Court Opinion

ID: 9473580
Source: CourtListenerOpinion
Date Created: 2023-08-05 04:33:26.693572+00
Date Added: 2024-06-11T17:43:36.518518
License: Public Domain

*206OPINION OF THE COURT
GARTH, Circuit Judge:
Cravath, Swaine, and Moore (Cravath) here appeals an order of the district court taxing a portion of Baker Industries’ attorney’s fees against them. Concluding that the record amply supports the district court’s finding that Cravath’s conduct in the course of representing Cerberus, Ltd. in this case constituted bad faith, we affirm the award of attorneys’ fees under 28 U.S.C. § 1927.
I.
The district court ordered Cravath, Swaine, and Moore to pay Baker Industries, Inc. the legal fees which Baker incurred by reason of certain aspects of Cravath’s conduct in representing Cerberus Limited in a patent licensing suit. The specific conduct of which Baker complained was Cravath’s filing of objections to the legal conclusions of a special master1 who was appointed at the district court’s suggestion, pursuant to a stipulation of the parties. The stipulation into which Baker and Cerberus entered was arrived at after an extended colloquy between both parties and the court. The terms of the parties’ stipulation are spread on the transcript record of the hearing held October 14, 1982.
In sum, the Baker-Cerberus stipulation provided as follows: (1) that the issues pending before the district court relating to an injunction against Baker’s sale of smoke detectors were to be referred to a referee; (2) that the issues pending in arbitration, relating to breach and termination of the underlying contract, were to be referred to the same referee; and (3) that litigation between the parties then pending in Boston and New York was to be stayed pending the referee’s determination. In particular, and because of the nature of the contested issues this stipulation barred review by any court of the referee’s conclusions of law as well as of fact. Despite this non-appeala-ble feature of the stipulation, Cravath filed with the district court numerous objections to the referee’s decision. The district court found that Cravath’s action in seeking such review was taken in bad faith, given its stipulation that it would not appeal from the referee’s determination.
Cravath, in disputing the non-reviewability of the referee’s findings and conclusions, relied on precedents which Cravath cited as holding that parties cannot effectively stipulate to shield from review the legal conclusions of a Rule 53 master. Baker Industries disputed Cravath’s characterization of the reference to the referee as a Rule 53 proceeding, and the district court agreed with Baker Industries, reading the Rule 53 cases on which Cravath relied, to be inapposite.
A.
The underlying action was brought by Baker Industries, the licensee, to enjoin Cerberus’ attempt to terminate a long term patent license for the manufacture of smoke detectors. The merits of the termination were to be settled by arbitration, pursuant to a contractual arbitration clause. Baker’s suit was originally brought in New Jersey state court, and then removed to federal court by Cerberus.
The injunctive relief sought by Baker was denied by the district court as being covered by the arbitration clause and thus precluded by that clause. The district court’s order was affirmed by this court on appeal. Baker Ind., Inc. v. Cerberus, Ltd., 692 F.2d 747 (3d Cir.1982) (table). Cerberus then counterclaimed to enjoin Baker from selling its smoke detectors, claiming that these issues were not subject to the arbitration clause. Meanwhile, related suits were pending in both New York and Massachusetts.
At the urging of the district court, the parties agreed to refer all the issues before the district court, as well as the portion of *207the dispute pending before the arbitrators, to a hearing before a neutral party — a referee — to be selected by the court. The advantage to be gained by such a reference was the possibility of judicial control over all of the issues,2 thus concluding all disputes between the parties in one proceeding. The referee was to have power to order discovery. As a condition to acceding to the appointment of a referee, the district court required an express agreement of the parties that the referee’s decision would be final and not reviewable. Both parties thereupon stipulated “that the findings of fact will be final” and that “the conclusions of law will be final.” According to the court:
[Question by Mr. Rosenbaum, counsel for Baker Industries: T]he Master’s decision is not reviewable by you[?]
THE COURT: That is right. And if (sic) not reviewable by the United States Court of Appeals for the Third Circuit and not reviewabling (sic) by the Su-' preme Court of United States, and not reviewable by the World Court—
It is evident from a reading of the transcript that absent full and complete agreement by the parties to the terms of the stipulation the district court would not have appointed a referee and would not have endorsed the reference procedure agreed to by the parties.
