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Mark I, Inc. v. Cyril Gruber
38 F.3d 369
7th Cir.
1994
Check Treatment

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Judgment affirmed. Plaintiff-Appellee, I, INC.,

MARK Defendant-Appellant. GRUBER, Court

United States Circuit.

Seventh

Argued 24, 1994.

Decided Oct.

370 dispositive.

choice is not Unless the latecom- er, too, сonsents, proceeding the whole be- magistrate judge may fore the be set naught. Jaliwala v. United F.2d 945 (7th Cir.1991); 221 see also Atlantic Mutual Airlines, Inc., Insurance v. Northwеst 24 Co. (7th Cir.1994). booby Aware of this trap, promulgated courts have district rules addressing problem. example, the For Local 1.72(B) Rule of the Northern District of Illi- (аrgued), Peter J. Karabas Elizabeth E. “[wjhenever provides nois party Fiesman, Fox, IL, Abramson Chicago, & for judge magis- added to a case the district plaintiff-аppellee. judge assigned trate to whom the case is will Kerr, (argued), Alexander D. Jr. Richard direct the clerk to mail to the additional Wald, Hillsberg, IL, Chicago, W. Tishler & availability magis- notice the defendant-appellant. for judge jurisdiction.... trate to exercise POSNER, Judge, Before Chief and Where the consent is not filed [the within * EASTERBROOK, WELLFORD and fixed], magistrate time judge will Judges. Circuit ‍‌​‌‌‌‌​​‌‌‌​​​‌​‌​‌​‌‌‌‌‌​​‌‌​​‌​‌​‌​​​​​​‌​‌‌‌​‍promptly send the case to the Executive reassignment Committee for to the calendar EASTERBROOK, Judgе. judge the district to whom the was case Magistrate judges may conduct civil previously assigned.” trials judgments, and enter final if all of the suit,

parties 636(c); originally I, Inс., consent. 28 This U.S.C. between Mark Geras Fixtures, Lafayette Inc., Display Corp., 742 and R.G. assigned F.2d was (7th Cir.1984). 1037 procedure Because to a judge after partiеs both entails a trial judicial-indepen without the signed May consent forms in Magis- III, guarantees dence litigants’ Article granted judg- Lefkow summary voluntary must be and explicit. Gea I, holding ment to Mark that R.G.’s retention Carlson, ney 140, 776 F.2d 142 Cir. stickers, of sheets decorative after 1985). acquiescence Passive in a decision consignment sale, revocation of their for by made others does not suffice. Silberstein 181061, conversion. 1991 WL 1991 U.S.Dist. Silberstein, 40, Cir.1988). 859 F.2d 42 (N.D.I1L). Lexis 12546 The case was for set courts, Unlike e.g., New Chinese York damages trial to determine and transferred Programs, Inc., TV Inc. v. U.E. Enterprises, judge Pallmeyer. trial Before (2d Cir.1993), we do not insist began, April R.G. went оut of business. writing, the consent be in but it must be 1992 Mark I complaint filed an amended unequivocal. the record and King v. Ioni adding Gruber and Ernest Robertson International, Inc., 1180, zation as defendants. Gruber and Robertson (7th Cir.1987); Dall, Lovelace v. apiece stock, owned 50% of R.G.’s Gru- and Unless each ber made the decision tо retain the stickers. assents, litigant expressly must case be magistrate judge did not initiate the judge. tried a district inquiry called, for which the local rule and paid any one else attention to

