Legal Document

517 U.S. 706116 S.Ct. 1712135 L.Ed.2d 1 QUACKENBUSH, CALIFORNIA INSURANCE COMMISSIONER, et al.v.ALLSTATE CO.Certiorari to the United States Court of Appeals for Ninth Circuit. No. 95-244. Supreme Argued February 20, 1996 Decided June 3, Syllabus* Petitioner California Insurance Commissioner, as trustee over assets Mission Company and its affiliates, filed a state court action against respondent Allstate Company, seeking, among other things, contract tort damages Allstate's alleged breach reinsurance agreements. removed federal on diversity grounds motion compel arbitration under Federal Arbitration Act. The Commissioner sought remand court, arguing that District should abstain from hearing case Burford v. Sun Oil Co., 319 U. S. 315, because resolution might interfere with California's regulation insolvency. Specifically, indicated issue whether could set off own claims Commissioner's recovery was question law currently pending before courts in another insolvency case. Observing State's overriding interest uniform orderly insurance insolvencies liquidations be undermined by inconsistent rulings courts, determining setoff resolved concluded abstention appropriate remanded without ruling motion. After appellate review Court's order not barred 28 C. Section(s) 1447(d), appealable 1291 final collateral order, Circuit vacated decision ordered sent arbitration. Concluding is limited equitable actions, held inappropriate this action. Held: 1. An abstention-based 1291. Section 1447(d)-which provides "[a]n remanding State which it reviewable appeal or otherwise"-interposes no bar at issue. Only remands based specified does fall into either category described 1447(c): It lack subject matter jurisdiction defects removal procedure. here falls within narrow class orders are immediately puts litigants effectively out effect precisely surrender suit court. Moses H. Cone Memorial Hospital Mercury Constr. Corp., 460 1, 11, n. 11. also conclusively determines an separate merits, namely decline exercise comity federalism; rights asserted sufficiently important warrant immediate appeal; will subsumed any entered Court. See Cone, supra. Thermtron Products, Inc. Hermansdorfer, 423 336, 352-353, "an represent judgment appeal," disavowed extent would require ignore implications later holding Cone. Pp. 4-8. 2. have power dismiss cases principles only where relief otherwise discretionary. Because action, unwarranted application doctrine. 8-25. (a) In nature discretionary, stay principles, but can also, circumstances, altogether dismissing See, e.g., Great Lakes Dredge & Dock Co. Huffman, 293, 297. By contrast, may actions those do support outright dismissal actions. Louisiana Power Light Thibodaux, 360 25, 28. 8-16. (b) allows if presents "difficult questions bearing policy problems substantial public import whose importance transcends result then bar," adjudication forum "would disruptive efforts establish coherent respect concern." Colorado River Water Conservation Dist. States, 424 800, 814. This represents extraordinary exception district court's duty adjudicate controversy properly it. 16-22. (c) Applying case, interests pronounced, Act implicates concern enforcement With regard interests, appears first blush present nothing more than run-of-the-mill dispute: seeks failure perform obligations agreement. 22-23. (d) To cannot, Burford, when consistent cases. conceded neither nor committed discretion. However, limiting cases, applied per se rule rigid precedents require. Since completely inapplicable supported proceedings outcome litigation being reviewed, and, thus, necessary determine been warranted facts 23-24. 47 F. 3d 350, affirmed. O'Connor, J., delivered opinion unanimous Scalia, Kennedy, concurring opinions. Justice O'Connor we consider 1291, doctrine recognized 315 (1943), common-law damages. I. 2 Petitioner, California, appointed affiliates (Mission companies) 1987, after companies were liquidation effort gather defunct companies, instant seeking certain agreements, well general declaration 3 Act, 9 seq. (1988 ed. Supp. V). supra, asserting right contract, viability these hotly disputed law, arising 4 observed "California has regulating manner," "this courts." App. Pet. Cert. 34a. Based observations, determination one abstention. did hand courts' issue, instead entire 5 see Garamendi Ins. 352 (CA9 1995) (citing 336 (1976)), 3d, 353-354 (1983)), nature, therefore purported legal relief. 3d., 354-356; 35a-37a (order denying petition rehearing had waived argument involved request relief). 