Alpine Glass, Inc. v. Country Mutual Insurance Co.
792 F.3d 1017
| 8th Cir. | 2015Background
- Alpine Glass, a Minnesota auto-glass repairer, sought payment from insurers for 482 separate claims; Minnesota law mandates arbitration of such disputes.
- Alpine filed a consolidated declaratory-judgment action in state court to consolidate the 482 claims into one arbitration; Country Mutual removed to federal court on diversity and aggregated amount-in-controversy grounds.
- The district court found 248 claims eligible for consolidation and ordered a single arbitration for them, ruling 234 claims time-barred under a two-year limitation in some policies.
- After an arbitration on a single "test" claim (for $398.77) resulted for the insurer, Alpine moved to vacate the award; the district court denied the vacatur motion and then confirmed the award, directing entry of final judgment as to that one claim.
- Alpine appealed the confirmation; the insurers challenged appellate jurisdiction because hundreds of claims remained and no Rule 54(b) certification or § 1292(b) certification was obtained.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether appellate jurisdiction exists over confirmation of one arbitration award when many claims remain | Alpine argued the test-claim final judgment permits immediate appeal and would allow review of consolidation issues | Insurers argued lack of jurisdiction because multiple claims remain and no Rule 54(b) certification was made (and §1292(b) not sought) | Court held it lacks jurisdiction: no Rule 54(b) determination and §1292(b) not pursued, so appeal dismissed |
| Whether the test-claim procedure can be treated as an independent diversity case | Alpine urged the test claim could be used to reach consolidation issue on appeal | Insurers argued single $398.77 claim cannot support diversity jurisdiction absent aggregation | Court held test claim cannot be treated as an independent diversity case because amount in controversy is insufficient |
| Whether prior appellate footnote authorized this procedure | Alpine relied on the court's earlier footnote suggesting a test-claim route | Insurers argued that suggestion cannot create appellate jurisdiction | Court held the prior footnote cannot create jurisdiction and offered no basis to bypass Rule 54(b) requirements |
| Whether mandamus relief is appropriate if jurisdiction is lacking | Alpine requested that the court treat the appeal as a mandamus petition | Insurers opposed extraordinary relief | Court declined to issue a writ, finding no basis under mandamus standards |
Key Cases Cited
- Alpine Glass, Inc. v. Country Mut. Ins. Co., 686 F.3d 874 (8th Cir. 2012) (prior appellate decision addressing consolidation order and jurisdiction)
- Mathers v. Wright, 636 F.3d 396 (8th Cir. 2011) (Rule 54(b) "no just reason for delay" requirement is mandatory)
- Williams v. Cnty. of Dakota, Neb., 687 F.3d 1064 (8th Cir. 2012) (Rule 54(b) is to be used sparingly and reviewed for abuse of discretion)