The precise nature of the court’s reference is both disputed and the subject of some confusion. Nevertheless, despite the confusion in terminology by both the parties and the court, it is evident that what emerged was a hybrid form of reference— not a classic Rule 53 master, nor a conventional arbitrator. Rather, the court appointed an impartial referee granting him the powers agreed to by the parties.
To illustrate the confusion that led up to the appointment, we note that the district court repeatedly referred to the referee as a “Master” during the conference, which led to the parties’ stipulation. It was in this connection that the district court discussed the Fed.R.Civ.P. 53 provisions relating to Masters.3
From the outset, the parties realized, however, that a true Rule 53 reference was inappropriate, as the district court lacked subject matter jurisdiction over the portion of the dispute covered by the arbitration clause. Indeed, at a hearing on the appointment of the referee, the district court, although referring to the appointee as an arbitrator-master, denied that the reference was to arbitration. “He’s not an Arbitrator. The proceeding you are about to go through is not an arbitration.” At the same hearing, the court referred to the referee as the “Arbitrator-Master” and to the reference as an “Arbitration-Mastership.”
The hybrid character of the reference was recognized by the parties as well. When Baker moved to enforce the referee’s favorable report, it moved alternatively to enter judgment on a Master’s report and to confirm an arbitration award. The court reacted: “I don’t know what you are talking about. There was no arbitration. There was no award.” Despite this disclaimer, at the October 14, 1982 stipulation conference, the district court did at one time refer to the reference in terms of arbitration: “The arbitration will, in effect, be shifted to a different forum, one which we can control in terms of the timetable and speed, et cetera and so forth.”
B.
After receiving the referee’s report, which was unfavorable to Cerberus, despite its earlier stipulation that findings of fact and conclusions of law were to be final and were not to be appealed. Cravath nevertheless filed thirty pages of objections to the report. Cerberus claimed that the objections which it filed with the district court and which appear to be objections raised to findings of fact were not barred by provisions of the stipulation prohibiting appeal because, according to Cer*208berus, they were based on the referee having exceeded the scope of his reference. Cerberus also contended that “manifest errors of law” are always reviewable. On April 15, 1983, the district court judge held a hearing, at which he indicated that he would not consider objections other than those based on a claim that the scope of the reference had been exceeded.
Cravath then filed a 101 page brief in support of its various objections, insisting that the district court was obliged to exercise review of the referee’s findings and conclusions despite its stipulation to forego appeal. Baker filed a 36 page response to Cerberus’ objections, and a 43 page response to Cerberus’ legal memorandum.
On April 11, 1983, Baker moved to enforce the referee’s report and on April 25, 1983, Baker moved for an award of counsel fees pursuant to 28 U.S.C. § 1927. The district court granted both motions. In the district court’s opinion, which denied Cerberus any review of the legal issues decided by the referee, the district court implicitly held that the referee was not a Special Master under Rule 53. Rather, according to the district court’s opinion, “This court at no time could have delegated to the master the power to decide the controversy between the parties since this court has never had any such power to delegate,” Baker Industries, Inc. v. Cerberus, Limited, 570 F.Supp. 1237, 1250 (D.N.J.1983), and “the only statute which arguably governs judicial review of Mr. Moser’s [the referee’s] decision is the United States Arbitration Act.” Id. at 1251.
The district court judge thus found to be frivolous, Cravath’s contentions on Cerberus’ behalf that the referee’s legal conclusions were reviewable, and found that Cravath’s conduct in asserting this position was sufficiently vexatious to justify the award of attorneys’ fees directly against it under 28 U.S.C. § 1927.4
II.
At the outset, we must determine whether 28 U.S.C. § 1927 requires a finding of bad faith before attorneys’ fees may be assessed directly against counsel. The statute itself does not speak explicitly in terms of bad faith. Nevertheless, we conclude that a bad faith finding is required as a precondition to the imposition of attorneys’ fees under section 1927.
Section 1927 provides for the assessment of sanctions directly against counsel:
§ 1927. Counsel’s liability for excessive costs
Any attorney or other person admitted to conduct cases in any court of the United States or any Territory thereof who so multiples the proceedings in any case unreasonably and vexatiously may be required by the court to satisfy personally the excess costs, expenses, and attorneys’ fees reasonably incurred because of such conduct.
