MILLERCOORS LLC, Plaintiff-Appellant, Cross-Appellee, v. ANHEUSER-BUSCH COMPANIES, LLC, Defendant-Appellee, Cross-Appellant.
Nos. 19-2200, 19-2713 & 19-2782
United States Court of Appeals For the Seventh Circuit
ARGUED SEPTEMBER 23, 2019 — INTERIM ORDER OCTOBER 18, 2019
Before EASTERBROOK, HAMILTON, and ST. EVE, Circuit Judges.
Appeals from the United States District Court for the Western District of Wisconsin. No. 19-cv-218-wmc — William M. Conley, Judge.
PER CURIAM. On May 24, 2019, the district court entered an opinion that concludes with language that the judge believed would serve as a preliminary injunction. MillerCoors filed an appeal, which has been docketed as No. 19-2200. But the district court did not comply with
In supplemental jurisdictional memoranda filed at our request after oral argument, both sides acknowledged that the district court failed to comply with
On September 4, 2019, while appeal No. 19-2200 was pending, the district court entered another opinion stating that it was “modifying” the decision of May 24. The district court did not follow the procedure specified by
On September 6, 2019, the district court modified the modification of September 4. Once again it did not discuss its jurisdiction to do so, did not rely on
Although the district court‘s intent to afford enforceable equitable relief is sufficiently clear to provide appellate jurisdiction despite the noncompliance with
In the process, the district court may be able to avoid the potential jurisdictional problems that its modifications of the initial order have created. (We call them modifications even though the order of September 4 does not change any language of the May 24 decision. It seems more like a second preliminary injunction, although the judge called it a modification. The September 6 order, by contrast, explicitly modifies the September 4 order.) While we recognize that a district court is in the best position to address urgent issues and changes in circumstance related to a preliminary injunction, the court must nonetheless comply with the procedures for doing so in order to avoid creating potential complications on review. A single injunction complying with
If the district court wants to make still further changes, in light of discovery in the ongoing litigation, it is free to do so—though the judge also is free to enter an injunction consolidating all decisions made to date but leaving all else to the permanent-injunction phase. We leave this decision in the capable hands of the district court.
Once the district court has complied with this limited remand, both sides should file new notices of appeal and propose a schedule for new briefs. The briefs already filed concerning the May 24 order may be incorporated by reference, but we have yet to receive briefs concerning the September 4 and 6 orders. All aspects of the case must be fully briefed before this court will proceed to decision.
HAMILTON, Circuit Judge, dissenting. I respectfully dissent from the remand order. We do not need to remand this appeal from the district court‘s preliminary injunction of May 24, 2019. It is briefed, argued, and ready to be decided on the merits. Judge Conley complied with all of the formal requirements for issuing an injunction. With respect, contrary to my colleagues’ views,
I address in Part I the
I. A Separate Document?
The formal requirements of
(1) Contents. Every order granting an injunction and every restraining order must:
(A) state the reasons why it issued;
(B) state its terms specifically; and
(C) describe in reasonable detail—and not by referring to the complaint or other document—the act or acts restrained or required.
Compliance with these requirements ensures that a party who is restrained by a preliminary injunction knows clearly what conduct is being restrained and why. Oral orders can be vague and easily misunderstood. Incorporating other documents can lead to uncertainty. Failing to state clearly the reasons for the injunction may lead to hasty, sometimes too casual analysis.
IT IS ORDERED that:
1) Plaintiff MillerCoors, LLC‘s motion for preliminary injunction (dkt. #8) is GRANTED IN PART AND DENIED IN PART as follows. Defendant Anheuser Busch is PRELIMINARILY ENJOINED from using the following language within ten (10) days of this order in its commercials, print advertising and social media:
- Bud Light contains “100% less corn syrup“;
- Bud Light in direct reference to “no corn syrup” without any reference to “brewed with,” “made with” or “uses“;
- Miller Lite and/or Coors Light and “corn syrup” without including any reference to “brewed with,” “made with” or “uses“; and
- Describing “corn syrup” as an ingredient “in” the finished product.
