*2 FEINBERG, Chiеf Judge: Cheng K.J. from a decision appeals James Court for of the States District York, F.Supp. District of New Southern Owen, J., awarding appellee Richard expenses fees and costs of “un- against appellant’s allegedly defending to dis- attempts reasonable vexatious” For the reasons appellee’s counsel. qualify below, we reverse the decision stated district court. History
I. Procedural
understanding
proce-
of the unusual
An
both
important
of this case is
history
dural
threshold issue
respect
the merits
and with
pealability,
respect
Accordingly, we detail
appeal.
length.
at some
history below
employ-
appellant Cheng filed
In
appellee
suit
ment discrimination
repre-
(GAF).
was
Corp.
Appellant
GAF
Elderly
Legal Services for
sented
(LSEP),
appellee
represented
Poor
Becker, Borsody
Epstein,
law firm of
by the
Green,
firm).
(the Epstein
P.C.
left
lawyer
Philip
named
Gassel
an LSEP
Cheng
firm.
joined
Epstein
LSEP
firm
disqualify
then moved
in this
representing GAF
from further
to con-
privy
been
alleging that Gassel had
information regarding
fidential
motion,
The district
denied
suit.
reversed
August
this court
but
the American
of the Canons of
the basis
Re-
Code of Professional
Bar Association
finding there existed
sponsibility,
appearance
and at
of taint
least
danger
Cheng v.
impropriety.
II.
Jurisdiction
In February
F.2d 1052
matter,
As an initial
appellee GAF
Court vacated this
jurisdiction
asserts that
this court lacks
remanded,
hear
disagree.
We
has long
It
The order of
has
clearly
a conclusive determination.
no connection
the merits
the under-
ap
was based on unsuccessful
The award
suit.
lying age discrimination
to the
peals
appears
Appellee GAF
to concede that
appeals
Since those
have been re
Court.
in this case
two
satisfies
first
jected,
grounds
there can be no new
out
appealability
criteria of
set
above.
modification of
contends, however, that the
court;
paid
has
appellant’s lawyer
after final
effectively
reviewable
$1,000
оnly
appellate
and can
look to
currently appealable.
therefore
Indeed,
judge
for relief.
the district
appar
Distributors,
Eastern Maico
Quoting from
ently
this when he declared that
recognized
Inc. v.
Maico-Fahrzeugfabrik,
the award was final and appealable.2
(3d Cir.1981),
GAF contends that after
*4
the
in
quite
this
is
unlike
situation
“the
final
to the order
Hastings v. Maine-Endwell Central School
court,
will
before the
and retain the
still be
District,
(2d Cir.1982),
in
676 F.2d
in
the
challenging
same interest
order as
fees
attorneys’
an interim award
was
they
today.”
Maico
Eastern
involved
against
party,
assessed
a
and was found to
part
pursuant
not
in
immediately
be
be
several fee awards
to Fed.R.Civ.P.
subject
it
to adjustment by
37,
cause was
the
attorney
an
an
including
award
in its
award.
district court
final
37(a)(4). The
pursuant to Rule
Third Cir-
permit
cuit
an
appeal,
refused
immediate
is also clear that
the fee
It
award
theory
to do would under-
the merits of the
completely separate from
37,
mine
of Rule
de-
purpose
the
which is
case. As the
in
Court stated
signed, among
things,
prevent
de-
Hampshire Department
White v.
New
445, 451,
lays
discovery. But the Eastern Maico
Emplоyment Security, 455
in
1166,
1162,
325 (1982),
L.Ed.2d
court
an
for
penalizing
noted
request
attorney’s
“a
for
fees
§
may
quan-
conduct
him a
dilatory
place
the
legal
raises
issues collateral to
main dary,
lawyer may
penalized
a
be
for
since
cause
action....
The Court was
“filing
lawyer
a motion which the
believes
context
speaking
post-judgment
of a
client’s
protect
his
interest.”
necessary
attorneys’
prevailing
award of
fees to
Id. at 949.
action,
rights
a civil
but went on
party
placed
We think the sanctions in this case
questions
to add
“fee
generally
in a
He
Cheng’s lawyer
quandary.
similar
inherently
necessarily
are
subsumed
for
penalized
filing motion he be-
13;
n.
by a decision on merits.” Id.
see
interest,
lieved
in his client’s
a belief
to be
Heublein, Inc.,
44,
682 F.2d
Goodman
understandably strengthened
quite
by
(2d Cir.1982)(fee
separate
questions
case reversing
decision in this
court’s
merits); Hastings
v. Maine-Endwell
court to disqualify
the refusal of
district
District,
at
supra,
Central School
appellant’s
firm.