Courts in other circuits have been uniform in holding that an attorney’s bad faith is a necessary predicate to liability under section 1927. E.g., United States v. Blodgett, 709 F.2d 608 (9th Cir.1983); United States v. Ross, 535 F.2d 346 (6th Cir.1976). This bad faith requirement is seen necessary to avoid chilling an attorney’s legitimate ethical obligation to represent his client zealously:
The power to assess the fees against an attorney should be exercised with restraint lest the prospect thereof chill the ardor of proper and forceful advocacy on behalf of his client. To justify the imposition of excess costs of litigation upon an attorney his conduct must be of an egregious nature, stamped by bad faith that is violative of recognized standards in the conduct of litigation. The section is directed against attorneys who willfully abuse judicial processes.
Colucci v. New York Times Company, 533 F.Supp. 1011, 1014 (S.D.N.Y.1982) (Weinfeld, J.).
*209We too read section 1927 to require a showing of actual bad faith before attorneys’ fees may be imposed. If it were otherwise, an attorney who might be guilty of no more than a mistake in professional judgment in pursuing a client’s goals might be made liable for excess attorneys’ fees under section 1927. We do not read the language of section 1927, which explicitly requires “unreasonabl[e]” conduct before attorneys’ fees may be taxed, to impose such a burden absent actions taken which are tantamount to willful bad faith. But we conclude that before attorneys’ fees and costs may be taxed under section 1927, there must be a finding of willful bad faith on the part of the offending attorney.
III.
Having established that attorneys’ fees may be imposed only upon a finding of willful bad faith, we now turn to whether such a finding must be explicitly made by the district court, and if not, whether the record here will support such an implicit finding. While the court here did not make an explicit bad faith finding in so many words, in light of the entire record and the expressions of the district court judge, who employed the very words of the statute, we are satisfied that the “bad faith” standard that we hold is required under section 1927, is met.
The district court here acknowledged Baker’s contention that “Cerberus’ objections in the face of the agreement made in open court ... were filed by Cravath in bad faith,” then went on to
find that the objections filed by Cravath on behalf of Cerberus — have unreasonably and vexatiously multiplied the proceedings ____
Most of the contentions advanced by Cravath on Cerberus’s behalf do not relate to matters which are allegedly outside the scope of the reference. Instead, as our discussion has shown, they involve either challenges to the merits of the master’s determinations, which cannot be made given the stipulation, or frivolous contentions that Cerberus did not receive
a fair hearing. Cravath contends that it has an ethical duty both to this Court and to its client to urge this Court to review the master’s findings. There is no ethical duty, however, to violate a stipulation entered into in open court, and the authority which Cravath contends compelled it to do so is apposite only if its attempt to completely distort the nature of the stipulation reached is accepted.
Baker Industries, Inc. v. Cerberus, Limited, 570 F.Supp. at 1259.
Though the district court did not thus make an express finding of “bad faith” in so many words, it did find that the objections filed by Cravath “unreasonably and vexatiously multiplied the proceedings,” tracking the language of the statute. The district court also implicitly held that the critical element of willfulness was present. The district court found that Cravath’s challenges were directed not to the scope but rather to the merits of the referee’s determination, in blatant violation of its stipulation. It also found that Cravath’s position was an “attempt to completely distort the nature of the stipulation reached.”
Under these circumstances, little would be gained by remanding this proceeding to the district court for an explicit finding of bad faith when it is clearly evident from the district court’s expressions and from the record as a whole, that the district court found, albeit implicitly, Cravath’s conduct to be in bad faith. While it is far preferable for the district court to make express findings, rather than remit us to a review of the record, we are convinced from our independent review of the record that the district court’s expressions are sufficient to constitute findings satisfying the willfulness and bad faith requirements for an assessment of costs and fees under section 1927.
IV.
The district court’s findings are nonetheless subject to our review and must find support in the record. The district court’s finding of willfulness on Cravath’s *210part, as a finding of fact, is subject to reversal only if clearly erroneous. See Fed.R.Civ.P. 52(a). This standard requires us to pay deference to the district court’s interpretation of the factual record before it. Anderson v. City of Bessemer City, North Carolina, — U.S. -, 105 S.Ct. 1504, 84 L.Ed.2d 518 (1985). Once such a finding is made, the appropriateness of assessing attorneys’ fees against counsel under section 1927 is a matter for the district court’s discretion. See Mobil Oil Corporation v. Independent Oil Workers Union, 679 F.2d 299 (3d Cir.1982).
