Paganis v. Blonstein, 92-3092

• Citation: 3 F.3d 1067
• Decision Date: 24 August 1993
• Docket Number: No. 92-3092,92-3092
• Parties: George PAGANIS and Ellen Paganis, Plaintiffs-Appellants, v. Michael B. BLONSTEIN, Eagle Real Estate Services, Ltd., Wal-Mart Stores, Inc., a corporation, and Mayor Reid Paxson, individually, Defendants-Appellees.
• Court: United States Courts of Appeals. United States Court of Appeals (7th Circuit)

Page 1067

3 F.3d 1067

26 Fed.R.Serv.3d 982

George PAGANIS and Ellen Paganis, Plaintiffs-Appellants, v. Michael B. BLONSTEIN, Eagle Real Estate Services, Ltd., Wal-Mart Stores, Inc., a corporation, and Mayor

Reid Paxson, individually, Defendants-Appellees.

No. 92-3092.

United States Court of Appeals, Seventh Circuit.

Argued May 14, 1993.

Decided Aug. 24, 1993.

John J. Arado (argued), Karen M. Johnston, Wildman, Harrold, Allen & Dixon, Chicago, IL, for plaintiffs-appellants.

Donald F. Engel, Stephen R. Chesler (argued), David J. Schwartz, Gottlieb & Schwartz, Chicago, IL, for Michael B. Blonstein, Eagle Real Estate Services, Ltd.

Joshua G. Vincent, Peter D. Sullivan, Hinshaw & Culbertson, Stephen R. Chesler, Chicago, IL, Richard W. Sandrok, Hinshaw & Culbertson, Lisle, IL, for Wal-Mart Stores, Inc.

Francis P. Kasbohm, Joseph P. Bonaccorsi, Michael T. McCormick, Terrence F. Guolee, Fraterrigo, Best & Beranek, Stephen R. Chesler, Chicago, IL, for Reid Paxson.

Before CUDAHY, MANION and KANNE, Circuit Judges.

KANNE, Circuit Judge.

We are asked by the plaintiffs to review the merits of the district court's June 1, 1992 judgment of dismissal from which the plaintiffs did not file an appeal. The plaintiffs also seek a reversal of the district court's August 3, 1992 judgment, which denied them leave to amend their complaint. The plaintiffs claim that we can review the merits of the June 1 disposition because that judgment was not final, and they timely appealed the "real" final judgment in the case entered on August 3, 1992. We conclude that the June 1 judgment was final and appealable on that date. The district court's subsequent judgment, made pursuant to Federal Rule of Civil Procedure 60(a), simply made explicit what was previously implicit in the June 1 judgment--the case was dismissed with prejudice. Consequently, we are without jurisdiction to review the merits of the June 1 judgment, and the district court properly refused to allow the plaintiffs to file an amended complaint.

I. Background

On December 17, 1991, George and Ellen Paganis filed a complaint alleging that the defendants conspired to deprive them of their property without due process, in violation of 42 U.S.C. Sec. 1983 and the Fourteenth Amendment. By April 2, 1992, all the defendants had filed motions to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6). The district court referred the case to a magistrate judge who issued his report and recommendation on April 15, 1992. The magistrate judge's report recommended granting Wal-Mart's, Eagle Real Estate's and Blonstein's motions to dismiss. The report did not mention Mayor Paxson's motion, perhaps because it was the last motion filed.

Subsequent to the magistrate's report and recommendation, the docket discloses that three entries were made on June 1, 1992: (1) the judge's memorandum opinion and order; (2) a minute order; and (3) a judgment entry (on form AO450). The memorandum opinion and order concludes, "the court dismisses the instant action with respect to all defendants." The minute order states that the defendants' motions to dismiss the case are granted. The judgment entry reads:

IT IS ORDERED AND ADJUDGED that pursuant to the court's memorandum opinion and order judgment by dismissal pursuant to Federal Rule[ ] of Civil Procedure 12(b)(6) is entered in favor of defendants, WAL-MART, EAGLE REAL ESTATE, BLONSTEIN, and PAXSON and against plaintiffs.

In response to this adverse judgment, the plaintiffs did not file a notice of appeal with this court. Nor did they ask the district court to reconsider the judgment pursuant to Federal Rule of Civil Procedure 59 or 60. Instead, on June 26, 1992, the plaintiffs sought leave to file their first amended complaint. The defendants filed objections, arguing that because the June 1 judgment entry was a final judgment, the district court did not have jurisdiction to entertain the motion for leave to amend, absent the filing of a Rule 59 or Rule 60 motion.

On August 3, 1992, a second set of documents was entered on the district court's docket: (1) the judge's memorandum opinion and order; (2) a minute order; and (3) a judgment entry (on form AO450). The following language in the judgment entry sums up the district court's disposition of the plaintiffs' motion:

IT IS ORDERED AND ADJUDGED that pursuant to the court's memorandum opinion and orders entered May 29, 1992 [docketed June 1] and July 31, 1992 [docketed August 3], judgment by dismissal with prejudice pursuant to Rule 12(b)(6) and denial of plaintiffs motion to file an amended complaint is entered in favor of defendants and against plaintiffs.

