Lead Opinion
The issue in this case is whether a trial court’s order transferring a civil case from one circuit court to another circuit court is a final judgment and thus immediately appeal-able. Petitioners in this case appealed the Court of Special Appeals’ dismissal of their appeal from a transfer of venue, in a suit claiming injury to real property caused by Respondents’ channeling of water into a stream that runs across the property. We shall hold that the transfer order is an immediately appealable final judgment, and we shall remand the case to the Court of Special Appeals to consider the merits of the appeal.
I.
Petitioners, plaintiffs below, are Andre W. Brewster, three other owners of riparian land along the Piney Run in Baltimore County, and the Piney Run Preservation Association. The Piney Run, according to the complaint, is a stream that begins at its headwaters near the border between Baltimore and Carroll counties, crosses northern Baltimore County, and joins the Western Run, which, in turn, flows to the Loch Raven Reservoir. Respondents, defendants below, are Wood-haven Building and Development, Inc. (“Woodhaven”), the Town of Hampstead, Maryland (“Hampstead”), the County Commissioners of Carroll County (“Carroll
The complaint, filed in the Circuit Court for Baltimore County on October 10, 1998, alleges that Woodhaven built the Roberts Fields housing development and shopping center in Carroll County; that polluted storm water runoff from the development and shopping center are channeled into the Piney Run; that The Fields, as the homeowners’ association for the Roberts Fields development, owns the holding ponds from which the runoff flows; that Hill/Reedy owns part of the shopping center; that Hampstead owns the storm drains that direct the Roberts Fields storm water into the Piney Run; and that Frock and Slater are responsible for reviewing storm water management plans for the vicinity of the headwaters of the Piney Run in Carroll County. The complaint also states that Carroll County owns the Hampstead Waste Water Treatment Plant, and that the plant discharges its effluent into the Piney Run. The complaint alleges that the water added to the stream by Respondents pollutes the stream and otherwise damages Petitioners’ property; it asserts theories of liability under the headings of riparian rights, negligence,
Woodhaven and Hill/Reedy answered the complaint. The Fields, Hampstead, Carroll County, Frock, and Slater moved to dismiss on grounds of improper venue, pursuant to Maryland Rule 2 — 322(a)(2). The Fields and Hampstead also moved, in the alternative, for transfer to a more convenient forum, pursuant to Maryland Rule 2-327(c). Conducting no hearing, the Baltimore County trial judge granted the motion of The Fields, and issued an order on February 1, 1999, stating that “as a matter of convenience, this claim shall be transferred to the Circuit Court for Carroll County, Maryland or for proper venue. Vast majority of parties and witnesses are in Carroll Co. and.this makes venue in that Co. much more convenient.” Petitioners filed a motion for a hearing and for reconsideration of this ruling on February 4, 1999; their motion also points out that the court’s order of February 1, 1999 did not rule on the motions of the other defendants. On February 5, 1999, the court denied Petitioners’ motion, and issued an order on the docket sheet, stating as follows:
Obviously it was not the intention of the Court to have one defendant’s case tried in Carroll Co. and the rest in Balto. Co. Thus the case was transferred as to all defendants and such Motions were granted. If for some reason convenience is the only reason to transfer as said in Order of 2/1/99 the case is transferred to Carroll Co. for that reason. For clarity, the entire case is moved to Carroll Co.
Petitioners noted a timely appeal to the Court of Special Appeals. The Fields moved to dismiss the appeal on the ground that a circuit court’s order transferring a case to another circuit court is not immediately appealable because it is not a final judgment. The Court of Special Appeals granted the motion, in an order issued without opinion on June 3, 1999. We granted a writ of certiorari.
II.
Petitioners argue that a trial court’s order is immediately appealable if it is either a final judgment or a collateral order, and that the transfer order in this case was both. It is a final judgment, they argue, because it terminated the litigation in the court that issued it, the Circuit Court for Baltimore County. Petitioners argue that the transfer order in this case is appealable also because it satisfies the collateral order doctrine as set out in Pittsburgh Corning v. James,
Respondents initially argue that under Maryland Rule 2-602, an order that fails to dispose of the merits of a case is not a final judgment. Rule 2-602 provides, in pertinent part, that
an order or other form of decision, however designated, that adjudicates fewer than all of the claims in an action (whether raised by original claim, counterclaim, cross-claim, or third party claim), or that adjudicates less than an entire claim, or that adjudicates the rights and liabilities of fewer than all the parties to the action:
(1) is not a final judgment.
