Sargent v. Johnson
Sargent v. Johnson
Opinion of the Court
Paul F. Sargent obtained a verdict for $1,600,000 against Axel H. Ohman, Inc. (Ohman), a Minnesota corporation and Robert T. Johnson, an architect, resulting from severe personal injuries received from a fall while working on a construction site on July 14, 1969. The district court, the Honorable Miles W. Lord, directed a verdict in favor of the plaintiff on liability and submitted the issues of comparative negligence and contribution among the parties to the jury. Also submitted to the jury were Johnson’s and Ohman’s claims as to third-party liability against Sargent’s employer, Preston Haglin Co. (Haglin), also a Minnesota corporation.
Prior to trial a dispute as to the amount of coverage of its insurance policy had arisen between Haglin and its insurer, the Liberty Mutual Insurance Co. Haglin filed a fourth-party suit against Liberty seeking indemnity for coverage over and above an admitted $100,000 policy on the grounds that Hag-lin had another $500,000 general liability policy which was applicable and that Liberty was negligent in not providing Haglin with a two million dollar umbrella policy. The trial court ordered this fourth-party complaint separated from the main trial and this claim is yet to be tried.
After judgment in the original action was entered, and several post-trial motions filed by the parties, Haglin made demand on Liberty that it assume full coverage or else it would waive its con
Liberty has filed three notices of appeal from the judgment entered on November 14, 1974 — one on its own behalf as fourth-party defendant; one on behalf of Haglin, its insured as third-party defendant; and one by Haglin, insured, of Liberty “during trial.” In doing so it raises many alleged errors in the trial of the original damage action.
We hold that this court lacks jurisdiction to review the judgment of November 14, 1974. A final judgment in the case has not been entered as long as the fourth-party complaint was pending and the district court failed to certify an appeal under Rule 54(b).
Federal Rule of Civil Procedure 54(b) reads:
Judgment Upon Multiple Claims or Involving Multiple Parties. When more than one claim for relief is presented in an action, whether as a claim, counterclaim, cross-claim, or third-party claim, or when multiple parties are involved, the court may direct the entry of a final judgment as to one or more but fewer than all of the claims or parties 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 or other form of decision, however designated, which adjudicates fewer than all the claims or the rights and liabilities of fewer than all the parties shall not terminate the action as to any of the claims or parties, and the order or other form of decision is subject to revision at any time before the entry of judgment adjudicating all the claims and the rights and liabilities of all the parties.
Fed.R.Civ.P. 54(b) (emphasis added).
It is, of course, well settled that it is essential to obtain a certification from the district court where multiple claims or parties exist and the judgment does not resolve all of the issues. See Lane v. Graves, 518 F.2d 965 (8th Cir. 1975); Diamond Shamrock Oil & Gas Corp. v. Commissioner of Revenues, 422 F.2d 532 (8th Cir. 1970); Transportation-Communication Div.-Bhd. of Ry. Clerks v. St. Louis-S. F. Ry., 419 F.2d 933, 935 n. 1 (8th Cir. 1969); Dryden v. Dryden, 265 F.2d 870, 871 n. 1 (8th Cir. 1959); Gallon v. Lloyd-Thomas Co., 261 F.2d 26 (8th Cir. 1958); Brandt v. Renfield Importers, 216 F.2d 206 (8th Cir. 1954); Lockwood v. Hercules Powder Co., 172 F.2d 775 (8th Cir. 1949).
In this case the appellant failed to obtain a Rule 54(b) certification from the district court. In fact, it made no motion for certification.
We are cognizant of Liberty’s sensitivity to the issues raised and its fervent quest to challenge the original judgment.
The appeal is ordered dismissed for want of jurisdiction.
. Sargent’s statutory right to workmen’s compensation barred a direct action against his employer under Minnesota law. Minn.Stat. Ann. § 176.031 (1966). The consent judgment ultimately entered adjudicated these rights. Minn.Stat.Ann. § 176.061, subd. 1 (1966).
. Liberty sought a writ of mandamus against Judge Lord to prevent its attorney’s removal. This court denied the writ in an unreported opinion, saying:
The petitioner has an adequate remedy at law. This denial as well as Judge Lord’s ex parte order of August 27, 1974, here under attack, will not serve to prejudice any defenses . . that petitioner might assert in response to claims by any party to the lawsuit that petitioner should pay any share of plaintiff’s claim which has or will be settled by other parties or their insurance carriers.
Liberty Mutual Ins. Co. v. Lord, No. 74-1646 (8th Cir., filed September 20, 1974).
. Liberty’s brief asserts as error:
Where there was an express written agreement wherein Ohman agreed to indemnify Haglin, was Haglin entitled to indemnity from Ohman?
Did the trial court commit prejudicial error in granting Ohman contribution from Sargent’s employer Haglin, when no such remedy is available under Minnesota law and where the party seeking contribution has paid no more than its just share of plaintiff’s damages?
Can judgment be entered in favor of Sargent, Haglin’s employee, directly against Haglin?
Was the removal by the Court of insurance company’s assigned counsel (John R. de Lambert) from further representation of Haglin prejudicial error?
Did the trial court commit prejudicial error in failing to dismiss all claims at the close of the evidence for the failure of the plaintiff to prove causal negligence on the part of Haglin or any other party?
Did the trial court commit prejudicial error in failing to submit the issue of Sargent’s contributory negligence to the jury?
Did the trial court commit prejudicial error in failing to submit to the jury the question of Sargent’s assumption of risk?
Did the trial court commit prejudicial error in instructing the jury that Haglin was causally negligent as a matter of law?
Did the trial court commit prejudicial error in finding Ohman and Haglin in violation of Minnesota Statutes Chapter 182?
Does the settlement agreement between Ohman, Sargent and Haglin, together with the judgments entered November 14, 1974, bind said parties so as to prevent a new trial as to Haglin?
Appellant’s Brief, at ii-v.
. Liberty also claims that Judge Lord's November 14 judgment should be read as "tantamount” to entry of a Rule 54(b) certificate. We disagree. As has been said:
Although it is somewhat unclear what form the certification under Rule 54(b) should take, both the court’s direction and determination must be apparent and there should be no doubt as to the district court’s intention to certify. A strong policy in favor of certainty as to the district court’s intention to give its decision final judgment status underlies the rule’s procedure. Accordingly, when either element is absent, even if only because of oversight or a failure to appreciate that the case is one that is within Rule 54(b), an appeal should be dismissed.
10C. Wright & A. Miller, Federal Practice and Procedure, § 2660, at 86 (1973) (footnotes omitted).
Reference
- Full Case Name
- Paul F. SARGENT v. Roger T. JOHNSON, Architect, and Axel H. Ohman, Inc., a Minnesota Corporation v. PRESTON HAGLIN CO., a Minnesota Corporation, Appellant Paul F. SARGENT v. Roger T. JOHNSON, Architect, and Axel H. Ohman, Inc., a Minnesota Corporation v. LIBERTY MUTUAL INSURANCE COMPANY, a Fourth-Party above named on behalf of and in the name of Preston Haglin Co., a Minnesota Corporation, insured of Liberty Mutual Insurance Company at the trial herein and Third-Party Appellant Paul F. SARGENT v. Roger T. JOHNSON, Architect, and Axel H. Ohman, Inc., a Minnesota Corporation v. LIBERTY MUTUAL INSURANCE COMPANY
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