Court Opinion

ID: 9479317
Source: CourtListenerOpinion
Date Created: 2023-08-05 07:14:30.613583+00
Date Added: 2024-06-11T17:46:56.932766
License: Public Domain

RIPPLE, Circuit Judge,
dissenting.
There has always been a tension between the provisions of Rule 60(b)(1) and Rule 60(b)(6). This is a tension born of an understandable judicial concern for finality of judgments. Rule 60(b)(1) permits relief, within one year after entry of judgment, *986for “mistake, inadvertence, surprise, or excusable neglect.” Rule 60(b)(6) permits relief beyond that one-year time limit, but requires, as Justice Black put it, “an extraordinary situation which cannot fairly or logically be classified as mere ‘neglect.’ ” Klapprott v. United States, 335 U.S. 601, 613, 69 S.Ct. 384, 389, 93 L.Ed. 266 (1949) (opinion of Black, J.).
The determination of whether such “extraordinary circumstances” are present requires an evaluation of the dynamics of an often complex and, just as often, convoluted litigation situation. It has long been recognized that such judgments are most accurately made by the judicial officer closest to the environment in which the decision was made. Here, the original decision to characterize the underlying situation as worthy of Rule 60(b)(6) relief was made by a judge of the bankruptcy court in which the judgment was entered. This judge was not the judge who had entered the order but another judge of the same court. His determination was made after a thorough review of the docket and the transcript. As even a cursory reading of his oral ruling makes clear, that determination was based in large part on his estimation, as a judge of that bankruptcy court, of the reasonableness of the parties’ reactions to the orders of the bankruptcy court.
The first appeal of the bankruptcy court’s grant of relief was taken to the district court. Several aspects of the district court’s decision are particularly worth noting. First, the district court fully understood that, as a matter of law, it had to determine the applicable subsection of Rule 60. It rejected an application of Rule 60(a). It then had to choose between the applicability of Rule 60(b)(1) and Rule 60(b)(6). With respect to this second determination, the district court was clearly aware of Alloy’s submission that relief under each clause of Rule 60(b) was exclusive of relief under the other. The district court was also well aware that “ ‘relief under 60(b)(6) is warranted only upon a showing of extraordinary circumstances that create a substantial danger that the underlying judgment was unjust.’ ” Mem. op. at 8 (quoting Margoles v. Johns, 798 F.2d 1069, 1073 (7th Cir.1986), cert. denied, 482 U.S. 905, 107 S.Ct. 2482, 96 L.Ed.2d 374 (1987)). Clearly, then, there was no abdication on the part of the district court with respect to issues of law. Nor was there any error in its articulation of the governing standards.
At the same time, in applying those legal standards, the district court realized that the bankruptcy judge’s determination rested on the subtle evaluation of the peculiar factual circumstances of this case. Consequently, on this point, the district court realized that its task was to determine whether the bankruptcy judge’s evaluation was “off base,” mem. op. at 8, or not “carefully considered and supported by facts.” Id. at 12. In a detailed and thoughtful opinion, the district court analyzed how the original bankruptcy judge’s careless use of legal phraseology apparently led to a clerical error that, in turn, led to unnecessary judicial action at a “housekeeping” status call. It also found as well supported the bankruptcy court’s determination that this calendar call, given the entire litigation history, could not have suggested to Wesco that there was any error in need of correction. Notably, the district court stressed that the notice of the September 2, 1986 status call affirmatively told the parties that failure to appear at this status call would result in a dismissal with leave to reinstate. The dismissal actually entered was for want of prosecution “with the potential reinstatement problems that such a dismissal might engender.” Mem. op. at 11. See Fed.R.Civ.P. 41(c). Given this factor, it is not at all unusual that the district court did not prolong its opinion with a protracted discussion of the 60(b)(1) alternative. It is no extraordinary proposition that the affirmative misleading of a party by judicial process can constitute the “extraordinary circumstances” demanded by Rule 60(b)(6) — especially when, as here, that misleading produces the potential for substantial injustice. Tubbs v. Campbell, 731 F.2d 1214, 1215-16 (5th Cir.1984) (affirmative and persistent misleading by court clerk, telling parties that no judgment had been entered, when, in fact, district court had issued judgment, gave *987rise to Rule 60(b)(6) relief); Marshall v. Boyd, 658 F.2d 552, 554-55 (8th Cir.1981) (district court’s sua sponte entry of default judgment without first giving parties notice that it was contemplating such action gave rise to Rule 60(b)(6) relief to vacate the judgment); Buckeye Cellulose Corp. v. Braggs Elec. Const. Co., 569 F.2d 1036, 1038-39 (8th Cir.1978) (court clerk affirmatively misled parties who diligently sought court’s judgment, informing them that no judgment had been entered, when, in fact, contrary was true; Rule 60(b)(6) relief warranted “to promote the ends of justice”); Fidelity & Dep. Co. v. USAFORM Hail Pool, Inc., 523 F.2d 744, 750-51 (5th Cir.1975) (district court and court clerk affirmatively misled parties regarding entry of judgment; Rule 60(b)(6) relief proper), cert. denied, 425 U.S. 950, 96 S.Ct. 1725, 48 L.Ed.2d 194 (1976). Faced with such misleading of a party, a situation clearly covered by Rule 60(b)(6), the bankruptcy judge acted well within his discretion in granting relief. See North Cent. Illinois Laborers’ Dist. Council v. S.J. Groves & Sons Co., 842 F.2d 164, 168 & n. 7 (7th Cir.1988).
In reviewing the judgment of the district court, I respectfully suggest that we ought to emulate its understanding of the appropriate institutional relationship of a court of first instance and a reviewing court in dealing with Rule 60(b) matters. On issues of law, the district court showed no hesitation, nor should we, in articulating and applying the controlling legal principle. However, in evaluating the factual dynamics of the particular litigation situation, we ought to acknowledge that the estimation of the judicial officer closest to the scene deserves significant deference. See Mucha v. King, 792 F.2d 602, 605 (7th Cir.1986). However, even if the court is not willing to acknowledge the traditional boundaries on its institutional role, it should at least acknowledge that affirmatively misleading a party through the judicial process constitutes adequate grounds, at least under the circumstances here, for the invocation of Rule 60(b)(6).
Because I believe that the court’s disposition is unsound as a matter of legal principle, destabilizing in its treatment of institutional relationships, and unjust in its treatment of the parties, I respectfully dissent.