Because the order in the present case did not adjudicate the merits of the case, Respondents argue, it is not a final judgment under Rule 2-602. Respondents’ main argument, however, is that although an order need not necessarily dispose of the merits of a case to be a final judgment, an order’s effect of terminating a case in a particular court does not suffice to make the order a final judgment. Rather, they contend, the order must also deprive the party of the means to pursue the claims at issue in any court.
The final judgment rule
Respondents’ initial argument, however, based on Maryland Rule 2-602, is that this core of the final judgment rule is really the entirety of the final judgment rule: If the order in question does not dispose of the parties’ claims on the merits, it cannot be a final judgment. Despite the seemingly restrictive language of Rule 2-602, this is not the law. It is well settled that an order need not necessarily dispose of the merits of a case to be a final judgment. See, e.g., Ferrell v. Benson,
IV.
The dispute in this case centers on the second, narrower argument advanced by Respondents: If a judgment does not settle the merits of the case, it must deny the party challenging it the ability to litigate the case in any forum, in order to be a final judgment. Petitioners’ reply is that the judgment need only deny the party the ability to litigate the case in the particular court that has issued the judgment — the availability of another forum is irrelevant.
Our cases pertaining to this question show that an order is final if it terminates the litigation in a particular court. The cases stating the general rule that a judgment terminating litigation is a final judgment date from an early period. As early as 1835, we were already referring to the “well established rule” that
no appeal can be prosecuted in this Court, until a decision has been had in the Court below, which is so far final, as to settle, and conclude the rights of the party involved in the action, or denying to the party the means of further prosecuting or defending the suit.
We have also stated from an early period, however, the more specific proposition that a judgment terminating litigation in a particular court is a final judgment. In Waverly Mutual v. Buck,
it is now a well-settled principle, that the ruling of the court below must, in order to form the proper basis for an appeal, be so far final as to determine and conclude the rights involved in the action, or deny to the party who seeks redress by an appeal, “the means of further prosecuting or defending the suit” in the Court of original jurisdiction. Boteler v. State, 7 G. & J. 109; Welch v. Davis, 7 Gill, 364 , Green v. Hamilton, 16 Md. [317]; Hazlehurst v. Morris,28 Md. 67 .
Id. at 342,
We have applied the principle that an order terminating litigation in a particular court is a final judgment in recent cases as well. In Ferrell v. Benson,
In the present ease, however, the circuit court’s orders denied Mrs. Carroll all relief in the circuit court; they completely terminated the action in circuit court, remanding the case to the District Court for trial. Nothing was left to be done in the circuit court. Accordingly, the order was a final appealable judgment.
Id. at 520,
Respondents’ position suggests that certain of our cases stating the general proposition that an order terminating litigation is a final judgment conflict with the more specific proposition that an order terminating litigation in a particular court is a final judgment. The formulation in Rohrbeck and several of the other cases cited above, that the order is not final if it does not deny the party the means of “further prosecuting or defending his or her rights and interests in the subject matter of the proceeding,”
V.
Consideration of some of the underlying purposes of the final judgment rule supports our conclusion. We have often stated that the purpose of the final judgment rule is to avoid piecemeal appeals, see, e.g., Harris v. David S. Harris, P.A.,
Postponing review until the final judgment, or minimizing the number of occasions for interlocutory appeal, also is important to avoid interference with the trial process.... Repeated interruptions of the trial court process ... may require wasteful losses of familiarity with the case by court and perhaps counsel as well.
Wright, Miller & Cooper, supra, § 3907, at 277.
This sort of interruption cannot occur in a case in which a motion to . transfer has been granted. In the transferring court, there are no longer any proceedings to interrupt, for the proceedings have been terminated. In the receiving court, the proceedings cannot be interrupted, because they have not yet begun. The case is otherwise when a motion to transfer is denied; to allow immediate appeal then would interrupt an ongoing trial court process. This difference justifies the distinction we make in allowing immediate appeal from the granting of a transfer order and disallowing immediate appeal from the denial of a transfer order.