6 Circuit's conflicts decisions appeals, Doughty Underwriters Lloyd's, London, 856, 865 (CA1 1993) appealable); Corcoran Ardra Ltd., 842 2d 31, 34 (CA2 1988) (same); re Burns Wilcox, 54 475, 477, 7 (CA8 Minot Eckardt-Minot, 13 590, 593 1994) doctrine), exercised sought, Lac D'Amiante du Quebec, Ltee American Home Assurance 864 1033, 1045 (CA3 (Burford declaratory relief); Brandenburg Seidel, 859 1179, 1192, 17 (CA4 damages); Wolfson Mutual Benefit Life 51 141, 147 Fragoso Lopez, 991 878, 882 (federal "sitting equity"); University Maryland Peat Marwick Main 923 265, 272 1991) Baltimore Bank Cooperatives Farmer's Cheese Cooperative, 583 104, 111 1978) (same). We granted certiorari resolve conflicts, 516 ___ (1995), now affirm different provided II. hear confers appeals "final decisions" otherwise." agree parties 1447(d) interposes 352; Brief 29-30; Respondent 13-14, 12. As 345-346, reiterated Term Things Remembered, Petrarca, ___, (1995) (slip op. 3), "Section(s) must read pari materia 1447(c), so 1447(c) immune 1447(d)." gloss renders here: 8 Finding affirmative obtained "a party entitled single appeal, deferred until entered, error stage ventilated." Digital Equipment Corp. Desktop Direct, Inc., 511 (1994) op., 4) (citations omitted). Accordingly, ordinarily considered "ends merits leaves execute judgment." Catlin 324 229, 233 (1945); Digital, 3) (quoting standard). recognized, however, meet definition finality, nevertheless they "`conclusively [a] question'" "`completely action,'" "`effectively unreviewable judgment,'" Richardson-Merrell Koller, 472 424, 431 (1985) Coopers Lybrand Livesay, 437 463, 468 (1978)), "too denied review," Cohen Beneficial Industrial Loan 337 541, 546 (1949). appealability us controlled our (1983). 800 (1976), staying completion affirmed two independent grounds. 10 decision" put court,'" S., 11 Idlewild Bon Voyage Liquor Epstein, 370 713, 715, (1962) (per curiam)), "precisely court," These standards reflect oft-repeated Catlin, 233); see, definition); Lauro Lines s.r.l. Chasser, 490 495, 497 (1989) Van Cauwenberghe Biard, 486 517, 521-522 (1988) (same), found their compelled precedent, ("Idlewild's reasoning (under River, abstention, closely similar doctrine) object all essential part litigated forum"). alternative reliance Idlewild, determined "presents merits" "amounts refusal adjudicate" court; such reviewed bound, res judicata, honor judgment; unlike orders, readily reconsidered ilk "conclusive" practical equivalent 12 relevant respects indistinguishable No less federal-court dispute 2), Indeed, clearly "final" sense. When disassociates itself entirely, retaining docket. federalism. infra, 9, 20. addition, are, view, appeal. 8-9, 17-21 (describing weighed Burford); cf. 15) (review issues "`too review'") Cohen, 546). And, like 14 previously stated appeal." 352-53. asks adhere statement hold through writ mandamus. disavow Thermtron's judgments" doubtless (posing mandamus vehicle), principal interpretation embodied 4, concerning procedural vehicle reviewing peripheral concern. Moreover, brief question, refer decisions," nowhere addresses cites proposition mandamus, Railroad Wiswall, 23 Wall. 507 (1875), superannuated little vitality today, compare id., 508 (deeming "writ what done" appeals'"refusal decide") 10-11, (holding amounts decide case). 15 Admittedly, traditional finalitythey "en[d] leav[e] judgment," 233. But functionally 6-7, conclude appealable, turn respecting III. A. 16 often acknowledged strict conferred upon them Congress. 821 ("[F]ederal virtually unflagging obligation . given them'"); England Bd. Medical Examiners, 375 411, 415 (1964) ("`When appealed jurisdiction, take jurisdiction'") Willcox Consolidated Gas 212 19, 40 (1909)); Cohens Virginia, Wheat. 264, 404 (1821) "have given, usurp not"). not, absolute. Canada Malting Paterson 285 413, 422 (1932) ("[T]he having it, universally true"). "`exceptional circumstances,'" serve countervailing interest, 813 County Allegheny Frank Mashuda 185, 189 (1959)), example considerations "proper constitutional adjudication," "regard federal-state relations," "wise judicial administration," 817 (internal quotation marks thus refrain criminal proceeding, Younger Harris, 401 37 (1971), types civil proceedings, Huffman Pursue, 420 592 (1975); Juidice Vail, 430 327 (1977); obviated opportunity interpret ambiguous Comm'n Tex. Pullman 312 496 (1941); raising "intimately [the states'] sovereign prerogative," proper impaired unsettled (1959); 31 (Stewart, concurring); unnecessarily system collection taxes, 293 (1943); duplicative (1976); Pennsylvania Williams, 294 176 (1935). 