Document: 460 U.S. 1 103 S.Ct. 927 74 L.Ed.2d 765 MOSES H. CONE MEMORIAL HOSPITAL, Petitionerv.MERCURY CONSTRUCTION CORPORATION. No. 81-1203. Argued Nov. 2, 1982. Decided Feb. 23, 1983. Syllabus Petitioner, a hospital located in North Carolina, entered into contract with respondent contractor, an Alabama corporation, for construction of additions to the building. Contract disputes were be initially referred architect who was hired design and oversee project. Disputes decided by or not within specified time could submitted binding arbitration under clause contract. Subsequently, during construction, claims extended overhead increase costs due petitioner's delay inaction. But resolved, petitioner refused pay them. Petitioner then filed action Carolina state court against architect, seeking declaratory judgment that there no right arbitration, liable respondent, if it would entitled indemnity from architect. A few days later obtained ex parte injunction forbidding take any steps toward but when objected stay dissolved. Respondent diversity-of-citizenship Federal District Court, order compelling § 4 United States Arbitration Act. The Court stayed pending resolution state-court suit because two suits involved identical issue arbitrability respondent's claims. Appeals, holding had jurisdiction 28 U.S.C. 1291, reversed Court's remanded case instructions enter arbitrate. Held: 1. appealable as "final decision" Appeals 1291. Since based on conclusion federal actions arbitrability, this only substantive present action, meant further litigation court. Thus, "effectively out court" so amounted dismissal action. Moreover, even final appealability purposes, nevertheless finality rule exception applies where conclusively determines disputed question, resolves important completely separate merits, is effectively unreviewable appeal judgment. Cohen v. Beneficial Corp., 337 541, 69 1221, 93 L.Ed. 1528. Pp. 8-13. 2. abused its discretion granting stay. 13-28. (a) district may decline exercise parallel exceptional circumstances; clearest justifications will warrant dismissal. Colorado River Water Conservation States, 424 800, 818-819, 96 1236, 1246-47, 47 483. decision whether dismiss grounds wise judicial administration does rest mechanical checklist, careful balancing factors (which first assumed over property litigation, inconvenience forum, avoidance piecemeal which concurrent forums jurisdiction) relevant they apply given case, balance heavily weighted favor jurisdiction. Ibid. 13-16. (b) exceptional-circumstances test set forth River, supra, undermined Will Calvert Fire Insurance Co., 437 655, 98 2552, 57 504. 16-19. (c) There showing requisite circumstances justify order. Concededly, assumption either res contention less convenient parties than other factors—avoidance current rather supporting stay, counsel it. fact obtains order, forced resolve dispute related different result choice between courts occurs law, Act, requires necessary give effect agreement. Hence, allow cause parties' underlying disputes. And before sufficient reason refusal arbitrate did occur until day suit, reasonable opportunity file first. priority should measured exclusively complaint first, terms how much progress has been made actions. Here, substantial proceedings taken place at whereas most issue. thus frustrated Act's policy rapid unobstructed enforcement agreements. 19-23. (d) law Act governs another factor militating See Calvert, supra. 23-26. (e) Finally, allowing probable inadequacy protect rights, since doubtful obtain 26-27. (f) dismissing outright render inapplicable. Pp.27-28 3. acted authority deciding contractual arbitrable contract, briefs evidentiary submissions both merits arbitrability. P.29 656 F.2d 933 (CA4 1981), affirmed. Jack W. Floyd, Greensboro, N.C., petitioner. A.H. Gaede, Jr., Birmingham, Ala., respondent. Justice BRENNAN delivered opinion Court. This commenced petition compel 1925 (Arbitration Act), 9 4, presents question whether, light policies our decisions 483 (1976), 504 (1978), Middle properly diversity suit. Fourth Circuit 933, rehearing denied, 664 936 1981). We granted certiorari. 455 937, 102 1426, 71 647 (1982). affirm. 