Document: 69 L.Ed.2d 103 101 S.Ct. 2424 452 U.S. 394 FEDERATED DEPARTMENT STORES, INC., et al., Petitioners,v.Marilyn MOITIE and Floyd R. Brown, etc. No. 79-1517. Argued March 30, 1981. Decided June 15, Syllabus Seven private antitrust actions (including separate by each of the respondents) were brought plaintiffs seeking to represent classes retail purchasers against petitioners, owners various department stores, for alleged price fixing. The consolidated in Federal District Court, which dismissed them failure allege an "injury" plaintiffs' "business or property" within meaning Clayton Act. Plaintiffs five appealed, but respondents chose instead refile their two state court, making allegations similar those made prior complaints. Petitioners removed these new under doctrine res judicata, appealed. Because this Court's intervening decision Reiter v. Sonotone Corp., 442 330, 99 2326, 60 931, Court Appeals thereafter reversed remanded cases had been initially decided with respondents' first actions, later dismissal subsequent actions. held that because position was "closely interwoven" successfully appealing parties, judicata must give way "public policy" "simple justice." Held : Res bars relitigation unappealed adverse judgments as federal-law claims. consequences a final, judgment on merits are not altered fact may have wrong rested legal principle subsequently overruled another case. There is no general equitable countenances exception finality party's appeal merely his rights party who appeals. Cf. Reed Allen, 286 191, 52 532, 76 L.Ed. 1054. Nor there any law equity sanctions rejection salutary basis justice" policy." "[The] mere matter practice procedure . It rule fundamental substantial justice, 'of public policy peace,' should be cordially regarded enforced courts ." Hart Steel Co. Railroad Supply Co., 244 294, 299, 37 506, 507, 61 1148. Pp. 398-402. 9th Cir., 611 F.2d 1267, remanded. Jerome I. Chapman, Washington, D. C., petitioners. Jerrold N. Offstein, San Francisco, Cal., respondents. Justice REHNQUIST delivered opinion Court. 1 only question presented case whether Ninth Circuit validly created judicata. court does bar where, here, other common defendants appealed them. We disagree view taken reverse. 2 * In 1976 United States action alleging they violated § Sherman Act, 15 U.S.C. 1, agreeing fix women's clothing sold northern California. parallel civil filed treble damages behalf proposed purchasers, including respondent Moitie (Moitie I ) Brown (Brown Northern Each complaints tracked almost verbatim Government's complaint, though complaint referred solely law. All originally assigned single federal judge, diversity citizenship federal-question jurisdiction. all "in entirety" ground 4 15. Weinberg Federated Department Stores, 426 F.Supp. 880 (1977). 3 suits Circuit. counsel representing however, refiled II II.1 Although purported raise state-law claims, complaints, Government. California moved rendered July 8, 1977, denied motion remand. artfully couched terms law, many respects identical" thus properly raised "essentially law" then concluded involved "same same offenses, time periods" I, required time, Pending appeal, 11, 1979, holding can suffer used On 25, further proceedings light Reiter. 5 When finally came before Circuit, dismissing cases. 1267.2 Though recognized "strict application would preclude our review instant decision," id., at 1269, it refused apply facts observed litigants asserted "non-appealing parties benefit from reversal when closely interwoven parties," ibid., "[b]ecause has effectively overruled," Id., 1269-1270. granted certiorari, 449 991, 526, 66 288 (1980), consider validity Appeals' novel 6 little added developed A final precludes privies relitigating issues could action. Commissioner Sunnen, 333 591, 597, 68 715, 719, 92 898 (1948); Cromwell County Sac, 94 351, 352-353, 24 195 (1877). Angel Bullington, 330 183, 187, 67 657, 659, 91 832 (1947); Chicot Drainage Baxter State Bank, 308 371, 317, 84 329 (1940); Wilson's Executor Deen, 121 525, 534, 7 1004, 1007, 30 980 (1887). As explained Baltimore S.S. Phillips, 274 316, 325, 47 600, 604, 71 1069 (1927), "erroneous conclusion" reached suit deprive second "of right rely upon plea voidable based erroneous open collateral attack, corrected direct bringing cause [of action]." "[t]he indulgence contrary result creating elements uncertainty confusion undermining conclusive character judg ments, very purpose avert." 201, 1054 (1932). case, conceded judicata" dismissed. By that, presumably meant "technical elements" satisfied, namely, claims II.3 declined dismiss because, its view, unfair claim so parties. believe such unprecedented departure accepted principles unwarranted. Indeed, below foreclosed law.4 8 supra, addressed issue here. dispute over property left will. won interpleader rents derived and, while pending, ejectment rival claimant B. decree B did judgment, prevailed earlier awarded collected. sought bring A, latter pleaded previous successful This available defense belonged 9 "The assault collaterally, subject impeachment through some form attack. appellate limited decree; hardly necessary say jurisdiction one gives power reverse modify independent judgment. If respondent, addition [interpleader] decree, [ejectment] having both it, might afforded remedy. But course neglected follow." 