18 Our longstanding doctrines reflects "the commonlaw background statutes conferring enacted," New Orleans Public Service, Council City Orleans, 491 359 (NOPSI) Shapiro, Jurisdiction Discretion, 60 N. Y. L. Rev. 543, 570-577 (1985)). correctly indicated, 354, long established authority "is asked employ historic powers equity," Fair Assessment Real Estate Assn., McNary, 454 100, 120 (1981) (Brennan, concurring). tradition informs understanding Congress explains development doctrines. Pullman, example, explained principle underlying follows: 19 " history equity consequences employing remedy injunction. Few higher claim discretion chancellor avoidance needless friction policies, relates administration specialized scheme liquidating embarrassed business enterprises, doubtful regulatory laws state. system, whereby `exercising wise discretion,' restrain `scrupulous rightful independence governments' smooth working judiciary. use contribution furthering harmonious relation between need rigorous congressional restriction powers." 500-501 20 Though located treated "technical procedure." Rather, exercising extends grant deny NOPSI, (mandate "does eliminate relief"). suits injunctive relief, required classes judgments, 297 challenging constitutionality tax); Samuels Mackell, 66, 69-70, 72-73 (1971) (extending actions), granting generally discretion, Wilton Seven Falls 515 5) "discretion entertain Declaratory Judgment even satisfies subject-matter jurisdictional prerequisites"). 21 Nevertheless, addressed Cf. Deakins Monaghan, 484 193, 202, (reserving requires Ankenbrandt Richards, 504 689 (1992) (discussing, applying, action). sure, 1983 tax scheme, 115, subsequently about scope cause National Private Truck Council, Oklahoma Tax Comm'n, 7-8), apply very limited. unconstitutional award turned fact unconstitutional. drew analogy approved "[t]he Civil Rights `declaration' unconstitutionality halt operation." Assessment, 115. 22 Otherwise, "at law" permit enter postpones dispute, altogether. 28-30 (approving order); Fornaris Ridge Tool 400 41, 44 (1970) curiam) (directing "hold Puerto Rican authoritatively ruled local light claims" (footnote omitted)) (emphasis added); Pipe Line Ideal Cement 369 134, 135-136 ("Wise counsels potentially controlling state-law rest"); Clay Office 363 207, (1960) "postponement suit). Thibodaux 185 (1959) illustrate distinction drawn dismissals merely suit. city brought eminent domain proceeding condemn property owned Florida corporation. corporation grounds, decided law. arise "equity" 28, compensation taking, lacked corporation's claim. Nonetheless, state's] prerogative." Ibid. prevailed conventional avoiding hazards serious disruption government authorities similarly in, to, court." And conclusion, 24 same day abstaining Unlike stayed rather dismissed large measure distinction, reversed order. 190; concurring) ("In Mashuda, holds complaint" added)). 25 careful note suit, held, constitute abnegation duty. On contrary, productive discharge There postponement best fruition." Id., 29. while 26 One line bears mentioning. deal doctrines, non conveniens. seminal recognizing Gulf Gilbert, 330 501 (1947), sitting York Virginia locale adjudicating dispute. 503. "rare," 509, conveniens equity: 27 "This Court, approving name never rejecting integral [the] evolution Wherever jurisdictions, depend equity." 505, venue, expectation refile Virginia. transfer venue function superseded statute, 1404(a); Piper Aircraft Reyno, 235, 253 (1981), continued recognize doctrine, done "cases abroad." Dredging Miller, 510 443, 449, (1994); Piper, 265-269 (dismissal wrongful death 29 manner change analysis proceed premise: rare relinquish favor forum. distinct historical pedigree, behind differ markedly informing abstain. Compare Dredging, 448-449 "multifarious factors," including both private allow conveniens) 332-333 "federal-state conflict" yield forum). deference paramount sovereign, ibid.; Younger, 44-45. Dismissal conveniens, historically reflected far broader range considerations, 241, 257-262 bear decision); Oil, 508-509 most notably convenience difficulties attend locality, 257-259 (evidentiary problems, unavailability witnesses, difficulty coordinating multiple suits); (availability interplead corporation, location evidence). B. 30 mind, contours presented "reasonableness" issued Texas Commission, drill four oil wells small plot land East field." 317. Due overlapping many who common pool industry, endowed Commission exclusive area. placed Commission's "[t]o prevent confusion 326, experienced cadre judges obtain "specialized knowledge" field, 327. demonstrated maintaining had, years preceding become increasingly reasonableness standard imposed Process Clause, Rowan Nichols 310 573, 577 (1940), standard, 317, 326. Viewing simple enjoin order," framed terms jurisdiction: 32 "Although particular may, sound invoked ground citizenship otherwise, `refuse enforce protect rights, prejudicial interest,' `is discretionary governments carrying domestic policy.' While argued, find one: Assuming declined here?" 317-318 omitted) ex rel. Greathouse Dern, 289 352, (1933) 185). 