Bergman v. City of Atlantic CityBergman v. City of Atlantic City
Edward and Gilda BERGMAN, Appellants,
v.
The CITY OF ATLANTIC CITY, The Housing Authority and Urban
Redevelopment Agency of the City of Atlantic City,
New Jersey, and Resorts International,
Inc., Appellees.
No. 88-5128.
United States Court of Appeals,
Third Circuit.
Argued July 26, 1988.
Decided Oct. 24, 1988.
Rehearing and Rehearing In Banc Denied Nov. 21, 1988.
Edward Bergman (argued), pro se.
Gerald A. Inglesby, Merchantville, N.J., for appellant.
Matthew H. Powals (argued), Atlantic City, N.J., for appellee City of Atlantic City.
William J. Bigham (argued), Sterns, Herbert, Weinroth & Petrino, P.A., Trenton, N.J., for appellee Resorts Intern., Inc.
Gerard W. Quinn (argued), Atlantic City, N.J., for appellee Housing Authority and Urban Redevelopment Agency of the City of Atlantic City, N.J.
Before HIGGINBOTHAM, BECKER and COWEN, Circuit Judges.
OPINION OF THE COURT
COWEN, Circuit Judge.
Appellants Edward and Gilda Bergman seek reversal of the district court's order granting summary judgment in favor of defendants and denying the Bergmans' motion for leave to amend their complaint. The Bergmans are the plaintiffs in one of two actions consolidated for discovery and trial by the district court; the other action is still pending. At issue in both actions is the validity of amendments made to an Urban Renewal Plan ("the Plan") which regulates the development of an area in Atlantic City. Within that area is the Beachgate condominium complex; the Bergmans own one of the Beachgate units. At the heart of the Bergmans' claim is their assertion that the Plan was impermissibly amended without their written consent. A preliminary issue for this court, before we can adjudicate the merits of the Bergmans' appeal, is whether appellate jurisdiction exists despite the pendency of the consolidated action in the district court. Because we hold that it does not, we need not decide at this time whether the district court properly granted summary judgment and denied the Bergmans leave to amend their complaint.
I.
In 1965, an 80-acre tract of land bordering the Atlantic City boardwalk ("the Tract") was declared an Urban Renewal Area pursuant to
upon compliance with the requirements of all applicable laws by the Housing Authority of the City of Atlantic City, with the approval of the Board of Commissioners of the City of Atlantic City, provided, however, that the amendment must be consented to in writing by the purchaser, lessee, their successor or assigns of any land in the project area, previously acquired or agreed to be acquired in accordance with the Urban Renewal Plan, whose interests therein are materially affected by such amendment.
App. at 68.
Shortly after the Bergmans purchased their condominium, the New Jersey Constitution was amended to allow for gambling casinos in Atlantic City. Some two years later, appellee Resorts International, Inc. ("Resorts") began construction of the first casino. On June 15, 1983, appellees the City of Atlantic City ("the City") and the Housing Authority and Urban Development Agency of the City of Atlantic City ("the Housing Authority") amended the Plan to allow for more and larger hotels along the boardwalk.1 Neither the City nor the Housing Authority notified the Bergmans of the planned amendment, and the Bergmans never consented to it in writing.
On June 1, 1985, Edward Bergman wrote to the Housing Authority expressing his concern that the Plan not be changed without his knowledge. App. at 73. Over the course of the next few months, Bergman corresponded with the Housing Authority about the 1983 amendment to the Plan, with Bergman objecting to the lack of notice and insisting upon the necessity of his consent. The Housing Authority took the position that his consent was not required. Not satisfied with the responses from the Housing Authority or, later, from the City, Bergman initiated the current lawsuit.
The Bergmans filed a six-count complaint in the district court on September 3, 1986, and amended it on November 14, 1986. The amended complaint sought to represent a class of similarly situated purchasers and owners of condominiums in the Beachgate complex. The complaint named the City and the Housing Authority as defendants and alleged an unconstitutional taking of property without due process in violation of the fifth and fourteenth amendments and
On January 14, 1987, the
On February 24, 1987, the Association of Owners of the Courts at Beachgate (the condominium owners' association) filed suit in the New Jersey Superior Court of Atlantic County against Resorts, Showboat, Inc., the City, and the Housing Authority ("the Beachgate action"). The central issue in the Beachgate action, like that in Bergman, is whether the 1983 amendment to the Plan was valid absent the condominium owners' consent. The Beachgate action was removed to the district court on April 17, 1987. Upon removal, Resorts moved to consolidate the Bergman and Beachgate actions. The motion was unopposed, and on August 21, 1987, a magistrate ordered the two actions "consolidated for all purposes of discovery and trial...." App. at 102.
In the Bergman action, the Bergmans and the remaining defendants cross-moved for summary judgment. While the motions were pending, the district court asked the parties to prepare arguments solely on the
On November 25, 1987, the district court granted the defendants' motion for summary judgment on Count I, and dismissed the pendent state claims without prejudice. The dismissal portion of the order has not been appealed. The Bergmans filed a motion under
II.
