Document: 338 U.S. 507 70 S.Ct. 322 94 L.Ed. 299 DICKINSONv.PETROLEUM CONVERSION CORPORATION. No. 150. Argued and Submitted Dec. 5, 1949. Decided Jan. 16, 1950. Messrs. Solomon Kaufman, Samuel Hershenstein, New York City, for petitioner. Mr. Alexander Kahan, respondent. Justice JACKSON delivered the opinion of Court. 1 The only issue presented by this case turns on finality a judgment purposes appeal, subject which volume judicial writing already is formidable. Court Appeals resolved against decree in question, saying, however, that it did so unanimous conviction court as constituted but deference to precedent established differently same Circuit. 173 F.2d 738. Because intracircuit conflict, we made limited grant certiorari. 811, 66. That cannot devise form words will settle recurrent problem seems certain; agree with convictions below reverse its judgment. 2 Something over decade ago, Dickinson sued Lloyd, whom he had been associated promoting Petroleum Conversion Corporation, along others, impress an equitable lien upon certain Corporation's shares then Lloyd's name possession. District dismissed complaint reversed directed new trial. v. Rinke, Cir., 132 F.2d. 805, Before retrial, Burnham Vaughan, behalf themselves such other stockholders subscribed fund aid company or predecessor embarrassment, were allowed intervene. They set up claim both plaintiff defendant Lloyd stock involved controversy between them fraudulently issued demanded be canceled. also sought recovery $87,310.28 from unlawful profits secretly realized breach their fiduciary duty. Corporation intervened, making general allegations demands relief. class subscribers thus joined forces get one substantially remedy Lloyd. 3 This triangular was tried dated April 10, 1947, entered. here character decree. It recites twenty-three days trial, filing decision, opinion, findings fact conclusions law, 'ordered, adjudged decreed' all Dickinson's claims merits; there pressed his administrator intervenors have $174,620.56 administrator, concourse these provided several could liquidated share each fixed; receive 8,200 hands 12,596 additional 244,000 possession dismissed; another corporation that, if any not distributed reason, they redeposited further order jurisdiction retained supervise distribution shares. Corporation. 4 From took no appeal. went ahead hearings determine seventy members aggregate administrator. On August 3, 1948, signed 'final decree' apportioned those claimants. recited 'the issues reserved herein 10th day April, having determined * said hereby final.' decision involving way changed 1947 it. awarded costs settled earlier decree, award Petroleum. 5 Thereupon Petroleum's receiver bankruptcy appealed much 1948 Petroleum.1 motion dismiss chief question granted review, whether appeal decree.2 In deciding motion, said: 6 'In view court, now constituted, should make difference whole counterclaim finally disposed tenth, 1947; action at end though denied right intervene all; indeed, more final, say, because, unlike denial petition intervene, bar effort relitigate determined.' page 740. 7 But because find basis distinguishing Clark Taylor, 163 940, composed Circuit sustained what appears contrary position, held appealable hence present pages 740—741. 8 Half century ago lamented, 'Probably equity practice has frequent discussion than decrees. cases, must conceded, are altogether harmonious.' McGourkey Toledo & Ohio Central R. Co., 146 536, 544-545, 13 170, 172, 36 1079. lamentation equally fitting describe intervening struggle courts; sometimes formula encompass situations times take hardship cases out under rigidity previous declarations; choosing considerations always compete appealability, most important inconvenience piecemeal review hand danger denying justice delay other.3 9 liberalization our allow parties expand privilege intervention originally increased through await determination before final can had. recognition difficulty, Rule 54(b), Federal Rules Civil Procedure, 28 U.S.C.A., promulgated. provides: 10 'When relief action, claim, counterclaim, cross-claim, third-party may direct entry less express just reason direction absence direction, however designated, adjudicates shall terminate claims, revision time adjudicating claim.' 11 obvious purpose section, indicated notes advisory committee, reduce far possible uncertainty hazard assumed litigant who either does here.4 provides opportunity litigants obtain clear statement intending reference finality, denied, least protect himself accordingly. 12 rule—which became effective March 19, effect would appropriate attempt kind beyond observing do prevent coming here. We not, therefore, try lay down rules embrace this. person absolute appealable. Brotherhood Railroad Trainmen Baltimore 331 519, 67 1387, 91 1646; Missouri-Kansas Pipe Line Co. United States, 312 502, 61 666, 85 975. When application would-be intervenor foreclosed proceedings affect him nor them. As observed, hard see why exclusion when based evidence pleadings. case, lawsuit concerned. 14 grievance fully matured.5 At point case. tentative, informal incomplete it; concluded closed counterclaims. court's reservation provision individual manner rights. What essentially supervisory among class' representatives. questions were, speak, internal interest. longer concern and, resolved, possibly affected. obviously selected deliberation close reserve future decision. If leave open concerning contentions, affecting interests, half line done so. half-line written. 