*2 Before: B ROWN , Circuit Judge , and E DWARDS and G INSBURG , Senior Circuit Judges .
Opinion for the Court filed by Senior Circuit Judge G INSBURG .
G INSBURG , Senior Circuit Judge : This case comes to the court on a petition for interlocutory appeal of the district court’s denial of certification for a class consisting of African- American deputy U.S. Marshals alleging racial discrimination by the United States Marshals Service (USMS). The district court denied class certification on the ground that the sole named plaintiff, Herman Brewer, did not satisfy the adequacy *3 and typicality requirements of Federal Rule of Civil Procedure 23(a) because, as a former USMS employee, he lacked standing to pursue class-wide injunctive relief.
Brewer petitioned this court for interlocutory review under Rule 23(f) but, while his petition was pending, he settled his individual claims with the Government, and the parties stipulated to the dismissal of the action in district court pursuant to Federal Rule of Civil Procedure 41(a)(1)(A)(ii). That rule allows the parties voluntarily to dismiss a suit without a court order by filing a jointly signed stipulation with the court. Upon notice of the stipulation, four current and former deputy U.S. Marshals moved to intervene in this court in order to pursue the petition Brewer had filed to review the district court’s denial of class certification.
For the reasons discussed below, we grant the motion to
intervene but decline the petition for review as presenting no
question that falls within our discretion to hear an interlocutory
appeal under the framework announced in
Lorazepam &
Clorazepate Antitrust Litigation
,
I. Background
The lengthy and somewhat convoluted history of this case is depicted in the figure below and described in the following paragraphs.
2008
Complaint Filed
In October 2008 deputy U.S. Marshal David Grogan filed a putative class action against the USMS on behalf of himself and similarly situated current and former African-American deputy U.S. Marshals, alleging racial discrimination in violation of Title VII of the Civil Rights Act of 1964. Although
the suit was also for monetary damages, the class complaint states that “[i]njunctive and declaratory relief are the predominant forms of relief sought . . . because they are absolutely necessary to the cessation of discrimination and elimination of the effects of past discrimination.” The current complaint alleges the USMS has violated Title VII through three policies or practices. First, it challenges several features of the USMS’s Merit Promotion Plan that allegedly impede the promotion of African-American employees. Second, the complaint claims the Marshals’s practice of noncompetitively selecting employees for lateral duty assignments diminishes class members’ opportunities for career advancement. Finally, it claims USMS procedures have disproportionately excluded African-Americans from career-enhancing “Headquarter duty assignments.”
A. Herman Brewer
The putative class originally advanced five types of claims, relating to pay awards, training, internal investigations, assignments, and promotions, only the last two of which survive in the current litigation. In 2010 Grogan, the original and then-sole named plaintiff, moved to amend the class complaint to add Brewer and Fayette Reid as class representatives for claims relating to awards, training, assignments, and promotions. The district court granted the motion in relevant part. In 2013 Grogan filed a stipulation of dismissal of his individual claims and dropped out of the action.
Before Grogan exited the litigation, the Government had moved for summary judgment on all claims. Later in 2013 the district court granted the motion in part, eliminating the claims relating to awards, training, and investigations. Brewer v. Holder , 20 F. Supp. 3d 4, 17-23 (D.D.C. 2013); Brewer v. Holder , No. 08-CV-1747, at 3-4 (D.D.C. Oct. 11, 2013). This effectively eliminated Reid as class representative for her now- dismissed claims relating to awards, training, and assignments. As a result, by October 2013, Brewer was the sole named plaintiff representing only the assignments and promotions claims.
By statute, deputy U.S. Marshals face mandatory retirement at age 57. 5 U.S.C. § 8335(b)(1). Brewer, who turned 57 in July 2013, received extensions totaling eight months and retired from the USMS on March 31, 2014.
Class discovery closed in June 2014, and Brewer filed two motions on July 1, 2014, three months after he retired and more than four years after a deadline set by scheduling orders to *6 amend the complaint. The first motion sought leave to amend the complaint to substitute four additional plaintiffs as class representatives. The district court denied that motion in April 2015, holding Brewer had not diligently pursued substitution upon notice of his impending retirement and the departure of the other named plaintiffs.