198, S.Ct., 533. 10 rigorous Reed, point leaving possession entitled rents, makes clear recognizes doctrine, suggested Appeals, party. presents even more compelling reasons than Reed. Respondents here seek windfall beneficiaries procured interest interrelated procured, affected Moreover, contrast where unclear why taken, apparent calculated choice forgo See also Ackermann States, 340 193, 209, 211, 95 207 (1950) (holding petitioners relief Rule Civil Procedure 60(b) "free, calculated, deliberate choic[e]" appeal). 11 part what viewed we do see grave injustice done "Simple achieved complex body period years evenhandedly applied. serves vital interests beyond individual judge's ad hoc determination equities particular simply "no judicata." Heiser Woodruff, 327 726, 733, 853, 856, 90 970 (1946). reliance similarly misplaced. long "[p]ublic dictates end litigation; contested shall bound contest, matters once tried considered forever settled between parties." Baldwin Traveling Men's Assn., 283 522, 51 517, 518, 75 1244 (1931). stressed "[the] inherited technical ours. courts. .." 1148 (1917). language half century ago today's crowded dockets: 12 predicament finds himself own [W]e cannot expected, sole relief, upset well-established conceived maxim requires litigation—a comports sense well policy. And mischief follow establishment precedent disregarding prolonging strife greater relieving hardship." U.S., 198-199, 13 make serious effort defend Appeals. They ask affirmed. Instead, conclude "the writ certiorari improvidently granted." Brief 31. alternative, argue district court's grounds reversed, directed grant respondent's remand court." Ibid. since additional competition, fraud, restitution. 14 unnecessary reach issue. enough Accordingly, consistent opinion. ordered. 16 BLACKMUN, whom MARSHALL joins, concurring 17 While agree write separately my views points. 18 First, one, close door possibility "overriding concerns simple 1269 (CA9 1980). Professor Moore noted: "Just occasionally qualified overriding, competing policy, needs tempering." 1B J. & T. Currier, Moore's Practice ¶ 0.405[12], p. 791 (1980) (footnote omitted). 537, (1932) (Cardozo, J., joined Brandeis Stone, JJ., dissenting) ("A system perverted proper function multiplies impediments justice without warrant necessity"). clearly way. Unlike nonappealing "caught mesh procedural complexities." tactical appeal. served case; contrary, special need strict multiple sort discourage "break-away" litigation. 345, 2334, 931 (1979). Finally, "where dependent require whole thereof reversed." Ford Motor Credit Uresti, 581 S.W.2d 298, 300 (Tex.Civ.App.1979).* 19 Second, contrast, flatly hold Like found disguised claims; cross-petitioned argument itself barred More important, if distinct, inBrown manifestly allegation II. actually raised, raised. Restatement (Second) Judgments 61.1 (Tent.Draft 5, Mar. 10, 1978). Since reason outset litigation exercise pendent obligated plead wished preserve 61.1, Comment e. so, barred. 20 BRENNAN, dissenting. 21 eagerness correct today disregards statutory restrictions federal-court jurisdiction, process, confuses rather clarifies long-established therefore respectfully dissent. 22 Respondent Brown1 class court. stated four causes action: (1) fraud deceit, (2) business practices, (3) conspiracy, (4) Plaintiffs' Complaint, &Par; 11-14, App. 99-101. "not less $600" per member, "appropriate damages," exemplary punitive damages, date injury, attorney's fees costs, relief. 101-102. wholly law; none fashion 23 Nonetheless, California, 28 1441(b). Respondent's "[f]rom start finish, essentially violations laws." 192. reasoned "[a]rtful pleading" "convert into claims," "because [it] concerned questions satisfying minimum amount controversy." action, involving periods." affirmed remand, stating correctly nature." 1268 1980) (memorandum denial reconsideration). However, order dismissal, trial. 25 provision authorizing removal question2 1441(b): 26 "Any original founded arising Constitution, treaties laws removable regard residence 27 Removability depends nature plaintiff's complaint: "right immunity Constitution [constitutes] element, essential action." Gully First National Bank Meridian, 299 109, 112, 57 96, 97, 81 70 (1936). An defense. Tennessee Union Planters' 152 454, 654, 38 511 (1894). important corollary brings master decide he will determine 'suit under' law[s] States" complaint. Fair Kohler Die Specialty 228 22, 33 410, 411, 716 (1913); accord, Great Alexander, 246 276, 282, 237, 240, 62 713 (1918). Where either plaintiff normally free ignore rest ground. defendant removal. Jones General Tire Rubber 541 660, 664-665 (CA7 1976); La Chemise Lacoste Alligator 506 339, 346 (CA3 1974), cert. denied, 421 937, 1666, 44 (1975); Warner Bros. Records, Inc. A. Ridges Distributing 475 262, 264 (CA10 1973); Coditron Corp. AFA Protective Systems, Inc., 392 158, 160 (SDNY 1975). 