This case grows out of an employment agreement Patrick Manion had with Boat Dealers’ Alliance, Inc. (BDA), a buying
Patrick Manion is a Minnesota resident with many years of experience in the retail boat industry. In 1995, Manion hired attorney Stephen Nagin to help him organize and operate a buying cooperative of independent retail marine dealers. With Nagin’s assistance, Boat Dealer’s Alliance, Inc. (BDA), was incorporated in Florida later that year. Nagin subsequently drafted a long term Management Agreement (Agreement) between Manion and BDA. This Agreement, which provided that Man-ion would serve as executive director of BDA for a period of not less than twenty years, included an arbitration clause in the event of any dispute between the parties. 3 The Agreement also included a provision permitting either party to request interim judicial relief:
The power conferred by this paragraph is without prejudice to the right of a party under applicable law to request interim relief directly from any court, tribunal, or other governmental authority of competent jurisdiction, and to do so without prior authorization of the arbitrator(s). Such a request for interim relief neither shall be deemed incompatible with, nor a waiver of, the requirement of arbitration of disputes.
Another provision indicated that a party would be “entitled to injunctive relief in case of any breach.”
In February 1999, the membership of BDA voted to terminate Manion’s employment for gross mismanagement. A year later, Manion filed this lawsuit against BDA, Nagin, and various law firms with which Nagin was or had been affiliated (the Nagin defendants). Manion’s complaint alleged a breach of contract claim against BDA and sought declaratory and injunctive relief. Against the Nagin defendants he alleged breach of fiduciary duty, negligence, and interference with contract. Manion also initiated a parallel arbitration proceeding with the American Arbitration Association for determination of the issue of whether BDA had valid cause to terminate him.
The arbitration proceedings were stayed while Manion brought motions in district court, seeking injunctive relief against BDA for reinstatement of the salary and benefits that it had discontinued on termination and declaratory relief regarding the interpretation of the term “anniversary date” in the Agreement. BDA moved in turn to dismiss this action and to compel arbitration, and the Nagin defendants moved for dismissal or for a stay pending arbitration between Manion and BDA. The law firm of Litchford and Christopher moved to dismiss the claims against it for lack of personal jurisdiction.
The court applied federal law to examine whether Manion’s claims fell within the
Manion attempts to appeal all aspects of the district court’s order except its dismissal of Litchford and Christopher. He contends that the district court erred in denying his contractual right to interim relief in aid of arbitration, in denying his motion for declaratory relief (which is now described as a motion for partial summary judgment), and in staying Manion’s claims against the Nagin defendants. BDA and the Nagin defendants contend that the entire appeal should be dismissed for lack of appellate jurisdiction, but ask for affir-mance if jurisdiction exists.
We start with Manion’s appeal from the denial of his motion for injunctive relief because interlocutory appellate jurisdiction exists under 28 U.S.C. § 1292(a)(1).
See Morgensterrn v. Wilson,
In denying Manion’s motion for an injunction, the district court relied on
Peabody Coalsales Co. v. Tampa Elec. Co.,
Manion claims that Peabody entitles him to injunctive relief. He maintains that the Agreement contains the following qualifying language for such relief:
Both parties acknowledge that a lawsuit merely for damages that occur, or are likely to occur, as a consequence of a breach of any of the provisions of this Agreement will be inadequate, and that either party is entitled to injunctive relief in case of any breach, as well as all other relief available via law or equity.
[The agreement to arbitrate ] is without prejudice to the right of a party under applicable law to request interim relief directly from any court, tribunal, or other governmental authority of competent jurisdiction, and to do so without prior authorization of the arbitrator(s). Such a request for interim relief neither shall be deemed incompatible with, nor a waiver of, the requirement of arbitration of disputes (emphasis supplied).
In a case involving the Federal Arbitration Act (FAA), courts should not grant injunctive relief unless there is
Qualifying contractual language is “language which provides the court with clear grounds to grant relief without addressing the merits of the underlying arbitrable dispute.”
Peabody,
Careful examination of the Agreement here leads to the conclusion that it does not contain qualifying language to provide “clear grounds to grant relief without addressing the merits of the underlying dispute.”
Peabody,
Manion has not shown that he could satisfy the traditional requirements for in-junctive relief, particularly the threat of irreparable harm.
See Goff v. Harper,
Manion also seeks to appeal the district court’s denial of his motion for
We affirm the order of the district court denying injunctive relief and dismiss the remaining issues for lack of appellate jurisdiction.
Notes
. The Honorable Ann D. Montgomery, United States District Judge for the District of Minnesota.
. The Agreement specifically provided that ”[i]n the event that any dispute arises with respect to the interpretation, execution, or enforcement of this Agreement, the same shall be submitted to binding arbitration.”
. Manion asks for a writ of mandamus under 28 U.S.C. § 1651(a) if appellate jurisdiction is lacking, but he has not made any showing that he is entitled to such extraordinary relief.
See In re Lane,
