STATE OF UTAH, By and Through the UTAH STATE DEPARTMENT OF
HEALTH, Plaintiff-Appellant,
v.
KENNECOTT CORPORATION, Dеfendant-Appellant and Cross-Appellee,
Salt Lake County Water Conservancy District,
Intervenor-Appellee and Cross-Appellant.
Nos. 92-4173, 92-4179 and 92-4180.
United States Court of Appeals,
Tenth Circuit.
Jan. 31, 1994.
Fred G. Nelson (Jan Graham, Atty. Gen.; R. Paul Van Dam, and Denise Chancellor, Utah Atty. General's Office, with him on the brief), Salt Lake City, UT, for plaintiff-appellant State of Utah; David W. Tundermann (James B. Lee, Daniel M. Allred, Jim Butler, and Lisa A. Kirschner with him, on the briefs) of Parsons Behle & Latimer, Salt Lake City, UT, for defendant-appellant and cross-appellee Kennecott Corp.
Douglas J. Parry of Parry Murray Ward & Cannon, Salt Lake City, UT, and Dale F. Gardiner, Salt Lake County Water Conservancy Dist., West Jordan, UT (Blake S. Atkin of Parry Murray Ward & Cannon, Sаlt Lake City, UT, with him on the briefs), for intervenor-appellee and cross-appellant.
Rex E. Lee, Richard B. Stewart, and James L. Connaughton of Sidley & Austin, Washington, DC, for amicus curiae Western Regional Council.
Maria Savasta Kennedy and Laurens H. Silver of Sierra Club Legal Defense Fund, San Francisco, CA, and Kenley W. Brunsdale, Salt Lake City, UT, for amici curiae Sierra Club and the Mineral Policy Center.
Before BALDOCK, McWILLIAMS, and BRORBY, Circuit Judges.
BRORBY, Circuit Judge.
Both the State of Utah and Defendant Kennecott Corporation appeal an order of the federal district court denying а motion to approve and enter a consent decree submitted by the parties. The proposal would settle Utah's claim for natural resources damages under Sec. 107 of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), 42 U.S.C. Secs. 9601-9675. Salt Lake County Conservancy District (District), a permissive intervenor in the proceeding below, cross-appeals the trial court's decision to deny the District intervention as a matter of right. The District also moves to dismiss the appeal оf Utah and Kennecott for lack of jurisdiction. We are asked to review a nonfinal order of a district court under various exceptions to 28 U.S.C. Sec. 1291 including (1) the collateral order exception to the finality doctrine, (2) this court's interpretation of pragmatic finality, and (3) an interlocutory order with the practical effect of granting or denying injunctive relief. We grant the motion to dismiss for lack of jurisdiction.
BACKGROUND
Kennecott, Utah, and various local governments have, since 1983, studied the threat of groundwater contamination from Kennecott's Bingham Canyon mining operations in Salt Lake County. In 1986, Utah filed CERCLA claims, presumably to preserve its rights in light of CERCLA's statute of limitations. At that time, asserted damages were $129 million based on potential injury to 109,215 acre feet of groundwater over a ten to twenty year period. Prior to the 1992 memorandum and order of the trial court,1 various stays were granted to allow settlement negotiations and the completion of technical studies.
Kennecott's first settlement proposal offered the assignment of their water rights (valued at $2 million) plus $100 million for remediation of the contaminated water in exchange for dismissal of the lawsuit. Kennecott also proposed to take independent action to reduce continued pollution from the mining operation sources and to remediate heavy metals from the spreading contaminate plume. Utah rejected this offer and stressed that, given the tentative knowledge of the plume's content, boundary, and migration, the State could not conclude the settlement would satisfy all public health concerns.
Subsequent negotiations split the issues of natural resources damages and costs of remediation. Utah, Kennecott and the United States Environmental Protection Agency (EPA) negotiated an Agreement in Principle toward future cleanup and response costs associated with remediating the Kennecott mining operation contamination.2 The Agreement expressly disclaimed any effect on Utah's settlement of natural resources damage claims.
With the current proposal, in exchange for monetary recovery of $12 million, Utah agreed to release Kennecott from (1) all damages to surface or groundwater in a defined mining impact area, and (2) injunctive relief or response costs associated with plume remediation. The release was limited by a reopener provision, reserving Utah's right to seek additional recovery if the contamination was discovered to be greater than anticipated. The release also expressly preserved potential claims by third parties.