Cravath’s position on appeal is quite simple. According to Cravath, (1) the district court appointed the referee pursuant to Fed.R.Civ.P. 53; (2) Cravath’s objections to the referee’s report were based on the referee’s erroneous legal rulings; and (3) a line of cases in other circuits renders invalid any stipulation to shield a Rule 53 master’s report from review for erroneous conclusions of law. Cravath contends that its reliance on those cases was reasonable, thus barring a finding of willfulness and bad faith as a matter of law.
We are not persuaded by Cravath’s argument: the reference was not made pursuant to Rule 53; Cravath’s objections were not solely aimed at the referee’s legal conclusions (even if such conclusions could be reviewed under the stipulation); and the cases cited by Cravath do not establish the principle of absolute reviewability upon which Cravath relies.
A.
As we have earlier observed, the precise nature of the reference in this case is the subject of some confusion. The district court finally characterized it as an “arbitration-mastership.” While Rule 53 was discussed during the conference that culminated in the stipulation of reference, it is clear that no Rule 53 reference could have been made, since, due to the arbitration clause, the district court lacked subject matter jurisdiction over the entire controversy to be referred.
All parties to the stipulation were aware of this fatal defect in any attempted Rule 53 reference, yet they forged ahead to create their own hybrid reference procedure — a reference not precisely provided for in the Rules. Having knowingly and voluntarily gone outside the Rules to create the reference, Cravath may not in good faith seek to rely on a rule (Rule 53(e)(4))5 to challenge the results of the reference to which it had consented. Cravath agreed to an unorthodox protocol under which legal conclusions of the referee were not to be challenged. It cannot thereafter change the protocol to which it had agreed.
B.
Cravath characterizes its lengthy objections as: (1) challenging findings outside the scope of the referee’s authority; and (2) challenging erroneous conclusions of law which it claims cannot be insulated from review under Rule 53. Neither of these characterizations can be supported.
By their own terms, Cravath’s objections to the referee’s report were directed to “separate clearly erroneous and unsupportable assertions of fact” in the Report. Objections of Cerberus, Ltd. to the Report of Special Master Richard G. Moser (Objections) at p. 4. The district court found, and we agree, that many, if not the vast majority, of the objections were not relevant to the scope of the reference or the scope of the referee’s authority. The objections, for the most part, challenged findings as being contrary to evidence or discussed findings relevant to the merits. E.g. Objections at p. 11 (Finding 7 challenged as contrary to Baker’s answers to interrogatories); Objections at 21 (statement in chronology that Baker attempted to terminate contract de*211spite “fact [that] there is no evidence ... that Cerberus sought to terminate the agreement.”). Some objections dealt with the improper admission of evidence and challenged findings which were predicated upon that evidence. E.g. Objections at 30 (admission of testimony that no smoke detectors had failed safety tests, leading to inference that they passed).
We cannot accept Cravath’s characterization of its objections as permissible objections which would not offend Cravath’s stipulation that it would not appeal the referee’s decision. Moreover, even were we to accept Cravath’s contention that conclusions of law may not be insulated from review in this hybrid situation (an argument which we do not accept) we nevertheless are not persuaded by Cravath’s characterization of its “Objections” as being directed at conclusions of law.
C.
Cravath entered into the stipulation of reference on behalf of Cerberus in order to cut short costly and time consuming trials and hearings which would otherwise proceed in federal court and in arbitration. Litigation between Cerberus and Baker in federal courts in Massachusetts and New York was stayed pending the resolution of the instant dispute by the court-appointed referee. Thus, the reference devised was designed to provide a speedy and final disposition of a significant portion, if not all, of the disputes then pending between the parties. Cravath willingly agreed to the reference and, in doing so, undoubtedly advised Cerberus of the advantages and disadvantages which might result.
We do not believe that Cravath would have waived its client’s right of review without having received its client’s authority to do so. Nor would it have waived its client’s right to appeal without full appreciation of the consequences of such a waiver. Having given its consent to the protocol which resulted in the referee’s appointment and, with obvious recognition of the fact that the court would not have proceeded with this type of irregular procedure without having received a complete and full consent from the parties to appoint this type of referee, Cravath could not thereafter renege on its agreement. Nevertheless, after learning that it had not prevailed in the very forum that Cravath had agreed to accept, Cravath sought, on behalf of its client, to avoid its agreement and seek review of that which it had stipulated was to be unreviewable.
