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Mar-Len of Louisiana, Inc. v. Parsons-Gilbane, a Joint Venture
732 F.2d 444
5th Cir.
1984
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*1 DAVIS, Cir- Before JOLLY United States Court of Judges. cuit May DAVIS, Judge: W. EUGENE Denied Rehearing En Banc Mar-Len of Louisi- 30, 1984. July ana, Inc., against Parsons-Gil- filed suit

bane, seeking reformation or voidance 022 and 039 to contract modifications *2 Platanera, S.C.L. North fire and flush water Nacional the construction of Steamship at Petroleum Reserves American Fruit & facility Strategic (5th Cir.1936) Storage Complex. an Haekberry between the West under section 3 of staying the lawsuit 16, 1983, re- August Parsons-Gilbane compelling Act and order arbi- Arbitration Court, moved the action to the U.S. District 4 of the tration under section Arbitration District of Louisiana. On Western argues that Act. section 4 Parsons-Gilbane motion filed a to Parsons-Gilbane irrespective always appealable orders are proceed- compel stay to arbitration and underlying suit is law or of whether ings. the district On November stay court motion and to denied the to compel the trial of arbitration and ordered interpretation disagree this We validity of modifications 022 and 039. Nacional, the action In La La Nacional. appealed has this interloc- Parsons-Gilbane compel- and the order was at law therefore utory order. The central in the issue suit appealable under the ling was arbitration is to written modifications and Ettelson. teaching of Enelow relating performance contract to “extra” circuit, Langley in v. Colonial The first work Mar-Len should be enforced as England, 707 F.2d Leasing Co. of provisions written or whether should (1st Cir.1983), precise issue. this addressed reformed because of economic duress compel a to Langley, stay motion to and argues it which Mar-Len motivated to in to a suit response arbitration was filed agree the modifications. to equitable filed a traditional caúse on Mar-Len, relying on Enelow v. New York the mo- The district court denied action.' 379, 55 Insurance S.Ct.

Life appeal followed. The court of tion and an Ettelson concluded no Life 3 and drawn between section should be not that the order was section orders and grounds moves to dismiss the on underlying cause of appealable since the that the denial of Parsons-Gilbane’s motion equitable. action was stay compel to and to is arbitration appealable 1292(a)(1) underlying suit in case under 28 U.S.C. be- Since contract, the complained ruling cause the order suit of was reformation of seeks equitable on a asserting motion an defense Fed.Prac- equitable in 5 Moore’s nature. response seeking equitable suit re- Standard Chlo- tice 38.22 lief. Leonard, Delaware, rine Therefore, (2nd Cir.1967). princi- Enelow and Ettelson establish unambiguous teaching of under the Ene- interpose ple a party attempts that when low, denial of the district court’s Parsons- equitable legal to a cause of defense appealable.1 motion is not Gilbane’s ruling appeala- action the on that defense is jurisdiction ap- lack to hear this therefore injunction grant ble aas or denial of an § 1292(a); peal it is DISMISSED. under when an but interposed cause defense is to traditional Judge, B. ALVIN dis- equita- equity, ruling of action senting: appealable. is not ble defense merger respectfully dissent. The that a distinction Parsons-Gilbane asserts now equity court law and has been so com- established La been agree generally with the criticism of the 1. We Court, however, character cited rule which has been Ene Enelow-Ettelson The "artificial," "medieval” and "outmoded”. approval ized as low Ettelson with as recent as City Naples 1955 in Baltimore (5th Cir.1974), cert. 99 L.Ed. and we (1974); Wallace to follow the rule until the feel bound Norman changes it. (5th Cir.1972); and Glen Oaks considered, reaffirmed, pleted apologetically cast back a half- we century rule,5 determine whether a suit is in- legal and a herently equitable defense is amended 28 for in- U.S.C. to allow genre. or a different same terlocutory appeal involving of an order “a doctrine of Enelow New York In- controlling question of law as to which *3 Co., 379, surance 310, 293 U.S. 55 S.Ct. 79 ground there is substantial for difference (1935), adoption 440 antedates L.Ed. of opinion,” “may of the resolution of which Procedure. Et- materially Rules of Civil the Federal advance ultimate termina- 6 v. telson litigation.” enacting In 188, 163, 63 87 L.Ed. 176 rule, Congress clearly signaled its concern (1942), precept the same applied when the questions appealability be resolved infancy. in their Rules were Civil have by genuine considerations of mer- need and many times noted the extensive criticism of it, by resort to archaic distinctions be- this archaic distinction.1 So have others.2 Furthermore, tween law and Enelow-Ettelson rule is weeding providing method out merit- Criticism of 1292(b) uniformly coupled regretful appeals, sup- less section that the En- appellate argument position that it binds courts undermined the until elow-Ettelson Congress Supreme necessary or the rule is to “limit Court effects a however, change.3 Congress, scarcely appealability can orders.”7 development, overlooking legislative be faulted for light “so esoteric a of this appellate jurisdiction.”4 Moreover, may field of rule and should years Supreme three after Court last be reconsidered.8 (1979) (rule Refining Corp. maligned 1. See Oasis Oil & as divorc- Armada has been "much 124, Transport Refining any appeals poli- 719 F.2d 125 ed from or coherent rational (5th Cir.1983) ("in actions, day unitary cy"); Chapman Ladies’ Garment v. International 626, Cir.1968) Union, (4th courts and commentators criticize as artificial Workers' 401 F.2d 628 distinction”); City Naples ("There the Enelow-Ettelson rule with a room for dissatisfaction 511, (5th 494 F.2d 512 depending upon opposite that tolerates results denied, 843, 76, cert. 95 S.Ct. pure fortuity the house.”). the race to the court- (Enelow-Ettelson 42 71 Byzantine peculiarity]”); is a "medieval if Industries, Inc., Wallace v. Norman 467 F.2d Plym, 468 & Co. v. J.M. Huber M/V 824, (5th Cir.1972) ("it 827 is anomalous that 166, Cir.1972) (“Were (4th the decision- F.2d 167 requires [Enelow that] hesitancy in al slate would have no clean we order in this case should turn on an outmoded uphold- discarding distinction this fictional distinction”); historical Glen Oaks ing appear that the appealability, but it would 330, (5th F.2d 333 Cir. 'incongruity' from must come solution to this 1960) (The rule Enelow "was not laid down in by the reconsideration IV, Henry might plausibly the time of but it he Court.”). Supreme said that it is a technical which those who framed the Rules of Civil Pro Miller, Cooper & E. Gress- Wright, E. 4. 16 C. A. abolish") (footnote omitted). cedure intended to 3923, man, § Procedure Federal Practice See, e.g., Systems, Financial Hartford Services, Inc., Florida Software Bodinger, 5. Baltimore (1st Cir.1983) (Enelow bog, is "a Serbonian (1955). 75 S.Ct. sight"). where cases whole have sunk from Pritchard-Keang also Mellon Bank v. Nam 85-919, 72 Stat. 1770 codi- 6. Pub.L. No. (8th Cir.1981) ("the F.2d Enelow- 1292(b) (1976). § at U.S.C. roundly by fied Ettelson rule has been criticized nearly every court and commentator that has Contractors 7. Baltimore application”); Goldberg Carey, considered its (2d 1979) (Enelow-Ettelson Cir. artificial”); rule "somewhat cott, Mans bach v. Pres Turben, Ball & 8. See 16 Frankel, Cir.1979) ("[t]he largely Chappell law on & Co. v. this matter is at 64-65. Cf. 1966) anomaly”); (citing Ply*Gem enactment of historical Lee v. 1292(b) (D.C.Cir.), major justifying as reconsidera cert. factor prior allowing rule tion abandonment cobwebs, for, instance, in this await repeat delay history us to remembering further extend the dooms Court would rule, per- occasioned and confusion errors.

