Hendrickson v. United StatesHendrickson v. United States
This appeal arises from an attempt to enforce a settlement agreement signed by Plaintiffs-Appellees William and Patricia Hendrickson, the United States, and the district court more than thirty years ago. In 1985, the district court clearly indicated its approval of the terms of a settlement agreement resolving Plaintiffs’ suit against the United States; in 2013, Plaintiffs allege, the United States fell out of compliance with certain payment obligations contained in that agreement. This case requires us to decide whether the actions taken by the district court in 1985 — verbally expressing approval of the settlement terms, dismissing the case on the merits in a brief order, and subsequently signing and so-ordering the parties’ settlement agreement — sufficed to retain jurisdiction over the enforcement of the agreement. Because the district court’s order of dismissal failed expressly to retain jurisdiсtion or to incorporate the terms of the agreement, and because the district court’s so-ordering of the settlement agreement took place after the court had already relinquished jurisdiction over the case and was thus ineffective to retain it, we conclude that the district court did not have jurisdiction over the enforcement of the settlement agreement. Accordingly, we vacate the district court’s orders enforcing the agreement and denying the United States’ motion for reconsideration, and we remand to the district court with instructions to transfer this case to the Court of Federal Claims.
BACKGROUND
In 1982, William Hendrickson and Patricia Hendrickson brought an action against the United States in the United States District Court for the Western District of New York pursuant to the Federal Tort Claims Act,
At the March 29 hearing, the district court (Michael A. Telesca, Judge), informed that the United States was to provide periodic future payments as part of the settlement, told the parties to “[s]pread the. settlement on the record.” J.A. 9. After heаring the general terms of the agreement and ascertaining that Plaintiffs consented to them, the district court stated, “I will approve it. I will dismiss the action and I think it’s an excellent settlement for you.” J.A. 14. The court then informed counsel that an order of discontinuance would be entered, “so there won’t be anything else for you to do here.
A few days later, on April 2, 1985, the Clerk of Court entered an order of dismissal signed by the district judge. The order read, in its entirety, “The Court having been advised by the counsel for the parties that the above action has been settled; IT IS ORDERED that this action is hereby dismissed without costs and on the merits.” J.A. 17. The April 2 order of dismissal is the last entry to appear on the district court’s docket sheet.
On April 29, 1985, nearly a month later, the parties signеd and submitted to the district court a “Stipulation for Compromise Settlement Pursuant to
The matter returned to federal court in October 2013, almost 30 years after the parties’ settlement, when Plaintiffs filed a motion in the Western District, on the same docket, styled a “Motion to Enforce a Compromise Settlement.”
DISCUSSION
I.
We review de novo a district court’s legal determination regarding its own subject matter jurisdiction. Rogers v. Petroleo Brasileiro, S.A.,
In some circumstances, that basis may be found in the doctrine of ancillary jurisdiction, which allows a district court to decide matters that are “factually interdependent” with another matter before the court, or to take actions necessary “to manage its proceedings, vindicate its authority, and effectuate its decrees.” Id. at 379-80,
The district court in this case, and Plaintiffs in their briefing, endeavor to fashion a third category of cases in which a district court may retain ancillary jurisdiction to enforce a settlement agreement: cases in
We acknowledge that dicta in our decision in In re American Express Financial Advisors Securities Litigation,
The district court’s conclusion that its own stamp of “judicial imprimatur” alone could support its exercise of ancillary jurisdiction over the settlement agreement was therefore error. We take this oppоrtunity to reaffirm Kokkonen’s longstanding rule that there are only two ways in which
II.
The dismissal order in this case, entered on April 2,1985, mentions that the parties had reached a settlement, but it does not contain any language retaining jurisdiction over the enforcement of that settlement. And although the general terms of the settlement were known to the court, having been spread on the record at a recent hearing, those terms are not incorporated into the brief order of dismissal. Thus, the April 2 dismissal order, standing alone, does not meet either of Kokkonen’s requirements, and cannot support the district court’s exercise of ancillary jurisdiction over the settlement agreement. Plaintiffs contend, however, that the so-ordered Settlement Agreement, signed April 29, 1985, either: (1) is itself a court order incorporating the terms of the Settlement Agreement; or (2) had the effect of modifying the April 2 dismissal order to include those terms, and that Kokkonen is satisfied in either case. We address these arguments in turn.
A. Did the April 29 Post-Dismissal Order Itself Retain Jurisdiction?
When a district court issues a final decision, it “disassociates itself from a case,” Swint v. Chambers Cnty. Comm’n,
The difficulty with Plaintiffs’ first argument, then, is clear: the April 29 Settlement Agreement came nearly a month after the April 2 dismissal order, and thus was signed by a court that had already relinquished its jurisdiction over the underlying case. Whatever legal force the so-ordering of the April 29 Settlement Agreement might have had if filed prior to the district court’s order of dismissal — a question on which we take no position— “[a]fter-the-fact statements and actions of the parties, and even of the district court, cannot create ancillary jurisdiction where such jurisdiction was not retained upon dismissal.” StreetEasy,
Plaintiffs seek to distinguish SmallBizPros and Anago on the ground that the underlying actions in those cases were dismissed by voluntary stipulation of the parties under
B. Did the April 29 Post-Dismissal Order Modify the April 2 Order, so as to Retain Jurisdiction?
Plaintiffs’ next argument — that the April 29 so-ordering of the Settlement Agreement constituted a “correction” of the April 2 dismissal order pursuant to
III.
When a district court lacks ancillary jurisdiction over the enforcement of a settlement agreement, “enforcement of the settlement agreement is for state courts, unless there is some independent basis for federal jurisdiction.” Kokkonen,
Claims like Plaintiffs’ claim under the Settlement Agreement do, however, fall within thе ambit of. the Tucker Act, which grants the Court of Federal Claims jurisdiction over “any claim against the United States founded ... upon any ex
In this case, there is no evidence that Plaintiffs’ choice to move for enforcement of the Settlement Agreement in the district court was the product of anything other than a good-faith mistake or error in interpreting the law. And, although there is no reason to believe that Plaintiffs’ claim would be barred as untimely if filed in the Court of Federal Claims, a transfer would expedite the resolution of Plaintiffs’ claim, “thereby furthering the interest of justice.” Ruiz,
CONCLUSION
For the foregoing reasons, we VACATE the order of the district court enforcing the parties’ settlement agreement and REMAND this matter for transfer to the Court of Federal Claims pursuant to
Notes
. As we have noted before, the Federal Rules of Civil Procedure do not рrovide for such a motion. In re Am. Exp. Fin. Advisors Sec. Litig.,
. After briefing had closed before the district court, the United States submitted a letter raising for the first time the argument that the Federal Tort Claims Act's-waiver of sovereign immunity does not apply to an action seeking to enforce a settlement agreement. Because we decide that the district court lacked subject matter jurisdiction over this case, we need not and do not reach the sovereign im
. We express no view as to whether it would have been appropriate under