RHONE POULENC, INC., Plаintiff-Appellant, v. The UNITED STATES, Defendant-Appellee.
88-1602.
United States Court of Appeals, Federal Circuit.
July 14, 1989.
880 F.2d 401
Before MARKEY, Chief Judge, SKELTON, Senior Circuit Judge, and NIES, Circuit Judge.
Joseph I. Liebman, of the Intern. Trade Field Office, New York City, argued for defendant-appellee. With him on the brief were John R. Bolton, Asst. Atty. Gen., David M. Cohen, Director, and Mark S. Sochaczewsky, of the Civil Div., Dept. of Justice.1
MARKEY, Chief Judge.
Rhone Poulenc, Inc. (Rhone), appeals from a denial of its motion to vacate an order dismissing 12 actions then on the trial court‘s suspension disposition calendar. Rhone Poulenc, Inc. v. United States, 694 F.Supp. 1579 (Ct. Int‘l Trade 1988). The trial court held that it lacked “jurisdiction” to grant the motion. We reverse and remand.1
Background
The involved civil actions had been suspended pending the final disposition of Rhone Poulenc, Inc. v. United States, 11 CIT 476, Slip Op. 87-75, 1987 WL 13266 (June 26, 1987). In that “test” case, the trial court agreed with Rhone that synthetic silica was classifiable duty-free under item 523.11 TSUS. When that decision became final, the involved actions were transferred to the “suspension disposition calendar.” By notice dated October 29, 1987, the clerk of the court set April 30, 1988 as the suspense date for removal from that calendar. That date was 8 months after the test case decision, rather than the 18 months permitted by the court‘s rule. The parties actively pursued the customary process of preparing stipulated judgments for the suspended actions. Because the actions were not removed from the calendar by the suspense date, they were dismissed by the clerk on May 6, 1988.2 On June 8, 1988, 33 days after the dismissal orders were entered, Rhone moved under court rule 60(b)(1) to vacate the dismissals and restore the actions to the suspension disposition calendar.
The trial court concluded that if it had power to grant equitable relief under court
Issue
Whether the Court of International Trade has power to grant Rhone‘s motion.
OPINION
Introduction
With this case, the United States Court of International Trade passes another milestone in its march toward full maturity within the federal judiciary. It is a national court under Article III of the Constitution, having evolved from the Board of General Appraisers and the Customs Court. With nationwide geographic jurisdiction, its members have traditionally been appointed from the various States and have held court at places throughout the nation. Its Chief Judge sits as a member of the Judicial Conference of the United States and its members serve on committees of that Conference. Under designation by the Chief Justice, its members sit on the federal district and appellate courts. In the Customs Courts Act of 1980, Pub.L. 96-417, 94 Stat. 1727 (Oct. 10, 1980) (Act), Congress advanced the maturing process when it granted the court “all the powers in law and equity of, or аs conferred by statute upon, a district court of the United States.”
Jurisdiction
At the heart of this case lies an indiscriminate use of the naked term “jurisdiction.” Use of that term unmodified has frequently provided fertile ground for the growth of obfuscation. Assuming the presence of a cоnstitutionally required case or controversy, federal court jurisdiction comes in many shapes and sizes; hence understanding frequently requires an adjectival modifier. There are significant distinctions, for example, between subject matter jurisdiction, in personam jurisdiction, in rem jurisdiction, geographic jurisdiction, diversity jurisdiction, and pendent jurisdiction. Similarly, a distinction is required between the question of whether a court has subject matter jurisdiction as defined by Congress and the question of whether a plaintiff has failed to state a claim or lacks standing to invoke that jurisdiction. A further distinction exists between a court‘s subject matter jurisdiction and its inherent powers, i.e., those incidental powers necessary and proper to an exercise of that jurisdiction. Lastly, and most important for our purposes here, there is a fundamental distinction between a court‘s subject matter jurisdiction and its equitable powers. The former must exist before the latter may be exercised. The former concerns the authority of a court to hear and decide, given the subject matter of the case; the latter concerns the remedial relief a court having that authority may grant.
Failure to recognize the last-named distinction is illustrated by the trial court‘s use throughout its analysis, and by the government‘s use throughout its brief here, of only the naked term “jurisdiction“. The distinction is blurred also by the use in some quarters of the mongrelized phrase “equity jurisdiction“. In an effort to diffuse the potential for confusion, the Court of International Trade (Re, C.J.) said this in
Jurisdiction, the power to decide a case presented for adjudication, should not be confused with a court‘s so-called “equity jurisdiction“. When a court has jurisdiction over the subject matter and the parties, it has the power to decide the case, and “equity jurisdiction” can оnly refer to its authority and discretion to grant equitable relief. The words refer to those types or classes of cases formerly heard by courts of equity, as distinguished from the ordinary courts of law. In view of the merger of law and equity, the courts may grant any proper relief whether formerly denominated legal or equitable. Hence, to say that a court has “equity jurisdiction” is merely to say that it is authorized to exercise those equitable powers formerly devised or exercised by courts of equity. As a practical matter, it implies that a court is authorized to grant or withhold any of the equitablе remedies.