The second motion was for class certification. The Government opposed certification on several grounds. First, it argued the proposed class definition was ambiguous and overbroad. Second, the Government contended Brewer was an inadequate class representative because, as a former employee, he lacked standing to pursue injunctive relief. Third, it pointed to intra-class conflicts between USMS subordinates and supervisors (including Brewer), thereby arguably making him an inadequate class representative. Finally, the Government challenged whether the class complaint satisfied the commonality, typicality, and predominance prerequisites to certification under Rule 23(a) and (b)(3).
In September 2015 the district court denied class certification. Specifically, the court held that, although the complaint sufficiently defined a class of USMS employees, Brewer, as a former employee ineligible for reinstatement, could not adequately represent a class that predominantly sought injunctive relief. Nor were Brewer’s individual claims for monetary damages typical of class-wide claims for injunctive relief. Although the court said the “Plaintiffs face a significant challenge in meeting the three remaining prerequisite[s] [other than numerosity],” it did not reach the Government’s other challenges “because it is abundantly clear that Plaintiffs’ sole proposed class representative cannot adequately represent the class members’ interests.” The district court further refused to certify a narrower class seeking only
damages, reasoning that doing so would amount to “claim splitting” and risked “jeopardizing the class members’ ability to subsequently pursue other claims.”
Brewer timely petitioned this court for interlocutory review of the denial of class certification pursuant to Rule 23(f).
B. Settlement and Intervention
Starting with the denial of Brewer’s two July 2014 motions, the history of this case is depicted in the figure below and described in the following paragraphs.
. r i C
. C . D Motion to Consolidate . C . D . D
While his petition was pending, Brewer also engaged in confidential settlement negotiations with the Government. They reached an agreement disposing of his individual claims, and on July 22, 2016 Brewer filed a stipulation of dismissal pursuant to Rule 41(a)(1)(A)(ii). The same day Keith *8 Harrington, Melanie Thompson, Mariam Rodgers, and Frederick Robinson filed a motion to intervene in order to continue pursuing the petition for interlocutory review in this court. They also moved to intervene in the district court in order to appeal the denial of class certification. Three of the four would-be intervenors are current African-American employees of the USMS, who presumably have standing to seek injunctive relief, and one, like Brewer, is a former employee.
In light of the stipulated dismissal and the motion for intervention, we directed the parties to argue the merits of intervention, of interlocutory review, and of class certification before this court. Following oral argument but while their motion for intervention in the district court remained pending, the intervenors filed with this court a notice of appeal from the stipulated dismissal of Brewer’s individual claims, from the order denying class certification, and from the effective denial of their motion for intervention within the time to appeal. They did so in order to meet the 60-day deadline for appeal from a final judgment, which they thought dated from the filing of the stipulated dismissal. On October 25, 2016 the district court issued a minute order dismissing the motion to intervene, reasoning the notice of appeal stripped it of jurisdiction to rule on intervention. As a result of these events, no further claims or motions remain pending in the district court, and the would- be intervenors’ petition and appeal from the denial of class certification are pending in this court. On February 2, 2017 the intervenors moved to consolidate Brewer’s petition and their appeal. We now address the petition for permission to appeal and the motion for intervention in this court. Addressing these matters disposes of the need to reach the latter appeal.
On the merits, we face, at most, three questions: (1) whether to grant the motion to intervene; (2) if so, whether *9 to grant the petition for interlocutory review under Rule 23(f); and (3) whether the district court abused its discretion in denying certification of the class of current and former African- American deputy U.S. Marshals. See Garcia v. Johanns , 444 F.3d 625, 631 (D.C. Cir. 2006) (reviewing the merits of class certification for abuse of discretion).
II. Jurisdiction
Before reaching the merits, however, we must assure
ourselves of our jurisdiction to decide these questions. The
basic problem arises from the series of events described above.