MillerCoors, LLC v. Anheuser-Busch Cos., 385 F. Supp. 3d 730, 760 (W.D. Wis. 2019). This approach was not unusual; district judges issue such orders often, combining the opinion and the order, ordinarily without objection from the parties or this court as to the form. See, e.g., Dexia Credit Local v. Rogan, 602 F.3d 879, 884 (7th Cir. 2010) (affirming injunction in same document as reasons for issuing it: “The injunction is sufficiently precise and self-contained, and we require nothing more to comply with
The order at the end of the combined “Opinion and Order” complied with all of the express requirements of
The majority, however, asserts that
A good place to start is BankDirect Capital Finance, LLC v. Capital Premium Financing, Inc., 912 F.3d 1054, 1057 (7th Cir. 2019), where we identified several critical problems in a preliminary injunction: the injunction left important issues unresolved; it used ambiguous language and seemed to incorporate another document;
Third, the district court failed to enter an injunction as a separate document under
Fed. R. Civ. P. 65(d)(1)(C) . Language in an opinion does not comply withRule 65(d) . See Gunn v. University Committee to End the War, 399 U.S. 383 (1970). Neither side reminded the district court of the need to enter an injunction.
Id. As noted,
In BankDirect, we recognized that the district court had issued a written order that it expected the defendant to obey. That was enough to give us appellate jurisdiction—draining of any force the suggestion in the opinion that “no injunction” had been entered. Failure to comply with the textual requirements of
In Auto Driveaway Franchise Systems, LLC v. Auto Driveaway Richmond, LLC, 928 F.3d 670 (7th Cir. 2019), we repeated, with very careful wording, the separate-document point from BankDirect: “We interpret
The “separate-document” requirement in this circuit stems from language in Bethune Plaza, Inc. v. Lumpkin, 863 F.2d 525 (7th Cir. 1988), where the district court had failed to comply with the Rules’ express and important requirements. The district court had issued an opinion that was intended to resolve the case entirely. It ended:
It is therefore ordered, that summary judgment is granted in favor of the plaintiff. The court further orders that the preliminary injunction now in effect against defendant be made permanent, subject to the following conditions: defendant is permanently enjoined from determining any violations, or assessing any penalties or fines, or issuing a conditional license, to plaintiff, for any matter arising out of the matters listed in the Proof of Service dated November 14, 1986.
Id. at 526. That was bad enough, but the court‘s separate final judgment was not even consistent with that opinion. The judgment said: “IT IS ORDERED AND ADJUDGED that the defendant‘s motion for summary judgment is denied. Plaintiff‘s motion for summary judgment is granted, and the preliminary injunction previously entered against defendant is hereby made permanent.” Id. Complicating matters further, there was no actual preliminary injunction; there had been only an initial temporary restraining order that had been extended by consent of the parties.
“This is a mess,” we wrote. Id. at 527. There were clear problems under both
A judicial opinion is not itself an order to act or desist; it is a statement of reasons supporting the judgment. The command comes in the separate document entered under
Fed. R. Civ. P. 58 , which alone is enforceable. There must be a separate document, with a self-contained statement of what the court directs be done. So if the opinion contains language awarding declaratory relief, but the judgment does not, the opinion has been reduced to dictum; only the judgment need be obeyed.
Id. at 527. All of that is clearly correct as far as it went, applied to the final judgment that was subject to the explicit separate-document requirement of
Beukema‘s Petroleum relied not on
The result in Beukema‘s Petroleum was correct since the promised (or threatened) preliminary injunction had never been issued. But its
The universe of nonfinal appealable orders is not small. Its exact bounds cannot always be determined in advance by a district court. The majority‘s rule would seem to require high-church,
Are we ready to start remanding appeals from orders denying motions for preliminary injunctions for entry of a document, separate from an opinion explaining the judge‘s reasons? I hope not. Such omissions have heretofore escaped our every notice. See, e.g., HH-Indianapolis LLC v. Consol. City of Indianapolis/Marion Cty., 265 F. Supp. 3d 873, 892 (S.D. Ind. 2017) (denying injunction with phrase “so ordered” at end of opinion), aff‘d, 889 F.3d 432 (7th Cir. 2018). The drafters of the federal rules knew better than to insist on such formalisms. See
The majority‘s “separate-document” addition to
If we extend the separate-document requirement of
More troubling is the majority‘s silence about the legal consequences of a district judge‘s failure to comply with this non-textual requirement. The majority and I agree we have appellate jurisdiction in No. 19-2200. See Auto Driveaway, 928 F.3d at 676-79. But is a decision in the form used here—combining findings of fact, conclusions of law, and specific terms of a preliminary injunction—valid and enforceable with contempt sanctions? Or is the enjoined party free to disregard it with impunity? Is the majority implying that Anheuser-Busch may start running the enjoined advertisements tomorrow? I hope not, for institutional reasons, but I cannot tell from the majority‘s order.