It is also instructive to compare the rules on the appealability of decisions on
The two situations — transfer and dismissal — should therefore be treated alike. The allowance of transfers in our rules was not intended to create an exception to the principles for determining whether an order is final and appealable. It would be illogical to conclude that, on the one hand, the dismissal for lack of venue in Wilde,
VI.
Our holding that an order granting a transfer of venue from one circuit court to another is immediately appeal-able permits the party who opposed the order either to file an appeal from the order within 30 days of its entry, or to wait until the litigation has been completed in the transferee court and appeal from that court’s final judgment on the ground that the case should not have been transferred.
We have often permitted an appeal from a judgment ultimately disposing of a case based on an issue that could have been, but was not, made the basis of an earlier appeal. Probably the circumstance closest to the present case is when a party first contends before the trial court that it should not be ordered to arbitrate, is ordered to arbitrate, does not take an immediate appeal from that order terminating the proceeding in the trial court, submits to arbitration, and appeals the issue only after an arbitration award has been confirmed by the trial court in a new proceeding. In Curtis G. Testerman Co. v. Buck,
Similarly, in Board of Educ. for Dorchester County v. Hubbard,
There are many other situations when a party fore-goes the right to an earlier appeal, but may still seek appellate review when the judgment becomes final. A party may seek appellate review of issues that were appealable under the collateral order doctrine. See Pulley v. State,
A party may forego the right to an immediate appeal of an injunction and raise the same issue in a later appeal. See Save-Mor Drugs v. Upjohn Co.,
Finally, a party may forego an appeal from a final judgment terminating a case in a particular court, but subsequently raise the issue in a separate proceeding in declaratory judgment actions to resolve questions of insurance liability coverage when the insured is a defendant in a tort suit. See Allstate Ins. Co. v. Atwood,
No principle or rule of law stands in the way of permitting a party to choose between immediately appealing the transfer order and waiting until the end of the case to litigate this issue further. For instance, the fact that more than 30 days might have passed since the transfer order was entered does not prevent an appeal from the ultimate disposition of the case based on the argument that the transfer was improper. It is true that “[t]he requirement ... that an order of appeal be filed within thirty days of a final judgment is jurisdictional; if the requirement is not met, the appellate court acquires no jurisdiction and the appeal must be dismissed.” Houghton,
Nor does the doctrine of res judicata mean that a decision to forego appeal of the transfer order has the effect of precluding further litigation of the issue in the appeal from the ultimate judgment. While ordinarily the failure to appeal from an appealable order precludes later appellate review of that order under the doctrine of res judicata, this is not a universal or absolute rule. The doctrine of res judicata is grounded in the public policy against repetitive litigation, see Pat Perusse Realty v. Lingo,
In conclusion, we note that a review of this Court’s opinions over the past forty or fifty years will show that no one issue has been the subject of more opinions than the question of whether a trial court order is appealable. The bar has had more difficulty determining finality and appealability than with perhaps any other issue. Nonetheless, there exists one principle of appealability to which this Court has continuously adhered, one that is simple and understandable. An order which terminates the proceeding in a particular court is final and appealable.
JUDGMENT OF THE COURT OF SPECIAL APPEALS DISMISSING THE APPEAL REVERSED. CASE REMANDED TO THAT COURT FOR CONSIDERATION OF THE MERITS OF THE APPEAL. COSTS TO ABIDE THE RESULT IN THAT COURT.
Dissenting opinion by WILNER, J, in which RODOWSKY, J. and CATHELL, J., join.
Notes
. The statutes concerning final judgments do not take us very far. They establish a right of appeal from a final judgment, but do not indicate which orders constitute final judgments. Maryland Code (1974, 1998 Repl.Vol., 1999 Supp.) § 12-101(f) of the Courts and Judicial Proceedings Article states that
"Final judgment” means a judgment, decree, sentence, order, determination, decision, or other action by a court, including an orphans' court, from which an appeal, application for leave to appeal, or petition for certiorari may be taken.
