Everett v. US Airways Group, Inc.

• Decision Date: 06 January 1998
• Docket Number: No. 96-7158,96-7158
• Citation: 328 U.S.App. D.C. 69,132 F.3d 770
• Parties: 157 L.R.R.M. (BNA) 2068, 328 U.S.App.D.C. 69, 39 Fed.R.Serv.3d 363 M.A. EVERETT, et al., Appellants, v. US AIRWAYS GROUP, INC., et al., Appellees.
• Court: U.S. Court of Appeals — District of Columbia Circuit

Page 770

132 F.3d 770

157 L.R.R.M. (BNA) 2068, 328 U.S.App.D.C. 69,

39 Fed.R.Serv.3d 363

M.A. EVERETT, et al., Appellants, v. US AIRWAYS GROUP, INC., et al., Appellees.

No. 96-7158.

United States Court of Appeals, District of Columbia Circuit.

Argued Nov. 7, 1997.

Decided Jan. 6, 1998.

Appeal from the United States District Court for the District of Columbia (No. 95cv00990).

Brian W. Shaughnessy, Washington, DC, argued the cause for appellants, with whom Philip A. Gagner and Lester A. Katz were on the briefs.

Neal D. Mollen, Washington, DC, argued the cause for appellees, with whom Zachary D. Fasman and Erin M. Sweeney were on the brief.

Before: GINSBURG, SENTELLE and ROGERS, Circuit Judges.

Opinion for the court filed by Circuit Judge SENTELLE.

SENTELLE, Circuit Judge:

A group of retired and active US Airways pilots (collectively, "Pilots") appeal from a decision of the district court dismissing two claims as subject to mandatory arbitration under the Railway Labor Act ("RLA"), 45 U.S.C. §§ 151 et seq., and staying proceedings on a third claim pending the outcome of that arbitration. Because the district court's order is not final, and no exception to the final order rule applies, we dismiss the appeal for lack of appellate jurisdiction.

I

Around 500 retired and active US Airways pilots sued US Airways Group, Inc. and its pension fund (collectively, "US Airways") for: (1) failure to pay approximately $70 million in benefits due under Sections 1054(g) and 1132(a)(1)(B) of the Employee Retirement Income Security Act ("ERISA"), 29 U.S.C. §§ 1001 et seq.; (2) violation of ERISA's disclosure provision, 29 U.S.C. § 1022; and (3) breach of ERISA fiduciary duties, 29 U.S.C. § 1104. The Pilots are each eligible for pension benefits under a plan collectively bargained in 1972 between US Airways and the Air Line Pilots Association ("ALPA"). This 1972 collective bargaining agreement replaced the pension benefits of participants under a prior plan with a "minimum benefit" based in part on "the investment performance of the Standard and Poor's 500 stock index (unadjusted for dividends)." The Pilots allege that US Airways has improperly interpreted the relevant language of the 1972 agreement by excluding dividends from its benefit computations.

On motion for summary judgment, the district court dismissed Counts (1) and (3), holding that the district court lacked subject matter jurisdiction over these claims because they depended on the proper interpretation of a collective bargaining agreement and thus were subject to mandatory arbitration under the RLA. See Everett v. USAir Group, Inc., 927 F.Supp. 478, 482-83 (D.D.C.1996). The district court retained jurisdiction over Count (2), holding that even if US Airways properly interpreted the agreement, it had an independent duty under ERISA to provide a summary plan description that was "calculated to be understood by the average plan participant." Id. at 484. The district court stayed proceedings on Count (2) until the end of the arbitral process. Id.

Claiming among other things futility of resort to an arbitration process controlled by US Airways and ALPA, both of whom the Pilots believe have interests adverse to their own, the Pilots ask this court to reverse the district court's dismissal of Counts (1) and (3). Because the order of the district court is not final, we have no jurisdiction to reach the merits of the Pilots' claims.

II

Our jurisdiction to review judgments of the district court is limited to "appeals from all final decisions," 28 U.S.C. § 1291 (emphasis added), and to interlocutory appeals that fall within the narrow exceptions defined by 28 U.S.C. § 1292. Thus, we cannot review this case unless the judgment of the district court is final or one of the conditions enumerated in § 1292 is satisfied.