haps indefinitely. As Professor Edward

Cooper observed, on the

“Reliance [to

change requires that the Court rule] room in a docket crowded with

make important is-

vitally issues to resolve an appellate jurisdiction that fair-

sue of can ly picayune. dec- be described Two McGEE, Jr., Petitioner-Appellant, Prado experience with the established ades of pro- rule in the courts of *4 justification for vide sufficient establish- ESTELLE, Jr., Director, Texas W.J. that ing a new rule an area is within Corrections, Department of special knowledge respon- their own Respondent-Appellee. sibility.” No. 81-1498. decades since Enelow was decid- the five ed, the rule has experience with served United States Court defects more to make its obvious. Judge years ago, MacKinnon of Seven May 21, 1984. expressed the of Columbia Circuit District rule “will hope that antiquated its to cast shadow

not continue equity-versus-law test modern

of an practice.

interlocutory appellate The de- away.” mise of that rule cannot be yet has not

Because put an end to the rule’s occasion to life,

unhappy undertake the we should

task. of orders

governed by practical effect, their rather

than by Applying their form.11 Enelow to contravenes policy situation the federal

that favors arbitration a means of dis

pute resolution. See also Southland — -, Corp. Keating,

852, 854-55, The First cling quaint

Circuit chose to Leasing

Langley Colonial Co. New (1st Cir.1983). England,

would clean our closet appeal denying plain- Wright note of an & 9. summary judgment motion for in action 65. tiffs relief; injunctive seeking permanent "the enact- Interlocutory Appeals Act of 1958 ment Hussain v. Bache & ‘intervening (D.C.Cir.1977). to be the sort of devel- would seem law,’ frequently justifies opment ... prior rulings, Tours, a court’s Gray Line Motor Act, Orleans, which allows Miller, supra much of the ini- persuasive [sic] removes generally most decisions.”). justification for our earlier tial

Case Details

Case Name: Mar-Len of Louisiana, Inc. v. Parsons-Gilbane, a Joint Venture
Court Name: Court of Appeals for the Fifth Circuit
Date Published: May 21, 1984
Citation: 732 F.2d 444
Docket Number: 83-4772
Court Abbreviation: 5th Cir.
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