It cannot be disputed that under
Trial Court Analysis
Exhibiting what would in a proper case be admirable restraint and adherence to precedent, the trial court reasoned that it lacked “jurisdiction” because: (1)
(1) 28 U.S.C. § 2646
It is useful, always, to remain cognizant of the matter at hand. The present appeal involves no substantive law, but only the ministerial, housekeeping, docket-managing function of the trial court. When there are actions filed in relation to numerous importations of essentially the same product, one
Rhone‘s was clearly and inescapably not a motion for “retrial or rehearing“.8 The statute,
In Bio-Rad Laboratories, Inc. v. United States, 687 F.Supp. 1580-81 (Ct. Int‘l Trade 1988) another judge of the Court of International Trade said:
In the opinion of the Court the terms of
28 U.S.C. § 2646 apply to the rehearings available under Rule 59, namely, rehearings which are directed to issues which were treated, revealed, or advanced in the original trial, decision or judgment. For that sort of motion, i.e., to rehear what has been done in plain sight, a limit of 30 days is proper. But for the motion made under Rule 60 and based on reasons which often depend on the discovery of hidden mistakes, frauds, or other causes of injustice, which cannot be expected to be uncovered immediately aftеr judgment, it would be absurd and unfair to apply the 30 day statutory limit of28 U.S.C. § 2646 . It would be equally absurd to attribute such an intention to Congress.
There is thus a direct conflict between the reasoning in Bio-Rad and that in the case sub judice. The trial court here noted that reasoning but simply dismissed it with the statement: “The Court finds the controlling law is that expressed in Torch” which “states the 30 day time period is a jurisdictional matter” and “is a binding
(2) Torch
In Torch, the Customs Court granted a motion to restore an action to the Reserve File (predecessor of the suspension disposition calendar). The CCPA reversed, noting the truism that a court may not enlarge its own “jurisdiction“. 509 F.2d at 1189. The CCPA recognized the continuity of the 30-day limit for motions for rehearing or retrial in quoting § 518 of the Tariff Act of 1922 (applicable to the Board of Appraisers),
Though couched in “jurisdictional” terms, the holding in Torch turned оn the Customs Court‘s lack of equitable power. Noting the government‘s acknowledgment of the merits of plaintiff‘s claim and stating that the equities favored plaintiff, the CCPA nonetheless concluded in Torch that the Customs Court “had no power” to “cure” plaintiff‘s failure to comply with
The “power to cure” found missing in Torch has now been supplied by “legislation in the Congress.” As above indicated, Congress has expressly and unequivocally provided that “The Court of International Trade shall possess all the powers in law and equity of, or as conferred by statute upon, а district court of the United States.”
(3) Rule 60(b)
The trial court stated that court rule 60(b) does not “independently confer jurisdiction.” That rule 60(b) does not confer subject matter jurisdiction is a truism. It is also irrelevant. Simply stated, rule 60(b) has nothing to do with conferring “jurisdiction“; it has to do with, and only with, thе exercise of a court‘s equity power.
As clearly stated in its first sentence, rule 60(b) deals with a court‘s power to “relieve a party” from a final “judgment, order, or proceedings.” An exercise of that power thus occurs only after a court has completed a trial or proceeding over which it had, or thought it had, subject matter jurisdiction, and only after it has entered a final judgment or issued a final order. The power to relieve a party from a final judgment or order is quintessentially and obviously a power to do equity and a court‘s decision on a 60(b) motion is governed by equitable рrinciples. See C. Wright and A. Miller, Federal Practice and Procedure, § 2857 at 158-59 (1973) (and cases cited therein); DeVito v. Fidelity and Deposit Company of Maryland, 361 F.2d 936, 939 (7th Cir.1966).
If a court has power to relieve a party from a final judgment entered by the court on completion of a trial on the merits, it would appear at best incongruous to suggest that that same court lacks power to relieve a party from a clerk‘s ministerial order dismissing an action.14
Before us, the government repeats the trial court‘s truism that “the CIT cannot enlarge its jurisdiction by its own rules“. The government also parrots the trial court‘s view that court rule 60(b) cannot be equated with
Court rule 60(b) was legitimately promulgated, following Congress’ grant of equity powers in
Indeed, the government‘s effort here to confine and cabin the rule-making and equity powers of the Court of International Trade defies understanding, unless viewed as stemming from a nostalgic desire that all things remain as they had long been in its litigation before the Customs Court. The government‘s assertion that court rule 60(b) is “unauthorized” by
Nowhere does the government acknowledge the long-recognized distinctions between motions for retrial or rehearing and motions for relief from judgment. We list only one. The former suspends finality.