A final decision "ends the litigation on the merits and leaves nothing for the court to do but execute the judgment." Catlin v. United States, 324 U.S. 229, 233, 65 S.Ct. 631, 633, 89 L.Ed. 911 (1945). The question presented by this case is whether the order may be considered final because the district court dismissed two of the claims for lack of subject matter jurisdiction and the stay of the third claim is, arguably, effectively unreviewable. The Federal Rules of Civil Procedure speak directly to these issues, providing in relevant part:

When more than one claim for relief is presented in an action, ... the court may direct the entry of a final judgment as to one or more but fewer than all of the claims ... only upon an express determination that there is no just reason for delay and upon an express direction for the entry of judgment. In the absence of such determination and direction, any order ... which adjudicates fewer than all the claims ... shall not terminate the action as to any of the claims....

Fed.R.Civ.P. 54(b) (emphasis added); see also Summers v. United States Dep't of Justice, 999 F.2d 570, 571 n. 1 (D.C.Cir.1993) (citing Kappelmann v. Delta Air Lines, Inc., 539 F.2d 165 (D.C.Cir.1976)); 15A CHARLES ALAN WRIGHT, ARTHUR R. MILLER & EDWARD H. COOPER, FEDERAL PRACTICE AND PROCEDURE § 3914.7, at 544 (2d ed.1992) (describing the bright-line rule that "[a]bsent an express direction for entry of judgment, an order that disposes of less than all the claims--no matter with what firmness and apparent finality--is not appealable....").

In the instant litigation, the trial court dismissed two of three claims, but stayed Count (2) pending the outcome of arbitration. The stay of judgment on a claim pending arbitration does not constitute a final ruling by the trial court with respect to that claim. See McCowan v. Dean Witter Reynolds Inc., 889 F.2d 451, 453-54 (2d Cir.1989) (holding that an order dismissing two claims and referring two others to arbitration is not final). Thus, the district court adjudicated "fewer than all the claims" and, without the express determination and direction required by Rule 54(b), the judgment cannot be considered final "as to any of the claims." Of course, entry of judgment according to Rule 54(b) is not alone sufficient to confer appellate jurisdiction--an appellate court must also satisfy itself that the district court applying Rule 54(b) properly determined the particular claims to be final and distinct from other claims in the litigation. See Gold Seal Co. v. Weeks, 209 F.2d 802, 807 (D.C.Cir.1954) (noting that Rule 54(b) only permits entry of final judgment with respect to "a claim distinct from the other claim or claims"); InverWorld, Ltd. v. Commissioner, 979 F.2d 868, 874 (D.C.Cir.1992) ("Rule 54(b) does not 'create' finality under § 1291 where it does not already exist...."). But this does not imply, as the Pilots contend, that compliance with Rule 54(b) is unnecessary. Where, as here, the district court adjudicates fewer than all of the claims, finality with respect to certain claims, while not a sufficient condition for appellate review of those claims, is a necessary one. Barring some other exception to the final decision rule, appellate review of an order which does not decide all the claims presented requires both finality with respect to the adjudicated claims and entry of judgment on those claims in accordance with Rule 54(b). Because the latter condition is not met in this case, the district court's order cannot be considered final with respect to any of the claims.

The Pilots also try to bring the district court's ruling within the narrow "collateral order" exception to the doctrine of finality as set forth in Cohen v. Beneficial Industrial Loan Corp., 337 U.S. 541, 545-47, 69 S.Ct. 1221, 1225-26, 93 L.Ed. 1528 (1949). We have recognized that "[t]o fall within the small class of decisions excepted from the final judgment rule by Cohen, the order must conclusively determine the disputed question, resolve an important issue completely separate from the merits of the action, and be effectively unreviewable on appeal from a final judgment." Summers v. United States Dep't of Justice, 925 F.2d 450, 453 (D.C.Cir.1991) (quoting Coopers & Lybrand v. Livesay, 437 U.S. 463, 468, 98 S.Ct. 2454, 2458, 57 L.Ed.2d 351 (1978)) (internal quotation marks omitted). The Pilots initially contended that because they expect the retirement board to rule against them, and because under the RLA an arbitration decision is "effectively unreviewable," the practical effect of the referral to arbitration will be to end the entire case. Not only have the Pilots failed to explain why this should imply finality with respect to the disclosure violations alleged in Count (2), but both parties agreed at oral argument that at the end of arbitration, after a final judgment from the district court on the entire case, this Court could review any error in the initial decision dismissing Counts (1) and (3) as subject to mandatory arbitration. Thus, neither the decision to refer Counts (1) and (3) to arbitration nor the stay of Count...