After a period of public comment, the trial court declined to approve the proposed settlement and ordered an evidentiary hearing. The District moved to intervene as a matter of right. The trial court denied this motion but granted permissive intervention for the limited purposes of participating in discovery and evidentiary hearings. Reviewing the proposed consent decree for a settlement that was " 'reasоnable, fair, and consistent with the purposes that CERCLA is intended to serve,' " the trial court concluded the proposal was deficient. Kennecott,
After consolidating the appeals, we asked the parties to file memorandum briefs on the issue of jurisdiction pursuant to 10th Cir.R. 27.2.2. Before us is a motion by the District to dismiss the Utah and Kennecott appeals for lack of a "final appealable order" upon which to base 28 U.S.C. Sec. 1291 jurisdiction.3
DISCUSSION
Title 28 U.S.C. Sec. 1291 provides "jurisdiction of appeals from all final decisions of the district courts of the United States." Historically, a "final decision" is a decision by the district сourt that "ends the litigation on the merits and leaves nothing for the court to do but execute the judgment." Catlin v. United States,
* The Supreme Court, beginning with Cohen v. Beneficial Indus. Loan Corp.,
* To first satisfy the Cohen doctrine, the trial court's denial of the consent decree must conclusively determine the parties' ability to settle their claims. Orders that are "inherently tentative" are contrasted with those expected to be the final word on the subject addressed. See Gulfstream,
Although noting a conflict in the circuits, the Supreme Court, in Carson v. American Brands, Inc.,
Similar to the denial of a motion to stay in Gulfstream and the denial of class certification in Coopers & Lybrand, denial of an offer of settlement is commonly open to revision by the trial court prior to a final judgment on the merits. In this case, the parties are free to continue with renewed settlеment efforts and further proceedings to secure court approval. Although the trial court concluded that Utah and Kennecott have not yet met their burden of substantive fairness under CERCLA, the trial court did not foreclose future proposed consent decrees.
The Appellants contend even though the trial court may not have expressly barred further negotiation the order impliedly did so by attacking the underlying technical premises of the settlement. In particular, Utah and Kennecott assert thе order requires them to undertake additional technical studies and include in the consent decree injunctive provisions requiring Kennecott to protect and restore injured ground water. This argument reads too much into the trial court's order and too little into the doctrinal requirements of the Cohen exception.
The proper inquiry is whether the trial court is less likely to revise its prior denial as new settlement proposals are offered, not whether the parties feel discouraged and less likely tо continue with settlement negotiations. Orders that are inherently tentative characteristically allow or invite reconsideration on the basis of express procedural requirements or, in common experience, are regularly reconsidered. See 15A Charles A. Wright et al., Federal Practice and Procedure Sec. 3911.1, at 375 (1992). Commonly, settlements may be offered during the final hearings on the merits. The trial court's order contains no limitations on the court's ability to reconsider future proposals or the initial order denying the proposed consent decree. Appellants have no right to an unfair consent decree under CERCLA, even if the unfair terms are underlying "technical premises." The trial court's order does no more than permit Appellants to propose a new consent decree within the bounds of substantive fairness. The order does not conclusively determine the ability of the parties to settle.
B
Utah and Kennecott next argue, since the parties lost the right to settle on the speсific terms of the proposed consent decree, they lost an important right that cannot be vindicated effectively after the trial has concluded. Because we recently held a broad and unbounded "right not to be tried" is no grounds for immediate appeal, Appellants fail to satisfy the second Cohen requirement. See Desktop Direct, Inc. v. Digital Equip. Corp.,
The Supreme Court has cautioned courts "not to play word games with the concept of a 'right not to be tried.' " Midland Asphalt,
The Appellants in Desktop Direct sought review of an order vacating a prior dismissal and rescinding a settlement formerly accepted by the trial court. We rejected the jurisdiсtional importance of a so-called "right not to be tried" absent a constitutional or statutory basis. Desktop Direct,
Requiring a constitutional or statutory basis for a "right not to go to trial" is sensible. Without clarity in the application of exceptions, the finality doctrine becomes riddlеd and ineffective. Repeatedly, the Court and commentators encourage the use of statutory exceptions in the face of efforts to stretch the collateral order doctrine. See Van Cauwenberghe,
Reinforcing the need for definition in appellate review, Congress has recently increased Supreme Court rulemaking authority to define the scope of interlocutory and other nonfinal appeals. See Judicial Improvements Act of 1990, Pub.L. No. 101-650 Sec. 315, 104 Stat. 5089, 5115 (codified as amended at 28 U.S.C.A. Sec. 2072(c) (Supp.1993)) (power to define "final" for the purposes оf appeal under Sec. 1291); Federal Courts Administration Act of 1992, Pub.L. No. 102-572 Sec. 101, 106 Stat. 4506, 4506 (codified as amended at 28 U.S.C.A. Sec. 1292(e) (Supp.1993)) (power to prescribe new rules for interlocutory appeals not otherwise provided in Sec. 1292).