If
lawyer
(same);
cf.
v. American
Swanson
Con-
forced
await final
before ob-
Industries,
555,
(7th
sumer
of an
appellate review
taining
Cir.1975) (award of
fees
be
burdensome, his position
persоnally
termina-
collateral and
difficult. If the fee
may become even more
Cinerama,
case);
tion of the main
Inc. v.
negotiations,
linked
settlement
Music, S.A.,
70 n.
Sweet
ethi-
here,
lawyer may
placed
in an
appellant’s
The fee award
which was
however,
appellee
question,
as
also
since
In an order filed December
the dis-
notes,
apply
to this
did not
award “is final
trict court stated
the fee
days
permission
interlocutory appeal.” Ap-
within
to take an
ten
and certified for an
order,
by
satisfy
pellee
court’s
that this order did not
сontends
rely
requirements
1292(b).
must
§
for certification of
inter-
jurisdictional
locutory
appeal, pursuant
basis for
1291 as
U.S.C. §
immediate
appeal.
1292(b).
to 28 U.S.C.
need
decide
We
dilemma; his view of any
cal
settlement
An order to pay
ex-
attorney’s
proposal
certainly
penses
37(b)(2)
would almost
be colored
under Rule
is similar in
handling
purpose
its
fee issue.
both its
and effect
to fines im-
posed
contempt
civil
which are made
Although
like Rule
payable to an
opponent
compensate
prevent
is intended
unnecessary delay
latter for loss
sustained as
result of
litigation,
H.R.Conf.Rep.
see
96th
contemnor’s conduct.
Com-
Advisory
See
Cong.,
2d
reprinted
Sess.
mittee Note of 1970 to Amended Rule 37.
Cong.
Code
& Ad.News
we think the
order,
As
case of
civil contempt
problems posed by postponing review out-
cannot
non-party
argue
propriety
weigh
possibility
delay
raised
37(b)(2)
of the Rule
sanction for attor-
In this
ney’s
fees in an
fee
apparently
has not
judgment as a
to the suit
would be
delayed
underlying litigation;
accord-
able to do. Unless he can obtain a review
ing to appellant, discovery has рroceeded
of the order and sanction at the time it is
independently
appeal. Moreover,
imposed, non-party
will have no
think the fee award in this case is distin-
review all.
guishable from the Rule 37 situation in-
Ltd.,
Hooker,
David v.
volved in Eastern Maico. The fee award
(9th Cir.1977).
here bears no relation
anything
that oc-
*5
We recognize
Independent
that in
Inves-
court,
curred in
district
the
since the sanc-
tor
League
Co.,
Protective
v. Touche Ross &
tion was imposed for appellant’s efforts in
(2d Cir.1976),
F.2d
this court
appellate courts. The
propriety
dictum
thаt
suggested
a non-party attorney
award here will not be
affected
subse-
may in some
circumstances
“so allied
ease;
quent
the
it
developments in
is thus
party
preclude
as to
interlocutory
unlike an
of
fees
frivolous dis-
of
an order to pay compensatory
covery motions,
“may
which
not be com-
expenses.” But there is no
indication
pletely
the
separable from
merits of the
this
Cheng
case that
his
are in
underlying action.” Eastern Maico Distrib-
collusion to
delay
create
or are in
utors, Inc. v. Maico-Fahrzeugfabrik, supra,
way
clоsely
tied
Cheng’s lawyer
that
In
Court’s unmis-
able
from
prevails
in the
that he
on
to the lower federal courts
fee order
event
message
takable
merits,
implications
fairness
meaning
“effectively
to the
unre-
explored.
this “possibility”
I
should be
requirement,
think it is manda-
viewable”
appellant
for us
determine whether
tory
underly
Even
in the
prevails
if
presented compelling
instant case has
in the
action,
ing
it is cleаr that an
from
appeal
review of the
postponing
evidence that
granting
the order
1927 award will
§
entry
1927 fee award until the
§
general
not be
under the
rule that
barred
underlying employment
in the
standing
“the successful
below has no
will
“render
discrimination action
either
im-
appeal
from the
de
[district court’s]
whatsoever”,
Ryan, su-
possible
cree .
Public
Commission v.
...
Service
pra,
destroy
“legal
402 U.S. at
Lines,
(1939);
Brashear
right
practical
value”
203.06,
¶
Moore’s Federal Practice
at
challenge
district court’s order
(2
1983).
ed.
This is so for several reasons.
