Opinion ID: 519233
Heading Depth: 2
Heading Rank: 1

Heading: Partial Final Judgment

Text: 7 The first question is whether Rule 54(b) authorizes entry of partial final judgment in order to create res judicata effects elsewhere. 2 The ordinary purpose of Rule 54(b) is to permit the party aggrieved by a partial determination to appeal immediately. See generally Cullen v. Margiotta, 811 F.2d 698, 710-13 (2d Cir.), cert. denied, --- U.S. ----, 107 S.Ct. 3266, 97 L.Ed.2d 764 (1987); Weiss v. York Hosp., 745 F.2d 786, 801-04 (3d Cir.1984), cert. denied, 470 U.S. 1060, 105 S.Ct. 1777, 84 L.Ed.2d 836 (1985). Shamley argues that Judge Mukasey granted a partial final judgment not to permit such an appeal but solely to bestow res judicata effect on the dismissal of Shamley's state law claims. The most apposite authority is Continental Airlines v. Goodyear Tire & Rubber Co., 819 F.2d 1519, 1525 (9th Cir.1987), which held that an otherwise proper 54(b) certification may be awarded for the purpose of producing res judicata effects elsewhere, following dicta in Bank of Lincolnwood v. Federal Leasing, Inc., 622 F.2d 944, 950 n. 7 (7th Cir.1980), and Republic of China v. American Express Co., 190 F.2d 334, 339 (2d Cir.1951) (Frank, J.). Continental Airlines held that an otherwise permissible 54(b) certification designed to produce res judicata effects in another forum was proper. 819 F.2d at 1525. This circuit's Republic of China did not go so far as to approve the entry of a partial final judgment for the purpose of creating res judicata effects. Judge Frank did mention that the trial judge intended ... that his [partial] discharge order would be available to the Express Co. by way of res judicata, but only in saying that the lower court probably intended the partial discharge as final, though the court had failed to enter a partial final judgment. 190 F.2d at 339. Nevertheless, we find the Ninth Circuit's reasoning persuasive. There is no justification for limiting the issues that a district court can consider in entering a partial final judgment, nor is it realistic to ask a district court to approach the decision while blinding itself to one of the decision's most important effects. See Continental, 819 F.2d at 1525. 8 Given that the res judicata purpose did not prevent Judge Mukasey from entering his partial order, the question remains whether the order was properly entered under Rule 54(b). Curtiss-Wright Corp. v. General Electric Co., 446 U.S. 1, 8, 100 S.Ct. 1460, 1464, 64 L.Ed.2d 1 (1980), reminds us that the district court should be mindful of judicial economy and, in general, refuse to grant a partial final judgment when an appellate court would have to decide the same issues on separate appeals. We also note that some circuits use a more rigid test based not just on overlapping issues but on overlapping facts, namely, that while claims with some factual overlap may still be separate for the purposes of Rule 54(b), 'claims are not separate for Rule 54(b) purposes if the facts they depend on are largely the same.'  ODC Communications Corp. v. Wenruth Invs., 826 F.2d 509, 512 (7th Cir.1987) (quoting Minority Police Officers Ass'n v. City of South Bend, 721 F.2d 197, 201 (7th Cir.1983)). 9 We think that these tests are met here, since this appeal does not require us to decide the same issues or review largely the same facts that will be before us on Shamley's federal claims of religious discrimination, ethnic discrimination, and age discrimination. Those claims span Shamley's entire fourteen-year employment history, which allegedly included being passed over for promotion twelve times in favor of Christian, native-born, younger Americans. By contrast, because Shamley's state law claims were dismissed for purely legal reasons, the only facts relevant to this appeal are the procedural history of the case and Shamley's discovery of some allegedly defamatory material in his personnel file. See infra Section C. Because Shamley's two appeals address different issues and largely different facts, the Rule 54(b) certification in this case does not promote piecemeal appeals. Rather, it has helped prevent duplicative litigation, as New Jersey's Appellate Division recently ruled against Shamley on res judicata grounds in respect to the wrongful discharge and emotional distress/interference with advantageous relations claims. Shamley v. ITT Corp., supra.