We agree with the district court that Cravath’s post-decision conduct was a flagrant breach of its stipulation. Indeed, such conduct transcends the bounds of zealous advocacy on behalf of a client. In the context of this case, Cravath’s conduct can only be characterized as the district court characterized it: as conduct that “unreasonably and vexatiously multiplied the proceedings.” That conduct, in the district court’s view and in our view constituted willful bad faith which justified imposition of attorneys’ fees under section 1927. The record in this case amply supports such a sanction.
Having determined that the district court was justified in resorting to section 1927 because of the actions taken by Cravath in connection with its stipulation, we need not decide the issue of whether in a true Rule 53 reference the parties may effectively agree to shield a Master’s conclusions of law from review.6
*212We cannot leave this discussion without one last observation. An attorney’s obligation to the court is one that is unique and must be discharged with candor and with great care. The court and all parties before the court rely upon representations made by counsel. We believe without qualification that an attorney’s word is his bond. Thus when a competent and knowledgeable attorney represents to a court that he consents to a particular procedure, remedy, or suggestion, the judge to whom that representation is made must be able to, and does, rely completely on that agreement. In this case, the district court judge was clearly justified in assuming that once he had acted to appoint a referee with the parties’ concurrence, that all provisions and conditions that were part of and reflected in that concurrence would be fully discharged. We will not expect less from those who practice in our courts.
V.
Accordingly, we conclude that the district court properly imposed attorneys’ fees and costs against Cravath under U.S.C. § 1927. We will affirm the order of the district court dated February 17, 1984.
APPENDIX A Rule 53. Masters
(a) Appointment and Compensation.
The court in which any action is pending may appoint a special master therein. As used in these rules the word “master” includes a referee, an auditor, an examiner, and an assessor. The compensation to be allowed to a master shall be fixed by the court, and shall be charged upon such of the parties or paid out of any fund or subject matter of the action, which is in the custody and control of the court as the court may direct; provided that this provision for compensation shall not apply when a United States magistrate is designated to serve as a master pursuant to Title 28 U.S.C. § 636(b)(2). The master shall not retain his report as security for his compensation; but when the party ordered to pay the compensation allowed by the court does not pay it after notice and within the time prescribed by the court, the master is entitled to a writ of execution against the delinquent party.
(b) Reference. A reference to master shall be the exception and not the rule. In actions to be tried by a jury, a reference shall be made only when the issues are complicated; in actions to be tried without a jury, save in matters of account and of difficult computation of damages, a reference shall be made only upon a showing that some exceptional condition requires it. Upon the consent of the parties, a magistrate may be designated to serve as a special master without regard to the provisions of this subdivision.
(c) Power. The order of reference to the master may specify or limit his powers and may direct him to report only upon particular issues or to do or perform particular acts or to receive and report evidence only and may fix the time and place for beginning and closing the hearings and for the filing of the master’s report. Subject to the specifications and limitations stated in the order, the master has and shall exercise the power to regulate all proceedings in every hearing before him and to do all acts and take all measures necessary or proper for the efficient performance of his duties under the order. He may require the production before him of evidence upon all matters embraced in the reference, including the production of all books, papers, vouchers, documents, and writings applicable thereto. He may rule upon the admissibility of evidence unless otherwise directed by the order of reference and has the authority to put witnesses on oath and may
*213APPENDIX A — Continued
himself examine them upon oath. When a party so requests, the master shall make a record of the evidence offered and excluded in the same manner and subject to the same limitations as provided in the Federal Rules of Evidence for a court sitting without a jury.
(d) Proceedings.
(1) Meetings. When a reference is made, the clerk shall forthwith furnish the master with a copy of the order of reference. Upon receipt thereof unless the order of reference or otherwise provides, the master shall forthwith set a time and place for the first meeting of the parties or their attorneys to be held within 20 days after the date of the order of reference and shall notify the parties or their attorneys. It is the duty of the master to proceed with all reasonable diligence. Either party, on notice to the parties and master, may apply to the court for an order requiring the master to speed the proceedings and to make his report. If a party fails to appear at the time and place appointed, the master may proceed ex parte or, in his discretion, adjourn the proceedings to a future day, giving notice to the absent party of the adjournment.
(2) Witnesses. The parties may procure the attendance of witnesses before the master by- the issuance and service of subpoenas as provided in Rule 45. If without adequate excuse a witness fails to appear or give evidence, he may be punished as for a contempt and be subjected to the consequences, penalties, and remedies provided in Rules 37 and 45.
