Orenshteyn v. Citrix Systems, Inc.

691 F.3d 1356, 103 U.S.P.Q. 2d (BNA) 1529, 2012 WL 3101666, 2012 U.S. App. LEXIS 15507
CourtCourt of Appeals for the Federal Circuit
DecidedJuly 26, 2012
Docket2011-1308
StatusPublished
Cited by19 cases

This text of 691 F.3d 1356 (Orenshteyn v. Citrix Systems, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Orenshteyn v. Citrix Systems, Inc., 691 F.3d 1356, 103 U.S.P.Q. 2d (BNA) 1529, 2012 WL 3101666, 2012 U.S. App. LEXIS 15507 (Fed. Cir. 2012).

Opinions

NEWMAN, Circuit Judge, dissents from the order granting the motion to dismiss.

ORDER

LINN, Circuit Judge.

Citrix Systems, Inc. (“Citrix”) moves to dismiss as premature Alexander S. Orenshteyn’s (“Orenshteyn”) appeal of an October 1, 2010, order granting in part a motion for sanctions. Orenshteyn opposes.

On April 6, 2002, Orenshteyn filed a complaint against Citrix alleging patent infringement. During the course of litigation, the district court granted in part Citrix’s motion for sanctions against Orenshteyn and his prior counsel, and referred the matter to a magistrate judge for a report and recommendation to determine the amount of sanctions. Subsequently, the district court granted Citrix’s motion on the merits for summary judgment of invalidity. Orenshteyn appealed, seeking review of the district court’s invalidity determination and the order granting sanctions. The district court has not yet made a final determination regarding the amount of sanctions.

Citrix contends that the portion of Orenshteyn’s appeal concerning the order granting sanctions is premature because that order is not a final, appealable decision. See View Eng’g, Inc. v. Robotic Vision Sys., Inc., 115 F.3d 962, 964 (Fed.Cir.1997). We agree.

By statute, this court has jurisdiction over an appeal of a decision of a district court if it is “final” under 28 U.S.C. § 1295(a)(1) or if it is an interlocutory order as specified in 28 U.S.C. § 1292. The district court’s decision on the mer[1358]*1358its — its decision on validity — is final and reviewable by this court. Budinich v. Becton Dickinson & Co., 486 U.S. 196, 202-03, 108 S.Ct. 1717, 100 L.Ed.2d 178 (1988) (“[A] decision on the merits is a ‘final decision’ ... whether or not there remains for adjudication a request for attorney’s fees attributable to the case.”). But the district court’s decision granting sanctions is a separate order which is not final and appealable until the district court has decided the amount of sanctions. See White v. N.H. Def't of Emp’t Sec., 455 U.S. 445, 452, 102 S.Ct. 1162, 71 L.Ed.2d 325 (1982) (“Unlike other judicial relief, the attorney’s fees ... are not compensation for the injury giving rise to an action. Their award is uniquely separable from the cause of action to be proved at trial.”); McCarter v. Ret. Plan for the Dist. Managers of the Am. Family Ins. Grp., 540 F.3d 649, 652 (7th Cir.2008) (“[T]he upshot of White’s approach is that decisions on the merits and decisions about attorneys’ fees are treated as separate final decisions, which must be covered by separate notices of appeal — each filed after the subject has independently become ‘final.’”); see also Falana v. Kent State Univ., 669 F.3d 1349, 1360 (Fed.Cir.2012); View Eng’g, 115 F.3d at 964.

In rare circumstances, the doctrine of pendent appellate jurisdiction allows federal courts of appeals limited discretion to review a ruling that is not independently appealable if jurisdiction exists over another related ruling. Cf. Swint v. Chambers Cnty. Comm’n, 514 U.S. 35, 50-51, 115 S.Ct. 1203, 131 L.Ed.2d 60 (1995) (“[W]e have not universally required courts of appeals to confine review to the precise decision independently subject to appeal.”). Thus, the only issue here is whether this court should exercise pendent jurisdiction over Orenshteyn’s appeal of the sanctions order. We conclude that we should not, following Supreme Court guidance that the exercise of pendent jurisdiction is limited to exceptional circumstances.

The Supreme Court in Swint provided two essential reasons why pendent jurisdiction should be limited. First, Congress specifically provided district courts the authority to certify an interlocutory order as appealable under 28 U.S.C. § 1292(b) (applicable to this court under 28 U.S.C. § 1292(c)(1)), and § 1292(b) is undermined if appellate courts take jurisdiction over appeals from non-final orders in the absence of district court certification. Swint, 514 U.S. at 46-47, 115 S.Ct. 1203. Second, the Supreme Court has express rulemaking authority to expand the list of appeal-able interlocutory orders, implying that this is not a determination to be made by judicial decision of a circuit court. See id. at 48, 115 S.Ct. 1203 (citing 28 U.S.C. §§ 1292(e), 2072).

After Swint, it is clear that a court of appeals may have pendent jurisdiction when the appealable and nonappealable decisions are “inextricably intertwined” or when review of the non-appealable decision is necessary to review the appealable one. See id. at 51, 115 S.Ct. 1203. While Swint did not “definitively or preemptively settle ... whether or when it may be proper for a court of appeals, with jurisdiction over one ruling, to review, conjunctively, related rulings that are not themselves independently appealable,” the Supreme Court nevertheless found that pendent jurisdiction did not exist when the non-appealable decision was neither “inextricably intertwined with” nor “necessary to ensure meaningful review of’ the appealable decision. 514 U.S. at 50-[1359]*135951, 115 S.Ct. 1203. Thus, notwithstanding the qualifying language in Swint, this court cannot exercise pendent jurisdiction unless at least one of the Swint tests is met without contradicting the central holding of Swint. Moreover, both the Supreme Court and this court have subsequently used the tests propounded in Swint to evaluate whether pendent jurisdiction exists, further reinforcing that the tests in Swint are the relevant standard. See Clinton v. Jones, 520 U.S. 681, 707 n. 41, 117 S.Ct. 1636, 137 L.Ed.2d 945 (1997); Advanced Fiber Techs. (AFT) Trust v. J & L Fiber Servs., Inc., 674 F.3d 1365, 1376-77 (Fed.Cir.2012); Falana, 669 F.3d at 1359-62; Entegris, Inc. v. Pall Corp., 490 F.3d 1340, 1348-50 (Fed.Cir.2007); Intel Corp. v. Commonwealth Scientific & Indus. Research Org., 455 F.3d 1364, 1369, 1371 (Fed.Cir.2006); Helifix, Ltd. v. Blok-Lok, Ltd., 208 F.3d 1339, 1345 (Fed.Cir.2000). But see iLOR, LLC v. Google, Inc., 550 F.3d 1067, 1073 n. 1 (Fed.Cir.2008) (declining to exercise pendent appellate jurisdiction sua sponte without citing the Swint tests); Procter & Gamble Co. v. Kraft Foods Global, Inc., 549 F.3d 842

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691 F.3d 1356, 103 U.S.P.Q. 2d (BNA) 1529, 2012 WL 3101666, 2012 U.S. App. LEXIS 15507, Counsel Stack Legal Research, https://law.counselstack.com/opinion/orenshteyn-v-citrix-systems-inc-cafc-2012.