2 * Moses Cone Memorial Hospital ("Hospital") Carolina. Mercury Construction Corp. ("Mercury"), principal business Alabama. In July 1975, drafted representatives Hospital, included provisions resolving arising breach. All involving interpretation performance work instance J.N. Pease Associates ("Architect"), independent architectural firm With certain stated exceptions,1 Architect (or time) party broad contract: 3 "All claims, matters of, relating to, breach thereof, . shall accordance Industry Rules American Association obtaining unless mutually agree otherwise. agreement specifically enforceable prevailing law. award rendered arbitrators final, upon applicable having thereof." App. 29-30. also limits demands.2 5 project began 1975. Performance completed October 1979.3 fact, substantially February 1979, inspections June. 6 At meeting 1977 (during construction), attended Mercury, Architect, agreed, Architect's request, withhold impact (i.e., inaction Hospital) completed. On record, contest existence agreement, although asserts lacked presentation entertain after 7 January 1980, costs. discussed several months, reducing amount According learned Mercury's April 1980; lawyers active participation claim procedure May. differ their characterizations events next months—whether "ongoing negotiations," merely "investigation" Hospital. event, appears record requested additional information concerning As result, August 12, gave detailed lawyers, Hospital's Architect. agreed send copies files expert meet again 13. 8 6, telephoned confirm scheduled go forward. said he call back day. When did, informed nothing claim. He intended True word, morning Superior Guilford County, naming defendants. alleged without factual legal basis barred statute limitations. It lost waiver, laches, estoppel, failure make timely demand arbitration. various delinquencies part relief, sought declaration arbitration; bore liability Mercury; found respect served 9. same day, mailed 10 15, notice directed objected, dissolved 27. soon lifted, 4.4 Jurisdiction citizenship. motion, federal-court Pet. Cert. A-38. 11 review mandamus. panel heard argument issued decision, consider en banc. After reargument, banc held appellate entry II 12 Before we address propriety Judge's must decide 1291.5 13 through alternative routes—a mandamus Writs 1651.6 expressly 18 1292 (relating interlocutory appeals). contends appealed disagree hold purposes 14 Idlewild Liquor Epstein, 370 713, 82 1294, 794 (1962), instructive regard. plaintiff brought challenging constitutionality statute. Judge declined convene three-judge Pullman abstention doctrine.7 therefore reviewable stating: 15 "The rejected 'was hence unappealable §§ 1292,' pointing '[a]ppellant court.' " Id., 715, n. S.Ct., 1296, 2.8 16 clearer. pursuant expectation resume event relief state-law grounds.9 contrast, predicated "the Hospital." That forum; court's judicata.10 here, more surely Idlewild, court." held, amounts suit.11 17 Loan 1528 (1949). required show have summarized follows: "To come 'small class' excepted final-judgment Cohen, determine judgment." Coopers & Lybrand Livesay, 463, 468, 2454, 2458, 351 (1978) (footnote omitted).12 19 can meets second third these criteria. An adjudicate plainly merits.13 For reason, entirely now. Once bound honor determination judicata. 20 criteria, namely "conclusively question." true technical sense every short decree subject reopening judge.14 however, suppose contemplated reconsideration his defer expected all issues adequately. infra, Part IV E. clear why chose outright; shows, form motion. Whatever practical appealable. III 21 turn now addressed, deference provides persuasive guidance question. A. 22 McCarran Amendment, 66 Stat. 560, 43 666, water 1345. Amendment waives Government's sovereign immunity permit joinder some adjudication rights. Government proceeded bringing 1,000 nonfederal users, rights entities Indian tribes. Shortly thereafter, defendant join proceeding comprehensive river system dismissed doctrine proceedings. Tenth reversed, 1345 inappropriate. affirmed complaint. 23 analysis examining forms. noted: 24 "Abstention exception, rule. 'The abstention, postpone jurisdiction, extraordinary narrow duty controversy Abdication obligation cases justified repair State clearly serve countervailing interest.' "15 25 canvassing three categories conclude none them applied hand. U.S., 813-817, 1244-46.16 26 Nevertheless, proper ground—one resting considerations state-federal comity constitutional decisions, "considerations '[w]ise administration, giving regard conservation resources disposition litigation.' "17 noted 'the pendency bar matter jurisdiction,' "virtually unflagging them."18 continued: 27 "Given obligation, absence weightier relations, permitting presence reasons are considerably limited appropriate abstention. former circumstances, though exceptional, do exist." 818, 1246. prescribe hard fast dismissals type, instead described decision. 29 "It example, assuming exclusion courts. assessing appropriateness such desirability avoiding litigation; forums. No one necessarily determinative; carefully considered taking account combination counselling required. Only dismissal." d., 1246-47 (emphasis added; citations omitted). 