(3) Statement of Accounts. When matters of accounting are in issue before the master, he may prescribe the form in which the accounts shall be submitted and in any proper case may require or receive in evidence a statement by a certified public accountant who is called as a witness. Upon objection of a party to any of the items thus submitted or upon a showing that the form of statement is insufficient, the master may require a different form of statement to be furnished, or the accounts or specific items thereof to be proved by oral examination of the accounting parties or upon written interrogatories or in such other manner as he directs.
(e) Report.
(1) Contents and Filing. The master shall prepare a report upon the matters submitted to him by the order of reference and, if required to make findings of fact and conclusions of law, he shall set them forth in the report. He shall file the report with the clerk of the court and in an action to be tried without a jury, unless otherwise directed by the order of reference, shall file with it a transcript of the proceedings and of the evidence and the original exhibits. The clerk shall forthwith mail to all parties notice of the filing.
(2) In Non-Jury Actions. In an action to be tried without a jury the court shall accept the master’s findings of fact unless clearly erroneous. Within 10 days after being served with notice of the filing of the report any party may serve written objections thereto upon the other parties. Application to the court for action upon the report and upon objections thereto shall be by motion and upon notice as prescribed in Rule 6(d). The court after hearing may adopt the report or may modify it or may reject it in whole or in part or may receive further evidence or may recommit it with instructions.
(3) In Jury Action. In an action to be tried by a jury the master shall not be directed to report the evidence. His findings upon the issues submitted to him are admissible as evidence of the matters found and may be read to the jury, subject to the ruling of the court upon any objections in point of law which may be made to the report.
(4) Stipulation as to Findings. The effect of a master’s report is the same whether or not the parties have consented to the reference; but, when the parties stipulate that a master’s findings of fact shall be final, only questions of law arising upon the report shall thereafter be considered.
(5) Draft Report. Before filing his report a master may submit a draft thereof
*214APPENDIX A — Continued
to counsel for all parties for the purpose of receiving their suggestions.
(f) [Application to Magistrate.] A magistrate is subject to this rule only when the order referring a matter to the magistrate expressly provides that the reference is made under this Rule.

. The parties and the district court referred to the neutral individual appointed by the court pursuant to the stipulation by varying designations. At times, this individual was referred to as a "master,” an "arbitrator,” an "arbitrator-master” and a "referee.” For ease in reference, and without intending any particular substantive meaning to the term, we will refer throughout this opinion to the individual appointed as a "referee.”

. As noted in text infra, the district court would not have had jurisdiction over the issues in arbitration.

. The full text of Fed.R.Civ.P. 53 will be found in Appendix A to this opinion.

. The district court’s order of February 17, 1984 assessed attorneys’ fees in the amount of $32,-772.96 against Cravath, Swaine and Moore.

. Rule 53(e)(4) provides:
Stipulation as to Findings. The effect of a master’s report is the same whether or not the parties have consented to the reference; but, when the parties stipulate that a master’s findings of fact shall be final, only questions of law arising upon the report shall thereafter be considered.
Fed.R.Civ.P. 53(e)(4).

. We note, however, that the cases relied upon by Cravath in support of its objections are not dispositive of this issue. First, Rule 53(e)(4), which provides that “When the parties stipulate that a master’s finding of fact shall be final, only questions of law arising upon the report shall thereafter be considered,” does not address the issue of whether legal conclusions may be shielded from review in the same manner as factual findings.
Moreover, both cases cited by Cravath are distinguishable and are not dispositive of the issue pressed upon us. In Polin v. Dun & Bradstreet, 634 F.2d 1319 (10th Cir.1980), the Tenth Circuit held unenforceable a stipulation shielding the master’s legal conclusions from review, and remanded to the district court to review the master’s legal determinations. In Polin, however, unlike this case, the parties did not stipulate to a reference in the first place. The en*212forceability of a stipulation to shield legal conclusions from review where the reference was not by consent has no application to the enforceability of a stipulation where the parties have not only consented to a reference but have actively participated in framing the reference and in so doing have waived review. In Duryea v. Third Northwestern National Bank, 602 F.2d 809 (8th Cir.1979), the court held no more than that a court of appeals had no jurisdiction over a direct appeal from a magistrate’s report.