Opinion ID: 436135
Heading Depth: 3
Heading Rank: 1

Heading: Appealability of the Dismissal Order

Text: 13 Before we discuss the merits of the district court's dismissal of Trela's counterclaims, we must first determine whether we have jurisdiction to review the dismissal order at this time. Trela's counterclaims sought injunctive relief against Winterland for actions alleged to violate the civil rights and antitrust laws, as well as damages for the alleged antitrust violation and attorney's fees. As Winterland's claims against Trela remain pending, the parties agree that we may review the dismissal, if at all, only under the limited exception to the final order rule for orders denying injunctions, 28 U.S.C. Sec. 1292(a)(1). 1 14 The Supreme Court has long held that an order dismissing a counterclaim which sought injunctive relief against a single plaintiff was immediately appealable as an order denying an injunction. General Electric Co. v. Marvel Rare Metals Co., 287 U.S. 430, 433, 53 S.Ct. 202, 203, 77 L.Ed. 408 (1932). The courts of appeals have reviewed such dismissals where the district court's order necessarily denied all the injunctive relief requested, see, e.g., Perfect Fit Industries, Inc. v. Acme Quilting Co., Inc., 618 F.2d 950 (2d Cir.1980), cert. denied, 459 U.S. 832, 103 S.Ct. 73, 74 L.Ed.2d 71 (1982); Williams v. St. Louis Diecasting Corp., 611 F.2d 1223 (8th Cir.1979); Lair v. Fauver, 595 F.2d 911 (3d Cir.1979), or severely restricted the scope of the requested relief, see, e.g., Build of Buffalo v. Sedita, 441 F.2d 284 (2d Cir.1971) and cases cited therein. Cf. Western Geophysical Co. v. Bolt, 440 F.2d 765 (2d Cir.1971) (where less than all counterclaims requesting injunctive relief dismissed, no appeal allowed). 15 The Supreme Court has recently made clear, however, that not all interlocutory orders that have the effect of denying an injunction are immediately appealable under Sec. 1292(a)(1). In Gardner v. Westinghouse Broadcasting Co., 437 U.S. 478, 98 S.Ct. 2451, 57 L.Ed.2d 364 (1978), the Court held that no jurisdiction existed under that statute to review a district court order denying class certification. In refusing to certify the class, the district court was not required to reach the merits of petitioner's claim. Further, the Court determined that no irreparable harm would result from denying review of the propriety of certification until after final judgment was entered in the case. In Carson v. American Brands, Inc., 450 U.S. 79, 101 S.Ct. 993, 67 L.Ed.2d 59 (1981), the Court found jurisdiction under Sec. 1292(a)(1) where petitioner appealed a refusal by the district court to approve a settlement agreement in a Title VII case. The Court explained that while the effect of the order was merely to force the parties to trial, severe, perhaps irreparable, injury to the petitioner would occur if the refusal could not be reviewed until after final judgment was entered. 16 Gardner and Carson both reflect the Court's concern that Sec. 1292(a)(1) be approached with caution lest a floodgate be opened that brings into the exception many pretrial orders. Switzerland Cheese Assoc., Inc. v. E. Horne's Market, Inc., 385 U.S. 23, 24, 87 S.Ct. 193, 195, 17 L.Ed.2d 23 (1966) (order denying summary judgment not appealable as order denying an injunction; denial not decision on merits but only decision that parties proceed to trial). Winterland suggests that the effect of these recent cases is to preclude our review of the dismissal of Trela's counterclaims--in effect, that General Electric Co. v. Marvel Rare Metals Co., supra, has been overruled sub silentio. We must therefore assess what effect these decisions have had on the continuing vitality of Marvel. 17 We note that in recent cases denying interlocutory appeal of orders which have the effect of denying an injunction, the Court has not found jurisdiction under Sec. 1292(a)(1) when the order appealed failed to address the merits of the case, Gardner, supra; Carson, supra. Such an order is immediately appealable only if the appellant can show the order might cause serious, perhaps irreparable, harm if appeal were delayed until after final judgment. See Carson, 450 U.S. at 84, 101 S.Ct. at 996. The Court in Gardner thus distinguished Marvel, reasoning, The order [in Marvel ] entirely disposed of the defendant's prayer for injunctive relief; here, the order [denying class certification] merely limits the scope of the relief that may ultimately be granted. Gardner, 437 U.S. at 481, 98 S.Ct. at 2454. See also Stewart-Warner Corp. v. Westinghouse Electric Corp., 325 F.2d 822, 829-30 (2d Cir.1963) (Friendly, J., dissenting) (an order striking a claim for injunctive relief on the merits necessarily has serious consequences, unlike discretionary practice orders designed to avoid delay). 18 Since the district court's order necessarily disposed of Trela's claims on the merits, including all requests for injunctive relief, we hold that the order dismissing the counterclaims is appealable under Sec. 1292(a)(1). 19