The plaintiffs claim that their appeal of the August 3 judgment raises both the issues resolved by the June 1 judgment and the issues resolved by entry of judgment dated August 3. The defendants argue that because the June 1 judgment was a final judgment, which the plaintiffs failed to appeal, we do not have jurisdiction to address the matters settled in that disposition. The defendants also contend that the district court's August 3 judgment properly denied the plaintiffs' motion for leave to amend because the district court did not have jurisdiction to consider the plaintiffs' motion.

II. Analysis

Our first task is to determine whether the June 1 judgment was final. If it was, we lack jurisdiction to review any issues raised therein because the plaintiffs did not file a timely appeal from that judgment. See FED.R.APP.P. 4(a). See also Lentomyynti Oy v. Medivac, Inc., 997 F.2d 364, 366 (7th Cir.1993); Lac Du Flambeau Band of Lake Superior Chippewa Indians v. Wisconsin, 957 F.2d 515, 517 (7th Cir.), cert. denied, --- U.S. ----, 113 S.Ct. 91, 121 L.Ed.2d 53 (1992). On the other hand, if the June 1 judgment was not final, the plaintiffs could not have appealed until after the August 3 clarifying judgment was entered. Alpine State Bank v. Ohio Casualty Insurance Co., 941 F.2d 554, 557 (7th Cir.1991) (appellate court does not have jurisdiction to hear an appeal of a non-final judgment). Therefore, if we view the June 1 judgment as not final, the plaintiffs' appeal of the August 3 clarifying judgment brings up for our review all the issues decided in the June 1 judgment. In re Grabill Corp., 983 F.2d 773, 775 (7th Cir.1993) (the appeal of a final judgment brings up all issues previously resolved by the district court in the litigation).

"The requirement of finality is a statutory mandate, not a rule of discretion." Alpine State Bank, 941 F.2d at 557 (citing 28 U.S.C. Sec. 1291). "In general, a decision is final for the purpose of Sec. 1291 if it ends the litigation on the merits and leaves nothing for the district court to do but execute the judgment." Baltimore Orioles, Inc. v. Major League Baseball Players Ass'n., 805 F.2d 663, 666 (7th Cir.1986), cert. denied, 480 U.S. 941, 107 S.Ct. 1593, 94 L.Ed.2d 782 (1987).

In addition to fully disposing of the case, a final judgment must comply with Federal Rule of Civil Procedure 58. Rule 58 requires the entry of a separate document, which informs the parties and the appellate court exactly what has been decided. Reytblatt v. Denton, 812 F.2d 1042, 1043 (7th Cir.1987). A final judgment must be complete and self-contained, and must "set forth the relief to which the prevailing party is entitled or the fact that the plaintiff has been denied all relief." Id. at 1044. To determine whether a judgment is final, the language of the judgment itself is controlling. Benjamin v. United States, 833 F.2d 669, 671 (7th Cir.1987).

The plaintiffs argue that the June 1 judgment entry, embodied in the AO450 form, does not comply with Rule 58 for two reasons: (1) it does not state the disposition of the case--whether the "case" or merely the "complaint" was dismissed; and (2) it impermissibly incorporates another document--the court's memorandum opinion and order. ¹ Neither argument is convincing.

The dismissal of a complaint does not end the litigation. Coniston Corp. v. Village of Hoffman Estates, 844 F.2d 461, 463 (7th Cir.1988); Bieneman v. City of Chicago, 838 F.2d 962, 963 (7th Cir.1988); Benjamin, 833 F.2d at 671; Car Carriers, Inc. v. Ford Motor Co., 745 F.2d 1101, 1111 (7th Cir.1984), cert. denied, 470 U.S. 1054, 105 S.Ct. 1758, 84 L.Ed.2d 821 (1985). "In contrast, a dismissal of the entire action ends the litigation and forces the plaintiff to choose between appealing the judgment or moving to reopen the judgment and amend the complaint pursuant to Fed.R.Civ.P. 59 or Rule 60." Benjamin, 833 F.2d at 671. See also Car Carriers, 745 F.2d at 1111. Therefore, if a judgment entry dismisses only the complaint, it is not a final judgment.

The plaintiffs argue that the language of the June 1 judgment entry is too ambiguous to determine the disposition of the case. We disagree and conclude that the June 1 judgment dismissed the entire action. The judgment reads: "judgment by dismissal ... is entered in favor of defendants ... against plaintiffs." This is language of finality indicating that the plaintiffs are denied all relief. The judgment entry did not simply grant a motion, nor did it say "the plaintiffs' complaint is dismissed." It said judgment against plaintiffs. Rule 58 does not require more. Reytblatt, 812 F.2d at 1044 (judgment must indicate that plaintiffs are denied all relief).

Benjamin and Bieneman do not alter our conclusion. In Benjamin, the court's judgment entry specifically stated only that the complaint was dismissed. 833 F.2d at 671. Given this fact, we refused to conclude that the entire action was dismissed simply because the accompanying entry on the docket used the terms "complaint" and "action" interchangeably. Id. at 672. See also Akins v. Board of Governors of State Colleges & Universities, 840 F.2d 1371, 1375 n. 2 (7th Cir.1988) (judgment stating "Court grants defendants' motion to dismiss the complaint" not a final judgment), vacated, 488 U.S. 920, 109 S.Ct. 299, 102 L.Ed.2d...