Court Opinion

ID: 9463227
Source: CourtListenerOpinion
Date Created: 2023-08-04 23:01:12.529738+00
Date Added: 2024-06-11T17:37:59.589992
License: Public Domain

TIMBERS, Circuit Judge
(dissenting):
Since we have no appellate jurisdiction whatsoever to review the order of the district court, this appeal should be dismissed. From the majority’s refusal to do so, I respectfully but emphatically dissent.
There is no policy more basic than that against piecemeal, premature appellate review in the federal courts. This policy is deeply rooted in the command of Congress and controlling decisional law of the Supreme Court and the other federal appellate courts, including ours. Clark v. Kraftco Corporation, 447 F.2d 933, 936 (2 Cir. 1971); Build of Buffalo, Inc. v. Sedita, 441 F.2d 284, 286 (2 Cir. 1971); Western Geophysical Co. of America v. Bolt Associates, Inc., 440 F.2d 765, 769-70 (2 Cir. 1971); American Express Warehousing, Ltd. v. Transamerica Ins. Co., 380 F.2d 277, 280 (2 Cir. 1967); Glenmore v. Ahern, 276 F.2d 525, 545 (2 Cir.), cert. denied, 362 U.S. 964 (1960).
The relief granted by the district court here clearly was a declaratory judgment with respect to one but less than all claims asserted.1 It simply permitted plaintiff *578during the pendency of the action “to settle, bond or otherwise dispose of the mechanic’s liens so that they are discharged of record Judge Weinfeld’s opinion and order does not provide for any injunctive relief at all.2 The relief granted does not require any affirmative action by U.S. Life, nor does it prevent U.S. Life from doing anything. It merely declares the rights of the parties to one of numerous claims. In short, since the relief granted by the district court was declaratory rather than injunctive, we have no appellate jurisdiction pursuant to 28 U.S.C. § 1292(a)(1) (1970).
The fact that the parties loosely refer to the relief sought and granted as a preliminary injunction does not make it so. In determining the nature of the relief for purposes of § 1292, we must look “not to terminology, but to ‘the substantial effect of the order made.’ ” McCoy v. Louisiana State Board of Education, 345 F.2d 720, 721 (5 Cir. 1965), and authorities there cited. It is the operative facts giving rise to an enforceable right which constitutes a “claim”. Original Ballet Russe, Ltd. v. Ballet Theatre, Inc., 133 F.2d 187, 189 (2 Cir. 1943). When such “claim” is squared against the relief granted or withheld by the district court’s judgment or order, that determines whether injunctive relief has been granted or refused for purposes of federal appellate jurisdiction. Applying that test here, no injunctive relief was sought, granted or refused so far as the instant appeal is concerned.
Whatever might be the posture of this appeal if certification had been sought and obtained under Fed.R.Civ.P. 54(b) or 28 U.S.C. § 1292(b) (1970), we need not determine on the record before us. The stark fact is that, absent such certification, the order is not final and we therefore have no appellate jurisdiction pursuant to 28 U.S.C. § 1291 (1970).
*579My quarrel is not so much with the majority since the issue of our appellate jurisdiction was not raised or claimed by counsel for either side. It nevertheless is our duty independently to examine the jurisdictional underpinning of any case that comes before us, including our appellate jurisdiction, regardless of whether the issue is raised by counsel. See Papilsky v. Berndt, 503 F.2d 554 (2 Cir.), cert. denied, 419 U.S. 1048 (1974); Leather’s Best, Inc. v. S.S. Mormaclynx, 451 F.2d 800, 807 (2 Cir. 1971); Gem Corrugated Box Corp. v. National Kraft Container Corp., 427 F.2d 499, 501 n.1 (2 Cir. 1970). What Judge Anderson so aptly said in his dissenting opinion in Build of Buffalo, Inc. v. Sedita, supra, 441 F.2d at 290, likewise is applicable here:
“This appeal is another example of the not infrequent tendency of counsel to be inattentive to important questions of appellate jurisdiction. Alart Associates, Inc. v. Aptaker, 402 F.2d 779 (2 Cir. 1968).” (Citing Rule 54(b) and other authorities which hold that an order is not final and therefore not appealable under § 1291 in the absence of compliance with that rule.)
As for the merits of the instant appeal, I differ sharply with the majority’s disposition of U.S. Life’s claims under the no-settlement clause in DMI’s insurance contract and would affirm Judge Weinfeld’s order in all respects. The reasons for my views on the merits appropriately should be reserved for another day — if and when we have appellate jurisdiction to review the issue to which the majority opinion is addressed.
I would dismiss the appeal for lack of appellate jurisdiction.

. Judge Weinfeld’s unreported opinion of July 16, 1975 — which strikes me as a gem of clarity, conciseness and correctness — is as follows:
“Edward Weinfeld, D. J.
More than 1200 individual residential lot purchasers in a 1900 acre project are caught in the cross-fire of a controversy between plaintiff, which advanced substantial funds for the development of the property secured by a first mortgage, and defendant, which issued title insurance to plaintiff. Their controversy centers about (1) the priority of mechanic’s liens filed against the property as against plaintiff’s first mortgage, and (2) defendant’s liability in the event the mechanic’s lienors’ asserted priority is sustained. The issue of priority is yet to be determined in a pending state Supreme Court mechanic’s lien foreclosure action, wherein the instant defendant title insurance company, in repre*578senting plaintiff under the title insurance policy, is resisting the mechanic’s lienors’ claims.
Plaintiff in this declaratory judgment action contends that because of the defendant’s failure to file and record required instruments on its behalf, the mechanic’s liens have priority over its first mortgage. It seeks, among other relief, leave to settle the mechanic’s lien claims without prejudice to its rights against the defendant, whose consent to settlement is required under the title insurance policy. The defendant has refused such consent based upon its contention that the mechanic’s lienors are not entitled to priority. Upon argument this court suggested, pending a trial of this lawsuit, a disposition withput prejudice to the rights of either party. The proposal was not accepted.
Obviously, the mechanic’s liens, which remain of record unless discharged, are a cloud upon title to the entire property. Their continued existence has prevented completion of the project and delivery of marketable title to existing purchasers. While the parties to this litigation are engaged in their controversy, work on the project has been halted. The 1200 innocent lot purchasers, some of whom have paid in full for their lots and most of whom have made substantial down payments, face irreparable injury unless development of the project is resumed. Plaintiff also is exposed to irreparable injury by the standstill situation resulting from the default of the developer and unsatisfied mechanic’s liens.
The court is satisfied that the interests of the plaintiff and, more importantly, the lot purchasers can be protected without prejudice to the ultimate rights of the defendant. Under the circumstances the plaintiff, during the pendency of this action, is permitted to settle, bond, or otherwise dispose of the mechanic’s liens so that they are discharged of record, but without prejudice to the rights of plaintiff and defendant in this or the state court action — particularly without prejudice to any right of disclaimer of liability which is or may become available to the defendant, other than a disclaimer based upon lack of consent to settlement of the liens.
The court deems this an equitable disposition which preserves the rights of the litigants and at the same time protects innocent third parties not involved in their controversy. Moreover, if plaintiff finally prevails and defendant is held liable under the policy of insurance, settlement of the mechanic’s lienors’ claims at less than their claimed amounts necessarily will inure to the benefit of the defendant.
The defendant’s motion to dismiss the complaint and to stay this action is denied.
[Sgd] Edward Weinfeld United States District Judge
Dated: New York, N.Y. July 16, 1975”

. While “defendant’s motion ... to stay this action is denied” (last paragraph of district court opinion), no cross-appeal has been taken from that portion of the order.