We will dismiss the Bergmans' appeal because the pendency of the Beachgate action, with which it has been consolidated "for all purposes of discovery and trial," makes the summary judgment order non-final for purposes of
A.
The precise issue before us is whether, where two separately filed actions have been consolidated "for all purposes of discovery and trial," a summary judgment in one action may be considered final and appealable while the second action remains pending in the district court. Only two cases decided by this court have any precedential value.
The first of these cases, Jones v. Den Norske Amerikalinje A/S,
The three appellees started separate actions, which were consolidated. The order of consolidation was not for all purposes but only for trial [of liability but not of damages], and a separate judgment was entered in favor of Jones. This being so, the judgment in favor of Jones probably is final and hence appealable under
Id. at 986-87 (citations omitted). As this discussion demonstrates, the finality of the judgment in Jones's action was not actually decided by the court (as shown by the use of "probably" in the opinion), nor was a determination of the issue necessary, as jurisdiction existed under
More recently, this court decided Bogosian v. Gulf Oil Corp.,
The factors which militate toward this view [of non-certifiability] are that both plaintiffs are represented by the same attorney, the suits are filed in the same forum, are before the same judge, and the complaints and the defendants are identical. On the other hand, the cases have not been consolidated for trial. It is therefore possible that the cases could be scheduled for trial at different times and be tried before different juries. The existence of this possibility strongly favors the construction that each civil action be regarded as a separate judicial unit for
Id.,
While the issues of whether an order is certifiable under
The sole justification for a finding of certifiability in Bogosian was the fact that the two actions would not be tried together. By contrast, several of the "factors which militate[d] toward" finding non-certifiability are present in this case: "the suits are filed in the same forum, [and] are before the same judge." In addition, while the complaint and defendants are not identical, they are substantially similar. Both Bergman and Beachgate have as the central dispute the question of whether condominium owners within the Tract must consent to any revision of the Plan.5 As to the identity of the parties, there are two points worth noting. First, the Association which is the plaintiff in the Beachgate action represents the same group as the class which the Bergmans purport to represent in their amended complaint; namely, owners of condominiums in the Beachgate complex. Second, although the one count naming Resorts as a defendant in Bergman has been dismissed, Resorts was a defendant to the Bergman as well as the Beachgate action.6
Bogosian also suggests that the relevant question in determining finality is whether the underlying actions were consolidated "for all purposes."
The cases in this Circuit, then, do not mandate any result in this case. The dictum in Jones is of little value because it did not announce a holding on the finality issue and because that issue need not have been decided in any case. On the other hand, while Bogosian speaks to certifiability, not finality, its reasoning strongly suggests that this court should not assume jurisdiction in the current appeal.
B.
Seven other courts of appeals have considered this issue. Of those seven, two have announced a bright-line rule that where two actions have been consolidated for trial, judgment in one is not appealable (absent
Finally, one court has held that if a judgment in a consolidated case does not dispose of all claims which have been consolidated, a strong presumption exists that the judgment is not appealable absent
We are convinced that the case-by-case approach is the most appropriate. We are also persuaded that in a case like the one presently before us, where two actions have been consolidated for discovery and trial or for all purposes, that an order concluding one of the consolidated cases should not be considered final and appealable.
C.
Even if we were writing on a clean slate and were free to follow the practice in the Ninth and Tenth Circuits, it would be unwise to do so. That rule, which forbids separate appeals regardless of the scope of the consolidation order, could conceivably disallow the appeal of an action if it had earlier been consolidated only for very limited discovery purposes with an action still pending in the district court. Such a result disserves the parties before a court, and does little to promote judicial economy, for it is hardly an onerous task to look into the record of a case and find out the limitations (or lack thereof) listed in a consolidation order.
For the same reasons, we reject the practice recently adopted by the Second Circuit, which imposes a "strong presumption" against separate appeals that can only be overcome by "highly unusual cases." We can conceive of many cases, not all of them "highly unusual," in which justice would be best served and judicial economy not compromised if separate appeals were permitted.
On the other hand, the practice followed in the First and Sixth Circuits suffers several defects as well. First, to the extent that the practice is premised on the belief that it is required by the Supreme Court's decision in Johnson v. Manhattan Railway Co., supra, we follow the majority of courts of appeals and find that Johnson does not compel such a rule. See note 9, supra. Second, it is worth noting that no court has adopted this practice since 1982; rather, every court considering the issue since then has adopted a practice which would compel the conclusion that this court lacks jurisdiction over the current appeal. Third, and most importantly, the practice ignores the rule against piecemeal appeals for no good reason, and encourages an increase in the number of complaints. Id. If this court were to assert jurisdiction and decide the Bergmans' claim on the merits, it would almost certainly determine the rights of the parties in the Beachgate action still pending in the district court. Indeed, the Bergmans have acknowledged as much. See Appellants' Reply Brief at 4.
