Pet Gifts USA, LLC v. Imagine This Company LLC

CourtCourt of Appeals for the Third Circuit
DecidedFebruary 20, 2025
Docket23-2876
StatusUnpublished

This text of Pet Gifts USA, LLC v. Imagine This Company LLC (Pet Gifts USA, LLC v. Imagine This Company LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pet Gifts USA, LLC v. Imagine This Company LLC, (3d Cir. 2025).

Opinion

NOT PRECEDENTIAL

UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT _____________

Nos. 23-2794, 23-2876 _____________

In re: PET GIFTS USA, LLC, Petitioner 23-2794

PET GIFTS USA, LLC, Appellant 23-2876

v.

IMAGINE THIS COMPANY LLC, TWELVE INC, BEVERLY MOSS, MICHAEL MOSS

_____________________________________

On Appeal from the United States District Court for the District of New Jersey (District Court No. 3:14-cv-03884) District Court Judge: Honorable Peter G. Sheridan _____________________________________

Submitted Pursuant to Third Circuit LAR 34.1(a) February 19, 2025

(Filed: February 20, 2025)

Before: CHAGARES, Chief Judge, BIBAS and RENDELL, Circuit Judges. _________ O P I N I O N* _________ RENDELL, Circuit Judge.

Appellant Pet Gifts USA, LLC challenges the District Court’s refusal to direct

entry of final judgment under Federal Rule of Civil Procedure 54(b). But without a final

judgment, we lack jurisdiction over this appeal. And because Appellant has not shown a

“clear abuse of discretion or clear error of law,” United States v. Wright, 776 F.3d 134,

146 (3d Cir. 2015), we will deny its mandamus petition.

I.

Appellant sued Appellees Imagine This Company, LLC, Twelve Inc, and Beverly

and Michael Moss in May 2014 for state-law causes of action related to Appellees’

manufacture of pet-themed car decal magnets. In essence, Appellant accused Appellees

of stealing Appellant’s designs. Appellees counterclaimed that the designs were theirs

and Appellant’s accusations defamed them.

The District Court dismissed most of Appellant’s claims under Federal Rule of

Civil Procedure 12(b)(6) for failure to state a claim, then granted summary judgment to

Appellees on the remainder . It declined Appellant’s request to convert its ruling to a

“final judgment” under Federal Rule of Civil Procedure 54(b), which would have allowed

Appellant to take an immediate appeal. The parties then prepared for trial on Appellees’

counterclaims.

* This disposition is not an opinion of the full Court and pursuant to I.O.P. 5.7 does not constitute binding precedent.

2 Shortly before trial, the parties reached an agreement under which Appellees’

counterclaims would be dismissed “without prejudice” but could be refiled after “final

resolution of [an] Appeal, whether resolved by withdrawal, dismissal, affirmance or

reversal.” Appx 305. The agreement also stipulated that the statute of limitations would

“not run” in the interim. Appx 305-06. The stated purpose of this arrangement was to

permit “an immediate appeal.” Appx 305. The District Court approved the agreement and

closed the case.

Appellant then filed its first appeal from the District Court’s orders dismissing and

granting summary judgment on its claims, and Appellees cross-appealed on a fees issue.

Because Appellees’ counterclaims had been dismissed without prejudice and could be

refiled, a prior panel of this Court ruled that there was no final order of the District Court

and dismissed both appeals for lack of jurisdiction. The order stated that dismissal was

“without prejudice to any party’s opportunity to reapply to the District Court for a

determination and direction under Fed. R. Civ. P. 54(b),” but expressed “no opinion as to

whether the determination and direction should be made, this being a matter within the

discretion of the District Court.” Pet Gifts USA, LLC v. Imagine This Co., LLC, Nos. 19-

1312, 19-2892, 2021 WL 3878387, at *1 (3d Cir. May 27, 2021).

For the next six months, no request under Rule 54(b) was made, and no further

activity occurred in the District Court. Appellant then filed a motion to “Dismiss

[Appellees’] Counterclaim[s] with Prejudice for Lack of Prosecution.” Dist. Ct. ECF No.

160 at 1. The motion did not contain a request for entry of final judgment under Rule

54(b), although Appellant insisted at a subsequent conference that such a request was

3 “included.” Tr. Sept. 21, 2022, p. 9. The District Court denied the motion because “there

[was] no actively pending claim for the Court to dismiss.” Id. at 18. It further stated that a

request for entry of final judgment under Rule 54(b) would have been “more apt,” but

such a request had not been made. Id.

Three months later, Appellant made the request for entry of final judgment under

Rule 54(b). The District Court denied it on the grounds that: (1) piecemeal appeals of the

claims and counterclaims would be inefficient; (2) Appellant had unreasonably delayed

in presenting the request; and (3) the lawsuit was by then more than six years old.

Appellant now seeks review of the District Court’s denial of its request for entry

of final judgment under Rule 54(b). Appellant has filed both a direct appeal from that

decision and a petition for a writ of mandamus.

II.

A.

Other than in limited circumstances, an appeal may only be taken from a “final

decision[].” 28 U.S.C. § 1291. To be final, a decision must “end[] the litigation on the

merits and leave[] nothing for the court to do but execute the judgment.” Gulfstream

Aerospace Corp. v. Mayacamas Corp., 485 U.S. 271, 275 (1988). An order that leaves

some claims dismissed without prejudice to being refiled is “[o]rdinarily” not a final

decision. Doe v. Hesketh, 828 F.3d 159, 164 (3d Cir. 2016). Exceptions to this general

rule are “where a claim dismissed without prejudice cannot be re-filed” due to the statute

of limitations having run, or where a claimant “renounces any intention to reinstate

litigation on a claim dismissed without prejudice.” Id. Neither exception is applicable

4 here. Thus, as we held in the previous appeal filed in this case, the order dismissing

Appellees’ counterclaims without prejudice is not reviewable absent the District Court

directing entry of final judgment under Rule 54(b). See Fed. Home Loan Mortg. Corp. v.

Scottsdale Ins. Co., 316 F.3d 431, 440 (3d Cir. 2003). Had the District Court entered such

a final judgment, we would have jurisdiction over an appeal. But a district court’s refusal

to make that certification under Rule 54(b) is by definition not final and therefore not

appealable. Makuc v. Am. Honda Motor Co., 692 F.2d 172, 173 (1st Cir. 1982); see also

Saber v. FinanceAmerica Credit Corp., 843 F.2d 697, 702 (3d Cir. 1988).

Appellant also asks us to take this appeal under 28 U.S.C. § 1292(b), which allows

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