Section 12-301 of the same Article provides, in pertinent part, that with exceptions not here relevant,
a party may appeal from a final judgment entered in a civil or criminal case by a circuit court. The right of appeal exists from a final judgment entered by a court in the exercise of original, special, limited, statutory jurisdiction, unless in a particular case the right of appeal is expressly denied by law.
We have observed on many occasions that these provisions leave the elements of finality to be determined by the courts. See, e.g., Anthony v. Clark,
. There is no distinction, for finality purposes, between a circuit court order sending a case to the District Court and a circuit court order sending a case to another circuit court. The State’s twenty-four circuit courts are entirely separate courts, as set forth in Article IV, § 20 of the Maryland Constitution. All circuit courts are not simply divisions of a single unified court which have "equivalent status and jurisdiction.” Dissent at p. 627. Simply because the circuit courts may be of equivalent status and jurisdiction does not permit this Court to treat as a single entity what the Constitution has established as entirely separate courts.
In point of fact, there are jurisdictional differences among the circuit courts. Many public local laws confer jurisdiction upon the circuit court of one particular county or Baltimore City. A few public general laws do the same thing. See e.g., Maryland Code (1997, 1999 Supp.) § 2-215(c) of the Insurance Code.
. The dissent argues that our holding is inconsistent with Parrott v. State,
Parrott took the position _that an interlocutory appeal lies in this case for either of two reasons. First, Maryland cases view certain removal orders as within a class of orders which grant or deny an absolute constitutional right and are on that ground immediately appealable. Secondly, the issue in this case meets the collateral order exception to the final judgment rule.
The State recognized that its position of nonappealability conflicts with certain earlier cases. The State submitted, however, that later decisions which look to the collateral order doctrine had eroded the constitutional right approach to appealability and that the subject appeal fails the collateral order test.
In addition, the law concerning finality and appealability of judgments in criminal cases is different, in many respects, from the law applicable to civil cases. For example, a final judgment (including sentence) on single count in an indictment can be appealed even though there is no final judgment on another count in the same indictment charging a different offense. Moreover, in a civil action, both the plaintiff and the defendant enjoy rights concerning venue. Both parties enjoy the privilege of transferring a case to a venue which either one can show to be more convenient. In a criminal case, however, the prosecution is constrained in a manner that is not at all analogous to the venue selection by a civil plaintiff. Article 20 of the Maryland Declaration of Rights requires that criminal cases be brought where the crime occurred. Thus, it is usually the defendant who seeks a transfer; such defendant would have little cause to appeal a transfer order which he or she sought. The State, having much less "venue” rights than a civil plaintiff, would ordinarily not attempt to appeal a transfer order. Thus, in criminal cases, there is much less need for an immediate appeal of transfer orders.
. The dissent’s view that our decision is inconsistent with our holding in Leung v. Nunes,
. The appeal, although reported as Board of Educ. for Dorchester County v. Hubbard, involved two separate cases, one from Dorchester County and one from Garrett County.
. The collateral order doctrine “treats as final and appealable a limited class of orders which do not terminate the litigation in the trial court.” Public Serv. Com’n v. Patuxent Valley Conservation League,
Dissenting Opinion
dissenting:
The Court today holds that an order of a Circuit Court, entered under Maryland Rule 2-327(b) or (c), that transfers a case to another Circuit Court having equivalent jurisdiction but better (or exclusive) venue constitutes a final judgment that is immediately appealable. To reach that result, the Court misinterprets some cases, pays no heed to others, and comes to the extraordinary conclusion that there can be more than one final judgment in a single case. The Court’s decision is flat-out inconsistent with Parrott v. State,
The Court recognizes the long-established rule in this State, articulated at least as early as Boteler & Belt v. State, 7 G. & J. 109, 113 (1835) that
“no appeal can be prosecuted in this Court, until a decision has been had in the Court below, which is so far final, as to settle, and conclude the rights of the party involved in the action, or denying to the party the means of further prosecuting or defending the suit.”
