Mississippi Power Co. v. Peabody Coal Co.

69 F.R.D. 558, 1976 U.S. Dist. LEXIS 17357
District Court, S.D. Mississippi·Decided January 2, 1976·No. Civ. A. No. S75-125(c)·Published·Cited by 16 cases

Opinion

COLEMAN, Circuit Judge*

I. Background,

Mississippi Power Company (MPC), plaintiff, has filed a civil action against Peabody Coal Company (Peabody) and Commercial Transport Corporation (Commercial), seeking $346,318,012.00 in damages for the alleged breach of a coal supply contract. Also sought were (1) a declaratory judgment that Peabody’s force majeure excuse for nonperformance of the contract is not valid; (2) a judgment requiring Peabody to specifically perform said coal supply contract; and (3) an injunction, pendente lite, requiring Peabody to continue to supply the full tonnage of coal called for in the coal supply contract. Against Commercial MPC sought only a declaration that MPC was relieved from tendering for transport the minimum tonnage required by its barge contract with Commercial. MPC also sought discovery in the form of interrogatories and requests for production of documents.

The coal supply contract had an arbitration clause. Pursuant to the Federal Arbitration Act, Peabody moved for a stay pending arbitration. Peabody also filed a motion to postpone discovery, except as related to issues raised by its motion to stay while the court was considering the motion to stay.

After briefing and oral argument, District Judge Harold Cox filed a memorandum opinion on July 23, 1975. This was followed by an “Order for Arbitration” entered August 6, 1975. The opinion and order found: (1) that the contract between MPC and Peabody was one involving and affecting interstate commerce; (2) that it contained an agreement to arbitrate any unresolved controversy between the parties or claims of one party against the other under the rules of the American Arbitration Association. The Court therefore ordered the parties to proceed with such arbitration, but retained full jurisdiction of the case to make available to the parties all discovery processes provided by the Federal [560] Rules of Civil Procedure. In this respect the order provided:

This Court expressly retains full jurisdiction of this case and in the meantime, will make available to the parties all discovery processes provided by the Civil Rules of Federal Procedure to the extent that it may be necessary to the presentation and decision of any disputed facts in the case as may be helpful under Civil Rule 81 (a)(c) [sic, 81(a)(3)] of the Federal Rules of Civil Procedure. In the meantime, this proceeding shall be stayed in this Court without prejudice or advantage to either party. The plaintiff may continue all discovery processes and have the processes of this Court available to enforce answers thereto within the time contemplated by such rules. The defendant (Peabody Coal Company) shall answer any interrogatories presently outstanding within 15 days. Further discovery processes shall be commenced and concluded within ninety days after this date.

Peabody appealed only that portion of the order which provided discovery under the Federal Rules of Civil Procedure. October 6, 1975, Peabody’s appeal was dismissed because it was not taken from a final appealable order.

Subsequently, Judge Cox recused himself. Sitting by designation as a District Judge for the Southern District of Mississippi, the author of this opinion took over the case.

Discovery proceeded, but Peabody objected to certain of Miss. Power Company’s interrogatories and requests for production of documents. Peabody refused certain MPC requests for production of particular documents on the ground that they were not relevant to the issues presented for arbitration and were overly broad and all-inclusive. MPC filed a motion to compel discovery. An extended hearing was held in chambers on November 21, 1975 in Ackerman, Mississippi. This Court, sua sponte, questioned Miss. Power Company’s right to discovery and requested that the issue be briefed.

II. Issues

Accordingly, we now confront the task of deciding one issue, possibly two:

(1) Judge Cox having ordered that discovery may proceed under the auspices of the Court in an arbitrable case, does that order bind a superseding judge when he comes to consider the enforcement of the order ?;

(2) When a Court stays a suit in order that arbitration may be had, does it have any further authority or jurisdiction to order that discovery may proceed, either as to the merits of the suit or in aid of arbitration?

Obviously, if the answer to Question No. 1 is negative, I do not reach Question No. 2.

III. May one District Judge overrule or set aside a motion granted by another District Judge in the same case when the latter judge is subsequently brought into the case because of the recusation of the original judge?

In his treatise Professor Moore quotes Judge Lummus of the Massachusetts Supreme Court in Peterson v. Hopson, 1940, 306 Mass. 597, 603, 29 N.E.2d 140, 145, as follows:

“A judge should hesitate to undo his own work. . . . Still more should he hesitate to undo the work of another judge. . . . But until final judgment or decree there is no lack of power, and occasionally the power may properly be exercised.”

Professor Moore correctly declares this to be the general federal doctrine. IB Moore’s Federal Practice ¶0.404[4] at 453 (2nd ed. 1974).

The Second Circuit in 1925 reviewed the case law then existing and decided that one judge of a co-ordinate jurisdiction sitting in the same case could not overrule the previous decisions of an[561] other judge. Commercial Union of America v. Anglo-South American Bank, 2 Cir., 1925, 10 F.2d 937. In Dictograph Products Co. v. Sonotone Corp., 2 Cir. 1956, 230 F.2d 131, 136 the Court modified this view, stating that whether to overrule a previous judge’s decision in the same case is for the discretion of the second judge. The Court elaborated as follows:

No one will suggest that the first judge himself may not change his mind and overrule his own order, so that the basis of the doctrine can only be that there are reasons why the second judge may not do so that do not exist when the first does. We can think of only two such reasons: (1) the second judge should defer to the rule of the first as a matter of mutual respect between members of the same court; (2) if he does not so defer, the defeated party may shop about in the hope of finding a judge more favorably disposed. The first reason is clearly untenable; judicial sensibilities should play no part in the disposition of suitors’ rights. The second reason has indeed much to recommend it, and, as a matter of practice, has been universally regarded a sufficient reason for treating the first ruling as conclusive. It is, however, quite another question whether under all circumstances it makes the first ruling immune from reconsideration.
230 F.2d at 134-35.

Free access — add to your briefcase to read the full text and ask questions with AI

Mississippi Power Co. v. Peabody Coal Co., 69 F.R.D. 558, 1976 U.S. Dist. LEXIS 17357 (S.D. Miss. 1976).

69 F.R.D. 558 (Mississippi Power Co. v. Peabody Coal Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Thuan Dinh v. Salins
20 P.3d 936 (Washington Supreme Court, 2001)
May Const. Co., Inc. v. Thompson
20 S.W.3d 345 (Supreme Court of Arkansas, 2000)
Integrity Insurance v. American Centennial Insurance
885 F. Supp. 69 (S.D. New York, 1995)
Hires Parts Service, Inc. v. NCR Corp.
859 F. Supp. 349 (N.D. Indiana, 1994)
Harry F. Ortlip Co. v. George Hyman Construction Co.
126 F.R.D. 494 (E.D. Pennsylvania, 1989)
Stanton v. Paine Webber Jackson & Curtis, Inc.
685 F. Supp. 1241 (S.D. Florida, 1988)
Block 175 Corp. v. Fairmont Hotel Management Co.
648 F. Supp. 450 (D. Colorado, 1986)
Corcoran v. Shearson/American Express Inc.
596 F. Supp. 1113 (N.D. Georgia, 1984)
Recognition Equipment, Inc. v. NCR Corp.
532 F. Supp. 271 (N.D. Texas, 1981)
BALFOUR, GUTHRIE AND COMPANY, LIMITED v. Commercial Metals Co.
607 P.2d 856 (Washington Supreme Court, 1980)
Reynolds v. Hooper
407 A.2d 312 (Supreme Judicial Court of Maine, 1979)
United Nuclear Corp. v. General Atomic Co.
597 P.2d 290 (New Mexico Supreme Court, 1979)