Stephen E. Duffy Sue Ann Duffy v. Ford Motor Company

218 F.3d 623, 47 Fed. R. Serv. 3d 174, 2000 U.S. App. LEXIS 14635
CourtCourt of Appeals for the Sixth Circuit
DecidedJune 27, 2000
Docket98-5950, 98-6112, 98-6746, 99-5017
StatusPublished
Cited by47 cases

This text of 218 F.3d 623 (Stephen E. Duffy Sue Ann Duffy v. Ford Motor Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stephen E. Duffy Sue Ann Duffy v. Ford Motor Company, 218 F.3d 623, 47 Fed. R. Serv. 3d 174, 2000 U.S. App. LEXIS 14635 (6th Cir. 2000).

Opinions

MOORE, J., delivered the opinion of the court, in which BATCHELDER, J., joined. O’MALLEY, D.J. (pp. 635-39), delivered a separate opinion concurring in part and dissenting in part.

OPINION

KAREN NELSON MOORE, Circuit Judge.

Stephen E. Duffy and Sue Ann Duffy (“the Duffys”), the plaintiffs-appellants, voluntarily dismissed their personal injury lawsuit against the defendant-appellee, [625]*625Ford Motor Company (“Ford”), on the third day of trial. The written dismissal order entered several days later imposed two conditions on the voluntary dismissal: that- the Duffys pay Ford’s litigation costs, including attorney fees, if the case is refiled; and that the rulings from the original action (including most evidentiary rulings and a partial grant of summary judgment) govern the refiled action as the law of the case. When the Duffys refiled their case approximately one year later, the district court dismissed it without prejudice because the Duffys were unable to pay Ford’s costs. The Duffys now appeal. the conditions imposed by the district court in connection with the first dismissal. We hold that, under the unique circumstances of this case, the district court abused its discretion in failing to consider whether the Duffys themselves— rather than their attorneys — were responsible for the dilatory conduct of the trial. We also hold that it was an abuse of discretion to impose those litigation costs and to apply the law of the original case to the refiled case without giving the Duffys sufficient notice of those conditions and allowing them an opportunity to withdraw their motion to dismiss prior to entering the first dismissal. Therefore, we VACATE the district court’s order of dismissal and the related orders and REMAND for the district court to reconsider its rulings in light of this opinion.

I. BACKGROUND

The Duffys originally filed this products liability suit against Ford in federal court in February 1994, alleging several state-law claims arising out of the death of their son, William Duffy, who was lolled in an accident when his Bronco II collided with another vehicle and rolled over. The district court dismissed the Duffys’ fraud, deception, and misrepresentation claims through a partial grant of summary judgment to Ford, leaving only the Duffys’ negligence and strict liability claims for trial.

After repeated rescheduling, the trial commenced on January 13, 1997. On the third day of trial, the Duffys sought to introduce the expert testimony of two witnesses: Thomas J. Feaheny, a former Ford engineer who was to testify as to the instability of the Bronco’s- design and the vehicle’s propensity to roll over; and Officer Mruk, a Memphis police investigator who was to give an opinion as to whether William Duffy was wearing a seat belt at the time of the accident. After a hearing, the district court decided to exclude the testimony of those two witnesses, finding that Feaheny’s testimony did not pass the Daubert test and that Mruk could not give an expert opinion as to seat belt usage, because the Duffys had not listed him as an expert witness in the final pretrial order. In the wake of these rulings, the Duffys moved for voluntary dismissal of their case pursuant to Federal Rule of Civil Procedure 41(a)(2). Ford did not oppose the motion but stated that it was “not willing ... to forego costs.” J.A. at 327(Tr.). The district court orally granted the motion and agreed with Ford that the Duffys would be responsible for Ford’s costs should they choose to refile. Some discussion ensued between the district court and the Duffys’ counsel regarding-whether those costs would include attorney fees, but the question was not resolved at that time.

On January 24, 1997, the district court issued a written order granting the Duffys’-motion on the condition that the Duffys compensate Ford for its litigation costs should they choose to refile the action and that the rulings made during the original case would apply to a refiled case. Upon Ford’s motion, the district court amended that order to clarify that the litigation “costs” mentioned in the dismissal order included those attorney fees incurred by Ford that could not be recouped in a subsequent action. The district court declined to calculate the total amount of those litigation costs at that time, however, proposing instead to do so if and when the Duffys [626]*626refiled their complaint. The Duffys attempted to appeal that order, but this court held, in an unpublished order, that it was not appealable. See Order, Case No. 97-5764 (6th Cir. Sept. 23, 1997). Specifically, we noted that the district court’s order fell within the scope of the general rule that plaintiffs cannot appeal an order granting a voluntary dismissal without prejudice. Furthermore, we added that the appeal would be premature in any case, since the amount of fees payable to the defendant had not yet been specified.

On January 12, 1998, the Duffys, represented by new counsel, recommenced their action against Ford in Tennessee state court. Ford subsequently removed the case, and it was reassigned to the district judge who had presided over the original case. In an order entered on June 11, 1998, the district court assessed Ford’s non-overlapping litigation costs at $98,791.40 and informed the Duffys that they must pay that amount within thirty days or suffer dismissal of their complaint. The district court also ordered that all the rulings from the original action would be the law of the case in the refiled action, except that the Duffys would be permitted to name one additional expert in the refiled action. On June 19,1998, in response to Ford’s motion for reconsideration, the district court adjusted that amount to $126,481.09, finding that the court had erred in its initial calculation. The Duffys timely appealed from those rulings. Ford subsequently moved to dismiss that appeal, arguing again that the Duffys were trying to appeal their own voluntary dismissal and that Sixth Circuit precedent does not permit such appeals. A Sixth Circuit panel denied the motion but asked the parties to address the jurisdictional issues in their appellate briefs. See Order, Case Nos. 98-5950/6112 (6th Cir. Nov. 3, 1998).

Facing dismissal of their refiled case due to their inability to pay the required costs, the Duffys filed a motion to stay enforcement of the district court’s order of June 19, 1998, which was denied in an order dated August 3, 1998. On October 14,1998, the district court denied the Duff-ys’ motion for reconsideration of that August 3 order, holding that, because the Duffys had already filed a notice of appeal in the pending case, the district court was without jurisdiction to consider the motion. The Duffys then appealed the October 14 order and the corresponding judgment dismissing their refiled action.

The Duffys now argue that the district court’s orders requiring them to pay Ford’s attorney fees and imposing the law of the case on the refiled action caused them legal prejudice and are therefore immediately appealable under the law of the Sixth Circuit. Furthermore, they claim that the terms and conditions imposed by the district court amounted to an abuse of discretion.

II. ANALYSIS

A. Appealability of the District Court’s Orders

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Bluebook (online)
218 F.3d 623, 47 Fed. R. Serv. 3d 174, 2000 U.S. App. LEXIS 14635, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stephen-e-duffy-sue-ann-duffy-v-ford-motor-company-ca6-2000.