30 passage makes clear, weight vary greatly depending particular setting case. itself illustrates principle operation. By far approve "clear [of] system," id., 819, 1247, evinced Amendment. recognized represents Congress's field peculiarly treatment greatest experience expertise, assisted administrative officers acting 819-820, 1247-48. addition, tended support dismissal—the extensive governed law; geographical previous willingness litigate similar 820, 1247. B 31 discussing application 's test, subsequent (1978). find merit least reasons. 32 relies REHNQUIST, announcing argues REHNQUIST's opinion, overruling modifies substantially. majority reaffirmed Calvert. commanded four votes. opposed dissenting Justices concluded impermissible River. 668-669, 672-674, 2560, 2562-63 (BRENNAN, J., dissenting). BLACKMUN, concurring judgment, dissent controlling; voted remand instance.19 667-668, 2559-60. remand, correctly BLACKMUN formed require test. Co. Will, 586 (CA7 1978).20 Even obvious distinction key standard issuance writ 1651.21 REHNQUIST stressed, writs used aid confine inferior lawful prescribed authority, so. movant indisputable. 661-662, 664, 665-666, 2556-57, 2558, 2559 (opinion J.). failed burden. time, might succeeded appeal. 665, 2558. jurisdiction; exercised 33 reversal here opinions greater Under course, left instance. Yet say unreviewable; elucidated explain, 34 Applying 35 concedes mentioned here. property, nor forum forum. remaining forums—far actually 36 force consideration paramount itself—the danger litigation. 37 points here—one costs, Mercury. latter cannot sent consent, true, therefore, dispute, misfortune, courts; agreement.22 enforced notwithstanding persons agreement.23 If resolved separately—one (if all) Conversely, arbitrable, neither those outcomes depends decides Although court, easily severable 38 tribunals cuts against, for, place, disregards filing. indispensable element 27, infra. simply secure arbitration.24 dissolved.25 39 aside, gives too reading "priority" balance. factor, factors, pragmatic, flexible manner view realities point well. There, pointed favoring apparent filing complaint, prior motion dismiss." 1248. opposite true. (excepting abortive temporary injunction) issue.26 realistic terms, running well ahead very refuse 40 proceed erroneous intent, move quickly possible. devices enforcing agreement: raising referable 3, affirmative engage 4. Both sections expeditious summary hearing, restricted inquiry issues.27 Assuming prompt Act,28 still inevitable statutory C 41 Besides emerges —the merits. state-versus-federal-law ambiguous relevance River.29 four-vote BLACKMUN's 667, (BLACKMUN, judgment); 2560-64 815, 21, 1245, 21. equally involves issues. 42 basic presented Section primary provision declaring written "in maritime transaction evidencing commerce valid, irrevocable, enforceable, save exist equity revocation contract." 2.30 congressional liberal agreements, procedural contrary. section create body coverage Prima Paint Flood Conklin Mfg. 388 395, 87 1801, 1270 (1967), signed containing clause, fraud inducement entire (although particular). us controversy. language arbitrable. 402-404, 1805-06. specific presented, appeals consistently questions addressed healthy agree. establishes that, doubts scope problem hand allegation delay, like defense arbitrability.31 To sure, source-of-law significance courts' enforce courts.32 emphasize task court; rather, ascertain "exceptional" "clearest justifications," suffice surrender rare weigh surrender, see 29, federal-law always major weighing surrender.33 D 44 understood impeach competence procedures courts, obliged grant stays Act.34 Act.35 need here; suffices was, minimum, room doubt arbitrate.36 many cases, doubt, quite adequate this, opposing whom payment sought, alone enough. leaves recalcitrant free sit nothing—neither arbitrate, sure way except return order—a pointless wasteful burden supposedly speedy E 45 somehow inapplicable outright, remains seek reopen onerous already distinction, Supra, 12-13. reject context 46 occasion ordinarily preferred course finds counsels deferring suit.37 say, presumably concludes vehicle complete parties. serious abuse all. D; McNeese Board Education, 373 668, 674-676, 83 1433, 1437-38, 622 (1963). invoke contemplates dismisses. C. Wright, Miller Cooper, Practice Procedure 4247, 517-519 unexpected inadequate respect, fails genuine difference proved necessary; highly questionable approved 14) remain open demonstrated V 48 addition reversing "with conformity herewith." F.2d, 946. effect, 49 correctness Appeals's raise objections considering particular, formally Ordinarily, expect pass disposed disturb handling special interests stake lack prejudice 2106 latitude entering achieve justice circumstances. calls motions petitions clauses. full requiring jury trial facilitate Congress envisaged. 