33 Having posed "in complaint number unique noted, instance, presented, stating "order consideration devised conservation gas Texas, aspect `as thorny problem challenged ingenuity wisdom legislatures.'" 318 Rowan, 579). stressed area, 318-319, citing unified procedures "prevent 325-326, designed serve, 319-320. Most importantly, detrimental impact ongoing already led contradictory adjudications courts. 327-328, 331-332. ultimately availability alternative, threatened frustrate purpose complex administrative established. 332 ("The whole cycle conflict cannot permitted begin again"). since generalized descriptions Allegheny, ("abstention disrupt process"); 814-816 (abstention "exercise concern"), rest loosely rationale, (1959), revisited infrequently intervening 50 years. 350 (1989). 35 recent exposition again equity, illustrated circumstances justify NOPSI preemption. A utility saddled Energy Regulatory cost building operating nuclear reactor approval rate increase Orleans. explore `the legality prudency' [sic]" expenses allocated FERC decision, 355, injunction Council's increase. claimed "federal recover, retail rates, FERC-allocated share [cost reactor]." pre-emption raised case; there claims. 36 reversing relief," 359, Alabama Pub. Serv. Southern R. 341 341, 350-351 (1951), permits 361, circumstances. "`difficult bar,'" "`would concern.'" 361 814). provide "case [did] involve claim, assertion [were] `in way entangled skein untangled proceed,'" McNeese Board Ed. Community Unit School 187, 373 668, 674 (1963)), threat ensuring uniformity ratemaking decisions: 38 "While concerned protecting processes undue influence, whenever exists process, `potential conflict' policy. Here, NOPSI's primary prohibited refusing reimbursement wholesale costs. agency misapplied lawful failed weigh factors, sort attempt ensure treatment `essentially problem.'" 362 347) 39 formulaic test appropriate, demonstrate 9-16 doctrines), derives enjoyed equity. They further "principles federalism comity." Growe Emison, (1993). Ultimately, stake competing "independence action," 334, adjudicated (question "unduly intrude undermine ability maintain desired uniformity"). balances strong "uniformity problem,'" 347), control import," balance rarely favors "`extraordinary it.'" 188). turn, finally, 363, Mitsubishi Motors Soler Chrysler-Plymouth, 473 614, 631 (FAA "emphatic arbitral resolution"); 25-26 (in deciding defer presence federal-law always major weighing surrender"). What differentiates anything, court: amount illegal "preference" answered Prudential Reinsurance Superior Los Angeles Cty., Cal. 4th 1118, P. 48 (permitting reinsurers assert insolvency), although time still contested. 41 "Burford solely relief." 354. Addressing "locat[ed] courts," "`discretionary withhold relief.'" 355 350-351). reversal rule: "[T]he least founded possess cases." 355-356. 42 traditionally 9-11, 14, rehearing). "withhold concluded," Growe, 32; is, applying stay, altogether, 11-14. 43 strictly "equitable cases," 356, extended some form 297; Samuels, 72-73; 12-14, postpone For situation faced appropriate: ruled, point, justified entering await litigation. Like Circuit, unnecessary occasion additional 11-12. Nor inquire fully "exceptional circumstance" yielding appropriate. Under precedents, 45 ordered. 46 djq concurring. I join write separately respond Kennedy's concurrence. joining says he "not possibility affront averted way," post, 1-2. joined today's believed left available. Such foreclosed, think, holding, summarized concluding sentences opinion: "Under doctrine." Ante, 24-25. 49 projected horrible "serious federalism" possibly materialize holding. lawfully decides pre-empt action-which (and affirms) instructs matters If today felt empowered congressionally decreed constitutes affront" much differently. pertinently, "to `exceptional circumstance' appropriate." 24. certainly inquiry thought relevant. "[then] Kennedy refers, basis pointed "overriding says, 52 filed, position Mission. reason question. reasonable. express consent, precise detailed schemes industry. e. g., McCarran-Ferguson 59 Stat. 33, amended, 1011 chosen implement reason, less, hand. 53 At time, extension authorized necessary. explains, doubt preferred course potential intrusion jurisdiction. ought out, though, way. reach here. Abstention significant theory preservation practice. give recognition role States. account inform Principles sole foundation rules; comity, justification well. 334 ("a hand"); 37, (rooting functions" "sensitivity legitimate Governments"); (1976) "considerations relations"). 551-552 (1985). makes easiest dismissal, yet damages, fundamental concerns face 55 * syllabus prepared Reporter Decisions reader. Detroit Lumber 200 321, 337.

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