First, after the district court denied class certification, only
Brewer’s individual claims remained pending before that court
while he pursued his petition for interlocutory review. Then
Brewer settled his individual claims and stipulated to their
dismissal, depriving both the district court and this court of any
live claims or adverse parties unless one of the two motions for
intervention is granted. But in order to grant intervention, either
this court or the district court must have jurisdiction over the
case, notwithstanding the apparent absence of either live claims
or adverse parties at the moment. Thus, the situation may
appear to present a Catch-22: Intervention can overcome the
apparent jurisdictional problem created by the stipulated
dismissal, but a court may grant intervention only if it has
jurisdiction to do so. The circle is broken, however, because we
have jurisdiction to determine our own jurisdiction,
United
States v. Ruiz
,
The jurisdictional question in this case involves two
complications, the interaction of which neither this nor any
other Circuit court has confronted. First, we must determine the
effect of a stipulated dismissal upon a subsequent motion for
intervention for the purposes of appealing. Then, we must
consider how the only named plaintiff’s stipulated dismissal of
his individual claims affects whether absent members of a
putative class can appeal the denial of class certification.
Ultimately, we conclude the answer to these questions is no
different for a stipulated dismissal than for a dismissal by court
order, after which intervention for the purpose of appealing a
denial of class certification is certainly available.
See United
Airlines, Inc. v. McDonald
,
We begin with the effect of a stipulated dismissal on the
jurisdiction of a federal court to hear a post-dismissal motion
for intervention. On this account, one thing is clear both in this
Circuit and all others that have addressed the matter: A
stipulated dismissal is “effective automatically” upon filing
and requires no further action on behalf of a district court in
order to constitute a final judgment, ripe for appeal.
In re Wolf
,
842 F.2d 464, 466 (D.C. Cir. 1988) (per curiam) (quoting
Gardiner v. A.H. Robins Co.
, 747 F.2d 1180, 1189 (8th Cir.
1984));
see also, e.g.
,
State Nat’l Ins. v. County of Camden
, 824
F.3d 399, 406-07 (3d Cir. 2016);
Marex Titanic, Inc. v.
Wrecked & Abandoned Vessel
, 2 F.3d 544, 546-47 (4th Cir.
1993) (applying Rule 41(a)(1)(A)(i));
Anago Franchising, Inc.
v. Shaz, LLC
,
Some Circuits have reasoned the “jurisdiction-stripping”
effect of a stipulated dismissal precludes a district court from
taking further action on motions made after, or even before, the
dismissal. Those decisions suggest that upon the stipulated or
voluntary dismissal of the current parties’ claims, a court may
lack jurisdiction to review a non-party’s motion for
intervention.
See Marex Titanic
, 2 F.3d at 545-47;
Bond v.
Utreras
,
In our view, a stipulated dismissal, aside from its
immediate effectiveness, is no different in jurisdictional effect
from a dismissal by court order: Each resolves all claims before
the court, leaving it without a live Article III case or
controversy.
Cf. Catlin v. United States
,
Several Circuits have framed the jurisdictional effect of a
stipulated dismissal in sweeping terms,
see, e.g.
,
SmallBizPros
,
Moreover, the Supreme Court has repeatedly advised
against giving
jurisdictional significance
to statutory
provisions that do not clearly “speak in jurisdictional terms.”
See, e.g.
,
Arbaugh v. Y&H Corp.
,
It is well established that mootness alone does not strip a
district (or an appellate) court of jurisdiction to hear a motion
to intervene for the purpose of appealing the dismissal of
claims pending before the court, provided, of course, the
intervenor has an Article III stake sufficient to pursue an
appeal.
See Acree v. Republic of Iraq
,
2001);
cf. Bond
,
C. Microsoft v. Baker
The Supreme Court’s recent decision in
Microsoft Corp.
v. Baker
,
The procedural posture and the facts of this case are far different. Here we consider solely a petition for review under Rule 23(f); the statutory issue in Microsoft is not present in this case. Furthermore, the equitable and policy considerations at work in Microsoft have little force in this case: The plaintiff in Microsoft had opportunistically dismissed his individual claims in order to get review of an issue – class certification – for which he had been denied interlocutory review. The would- be intervenors here have not resorted to any questionable tactics. They had no reason to doubt Brewer was adequately representing their interests in seeking interlocutory review – until, that is, they learned he had settled his claims, whereupon *16 they moved immediately to intervene in order to protect their interests in the 23(f) petition. Indeed, even Brewer, far from being opportunistic, expressed his regret that, despite his years- long effort, he was “unable [to] accomplish the objective for which he risked his career.” These legal, procedural, and equitable differences render Microsoft inapplicable here. Therefore, sure of our jurisdiction, we turn to the merits of the motion to intervene and the petition for review.