50 Affirmed. THE CHIEF JUSTICE O'CONNOR join, dissenting. 51 zeal provide thinks deserving, established rules procedure. attempt cast meaning word "final", appeals, judges administer laws 52 proceeding, date months away, interlocutory, 1292(b). summarily" trial, guides not, own force, dispose Such tentative; is, change sua sponte. 53 final. delayed completion being delayed, applying act, arisen. finding. judicata collateral estoppel reached likelihood competent recess, briefing five advisement immediate bench. possibility magically character judge 54 1291 Judicial Code Congressional command interfere management ongoing Unless high standards met, certifies 1292(b), permitted conduct fit. simple: 55 "Since grace ingredient justice, beginning has, what single controversy, enfeebling administration. Thereby avoided obstruction just harassment cost succession rulings rise, initiation effective, leaden-footed. Its momentum arrested reviews component elements unified cause." Cobbledick 309 323, 325, 60 540, 84 783 (1940) (Frankfurter, unanimous court). 56 places unwarranted limitation power control cases. establish ante, 10-11, 11, uncertainty about appealed. litigants opportunities disrupt colorable orders, nearly ingenuity disappointed ruling analogize one. end. occasional injustice litigant results outweighed systemic disruption created encouraging appeals. attracts attention error perceives surface receives appear published obscured "merits" hidden among statistics seeming interminable nature concern generally hesitate creating however narrow, acknowledged importance recently called "death-knell" Coopers, putative representative whose class certification denied accepted put him 470, circumstance "[A]llowing non-final orders facts thrusts indiscriminately process defeats vital purpose rule—'that maintaining relationship respective goal, contrary, worth preserving.' 476, 2462 (quoting Parkinson Industries, Inc., 520 650, 654 (CA2 1975) (concurring opinion) ). 58 sound, principled justification thrust begins citing (1962). "to courts." 714, 1296. "was 59 First, Idlewild. risk violating More importantly, good describes collateral-order (1949), decertification Fed.R.Civ.P. 23(c)(1). Ante, 12-13, 14. to" 468-469, 2458. went so-called doctrine, become unable pursue stands. 469-477, 2458-62. attach "if 'death knell' merit, ordinary tactical economic defeat tantamount case." 2459. 1292(b) nonfinal "death knell" circumvents restrictions. 474-475, 2460-61. ignoring discussion unjustified 61 states quotes formulation : 62 "[T]he quoted, 11-12. 63 question" above. assertion sheer speculation mind Judge. hardly "practical construction"* 546, 1225. itself, defendant's post bond ground apply. determined" conceivable affect number plausible convinced decision—that promptly fairly longer applied. 64 Furthermore, I am staying "an issue." deemed "important" appellant prevail. adjudicated believe wrongly, rightly disclaims, 26, disadvantage. 65 reasons, Interlocutory committed Courts, ill-serves overwhelming devising exceptions believes wronged. Given my appealability, disturbed, sanctioned departure usual affirming 67 ordered maintained original Marbury Madison, Cranch 137, 174-176, (1803) ("It essential criterion revises corrects instituted."). understand perform non-appellate act. 68 2106, appeals: "may affirm, modify, vacate, aside reverse decree, lawfully review, direct circumstances." 70 constitute themselves trial. seems kind business. Courts determine. memoranda but, contrary intimation, argued Appeals. 948, (Hall, dissenting) ("No issue."). know substitute normal 72 below vacated directions want Failing correct error, insofar "matters artistic effect." 28-29. excluded waived making acceptance payment. 29. Neither asserted provided thirty submission "within arisen," limitations run. starting limit demands. earlier ten evidence time. date, originally November 14, 1978, 1979 Simultaneously, removal removed corporations, diversity. part: Supreme Court." styled alternative," stricter Brief 30-31. benefit Hospital; frivolous. Fed.Rule App.Proc. 3(a). fundamentally, [its] jurisdictio[n]," 1651, contemporaneous See, e.g., Hines D'Artois, 531 726, 732, (CA5 1976). Railroad Commission 312 496, 643, 85 971 (1941). injunctive relief. 