Newell v. O & K Steel Corp.

42 F. App'x 830
CourtCourt of Appeals for the Seventh Circuit
DecidedJuly 24, 2002
DocketNo. 01-3946
StatusPublished
Cited by3 cases

This text of 42 F. App'x 830 (Newell v. O & K Steel Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Newell v. O & K Steel Corp., 42 F. App'x 830 (7th Cir. 2002).

Opinion

ORDER

Joseph Newell brought this lawsuit against his former employer, O & K Company, Ltd., and other defendants, subsidiaries and employees of O & K, alleging defamation and wrongful termination. The district court dismissed the suit for lack of subject matter jurisdiction, concluding that it did not meet the requirements for diversity jurisdiction under 28 U.S.C. § 1332, Newell’s asserted basis for federal jurisdiction, because Newell was domiciled in Japan. We affirm.

As an initial matter, we must decide whether Newell’s appeal from the district court’s judgment is properly before us. The judgment dismissing his case was entered on August 31, 2001, but Newell did not file his notice of appeal until. October 29, about four weeks beyond the 30-day deadline for filing an appeal. In the interim, on September 24, Newell had filed a motion to reconsider under Federal of Civil Procedure 59. Because the Rule 59 motion was not filed within ten days of the judgment, it was untimely and should have "been considered as a motion under Rule 60(b). See Talano v. Northwestern Med. Faculty Found., 273 F.3d 757, 760 (7th Cir.2001); Russell v. Delco Remy Div. of General Motors, 51 F.3d 746, 749-50 (7th Cir.1995). In an order dated September 27, however, the court ruled that Newell “has filed a timely Federal Rule of Civil Procedure 59(e) motion,” and proceeded to deny the motion. Within 30 days of that decision, Newell then filed a notice of appeal. Had the Rule 59 motion in fact been timely filed, it would have tolled the time in which to file an appeal until after the district court decided the motion, Talano, 273 F.3d at 760. The motion should have been construed under Rule 60(b), which does not toll the time for filing an appeal. Bell v. Eastman Kodak Co., 214 F.3d 798, 800 (7th Cir.2000).

In an order dated January 29, 2002, we instructed the parties to address in their briefs the applicability of the “unique circumstances” doctrine recognized in Thompson v. INS, 375 U.S. 384, 84 S.Ct. 397, 11 L.Ed.2d 404 (1964), for appeals filed beyond the 30-day limit. The “unique circumstances” doctrine provides a narrow exception to the general rule prohibiting untimely appeals. Id. at 398-99; In re Bond, 254 F.3d 669, 674-75 (7th Cir.2001). The doctrine relieves a party of the consequences of filing a late notice of appeal when that party (1) performs an act, which if properly done, would have postponed the deadline for filing an appeal; [832]*832(2) relies on the district court’s conclusion that the act had been properly done; and (3) files an appeal within the mistaken new deadline. Thompson, 84 S.Ct. at 389-99; Bond, 254 F.3d at 674; Varhol v. Nat’l R.R. Passenger Corp., 909 F.2d 1557, 1562 (7th Cir.1990) (en banc). The Court has clarified the second factor by explaining that the party’s reliance must be based on a “specific assurance by a judicial officer” that the relevant act was done properly. Osterneck v. Ernst & Whinney, 489 U.S. 169, 179, 109 S.Ct. 987, 103 L.Ed.2d 146 (1989); Bond, 254 F.3d at 674. We, along with other circuits, have questioned the validity of the “unique circumstances” doctrine, Varhol v. Nat’l R.R. Passenger Corp., 909 F.2d at 1562-63; see United States v. Marquez, 291 F.3d 23, 28 (D.C.Cir.2002); Panhorst v. United States, 241 F.3d 367, 370-72 (4th Cir.2001); however, the doctrine remains good law, see Bond, 254 F.3d at 674-75; Varhol, 909 F.2d at 1563; Marquez, 291 F.3d at 28; Panhorst, 241 F.3d at 372.

Thompson presented factual circumstances similar to this case. There the district court ruled that a party’s Rule 59 motion for a new trial was filed “in ample time,” and the party relied on that determination in believing that the time for filing an appeal had been tolled. Thompson, 84 S.Ct. at 398-99. The Supreme Court held that “unique circumstances” were present when the party filed an untimely notice of appeal. Id. In fact, the party’s Rule 59 motion had not been filed within the ten-day deadline, and therefore should not have tolled the time for filing an appeal — thereby rendering untimely the party’s notice of appeal filed beyond the required 60-day limit. Id. at 397. But the Court held that an exception was warranted based on the district court’s erroneous conclusion that the Rule 59 motion was timely. Id. at 399.

In this case, Newell likewise meets the requirements for the “unique circumstances” exception based on the district court’s ruling that he filed a timely Rule 59 motion. First, his Rule 59 motion, if properly filed (i.e., within ten days), would have tolled the time for filing an appeal. Talano, 273 F.3d at 760. Second, Newell relied on the district court’s ruling, as stated in its September 27 order, that he had filed a timely Rule 59 motion. Third, he filed his notice of appeal within 30 days of that order. Finally, we conclude that the district court’s statement that “[pjlaintiff has filed a timely Federal Rule of Civil Procedure 59(e) motion” constitutes a “specific assurance by a judicial officer.” Osterneck, 489 U.S. at 179; Thompson, 84 S.Ct. at 398-99; see also Varhol, 909 F.2d at 1563 (doctrine inapplicable because court made no affirmative statement that motion was timely); Green v. Bisby, 869 F.2d 1070, 1072 (7th Cir.1989) (same).

That leaves the issue of whether New-ell’s lawsuit was properly dismissed for lack of diversity jurisdiction. Newell is a United States citizen and is not a citizen of Japan. All the defendants except for O & K American Corp. are Japanese citizens or corporations. O & K American is an Illinois corporation with its principal place of business in Chicago.

While Newell is a citizen of the United States, in order to invoke diversity jurisdiction he must also be a domiciled within a state. Newman-Green, Inc. v. Alfonzo-Larrain, 490 U.S. 826, 828, 109 S.Ct. 2218, 104 L.Ed.2d 893 (1989) (“In order to be a citizen of a State within the meaning of the diversity statute, a natural person must both be a citizen of the United States and be domiciled within the State.”).

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Bluebook (online)
42 F. App'x 830, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newell-v-o-k-steel-corp-ca7-2002.