MacDonald,
рeal.
supra, 435 U.S.
860. First,
indepen-
the fact
a fee
is
merits
dent of the
White
arguments in
Appellant presents three
Hampshire Department
Employ-
New
will
support of his claim
the order
Security,
ment
451 n. 13
effectively unreviewable unless interlocuto-
that,
if
appellant pre-
indicates
even
First,
suggests
he
review allowed.
ry
merits,
vails on the
he still
lose on a
at the close of
appellee might
contend
fees.1
motion for
This would
appeal
action
“the
underlying
bring
provide
opportunity
him with the
Second,
suggests
taken too late.”
he
up for review
interim
fee award
§
if
appel-
award will not be
simultaneously
appeal
with the
from
Third,
suggests
he
prevails
lant
at trial.
application.
his fee
denying
final order
will not be
if the
that the award
Furthermore,
Congress did
intend
settle.
whom
place
attorney
an
sanctions
argument may be
Appellant’s first
dis-
imposed
jeopar-
have been
under
§
Appellee has
quickly.
expressly
posed
an
forfeiting
dy
object
that it
to an
stated
would
adverse
1927 fee award. While §
§
allowing
from the order
af-
“distinguish between winners
does not
ter final
has been entered. Such losers,
defend-
plaintiffs
or between
appellee from contend-
statement forecloses
ants,”
Roadway
Piper,
Inc.
Express,
to the
ing
contrary.
(1980),2in its focus on deter-
suggested
tactics,
scenario—
Appellant’s
second
an
ring dilatory
permitting
presented
the situation that would be
adverse
1927 order
prevail
though
prevailed
should
merits in even
his client has
the in-
gives rise to more
action
consistent with
underlying
underlying
action—
attor-
Although appellant
Congress
tent of
that the sanctioned
argument.
substantial
inquire
appropriate protection
“all
rhetorically
ney
done no more than
afforded
has
Congress
underlying
employment
dis
amended
1. The
action
brought
Age
(1976
1980)
Supp.
Dis
crimination one
IV
after
(ADEA),
Roadway
Employment
that,
Express
Act
crimination in
held
absent
*8
Supp.
1978).
appel
(1976
623
II
If
U.S.C.
action,
§
congressional
the reference to “costs”
action,
prevail
underlying
in the
he
lant should
include
in
could not be construed to
§ 1927
an
will be entitled to seek
attorneys’
award of reasonable
757-63,
447
at
reasonable
fees.
U.S.
Syvock v. Milwaukee Boiler
fees.
added
767.
1980 amendment
therefore
Co.,
149,
Mfg.
Cir.1981)
(7
162-65
665
fees to the list of sanc-
reasonable
(fees
pursuant
42
awarded in ADEA action
to
dilatory
upon
judge may impose
tions
that
(1976)); Frith v. Eastern Air
1988
§
H.R.Conf.Rep.
attorney
No.
1927.
§
under
Lines, Inc.,
950,
(4
But
951
reprinted in 1980
1234,
8,
Cong.,
2d Sess.
96th
Lubbock, Texas,
City of
see Alford v.
Cong.
2782-83.
U.S.Code
& Ad.News
modified,
(N.D.Tex.1979),
F.Supp.
denied,
(5 Cir.),
cert.
peal entry from a collateral order after speculation is mere es- —and when it is pecially probable that no will occur
injury postponed if an entry
until after under- Appellant action. here has
lying failed to harm irreparable
establish will oc-
cur if the 1927fee appeal from the temporarily postponed. appellant has failed to
Since establish interim fee order is “effectively
unreviewable”, I the appeal would dismiss appellate jurisdiction.
for lack of From the so, refusal
majority’s respectfully to do I
dissent.4 America,
UNITED STATES of
Plaintiff-Appellant, ASSOCIATES,
BEDFORD Partnership,
Doris K. Ades, Carver and Samuel indi
vidually partners and as of Bedford As
sociates, Management and Amcar
Defendants-Appellees, Bowery
The Savings Bank,
Intervenor-Appellee. BANK, BOWERY SAVINGS
Plaintiff-Appellee, ASSOCIATES, Partnership,
BEDFORD Ades,
Doris K. Carver and Samuel indi
vidually partners and as As Bedford
sociates, Defendants-Appellees, America, States of
Defendant-Appellant. 967, 1107, 82-6307,
Nos. Dockets 83-6003.
United States Appeals, Court of
Second Circuit.
Argued March
Decided July my appellate juris- 4. Since in view so. we have no I to do reach the merits and decline diction, necessary appropriate it is neither nor