1292(a)(1); Carson Brands, 450 79, 101 993, (1981). "final." dissent's attempt, post, 33, distinguish issued. suggested doors anything wide plaintiff. "[E]ffectively means court—in keeping yield odd immediately Texas states. Compare Trial Lawyers Assn. New Jersey 409 467, 627, 651 (1973) (stays cases), Harris County Commissioners Moore, 420 77, 88-89, 95 870, 877-78, (1975) (dismissal permissible accommodate jurisdictional requirements). oddity artificiality otherwise substanceless context. England Medical Examiners, 375 411, 461, 440 (1964). Ultracashmere House, Ltd. Meyer, 1176, 1183-1184 (CA11 1981); Merrill Lynch, Pierce, Fenner Smith, Inc. Haydu, 637 391, 397-398 re 937-938, dispositive Amdur Lizars, 372 103, 105-106 1967). Federman Empire Marine 597 798, 808, 1979); Baltimore Bank Cooperatives Farmers Cheese Cooperative, 583 104, 108-109 (CA3 1978); Sun Oil FEA, 572 867 (Em.App.1978); Rancho Palos Verdes Laguna Beach, 547 1092, 1093, (CA9 1976); 730-732 Drexler Southwest Dubois School 836, 838 1974) (en banc); Druker Sullivan, 458 1272, 1274, (CA1 1972). Acton Borden, 670 377, 380-382 1982); Farm Mutual Automobile Scholes, 601 1151, 1153-1154 (CA10 Frederick L. Thomas, 578 513, 515-516 1978) (dictum). Of recognize, Amdur, 105-106. reasoning (under closely doctrine) object litigated answers argument, 33-34, overruled 2458-62, appealability. death knell rested situations (such certify class) terminate named incentive individual plaintiff's ability himself choose proceed, refuses Appeal grounds, prospect "appeals case," Lybrand, 2462. foresee great difficulty determining surrendered lawsuit. errs likening interest docket control, becomes common sole precisely Accord, Firestone Tire Rubber Risjord, 449 368, 375, 669, 674, 571 (1981); MacDonald, 435 850, 854-855, 1547, 1549-50, (1978); Abney 431 651, 658-659, 97 2034, 2039-40, (1977). "completely merits" requirement distillation "steps towards merge." 1225, step Civ.Proc. 54(b); 4478, 788-792 because, "inherently tentative" Rule Civil 23(c)(1), "altered amended merits." 469, 11. 54(b) provides, virtually altered shown; yet pretrial phrase Lybrand. rationale behind 23(c)(1) "[a]s practicable," discoveries mandate result. Many addressed. Certainly reach revision, revision reasonably 813, 1244, quoting Allegheny Frank Mashuda 360 185, 188-189, 79 1060, 1062-63, 1163 (1959). 817, 1246, Kerotest C-O-Two Equipment 342 180, 183, 219, 221, 200 (1952). McClellan Carland, 217 268, 282, 501, 504, 762 (1910). Our came down continued, (Calvert 560 792 1977)) They "defensive maneuver" contrived claim; hence, "a deter vexatious use interim, exclusive vanished. Reinsurance 600 1228, 1234-1236 1979), aff'g 459 F.Supp. 859 (ND Ill.1978). relied reasoning. despite chronological filing, contrived, defensive reaction 944-945. —that reactive influence —has considerable merit. rely infra faith warranting appeal, apparently portion 792, 1977), Cotler Inter-County Orthopaedic Assn., 526 537, 540 1975). Cf. banc) (stay exhaustion remedies sharp contrast E.g., Itoh Jordan International 552 1231-1232 1977); Acevedo Maldonado PPG 514 614, 617 1975); Hamilton Life Republic National 408 606, 609 1969). advisable non-arbitrating outcome rules) docket. Landis 299 248, 254-255, 163, 165-66, 81 153 (1936). mean prevent prosecuting General Atomic Felter, 434 76, 199 (1977); Donovan City Dallas, 377 408, 1579, obliged, contempt sanctions cut period 20, treated procedurally affidavits, briefs, documentary sought. responded issue, oral successful readily doubtless gone covered pending, satisfied providing applicant default arbitration." "upon comply therewith point. request 24-25. thought arbitrable—further speeding (1967). 34, infra; cf. nn. 35-36, point, 825-826, 1250, federal/state controlling approving court—the Second, tribes bulk revolve around thousand case—a "Maritime transaction" "commerce" defined Dickinson Heinold Securities, 661 638, 643 Wick Atlantic Marine, 605 166, 168 Becker Autoradio U.S.A., Autoradiowerk GmbH, 585 39, 43-45 Hanes Millard, 174 U.S.App.D.C. 253, 266, 585, 598 (1976); 616-617 Germany Terminal R. 477 (CA6 1973); Coenen R.W. Pressprich 453 1209, 1211-1212 1972); Hart Orion 1358, 1360-1361 1971). something anomaly creates establishing regulating federal-question 1331 (1976 ed., Supp. IV) dispute; citizenship Commercial Metals Balfour, Guthrie, 577 264, 268-269 1978), cited. likewise extent existence. large vindicated appropriate. 2283. refers ambiguously States," almost unanimously (The Burke Public Schools Education Shaver Partnership, 303 N.C. 279 S.E.2d 816 (1981).) carry intent agreements; attempts sues Paint, 404, 1806. unlike speaks "any Nonetheless, section's conditions met. Main Smith Cal.App.3d 19, 24-25, 136 Cal.Rptr. 378, 380-381 historical matter, then-controlling precedent all, N.C.App. 573, 265 481 (1980); Bryant-Durham Electric Durham 351, 256 529 (1979). repudiated decisions. reservation, Cf., abstention). me

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