See also Popham v. State,
The Court then proceeds, however, to construe the alternative requirement that the lower court decision “deny to the party seeking redress by the appeal the means of further prosecuting or defending his rights and interests in the subject matter of the proceeding” as being satisfied when the order removes the case, on venue grounds, from one Circuit Court to another. As a basis for that construction, it states that “[w]e have applied the principle that an order terminating litigation in a particular court is a final judgment” (emphasis added), citing as authority for that proposition cases treating as final judgments orders of a Circuit Court transferring an action to the District Court of Maryland, or dismissing an action seeking judicial review of an administrative agency decision and remanding the case to the agency, or requiring parties to arbitrate a dispute otherwise triable in the court. Those cases, however, do not support the notion that the transfer of a case, for venue purposes, from one Circuit Court to another constitutes a final, appealable judgment.
The Court first relies on Ferrell v. Benson,
The same principle was involved in the cases remanding an action to an administrative agency or dismissing an action in favor of arbitration. The rationale for regarding an order remanding an action to an administrative agency as a final judgment was lucidly explained in Schultz v. Pritts,
“When a court remands a proceeding to an administrative agency, the matter reverts to the processes of the agency, and there is nothing further for the court to do. Such an order is an appealable final order because it terminates the judicial proceeding and denies the parties means of further prosecuting or defending their rights in the judicial proceeding.”
(Emphasis added). See also Eastern Stainless Steel v. Nicholson,
That is also the rationale for regarding orders to arbitrate as final judgments. In Horsey v. Horsey,
“A circuit court’s order to arbitrate the entire dispute before the court does deprive the plaintiff of the means, in that case before the trial court, of enforcing the rights claimed. The order effectively terminates that particular case before the trial court. Thus, the order would clearly seem to be final and appealable under the above cited cases.”
Those cases, and' others like them, are entirely consonant with the general rule regarding final judgments and do not support the proposition adopted by the Court in this case. We are not dealing here with plaintiffs who have been denied a judicial remedy, as is the situation when cases are remanded to administrative agencies or dismissed in favor of arbitration. Nor, as is the situation with a remand to the District Court, are we dealing with plaintiffs who have been prevented from trying their case in a Circuit Court, of having a jury trial with respect to issues triable before a jury, of preserving their right of direct appeal to the Court of Special Appeals, of having all of the discovery and motion practice available in a circuit court. The only effect of the order under consideration is that the plaintiffs must try their case in Carroll County rather than in Baltimore County, in a court of equivalent status and jurisdiction. This is not at all like the situations in Ferrell, Carroll, Schultz, or Horsey.
The Court cites Wilde v. Swanson,
In Leung v. Nunes, supra, the Circuit Court for Baltimore City transferred a tort case, under Rule 2-327(c), to the Circuit
The only basis upon which we could have reviewed the transfer order in that case was to treat the judgment entered in the Circuit Court for Howard County as the final judgment in the case and to regard the transfer order as an interlocutory order reviewable on appeal from the later-entered final judgment. Under what, up to now, has been our clear and routine jurisprudence, if a transfer order constitutes a final judgment, as the Court now holds, the transfer order in Leung would have been unreviewable, for, as noted (1) no appeal had been taken from that order, and (2) the only appeal that was taken was filed long after the 30 days allowed for noting an appeal. We would have lacked substantive jurisdiction to enter the mandate that we entered.