We therefore hold that where two or more actions are consolidated for all purposes of discovery and trial, a judgment in one of those actions is not appealable either until all of the consolidated actions have been resolved, or until the district court grants a motion for certification under
Finally, our holding is without prejudice to the Bergmans' ability to file a
III.
For the reasons stated above, we will dismiss the appeal for lack of a final appealable order. The dismissal will be without prejudice to any motion the Bergmans may file pursuant to
BECKER, Circuit Judge, concurring.
I agree with the majority's stated bright-line rule--where two actions have been consolidated for discovery and trial or for all purposes, an order concluding one of the consolidated cases should not be considered final and appealable. Viewing that rule as the majority's holding, I join in that holding and in the judgment. I write separately, because the majority announces a further rule that consolidated cases in general are subject to a case-by-case analysis. This case-by-case approach, which is dicta, is not compelled by the precedents in this Circuit and seems to me to deprive the first rule, which I think is correct, of precedential effect.1
There is no precedent in this Circuit that would compel the conclusion that all consolidated cases should be subject to a case-by-case analysis. Contrary to the majority, I believe that Bogosian v. Gulf Oil Corp., 561 F.2d434 (3d Cir.1977), cert. denied,
The overriding factor in Bogosian was that the consolidated actions were headed for separate trials. On the basis of that one characteristic, the court declared a bright-line rule. That is very different from mandating that every subsequent case weigh those factors in a case-by-case approach. Thus, we have a bright-line approach for cases not consolidated for trial (Bogosian ) and a bright-line approach for cases consolidated for all purposes (this case). It would appear to me that only one situation involving consolidated cases and
Notes
The Plan was amended in other ways as well, but it is the expanded hotel use which seems to disturb the Bergmans the most. See, e.g., App. at 92
This characterization was incorrect.
In addition to the proceedings described above, on the day the Bergmans filed their
We would like to emphasize, however, that appealability and certifiability are distinct legal concepts. If we find an order to be final and appealable under
Indeed, the Bergmans note that "the granting of the Housing Authority's motion for summary judgment for the reasons given in [the district court's] opinion, effectively disposes of the Beachgate suit as well...." Appellants' Reply Brief at 4. The Bergmans seem to be saying that even if the order being appealed is not final, we should nevertheless decide their appeal because our decision will dispose of the remaining action in the district court. Of course, this is an incorrect interpretation of the finality requirement of Sec. 1291, and ignores the fact that finality is a jurisdictional requirement, not a discretionary policy which can be waived by this Court in suitable cases
Resorts also appears as an appellee before us in this appeal. Its position as a defendant to the Beachgate action, which has been consolidated for "all purposes of discovery and trial" with the Bergman action, entitles it to the opportunity to be heard on the issues presented by this appeal, which directly affect its interests
At oral argument, Bergman contended that a transcript of the Magistrate's opinion on the motion to consolidate would demonstrate that he sought to limit the Magistrate's consolidation order so that it did not cover a motion for summary judgment. We have since reviewed the transcript of the hearing in question, submitted by Bergman, and find that it does not support his argument
Along with the transcript, Bergman also submitted to this Court an affidavit, in which he purports to describe statements made during an off-the-record discussion before the Magistrate. We will not consider this affidavit because it is not part of the record of this case, and treating Bergman's submission as a motion to supplement the record, we deny the motion.
The Court of Appeals for the D.C. Circuit has not decided this issue, but in deciding a similar one, it noted with approval the rule adopted by the Ninth and Tenth Circuits. See Cable-vision Systems Development Co. v. Motion Picture Ass'n of America, Inc.,
Johnson predated the Federal Rules of Civil Procedure and did not involve any issue relating to the finality of a judgment as a predicate for appellate jurisdiction. The relevant language from Johnson stated:
Under the statute,
We do not read this language as controlling the question of whether a district court order disposing of one case consolidated with another (or others) under
Moreover, there has been some indication that the Supreme Court itself does not give Johnson the effect attributed to it by the First and Sixth Circuits. See Synar v. United States,
Finally, the application of Johnson adopted in the First and Sixth Circuits renders
The Court of Appeals for the Eleventh Circuit also seems to favor a case-by-case approach. That court has rendered only one decision on this issue, in which it dismissed an appeal of one action because a consolidated action was still pending in the district court. Later, however, that decision was vacated by the same panel because it turned out that the pending action had been decided, and therefore the jurisdictional defect cured, prior to the filing of the opinion. See Bank South Leasing, Inc. v. Williams,
The Court of Appeals for the Second Circuit did not explain what would constitute a "highly unusual" case. It did not find the presumption overcome in Hageman, where the parties were the same, and the causes of action and defenses were based on the same events. Hageman,
In my view, it was also unnecessary for the majority to decide whether the Second Circuit's "highly unusual circumstances" rule in Hageman v. City Investing Co.,
Jones v. Den Norske Amerikalinje A/S,