III. Intervention of Right
Federal Rule of Civil Procedure 24(a)(2) provides a nonparty may intervene in an ongoing action as a matter of right when it:
claims an interest relating to the property or transaction that is the subject of the action, and is so situated that disposing of the action may as a practical matter impair or impede the movant’s ability to protect its interest, unless existing parties adequately represent that interest.
There is no question we may address the question of
intervention in the first instance on appeal. “[J]udicial economy
is better served by th[e] Court deciding whether appellants
have made a sufficient showing under Rule 24” rather than
“remanding to the district court for that decision.”
Foster v.
Gueory
, 655 F.2d 1319, 1324 (D.C. Cir. 1981)
.
Indeed, we
must address the motion for intervention before considering the
petition for interlocutory review because only a party may
appeal an adverse order.
See Mova Pharm. Corp. v. Shalala
,
In this case, the need to address the motion to intervene on
appeal is paramount. Although the would-be intervenors also
have moved to intervene below, the district court dismissed that
motion, reasoning that the would-be intervenors’ notice of
appeal rendered it without jurisdiction to consider their motion
to intervene. The intervenors have also appealed the district
court’s dismissing their motion to intervene. As such, the only
live motion to intervene lies before this court. If intervention is
denied now (and if we decline to consolidate the petition and
the appeal from final judgment), then this court will later face
the district court’s decision to dismiss the would-be
intervenors’ second motion to intervene on direct appeal from
the final judgment. Either way, this court will address
intervention on appeal. “Denial of intervention in the initial
review proceedings – and the attendant remand . . . and second
appeal to the Court of Appeals – only results in a delay of the
time when the disaffected party may seek review.”
Int’l Union,
United Auto., Aerospace & Agric. Implement Workers of Am.
AFL-CIO, Local 283 v. Scofield
,
As to the merits of intervention, the prospective
intervenors must satisfy the four requirements of Rule 24(a)(2):
(1) the motion for intervention must be timely; (2) intervenors
must have an interest in the subject of the action; (3) their
interest must be impaired or impeded as a practical matter
absent intervention; and (4) the would-be intervenor’s interest
must not be adequately represented by any other party. For its
*18
part,
the Government does not meaningfully oppose
intervention on the merits but uses its brief in opposition mostly
to reiterate its objections to interlocutory review. This approach
is particularly problematic because “the burden of proof” on
certain aspects of intervention “rests on those resisting
intervention.”
SEC v. Dresser Indus., Inc.
,
Timeliness.
A nonparty must timely move for
intervention once it becomes clear that failure to intervene
would jeopardize her interest in the action.
McDonald
, 432
U.S. at 394. As already mentioned, the appellants filed their
motion to intervene the same day Brewer filed the stipulation
of dismissal. That the intervenors “
could
have intervened
earlier,” say, after Brewer’s retirement or after the denial of
class certification, does not mean they “
should
have intervened
earlier,” making their motion untimely.
See Roane v. Leonhart
,
741 F.3d 147, 152 (D.C. Cir. 2014). As with the named
plaintiffs in
McDonald
, Brewer had vigorously defended his
adequacy to represent the class on the motion for certification
and in a subsequent petition for interlocutory review of its
denial.
Interest. In order to intervene as a matter of right, a nonparty must claim an interest in the property or transaction *19 that is the subject of the action. We have recognized such an interest among “persons who allege that they have suffered injury from the same or very similar wrongful acts as those complained of by the original plaintiffs.” Foster , 655 F.2d at 1324. Because class-wide adjudication of this shared interest is “compatible with efficiency and due process,” we have consistently granted motions to intervene as of right in employment discrimination class actions. Id. at 1324; accord Cook v. Boorstin , 763 F.2d 1462, 1466-70 (D.C. Cir. 1985). Clearly, the would-be intervenors have at least as much at stake in this case as had Brewer.
Impairment.
In order to intervene of right, a nonparty’s
interest in the transaction must be one that would be impaired
absent intervention. Undue delay or unnecessary litigation
burdens have the “practical consequence” of impairing third
party interests in the efficient assertion of their rights.
