973 F.3d 914
8th Cir.2020Background:
- Perficient sued former employee Thomas Munley and his new employer Spaulding Ridge, alleging breach of restrictive covenants and trade-secret statutes and seeking injunctive relief.
- After an expedited combined evidentiary hearing, the district court found Munley breached noncompete/non‑solicit/confidentiality covenants and entered a limited-duration permanent injunction (effective until May 1, 2020) against Munley and related relief against Spaulding.
- Munley and Spaulding appealed the injunction but did not seek a stay; the injunction expired on its terms while the appeal remained pending.
- The Eighth Circuit raised mootness sua sponte, noting an injunction that expires on its terms typically leaves nothing for appellate review.
- The court concluded none of the mootness exceptions (voluntary cessation or capable-of-repetition-yet-evading-review) applied and dismissed the appeal as moot.
- The court remanded to the district court for further proceedings, declined to order vacatur of the injunction, and explained the district court’s findings remain subject to later review or modification; each party bears its own costs.
Issues:
| Issue | Perficient's Argument | Munley/Spaulding's Argument | Held |
|---|---|---|---|
| Whether the appeal is moot because the injunction expired. | The district-court order and its findings retain continuing legal effect and may affect ongoing claims (e.g., damages/fees). | The injunction expired on its terms; no live controversy remains and appellate relief is unavailable. | Appeal dismissed as moot. |
| Whether mootness exceptions apply (voluntary cessation; capable of repetition yet evading review). | Arguably the dispute has continuing consequences warranting review. | No voluntary cessation by enjoined parties; no reasonable expectation the specific dispute will recur. | Exceptions do not apply. |
| Whether the court should vacate the district-court injunction under Munsingwear. | The injunction should remain to preserve the district court’s findings. | Vacatur is not warranted where appellants allowed the injunction to expire without seeking a stay. | Court declined to direct vacatur; remanded for district court to address vacatur/Rule 60(b) if appropriate. |
| Effect of dismissal and remand on further proceedings and reviewability of findings. | District-court findings should be available for related proceedings (damages/fees) and potential future appeal. | Appellants’ choice not to seek a stay limited appellate review now. | The injunction/order remains subject to modification or vacatur by the district court and review on a later appeal from a final judgment. |
Key Cases Cited
- Stevenson v. Blytheville Sch. Dist. No. 5, 762 F.3d 765 (8th Cir. 2014) (Article III mootness/livable controversy requirement).
- FIMCO, Inc. v. Funk, [citation="748 F. App'x 716"] (8th Cir. 2019) (expired injunctions typically moot).
- Olin Water Servs. v. Midland Research Labs., Inc., 774 F.2d 303 (8th Cir. 1985) (no appellate review when injunction expires).
- United States v. Munsingwear, 340 U.S. 36 (1950) (established practice to vacate and remand when mootness prevents review).
- U.S. Bancorp Mortg. Co. v. Bonner Mall P'ship, 513 U.S. 18 (1994) (vacatur is discretionary; settlement mootness does not justify vacatur).
- Moore v. Thurston, 928 F.3d 753 (8th Cir. 2019) (vacatur is equitable, not automatic).
- Iowa Prot. & Advocacy Servs. v. Tanager, Inc., 427 F.3d 541 (8th Cir. 2005) (stay/avoidance of mootness).
- Fauconniere Mfg. Corp. v. Sec'y of Def., 794 F.2d 350 (8th Cir. 1986) (vacatur of preliminary injunction when part of case remains pending).