(4) 28 U.S.C. § 1585
Exhibiting an appalling lack of candor, the government‘s brief nowhere even mentions
The government‘s silence may be explainable in light of the plain meaning of Section 1585. For the government to say Section 1585 does not fill the gap identified in Torch, does not support the court‘s adoption of rule 60(b), and does not grant the court the equity power needed to deal with Rhone‘s motion, would be to argue that § 1585 is a nullity. Lacking the kidney to so argue, and unwilling to confess error in the trial court, the government simply pretends that § 1585 does not exist.
At liberty to disregard no statute, this court is required to uphold all, and to reconcile, when necessary and possible, those in apparent conflict. See Ruckelshaus v. Monsanto Co., 467 U.S. 986, 1018, 104 S.Ct. 2862, 2880-81, 81 L.Ed.2d 815 (1984); United States v. Borden, 308 U.S. 188, 199, 60 S.Ct. 182, 188-89, 84 L.Ed. 181 (1939). There is, of course, no conflict between Sections 2646 and 1585, the former setting a time limit for motions for retrial or rehearing, the latter granting the equitable power to, inter alia, vacate a final order. Similarly, there is no conflict between court rules 59 and 60(b) adopted under the authority of Sections 2646 and 1585, respectively.
As above indicated, the trial court dismissed Sections 1585 and 2643(c)(1) on the sole truism that a court cannot exercise equitable powers where “jurisdiction” does not lie. Equitable remedial powers, however, aid a court in the exercise of its subject matter jurisdiction; they are not themselves jurisdictional predicates. Given the necessarily tortured treatment in Torch of motions like Rhone‘s, wherein such mo-
Equitable Considerations
A most disconcerting feature in this and past cases involving “suspended” actions has been the enforced enduring of recognized inequities and the consequent creation of injustice. As above indicated, the trial court here thoughtfully noted and described Rhone‘s “appropriate basis” for setting aside the clerk‘s dismissal order. In Torch, Quigley & Manard v. United States, 496 F.2d 1214, 1216 (CCPA 1974), and Consolidated, 527 F.2d at 641, the courts recognized that the equities were on the movant‘s side. In Consolidated, though the CCPA recognized and the government conceded that the motion‘s untimeliness was entirely the government‘s fault, the government nonetheless opposed the motion, citing section 2639. Id. In no instance is there the slightest indication that the government would have been prejudiced by a grant of the motion, and in Torch and Consolidated the government conceded that the motion had merit. Yet the courts, lacking equity power, were constrained to deny relief. The enactment of § 1585 now enables the Court of Internationаl Trade to avoid the stain of injustice in future cases in which the equities dictate return of an action to the suspension disposition calendar.
We do not, however, order a grant of Rhone‘s motion. That is a matter assigned in the first instance to the trial court‘s discretion. As above indicated, the sole issue on this appeal is whether the Court of International Trade has the power to grant a motion under court rule 60(b) to vacate a dismissal order and restore dismissed actions to the suspension disposition calendar. We hold that it does. The trial court‘s decision that it lacks “jurisdiction” to do so therefore cannot stand, its denial of Rhone‘s motion must be reversed, and the case must be remanded for further action on that motion.
COSTS
Each party shall bear its own costs.
REVERSED and REMANDED.
NIES, Circuit Judge, concurring in the result.
Whether Rhone‘s motion is viewed as substantive or ministerial is irrelevant to the resolution of this case. Moreover, I disagree that the term “jurisdiction” was used inappropriately by the trial court or by the government. A time limit fixed by statute within which to file a motion is a jurisdictional restriction. Accord Schacht v. United States, 398 U.S. 58, 68, 90 S.Ct. 1555, 1561-62, 26 L.Ed.2d 44 (1970) (Harlan, J., concurring) (The Supreme Court “treats time requirements imposed by statute as jurisdictional.“). For example, the time limit of
Unlike its federal rule counterpart, the provisions of CIT Rule 60(b) are not statutory, being merely court-adopted, and, therefore, are not jurisdictional. See
I agree with the majority that section 2646 does not apply to a CIT Rule 60(b) motion. The decision in United States v. Torch Manufacturing Co., Inc., 509 F.2d 1187 (CCPA 1975), did not hold that section 2646 (formerly section 2639) restricted the time period for filing a Rule 60(b) motion. Because the Court of International Trade‘s predecessor, the United States Customs Court, had neither equity jurisdiction nor a Rule 60(b) at that time, section 2646 was interpreted to grant relief in compelling circumstances in what might be called a 60(b) situation. Torch held only that parties had to seek such relief within the time limits of section 2646. Id. at 1192. The necessity for that interpretation ended in 1980 when Congress granted that court “all the powers in ... equity of ... a district court of the United States,”
For the above reasons, I agree with the majority that the Court of International Trade has the authority under CIT Rule 60(b) to grant a motion to vacate the dismissal order at issue and that the case must be remanded.