See Fund
for Animals v. Norton
,
Adequacy. Intervention of right is appropriate only if the current parties to the case are inadequate to represent the interests of the intervenors. Neither the Government nor the intervenors argue that Brewer remains adequate to pursue this petition or to represent a class of current USMS employees. This alone meets the “minimal” burden of showing the inadequacy of the current representative. See Hodgson v. United Mine Workers of Am. , 473 F.2d 118, 130 (D.C. Cir. 1972) (noting intervenors “need not prove that representation . . . is inadequate but need show merely that it may be”).
***** Because the intervenors satisfy all the requirements of Rule 24(a)(2), we grant the motion for intervention to pursue the petition for interlocutory review, to which we turn next. IV. Interlocutory Review per Rule 23(f)
Ordinarily, an appellate court reviews only final judgments of the district court. See 28 U.S.C. § 1291. Federal Rule of Civil Procedure 23(f) creates an exception to this rule for review of the certification of a class action:
A court of appeals may permit an appeal from an order granting or denying class-action certification under this rule if a petition for permission to appeal is filed with the circuit clerk within 14 days after the order is entered. An appeal does not stay proceedings in the district court unless the district judge or the court of appeals so orders.
Interlocutory review ordinarily is appropriate only in these limited circumstances:
(1) when there is a death-knell situation for either the plaintiff or defendant that is independent of the merits of the underlying claims, coupled with a class certification decision by the district court that is questionable, taking into account the district court’s discretion over class certification; (2) when the certification decision presents an unsettled and fundamental issue of law relating to class actions, important both to the specific litigation and generally, that is likely to evade end-of-the-case review; and (3) when the district court’s class certification decision is manifestly erroneous.
In re Lorazepam & Clorazepate Antitrust Litig.
,
Death Knell.
For defendants, only in the “rare instances”
when “the grant of class status raises the cost and stakes of the
litigation so substantially that a rational defendant would feel
irresistible pressure to settle” is there a death-knell concern.
Id.
at 251 (quoting
Prado-Steiman ex rel. Prado v. Bush
, 221 F.3d
1266, 1274 (11th Cir. 2000)). We have not previously
addressed a situation in which a plaintiff raises death-knell
concerns, nor is this such a case. Perhaps recognizing that, the
intervenors merely imply that declining review will be the
death-knell for their case. We therefore consider this claim only
“[o]ut of an abundance of caution.”
In re Johnson
,
The petitioners refer to “high expert costs and other expenses” that “substantially exceed Title VII’s $300,000 cap on compensatory and punitive damages,” which arguably might pressure them to settle independent of the merits if we decline review. This point is now moot vis-a-vis Brewer; he settled his individual claims before this court considered the Rule 23(f) petition, which eliminated the risk that he would face undue pressure to settle absent interlocutory review. Neither do the intervenors face a death-knell situation if we decline review. They have appealed class certification from final judgment, thereby demonstrating their intent to continue the litigation regardless whether we grant the Rule 23(f) petition.
Fundamental Issue of Class Action Law. Interlocutory review is appropriate if the certification decision presents an *23 “[1] unsettled and fundamental issue of law relating to class actions, [2] important both to the specific litigation and generally, [3] that is likely to evade end-of-the-case review.” Lorazepam , 289 F.3d at 99-100. All these elements are necessary. See In re Veneman , 309 F.3d 789, 795 (D.C. Cir. 2002) (denying interlocutory review of an unsettled, fundamental, and important question of class action law that was not “likely to evade end-of-the-case review”).
We have observed that the “ease with which litigants can characterize legal issues as novel . . . militate[s] in favor of narrowing the scope of Rule 23(f) review.” Lorazepam , 289 F.3d at 105-06. Brewer’s transformation of “familiar and almost routine issues,” id. at 103, into purportedly “fundamental” issues of law is no more successful than other alchemic efforts.
He contends the district court announced a “novel rule” that plaintiffs in a Rule 23(b)(3) class action “must be eligible to obtain certification of a (b)(2) injunctive class.” Had the court done so, that might indeed be novel. Rather, it reviewed facts specific to the case at hand in holding Brewer, being retired and ineligible to pursue injunctive relief, was not an adequate representative of the proposed class. This ruling is neither novel nor particularly important, nor likely to escape review at the end of the case.
