Lewis Charters, Inc. v. Huckins Yacht Corporation, Ocean Entertainment, Inc.

871 F.2d 1046, 13 Fed. R. Serv. 3d 1374, 1989 A.M.C. 1521, 1989 U.S. App. LEXIS 5885, 1989 WL 34709
CourtCourt of Appeals for the Eleventh Circuit
DecidedMay 1, 1989
Docket88-3531
StatusPublished
Cited by50 cases

This text of 871 F.2d 1046 (Lewis Charters, Inc. v. Huckins Yacht Corporation, Ocean Entertainment, 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
Lewis Charters, Inc. v. Huckins Yacht Corporation, Ocean Entertainment, Inc., 871 F.2d 1046, 13 Fed. R. Serv. 3d 1374, 1989 A.M.C. 1521, 1989 U.S. App. LEXIS 5885, 1989 WL 34709 (11th Cir. 1989).

Opinion

TUTTLE, Senior Circuit Judge:

This is an appeal by Lewis Charters, Inc. from an order of the district court dismissing its complaint for exoneration from or limitation of liability for damages resulting from a fire occurring in the boat yard owned by appellee, Huckins Yacht Corporation. The district court found that it had no admiralty jurisdiction over plaintiff’s petition. For the reasons set forth below, we affirm.

I. STATEMENT OF THE CASE

The fire that prompted this litigation occurred on February 27, 1986, at the paint facility of a marina owned by Huckins Yacht. A boat owned by Lewis Charters, the Serenity, was stored in the wet berth of the paint facility, awaiting repair by Huc-kins Yacht. Another vessel, owned by Ocean Entertainment, Inc., was stored in the paint room on the same premises. A fire began, destroying both yachts and the paint facility. The cause of the fire had not yet been determined at the time this appeal was filed.

Huckins Yacht initiated an action against Lewis Charters in the federal district court (No. 86-193), based on diversity of citizenship, alleging that the fire started on Lewis Charters’ boat due to the negligence of Lewis Charters’ agents. Lewis Charters *1048 counterclaimed, alleging negligence by Huckins Yacht and breach of a bailment agreement. Ocean Entertainment and several insurance companies intervened to assert claims against one or both of the parties to the action.

On August 22,1986, Lewis Charters filed a complaint (No. 86-890) for exoneration from or limitation of liability, pursuant to the Limitation of Vessel Owner’s Liability Act, 46 U.S.C.App. § 181 et seq., for the claims against it in the action already pending. The parties stipulated to consolidate the two cases, with No. 86-193 to be tried by a jury and No. 86-890 to be subject to the court’s admiralty jurisdiction, to resolve any questions remaining after No. 86-193 was concluded. The district court entered an order consolidating the two cases solely for joint hearings and trial. The parties filed a consent to proceed before a magistrate.

Just before trial, Huckins Yacht moved to dismiss Lewis Charters’ complaint for exoneration from or limitation of liability, on the ground of a lack of admiralty jurisdiction. Pursuant to an order dated June 2, 1988, the U.S. magistrate granted the motion and dismissed case No. 86-890, which is the only subject of this appeal.

II. APPELLATE JURISDICTION

As a preliminary matter, we must determine whether this Court has jurisdiction to entertain the appeal of case No. 86-890. The notice of appeal was filed on June 24, 1988, before the initial and related action, No. 86-193, was tried. Because the two cases had been consolidated and judgment was entered in only one of them, this Court questioned, before oral argument, whether the order dismissing case No. 86-890 was a final decision within the meaning of 28 U.S.C. § 1291. If not, the appeal from that judgment would be premature, and this Court would lack appellate jurisdiction. 1

In the proceedings below, the parties signed a stipulation to consolidate the two cases. The district court then ordered, in part, that:

(i) all matters in the two actions shall be tried jointly;
(ii) the actions were not consolidated for any purpose other than joint hearings and trial;
(iii) each action shall be pleaded separately; and
(iv) pleadings may be jointly styled but a pleading so styled should be filed in each action.

Order of June 30, 1987, Record Tab 15.

When multiple claims or parties are involved in an action, and final judgment has been entered as to fewer than all of the claims or parties, the district court must provide “an express determination that there is no just reason for delay and ... an express direction for the entry of judgment,” before an appeal may be taken from that judgment. Fed.R.Civ.P. 54(b). In Ringwald. v. Harris, 675 F.2d 768 (5th Cir.1982), the plaintiff had sued on a promissory note then filed a separate suit to set aside certain conveyances allegedly made by the defendant to hinder, delay and defraud the defendant’s creditors, particularly the plaintiff. The two cases were “consolidated for all purposes, including trial.” Id. at 769. Upon plaintiff’s motions, the court entered summary judgment in favor of plaintiff in one suit and partial summary judgment in favor of plaintiff in the other, in a single document entitled “Judgment.” No certification was issued by the district court, and the appeal was dismissed without prejudice.

The Court of Appeals espoused the view, expressed in several of the cases it cited, that whether the decision in question was governed by Rule 54(b), so that the district court was required to issue a certification and direct the entry of judgment as a predicate for appeal from the order, depended upon the extent and purposes of the consolidation. Id. at 770; see, e.g., Jones v. Den Norske Amerikalinje A/S, 451 F.2d 985, 986-87 (3d Cir.1971) (where order of consol *1049 idation was not for all purposes but only for trial, judgment “probably is final and hence appealable under 28 U.S.C. § 1291”). The court in Ringwald held that since the causes of action could have been brought as a single suit and the consolidation was “clearly for all purposes,” compliance with Rule 54(b) was required before an appeal could be taken from the order, which did not dispose of all claims against all parties. Accord Bank South Leasing, Inc. v. Williams, 769 F.2d 1497, 1500 n. 1 (11th Cir.), vacated on other grounds, 778 F.2d 704 (11th Cir.1985).

Here, the district court did not make a determination pursuant to Rule 54(b). However, the district court made clear that the consolidation of the two cases was not for all purposes. The suits were consolidated for limited purposes only, and each retained its separate identity. The parties stipulated that the first action would be tried by a jury; the district court would then decide the exoneration/limitation issue. The two actions were thus essentially severed and did not merge into a single cause. See, e.g., Gulf Coast Fans v. Midwest Electronics Importers, Inc., 740 F.2d 1499, 1506-07 (11th Cir.1984) (appellant was not obligated to wait until all proceedings in both of the cases consolidated were completed because the cases were severed). As such, no certification under Rule 54(b) was necessary.

The lower court expressly ordered that case No. 86-890 was dismissed for lack of subject matter jurisdiction.

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Bluebook (online)
871 F.2d 1046, 13 Fed. R. Serv. 3d 1374, 1989 A.M.C. 1521, 1989 U.S. App. LEXIS 5885, 1989 WL 34709, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lewis-charters-inc-v-huckins-yacht-corporation-ocean-entertainment-ca11-1989.