On a related note, even a violation of the textual separate-document requirement in
II. The September Orders
This case is actually a little more complicated because of the orders the district court issued on September 4 and September 6 granting MillerCoors some preliminary injunctive relief concerning the packaging for BudLight. The district court had jurisdiction to issue its September 4 order first granting relief on packaging. That order did not really “modify” the May 24 injunction but was separate in content, providing additional relief.
The district court also had jurisdiction to issue its September 6 modification of the September 4 injunction. It was permissible under
The general rule, of course, is that only one court can have jurisdiction over a case at the same time. E.g., Griggs v. Provident Consumer Discount Co., 459 U.S. 56, 58 (1982). Cases with preliminary injunctions can complicate matters, though. Even after a notice of appeal for a preliminary injunction has been filed, the district court retains jurisdiction over other aspects of the case. The boundaries between what has been appealed and what remains before the district court may not be sharp. In this case, when the district court issued its May 24 injunction addressing the more urgent issue of the corn-syrup advertising campaign, the district court simply did not address MillerCoors’ request for packaging relief. That topic had not been presented fully to the court at the time of the preliminary injunction hearing, so the court invited additional briefing. In September the court issued the new injunction.
If the September 4 packaging order is treated as “modifying” the May 24 order,
The September 6 order modifying the September 4 packaging order poses a more controversial problem, but the answer should not be difficult. On September 5, Anheuser-Busch filed an emergency motion to vacate, modify, or stay the September 4 order. Dkt. 107. Also on September 5, Anheuser-Busch filed its notice of appeal for the September 4 order. Dkt. 110. On September 6, the district judge granted in part the emergency motion to modify.
It made good sense for the district judge to address the emergency motion immediately. Exercising equitable judgment, the judge sensibly intended for the September 4 packaging order to give Anheuser-Busch a brief but reasonable time to change its packaging and to avoid throwing away current inventory. The emergency motion persuaded the judge that, because Anheuser-Busch had used up its existing stock of packaging more quickly than expected, the September 4 order would not allow time for a smooth transition. It had instead put Anheuser-Busch immediately in violation, without an opportunity to comply. The judge therefore delayed by two months the effective date of the packaging order.
Given the urgency of that issue and the district judge‘s familiarity with the case, he was much better positioned than a motions panel of this court, entirely new to the case, would have been to address the problem immediately. In fast- moving litigation over injunctive relief, no one should be too surprised when circumstances change quickly.
There is (or should be) no legal obstacle to such urgent and pragmatic modifications of a preliminary injunction pending an appeal. The broad language of
Wright and Miller show in detail why this line of cases should be questioned. Compare Int‘l Ass‘n of Machinists and Aerospace Workers v. Eastern Air Lines, Inc., 847 F.2d 1014, 1018 (2d Cir. 1988) (repeating “status quo” gloss), and Ideal Toy Corp. v. Sayco Doll Corp., 302 F.2d 623, 625 (2d Cir. 1962) (adopting “status quo” gloss); with id. at 628 (Clark, J., dissenting) (“The rule [now
The non-textual “status quo” gloss has both metaphysical and pragmatic foundations. The metaphysical is the principle that only one court at a time may exercise jurisdiction over a case or portion of a case. Yet American federalism split the indivisible atom of sovereignty with a workable but sometimes complicated sharing of sovereignty. Similarly, federal courts can manage a little concurrent jurisdiction between trial and appellate courts when there are good reasons—and express textual authorization—to do so.6
The pragmatic foundation for the “status quo” gloss is a concern that a district judge could use her power under
As with the
Notes
Exactly.MillerCoors respectfully notes some tension between this Court‘s interpretation of
Rule 65(d) , which requires the injunction to stand on its own in a separate document entered as a judgment underRule 58 , and the text ofRule 65(d) , which requires that an injunction “state the reasons why it issued.”Fed. R. Civ. P. 65(d)(1)(A) . Combined withRule 65(d)(1)(C)‘s prohibition on incorporation by reference, this would seem to require that a stand-alone injunction restate any judicial reasoning that might otherwise be set forth in a separate opinion, resulting in an injunction that looks very much like the district court‘s May 24 Opinion and Order. That is, if the district court‘s May 24 Opinion and Order were simply retitled “Judgment,” it would appear to comply withRule 65(d) in all other respects.