The Court’s current belief that a venue transfer order constitutes a final, immediately appealable judgment is also inconsistent with our holding in Parrott v. State, supra,
In Testerman Co. v. Buck,
Testerman is a weak reed on which to rely. An order to arbitrate may be entered in three contexts under the Uniform Arbitration Act. Maryland Code, § 3-207 of the Courts and Judicial Proceedings. Article, allows a party to an arbitration agreement to file a petition to compel arbitration if the other party to the agreement refuses to arbitrate. Section 3-208 permits a person, threatened with arbitration, to petition the court to stay the arbitration on the ground that the person never agreed to arbitrate the matter. In either situation, if the court determines that an agreement to arbitrate exists, it must order arbitration. Such an order is immediately appeal-able, because it exhausts the court’s jurisdiction. There is nothing left in the court — any court. The party has been deprived of his, her, or its alleged right to a judicial resolution. Horsey v. Horsey, supra,
Sections 3-223, 3-224, and 3-227 of the Courts and Judicial Proceedings Article permit parties who have been through arbitration to file certain post-award petitions in the Circuit Court — to modify or correct an award (§ 3-223), to vacate an
Finally, the Court finds some succor in the fact that a party who may appeal immediately from an interlocutory order under the collateral order doctrine or under § 12-303 of the Courts and Judicial Proceedings Article may choose not to appeal at that time and appeal later from the final judgment. The critical — and obvious — distinction is that the first order is, indeed, an interlocutory one. Although the law allows an immediate appeal from certain kinds of interlocutory orders, its general preference is to have but one appeal at the end, which is why, subject to ordinary rules of waiver or mootness, it permits a party appealing from the final judgment to contest interlocutory orders entered during the action. With but one possible contextual exception, we have never endorsed the notion of there being more than one final judgment in a single action. The only potential exception is those actions in which an equity court has a continuing jurisdiction to entertain and enter final orders in discrete proceedings, an example being a divorce or receivership action. The holding today, that there can be more than one final judgment in this kind of case, is unprecedented.
In regarding the transfer order as a final judgment, the Court overlooks, two important aspects of such an order that clearly demonstrate its interlocutory nature. If the party opposing the transfer prevails in the transferee court, the issue of the transfer will effectively become moot, and the prospect of an issue being made moot by further proceedings in the action is, or at least should be, one of the critical factors in determining whether the order generating that issue is interlocutory, rather than final. On the other hand, if, as in Leung, that party loses in the transferee court, it can raise the transfer issue, along with any other issues it chooses to raise, in an appeal from what is clearly the final judgment. In either event, there is simply no need to have the transfer order immediately appealable and certainly no reason to regard such an order as a final judgment simply in order to provide a ground for immediate appealability.
There is no logical basis for the Court’s holding. It can serve no useful purpose. Its only effects will be deleterious. It will be used to create delay in the trial of cases that are transferred under Rule 2-327, as parties opposing the transfer, by immediately appealing, can put the case “on ice”
Judges RODOWSKY and CATHELL have authorized me to state that they join in this dissenting opinion.
. In a footnote, the majority attempts to dismiss Parrott on the alternative grounds that (1) the issue of whether the transfer order in that case constituted a final judgment was never raised or decided, and (2) in any event, there are differences between the finality of judgments in criminal and civil cases. I shall respond in a footnote. The first basis is perplexing. As just noted, we dismissed the appeal in Parrott "[b]e-cause the order or removal appealed from in this case is not a final judgment and does not fall within the collateral order doctrine exception.” How is that not a holding regarding an issue in the case? It is true that Parrott claimed that the order was interlocutorily appealable, and for good reason, for, up to that point, we had consistently regarded such orders as interlocutory, and appealable as such. The point is, however, that, notwithstanding our determination in Parrott that we would no longer regard removal orders as immediately appealable interlocutory orders, we would not have dismissed the appeal if we believed that the order before us constituted an appealable final judgment. We would not have played so fasf and loose with a jurisdictional issue in a criminal case. That would have been manifestly unjust. We dismissed the appeal because we concluded that the removal order was neither a final judgment nor an appealable interlocutory order. That is what we plainly said, and that is what we plainly did.
The second basis offered by the majority is equally mysterious. What difference does it make that, in a criminal case, a judgment on one count of an indictment or information may be appealed even though there is no judgment yet entered on another count? All that signifies is that we have not, as of yet, applied a common law equivalent of Maryland Rule 2-602 to criminal cases. It says absolutely nothing about the nature and effect of a removal order. If removal on venue grounds does not constitute a final judgment in a criminal case, even though it terminates the action in the transferring Circuit Court, how can such a removal constitute a final judgment in a civil case on the ground that it terminates the action in the transferring court?
. It may be that, if a party moved to stay arbitration under § 3-208 or objected to a petition to order arbitration under § 3-207 on the ground that he, she, or it never agreed to arbitrate the matter and failed to appeal an adverse determination in that proceeding, principles of res judicata or collateral estoppel would preclude an attempt to raise that issue again in a petition to vacate an award; that is a matter on which we have yet to opine. Any such bar, however, if one did exist, would not affect the appealability of the order denying post-award relief.