15 hold Petroleum6 failure therefrom forfeits review. Its appealing later ineffective, dismissed. 16 Reversed. 17 DOUGLAS part consideration 18 BLACK, dissenting. 19 long depend 'final.' simple where decides simultaneously enters putting controversy. apparently leaves some date, doubts arise. See, e.g., Hohorst Hamburg-American Packet 148 262, 590, 37 443. Finality appealability judges, lawyers, commentators perpetual debate.1 too often thrown lawyers failed guess 'final' appellate court. creditors prosecuting respondent here, first victims jungle doubt.2 I doubt last victims, despite Court's hope 54(b) charted route jungle. 20 practical free respondent's challenge without regard A rational system jurisprudence attach inexorable consequences legal solution neither statutes opinions even reasonably guide. Where, arguments two decrees considered relatively even, 'finality' from. Under rule consider many circumstances relevant orderly administration penalizing merely finds falls side remains twilight zone. Cf. Davis Department Labor, 317 249, 63 225, 87 246. See dissent City Morgantown Royal Ins. 337 254, 263—264, 69 1067, 1072. 21 Even old 'either-or' applied me weightier reasons support holding latter final. judge rendered attributed 1947. He termed 'Decree,' 'Final Decree.' specifically 'That taxation therefor, deferred until respect matters hereinabove court.' order, received notice subsequent hearings. Four months trial memorandum referred 'interlocutory.' Answering contentions stated: my appealable, $176,000.' And declared 'is final.'3 deprived attorneys former interlocutory nonappealable.4 22 well produce strange consequence. dismissal urged petitioner final; contention, left nothing except various 'Rinke subscribers' particular sum' found due Dickinson, assess enter hypothesis liability Petroleum's. litigation originated charges fraud persons designated charging rested proven. Rinke subscribers, extent Petroleum, damaged fraud. Accordingly partial dismissing claims. fixed amount group recover estate. identical degree Dickinson: addition fixing precise sum liable group, completely affirmative claims.5 Yet decree,6 ironically enough party urging 23 So know, still pending. With judgment, certainly own Appeals. Permitting result presence adversaries. it, basic reach join applying attaches understandable indicated, decide insofar construed finalize Hill Chicago Evanston 140 52, 690, 35 331. policy underlying collected discussed Moore's Practice, Supp., 172—187; Commentary Judicial Code, 495 501, 507—518 (1949); Note Advisory Committee's Report Proposed Amendments Procedure (1946); Reformulation Decision' Rule—Proposed Amendment 56 Yale L.J. 141; Final Judgment Courts, 47 Col.L.Rev. 239; Rule, Mich.L.Rev. 233. (1946) 70—72. authorities cited n. supra. While law governs fair dispel impression makes 'victime doubt,' kind, predicament 'failure question.' calls detail irrelevant law. awards $176,245.24, interest 1926, Agency Subscribers, might determined. These 1926 put funds, amounting $600,000, withdrew secret duty subscribers. organized faith derived financial subscribed. seen Conversion's existence illegal depletion treasury, separate subscribed, ultimately beneficiary. repayment money defrauded wants entered attorney. interests subscriber handled attorney single brief proposed conclusion jointly submitted allowed, favor decided belonged deliberately circumstances. seeking prosecute preferred stockholders. attacked cooperation counsel particularly charge, 'In-so-far charge (Petroleum Corporation) rights $176,000 honestly presented, history litigation, forth October, 1946, record show baseless.' connection suggested in-so-far past influenced statement, nor, appears, bewilderment No prosecuted fought won principal thought stood. After counsel, criticized, filed September 1, trustee meanwhile bankrupt. once laid inadvisability advised 'The satisfied investigation Judge Leibell sufficient supporting finding believes probably fruitless.' pointed proposes objected abandonment, reported accordingly petitions approval Notice given 'no recommendations trustee,' approved. provided, creditor desired bankrupt's estate expenses unless successful, § 64, sub. a(1) Bankruptcy Act, 60 Stat. 330, U.S.C. 104(a)(1), U.S.C.A. 104, a(1). Thereafter, permission granted. Counsel moved amend pleadings, irreparably prejudiced. raise learn us. Some us unable exemplifies injustice remolded save appellant. required claimants 1926. appellant divert trusteeship bankrupt corporation, renewed how multiple fees. apply means amends early 1950, think condemns unjust. tendered Court, certiorari, Dickinson. fate pending know compiled inform merits. original action; intervenor. too, not. judgments specific amounts claimants, whereas class. able deal dismissed, acted, draw inferences information unlitigated issues. Frank, dissenting 944—953. Crick, Basis Appeal, 41 539; Note, Judgments 49 1476. adjudicated 1948. temporary (later appointed trustee) Subsequently refused accepted recommendation expense By today's represented below, Paragraph reads: Findings Fact Conclusions Law 24th July, contended adequately regarded immaterial obtained recovery. distinctions listed footnote seem unsubstantial. immaterial; litigated being bound easily since expressly parties. liability, altered allocating Administrator 'appellee—appellant.'

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