The need for Rob- unanimous consent sets trap may ertson sprung followed R.G. into join bankruptcy be parties disaрpeared litigants opted after the from this case. Gruber did not judge. complain role, about magistrate judge’s For then newly party may arrived assume that but neither expressly did he it. A original conclusive; everyone choice is trial in May was held and in December may problem. original overloоk the But awarded more * Wellford, Circuit, Harry Hon. W. sitting by designation. of the Sixth supplied I has not 1993 739 $500,000 against than invoking it grounds here. adequate Lexis U.S.Dist. litigation, recog- Mark hаs Throughout this supple- parties filed request, our At separate. It nized that R.G. consequences of addressing the briefs mental *3 simple for Mark I to remind beеn have would authorization. formal of Gruber’s lack inquire the need to of his to make opportunity a belated Offered consent under would whether Grubеr known, has declined to Gruber wishes 636(c) to § to ask the —or must be remanded therefore The case sent. consent binds Gruber. That find that R.G.’s judge unless by a district for deсision finding done, so there is basis was not of the waiver Gruber’s act establishes earlier consent, see New York express the essential III. in Article provided safeguards F.2d at 24-25. Programs, 996 Chinese TV cannot be attributed consent R.G.’s by Gruber’s remarks made Unless corporation Gruber; and the directly he to argument themselves the counsel firms by different law represented been the bench necessary Inquiries from consent. in liti interests managed their and have subject by surрrise. took about this counsel rule, corporate a As a independently. gation blurted out: lawyer representing The Gruber corporation, tо the imputed acts are officer’s memory on testing my sieve-like I am Only way ’round. than the other rather yes, my is paper, but recollection pieces of corporate neglects the firm so to con intention of Gruber ... it was the for a nothing but a it is name that forms proceeding_ Mr. Gruber sent to managers of its partnership proprietorship the case and involvement with had some (and corporate acts possible impute it to is cоnsent at the decision the initial debts) is managers and investors. What to corporate level. necessary more, not is a but neglect of forms assuming lawyer’s “sieve-like corpo Even “piercing condition sufficient correctly prodding, to law, memory” responded it also is most states’ veil.” Under ratе answers show believe that these managers in we do not necessary to that show explicit ‍‌​‌‌‌‌​​‌‌‌​​​‌​‌​‌​‌‌‌‌‌​​‌‌​​‌​‌​‌​​​​​​‌​‌‌‌​‍the essential perpe form to corporate used the vestors Services, corporation is one Consenting on behalf injustice. Sea-Land an See yourself consenting on of is thing; behalf Sourсe, F.2d 519 Pepper v. Inc. pay Managers not cor- need (Illinois law). quite Cir.1991) another. International R.G. debts, personal liabil- exposure to porate incorporated in Connecticut. Mark Gruber’s mind. What freely ity concentrates law argued Connecticut has not cannot be might have been dis- “intention” corporate acts permits the attribution overrule cases unless we investors; indeed, positive it has not managers and —for record is on the holding express assent subject. Our on this any state cited essential, thoughts satisfy do not one’s any unusu up turn investigation not did own and final decision Consent Folio SFA law. See al rules Connecticut constitutional Bannon, a waives several Collections, 217 Conn. Inc. v. explicit and on Industries, rights. should be Waivers (1991); A.2d 666 Season-All recollec- Spur-of-the-moment Grosso, Inc., 569 the record. 213 Conn. Inc. v. R.J. satisfy this standard. do not by counsel (1990). permit tions not record does The A.2d representation a not decide whether We need to which R.G. extent about the a decision (as litigant person- to the forms; opposed corрorate counsel observed International 636(c), because under ally) could suffice events, I does not contend all making this before time to reflect the lack of to commit a corporate form used a as ineffectual renders it injustice representation an perpetrаte or otherwise fraud guarantees. Com- of constitutional waiver is “alter there To the suit. extent Teague, 953 pare United States veil-piercing indеpendent ego” doctrine Cir.1992) (en bane), States with United Mea theories, NLRB v. see Martinez, Co., 978 F.2d 334 surement Control 928 F.2d 1470 grounds, NLRB, on other vacated Esmark, Cir.1992); (1991). magistrate judge consеquently The authority

lacked to enter a final decision. vacated, and the case is by judge appointed

remanded for III

under Article of the Constitution.

WELLFORD, Judge, concurring: very

This circuit has a strict rule with

respect required before judge may enter valid final

judgment party’s as to that interests.

Jaliwala v. United

Cir.1991), this court went so far as to ‍‌​‌‌‌‌​​‌‌‌​​​‌​‌​‌​‌‌‌‌‌​​‌‌​​‌​‌​‌​​​​​​‌​‌‌‌​‍dismiss judgment $160,000,- exceeding

000 because an intervenor had not orally writing

consented case, judge. As in this “both

attorneys surprised by were the disclosure of during questioning

the defect” argu- Id. Appellee

ment. argued, 223. as does I, here, that consent should be

implied, but this court held that “conditional implied ‍‌​‌‌‌‌​​‌‌‌​​​‌​‌​‌​‌‌‌‌‌​​‌‌​​‌​‌​‌​​​​​​‌​‌‌‌​‍consent is inconsistent with what requires

this court party’s to evince a

sent.” Id. at 224.

IWhile feel that defendant Gruber re- result,

ceived a windfall in this I must concur

in the to remand for the reasons by Judge

indicated Easterbrook.

Dwight WHARTON-EL,

Plaintiff-Appellant,

Crispus NIX, Defendant-Appellee.

United States Court of

Eighth Circuit.

Submitted June

Decided

Case Details

Case Name: Mark I, Inc. v. Cyril Gruber
Court Name: Court of Appeals for the Seventh Circuit
Date Published: Oct 24, 1994
Citation: 38 F.3d 369
Docket Number: 94-1429
Court Abbreviation: 7th Cir.
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