Manifest Error. Review of a manifestly erroneous certification decision serves judicial economy “if for no other reason than to avoid a lengthy and costly trial that is for naught once the final judgment is appealed.” Lorazepam , 289 F.3d at 105. In this case, however, with Brewer having settled his individual claims, stipulated their dismissal, and exited the lawsuit, there will be no “lengthy and costly trial” in the district *24 court before reviewing the class certification decision after the entry of a final judgment.
The manifest error standard is extremely difficult to meet.
To date this court has never held a district court’s class
certification decision manifestly erroneous.
Johnson
, 760 F.3d
at 72. “It is difficult to show that a class certification order is
manifestly erroneous . . . simply because class actions typically
involve complex facts that are unlikely to be on all fours with
existing precedent.”
Id.
(quoting
Chamberlan v. Ford Motor
Co.
,
Brewer first claims the district court manifestly erred in finding him inadequate to represent a class seeking damages by virtue of his ineligibility to seek injunctive relief as a former employee. This rehashes his earlier contention that the district court crafted a novel rule of class action law, which we rejected above and reject again here.
Second, Brewer contends the district court manifestly erred by misapplying res judicata principles to class actions when it declined to allow Brewer to split class-wide claims for damages from those for injunctive relief:
Nor can Plaintiffs remedy Brewer’s inability to adequately represent the class by simply abandoning the declaratory and injunctive relief claims. Such action would constitute claim splitting, something that is generally prohibited by the doctrine of res judicata, particularly in class actions. Courts closely scrutinize claim splitting by a class representative and do not permit such a plaintiff to ‘opt to pursue certain claims on a class-wide basis while jeopardizing *25 the class members’ ability to subsequently pursue other claims.’
Brewer , No. 08-CIV-1747, at 19 (D.D.C. Sept. 30, 2015) (citations omitted). The district court could reasonably have concluded that, by abandoning injunctive relief, the “predominant” form of class-wide relief, for which Brewer was ineligible, in favor of certifying a damages class, for which he had standing, Brewer was acting contrary to the interests of absent class members. Although one could disagree with the district court’s balance between the risk of preclusion and the benefit of allowing Brewer to pursue his claims on a class-wide basis, this is not the stuff of which manifest error is made.
Brewer next contends the district court manifestly erred in
failing to use discretionary case management tools to mitigate
its
res judicata
concerns: The court could have certified a
subclass of former employees; or relied upon class members to
opt-out so as to mitigate potential preclusion in a Rule 23(b)(3)
action seeking damages only; or conducted a two-stage
Teamsters
proceeding with class-wide liability preceding
determinations of individual relief,
see Int’l Bhd. of Teamsters
v. United States
,
Finally, Brewer contends the district court committed a manifest error by refusing to substitute alternative plaintiffs to overcome his inadequacy as a class representative. Substitution of a new named plaintiff to address the inadequacy of a class representative, a routine feature of class actions, also lies within the district court’s discretion. See Thornburgh , 869 F.2d *26 at 1509. Here, the court denied Brewer’s motion to amend the complaint by adding new class representatives because he filed the motion more than a year after receiving notice of his impending mandatory retirement, thereby failing to show the “good cause” needed to amend the complaint after the deadline set by a scheduling order. Brewer’s lack of diligence precludes our treating the district court’s exercise of discretion as a manifest error.
In a seeming afterthought, Brewer also asserts there are “special circumstances” warranting review, based upon our having said the “confluence of multiple rationales” under the Lorazepam framework, though insufficient individually, may nonetheless cumulatively favor interlocutory review. See Johnson , 760 F.3d at 76 (quoting Freight Fuel , 725 F.3d at 250). In this case, none of the rationales comes close to meeting any of our criteria for review: Ex nihilo nihil fit.
V. Conclusion
To summarize, we grant the motion for intervention and deny the petition for interlocutory review under Rule 23(f). We also grant the motion to consolidate the petition and the appeal and dismiss the appeal from final judgment, which restores the district court’s jurisdiction over the case. On remand, the district court should allow a reasonable time for the intervenors to file both a motion to substitute a new class representative and a renewed motion for class certification.
So ordered.
Notes
[1] There is one way, not relevant here, in which a voluntary dismissal post-settlement pursuant to Rule 41(a) does uniquely affect the jurisdiction of the district court: The court’s jurisdiction to enforce a settlement depends upon whether the parties have incorporated it in a judicial order of dismissal under Rule 41(a)(2). See, e.g. , Kokkonen
