ed. 1528 (1949); and Abney v. United States, 431 U.S. 651, 97. S.Ct. 2034, 52 L.Ed.2d 651 (1977). The government asserts that the proceedings below were part and parcel of the imminent criminal prosecution. As such, review of the district court’s refusal to enforce the plea agreement and dismiss the indictment must await final resolution of the criminal proceedings.

We cannot agree with the corporation that this is a civil appeal from the denial of injunctive relief. The characterization of a case cannot be based “simply on the mechanical application of the terms ‘civil’ and ‘criminal’ to the proceedings below.” In Re April 1977 Grand Jury Subpoenas, 584 F.2d 1366, 1368 (6th Cir.1978), cert. denied sub nom. General Motors Corp. v. United States, 440 U.S. 934, 99 S.Ct. 1277, 59 L.Ed.2d 492 (1979). Rather this Court must look at the foundation of the case and the purpose of the proceedings as well as its formal nomenclature.

Formally, the corporation invoked the district court’s civil powers to enforce a plea agreement. However, the plea agreement itself arose in a criminal context and the corporation sought to avoid criminal charges. Clearly the foundation of this case rests on a criminal proceeding which the corporation anticipated and desired to forestall. The corporation’s sole purpose in seeking to enforce its plea agreement was to avoid criminal prosecution, subsequent trial, and potential conviction. The facts considered as a whole and in context reveal the essential criminal nature of this action. When the action began the case was an injunction proceeding seeking to prohibit action by a properly constituted grand jury. Now that a sealed indictment has been returned against the corporation we are now reviewing, as recognized by the district court, a motion to dismiss a grand jury true bill.

It is well settled that “piecemeal disposition” and “separate review” of individual elements of a criminal case is discouraged. See, e.g., Cobbledick v. United States, 309 U.S. 323, 325, 60 S.Ct. 540, 541, [606]*60684 L.Ed. 783 (1940) quoted in In Re April 1977 Grand Jury Subpoenas, 584 F.2d at 1639. Interlocutory appeals from criminal pretrial orders are prohibited, unless they arise under an explicit exception to the final judgments rule. See United States v. MacDonald, 435 U.S. 850, 98 S.Ct. 1547, 56 L.Ed.2d 18 (1978); United States v. Eggert, 624 F.2d 973, 974 (10th Cir.1980). In Cohen v. Beneficial Loan Corp., 337 U.S. 541, 546, 69 S.Ct. 1221, 1225, 93 L.Ed. 1528 (1949), the Supreme Court explained the exception to 28 U.S.C. § 1291, for appeal of “rights asserted in the action, too important to be denied review and too independent of the cause itself to require that appellate consideration be deferred until the whole case is adjudicated.” The most well-established exception to the final judgments rule arose in Abney v. United States, 431 U.S. 651, 97 S.Ct. 2034, 52 L.Ed.2d 651 (1977). The Supreme Court permitted a criminal defendant to appeal the denial of his motion to dismiss the indictment on the grounds that it violated his right against double jeopardy.

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John Doe Corporation v. United States
714 F.2d 604 (Sixth Circuit, 1983)

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Bluebook (online)
714 F.2d 604, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-doe-corp-v-united-states-ca6-1983.