LABMD, INC. v. TIVERSA HOLDING CORP.
2:15-cv-00092
W.D. Pa.Jul 14, 2017Background
- LabMD sued Tiversa and individual defendants; portions of its original and amended complaints were dismissed by the district court (Jan. 8, 2016 and Nov. 23, 2016).
- LabMD moved for certification under Rule 54(b) and for permission to bring an interlocutory appeal under 28 U.S.C. § 1292(b).
- Defendants opposed, arguing that any reinstated claims would return to the pleading stage and thus an immediate appeal would not materially advance termination.
- The court framed the governing standard for § 1292(b) appeals via Katz: a controlling question of law, substantial grounds for difference of opinion, and that immediate appeal would materially advance termination.
- The court emphasized the strong federal policy against piecemeal appeals and that § 1292(b) is reserved for exceptional circumstances where an immediate appeal would avoid protracted, expensive litigation.
- The court concluded that LabMD failed to show the necessary likelihood that interlocutory review would materially advance final resolution and denied the motions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether interlocutory certification under § 1292(b) is appropriate for the dismissed claims | LabMD: immediate appeal of dismissal orders is warranted | Defs: reversal would only return claims to pleading stage; appeal would be piecemeal and not advance termination | Denied — §1292(b) not satisfied |
| Whether the disputed questions present a "controlling question of law" | LabMD: the legal rulings on dismissal are controlling | Defs: plaintiff failed to identify a question that would materially save time or costs | Denied — no adequate showing of a controlling question |
| Whether there is substantial ground for difference of opinion on the rulings | LabMD: asserts disagreement over the dismissal rulings | Defs: disagreement would not yield immediate resolution and thus is not sufficient | Denied — no substantial grounds justifying interlocutory review |
| Whether an immediate appeal would materially advance termination of the litigation | LabMD: immediate review could resolve key legal issues | Defs: reversal would merely return case to pleading stage, so would not materially advance final resolution | Denied — likely would not materially advance termination |
Key Cases Cited
- Gardner v. Westinghouse Broadcasting Co., 559 F.2d 209 (3d Cir. 1977) (discussing limited availability of interlocutory appeals and policy against piecemeal appeals)
- Katz v. Carte Blanche Corp., 496 F.2d 747 (3d Cir. 1974) (en banc) (articulating the three § 1292(b) requirements)
- Caraballo-Seda v. Municipality of Hormigueros, 395 F.3d 7 (1st Cir. 2005) (noting interlocutory appeals from denials of motions to dismiss encourage piecemeal litigation)
- Zygmuntowicz v. Hospital Investments, Inc., 828 F. Supp. 346 (E.D. Pa. 1993) (noting § 1292(b) appropriate only where immediate appeal would avoid protracted, expensive litigation)