An obvious statutory basis for appeal in the context of avoiding unnecessary litigation is Sec. 1292(b) certification. A primary purpose of Sec. 1292(b) is to provide an opportunity to review an order when an immediate appeal would "materially advance the ultimate termination of the litigation." S.Rep. No. 2434, 85th Cong., 2d Sess. 1 (1958) (hereinafter S.Rep. 2434), reprinted in 1958 U.S.C.C.A.N. 5255, 5255; see Note, Interlocutory Appeals in the Federal Courts Under 28 U.S.C. Sec. 1292(b), 88 Harv.L.Rev. 607, 609-11 (1975) (avoidance of wasted trial court time is sole purpose of Sec. 1292(b)). A report by a Tenth Circuit committee addressing the same problem found:
Our recommendation is founded upon the premise that the enlargement of the right to appeal should be limited to extraordinary cases in which extended and expensive proceedings probably can be avoided by immediate final decision of controlling questions encountered early in the action.
S.Rep. 2434, supra, 1958 U.S.C.C.A.N. at 5262 (appendix to the Senate report, submitted without dissent from other circuits). The requirement of district court certification is equally imperative, however, as a procedural screen to avoid a flood of fruitless petitions invoked contrary to the purpose of Sec. 1292(b). Id.
Utah and Kennecott seek to expand the Cohen doctrine. They claim without immediatе appeal they will forever lose the opportunity to avoid the costs and risks of trial and protracted litigation. Despite the potential accuracy of this assertion, a broadly worded rule allowing review of denied settlements under the Cohen doctrine would burden appellate courts with the threat of successive appeals and interfere intolerably with the discretion of trial courts. We decline to adopt such a rule in the absence of constitutional or congressional intent. The denial order is not appealable under the collateral order exception.
II
Utah and Kennecott next contend this court's "practical rather than technical construction" of Sec. 1291 finality is broad enough to include their appeal. The doctrine has lived a checkered life in both our court and the United States Supreme Court, but finds its current incarnation in Bender v. Clark,
Since Bender we have repeatedly stressed a narrow reading of the rule. See Boughton,
III
Utah and Kennecott lastly contend the order is appealable as an interlocutory order that grants or denies injunctive relief. See 28 U.S.C. Sec. 1292(a)(1). Generally, two strands of analysis have develоped for Sec. 1292(a)(1) appeals. The first applies to orders ruling on express motions for injunctive relief and the second applies to orders with the "practical effect" of granting or refusing an injunction. MAI Basic Four, Inc. v. Basis, Inc.,
In Carson v. American Brands, Inc.,
Utah and Kennecott cannot sustain the first requirement. Missing from the consent decree is any equitable or prospective relief, injunctive or otherwise. The Appellants erroneously state the order has the substantive effect of granting an injunction because it "mandates inclusion of a covenant to protect." See United States v. Jones & Laughlin Steel Corp.,
CONCLUSION
Denial of Utah and Kennecott's proposed settlement of CERCLA natural resource damages is not appealable as a Cohen collateral order, a Sec. 1292(а)(1) interlocutory order, or under the pragmatic finality doctrine. Consequently, we grant the District's motion to dismiss for lack of jurisdiction.
DISMISSED.
Notes
Utah v. Kennecott Corp.,
More recently, the EPA announced the three parties jointly decided not to pursue the comprehensive cleanup proposal embodied in the Agreement in Principle. U.S. EPA Press Release (Aug. 27, 1993)
No party has moved for trial court certification under 28 U.S.C. Sec. 1292(b), nor sought a writ of mandamus, 28 U.S.C. Sec. 1651(a), on their respective issues
The District has stated it will withdraw its cross-appeal in the еvent we deny jurisdiction to the appeals of Utah and Kennecott. For this reason, we do not analyze our jurisdiction to review an order granting permissive intervention but denying intervention of right. We note that, should the District fail to withdraw its appeal, Stringfellow v. Concerned Neighbors in Action,
The persuasive authority of Norman is negligible. Subsequent to Carson, the Ninth Circuit disavowed its prior decision and determined that Norman had been overruled by Carson. EEOC v. Pan American World Airways,
The Supreme Court's recent grant of certiorari in this сase will likely resolve the circuits' diverging treatment of pretrial orders refusing to enforce previously granted settlements. Compare Desktop Direct (rejecting a broad reading of a right not to go to trial); Transtech Indus., Inc. v. A & Z Septic Clean,
Thе "practical, rather than a technical" approach was announced in Gillespie v. United States Steel Corp.,
The proposed Consent Decree also does not address what will have to be done to manage and contain the existing contaminated waters, such as pumping water or other measures designed to "protect" uncontaminated waters from the damaged resource. In this regard, the proposed Consent Decree contains no provision requiring measures to be taken to minimize future expansion of the existing plumes, or to assure that the contamination will not spread beyond the MIA
F.Supp. at 570 (footnote omitted)