29 grounded federalism. So retain authority legislate areas Congress legislated preempting field, remain preferred forum interpretation enforcement permitted proceed violence autonomy able remove set underlying claim. Shamrock Oil Gas Sheets, 313 100, 108-109, 863, 872, 85 1214 (1941): reserved states provide controversies courts, restricted conformity Judiciary Articles Constitution. 'Due rightful independence governments, actuate scrupulously confine precise limits statute defined.' " (Quoting Healy Ratta, 292 263, 270, 54 700, 703, 78 1248 (1934).) 31 basing thereby avoids applies substantive pre-empted 32 "[W]here source right, generally look face initial pleading presented. certain areas, either-or option longer available, deemed altogether preempt supplant explicitly said exclusive unacceptable permit plaintiff, artful manipulation defeat enunciated congressional objective." Hearst Shopping Center Network, 307 551, 556 1969) (emphasis original) (citation scrutinize ostensibly authority. Sheeran Electric 593 93, 96 (CA9), 444 868, 100 143, 93 (1979); North American Phillips Emery Air Freight 579 229, 233-234 (CA2 1978); New York Local 144, Hotel Nursing Home Allied Health Services Union, 410 225, 226-229 1976).3 34 lawsuit area displaced Mosk, Antitrust Enforcement Coordination Enforcement, A.B.A. Sections 358, 361-368 (1962). Thus, proceeding both. far carefully arises reference Under therefore, 113, 98. 35 nonetheless sustains "at least sufficient support removal." Ante, 397, n. 2. understand means this. Which character? Why predicated Certainly, purports laws, chosen Act surely suffice transmute 36 relies calls "factual finding" Court,5 agreed, "respondents attempted avoid 'artful[ly]' casting 'essentially claims' claims." amounts pejorative characterization federal, "Artful" not, immunity, removable.6 III Even assuming lower dissent disposition Having out assume inexplicably recoils deciding "unnecessary" effect "state-law 402 original). "It here," says, "that fails decides nothing. doing introduces possibility—heretofore decisions7—that unarticulated theories recovery survive unconditional lawsuit. every litigated, theory ante, (opinion judgment); 0.410[2], 1163 (1980). unqualified theory. Woods Exploration Producing Aluminum America, 438 1286, 1312-1315 (CA5 1971), 404 1047, 701, 736 (1972); Superior Cal.App.3d 676, 680, 110 Cal.Rptr. 59, 61-62 (1973); Reporter's Note Illustration e, pp. 178-179 acknowledge basic create doubts before, encourage split hope win day 39 dissent, vacate instructions supplemental memorandum indicating voluntarily dismissed, petition. conclusion reasoning "federal treatise puts "will use off defendant's [and] real regardless characterization." C. Wright, Miller, E. Cooper, 3722, 564-566 (1976) (citing cases) applied After "an extensive analysis origins substance of" found, expressly "artful[ly]" claims" factual finding. Prospect Dairy, Dellwood Dairy 237 176 (NDNY 1964); re Wiring Device Litigation, 498 79 (EDNY 1980); Three J Farms, Alton Box Board 1979-1 Trade Cases 62,423 (SC 1978), rev'd grounds, 609 112 (CA4 1979), 445 911, 1090, 63 12(b)(6) "judgment merits." 190, 661, Bell Hood, 678, 773, 939 conflicts Courts future claim, authoritative judicial g., Association Broadcasters FCC, 180 U.S.App.D.C. 259, 265, 554 1118, 1124 ("It several co-parties necessitate justify appealing"); Clouatre Houston Fire Cas. 229 596, 597-598 1956); Appleton Toy Furniture Lehman 165 801, 802 1948); Ripperger Allyn 113 332, (CA2), 311 695, 136, 450 (1940). reliance, 1980), Uresti ; Kvenild Taylor, 594 P.2d 972 (Wyo.1979); Estate McDill, Cal.3d 831, 537 874, 122 754 (1975), appears me cases, piece property, unjustly liable, Kvenild, recourse cross-claim, Uresti. remaining concern Brown. acknowledged, citizenship, controversy exceed $10,000. 190. noted, controversy, meeting controversy. Actions Pub.L. 96-486, §§ 2(a), 4, Stat. 2369-2370, 1331 (1976 ed., Supp.IV), note following (repeal pending enactment). context, often "fraudulently" See, F.2d, 96; 281, 239, Where, suggest acts chooses Romick Bekins Van Storage 197 369, 371 1952). admits II, included restitution, 402. finding." section devoted analysis, "Facts." Compare 187-190 190-192. event, concerning decisions cited approach, Courts, inapplicable. 62,423, 76,550 confined purely intrastate commerce, suit. Similarly, 1964), labor practice, governed exclusively 187; Teamsters Morton, 377 252, 1253, 280 (1964). Admittedly, strictly Carter, 618 1093, 1101 sub nom. Sheet Metal Workers 949, 1410, 378 (1981). (1976), reports "occasionally (Footnote omitted.) Perusal decisions, reveals most Felsen, 127, 131, 2205, 2209, 767 Munsingwear, 36, 38, 104, 105, (1950); 378, 320, 681

Category: 8