First Nat'l Bank of Layton v. Palmer
First Nat'l Bank of Layton v. Palmer
Opinion
INTRODUCTION
¶1 In this case we are asked to decide whether the district court abused its discretion in denying Ray Palmer's motion to amend his counterclaim and to join a party.
Although the parties present this case as an appeal from a final order pursuant to Utah Rule of Civil Procedure 54(b), the district court's rule 54(b) certification does not make the necessary express determination that there is no just reason for delay. Additionally, the district court fails to offer the rationale necessary under Utah Rule of Civil Procedure 52(a). Although "not a
technical
bar to our jurisdiction, it functions as a
practical
bar to our appellate jurisdiction. We cannot review an order that does not offer the court enough findings and conclusions to understand the [district] court's reason[ing]."
Copper Hills Custom Homes v. Countrywide Bank, FSB
,
BACKGROUND
¶2 This case comes before us with a complex procedural history, before both the district court and the court of appeals. However, the majority of the underlying facts and procedural history are irrelevant for the purposes of our disposition of this appeal. We therefore provide only the relevant factual and procedural information.
¶3 First National Bank of Layton (FNB) filed a suit against Mr. Palmer and several other parties. In response, Mr. Palmer filed counterclaims against FNB and cross-claims against several of the other defendants. After extensive litigation before the district court and multiple appeals to the court of appeals, Mr. Palmer filed a motion to amend his counterclaim against FNB and to join a party. The trial court denied that motion on the grounds that it was untimely because it was filed after the deadline set in the scheduling order and that granting it would cause unfair prejudice to FNB.
¶4 After further summary judgment proceedings on the remaining claims, FNB and Mr. Palmer "reached a settlement and compromise that [was] documented in a private agreement" and stipulated to a voluntary dismissal of all of the claims and counterclaims between FNB and Mr. Palmer without prejudice. The court entered a stipulated dismissal, which preserved "[a]ny right that [Mr.] Palmer may have to appeal" the order denying his motion to amend and to join a party. Additionally, the dismissal did not affect Mr. Palmer's cross-claims against the other defendants, which are still ongoing. The district court entered an order certifying the stipulated dismissal without prejudice as final pursuant to rule 54(b) of the Utah Rules of Civil Procedure. Mr. Palmer appealed the district court's denial of his motion to amend and to join a party.
STANDARD OF REVIEW
¶5 "Whether appellate jurisdiction exists is a question of law, which we review for correctness."
Butler v. Corp. of The President of The Church of Jesus Christ of Latter-day Saints
,
ANALYSIS
¶6 The parties present this case as an appeal of a final order over which we have jurisdiction pursuant to Utah Code section 78A-3-102(3)(j). But "acquiescence of the parties is insufficient to confer jurisdiction on the court."
A.J. Mackay Co. v. Okland Constr. Co.
,
¶7 Two sets of principles govern our jurisdictional concerns today: the final judgment rule and mootness. Under the final
judgment rule, we generally have jurisdiction over an appeal only if it "is taken from a final order or judgment that end[s] the controversy between the litigants."
Id.
¶ 10 (alteration in original) (citation omitted) (internal quotation marks omitted);
see also
Bradbury
,
¶8 Because Mr. Palmer still has ongoing claims against other parties, he obtained rule 54(b) certification of his voluntary dismissal without prejudice from the district court in an attempt to satisfy the third exception to the final judgment rule. Thus, it is only this exception that is potentially before us today.
¶9 For certification to be proper under rule 54(b), three requirements must be met: (1) "there must be multiple claims for relief or multiple parties in the action;" (2) "the judgment appealed from must have been entered on an order that would be appealable but for the fact that other claims or parties remain in the action;" and (3) "the [district] court, in its discretion, must make a[n express] determination that there is no just reason for delay." Id. ¶ 16 (alterations in original) (citation omitted) (internal quotation marks omitted).
¶10 Even if the final judgment rule has been satisfied, we lack jurisdiction over issues that have become moot.
See
Phx. Indem. Ins. Co. v. Smith
,
¶11 This case raises several issues of potential jurisdictional concern. The first potential jurisdictional concern rises from the district court's grant of rule 54(b) certification to a voluntary dismissal without prejudice. The plain language of rule 54(b) allows a district court to "
enter judgment
as to one or more but fewer than all of the claims or parties." UTAH R. CIV. P. 54(b) (emphasis added). And the second requirement for proper rule 54(b) certification mandates that "the judgment appealed from must have been entered on an order that would be appealable but for the fact that other claims or parties remain in the action."
Copper Hills
,
¶12 The second potential jurisdictional concern stems from the order Mr. Palmer is appealing-the denial of his motion to amend his counterclaims and to join a party. The district court only certified the parties' voluntary dismissal without prejudice as final; it did not certify the denial of Mr. Palmer's motion to amend and to join a party as final. To the extent that Mr. Palmer's motion to amend relates to the counterclaims he dismissed in the stipulated dismissal without prejudice, we are concerned that the denial of the motion to amend is moot and Mr. Palmer lacks the right to appeal that issue.
See
id.
¶ 6 (concluding that where "the parties settled their dispute and voluntarily stipulated to dismiss the underlying action, [the plaintiff] does not have the right to appeal the [district] court's prior denial of its motion for partial summary judgment and the issue is moot");
Barton
,
¶13 The final potential jurisdictional concern results from the content of the district court's rule 54(b) certification. The district court never "make[s] a[n express] determination that there is no just reason for delay."
See
Copper Hills
,
¶14 The first two potential jurisdictional concerns we raise present interesting, but more complicated and nuanced, issues for our consideration. We need not, however, reach them here, because the third jurisdictional concern presents us with an unavoidable conclusion-we lack jurisdiction over this appeal and must dismiss. While we have previously never had to confront this issue because "certifications seen in this court" at least meet this minimum threshold requirement by "universally includ[ing] an incantation" that there is "no just reason for delay,"
Bennion v. Pennzoil Co.
,
CONCLUSION
¶15 The rule 54(b) certification did not contain the necessary express determination that there is no just reason for delay. Nor has the district court entered rule 52(a) factual findings that support this determination. Therefore, the district court has not entered any final order in this case, and because no exception to the final judgment rule exists, we dismiss this appeal for lack of appellate jurisdiction.
Utah Rule of Civil Procedure 54(b) provides:
When an action presents more than one claim for relief-whether as a claim, counterclaim, cross claim, or third party claim-and/or when multiple parties are involved, the court may enter judgment as to one or more but fewer than all of the claims or parties only if the court expressly determines that there is no just reason for delay. Otherwise, any order or other decision, however designated, that adjudicates fewer than all the claims or the rights and liabilities of fewer than all the parties does not end the action as to any of the claims or parties, and may be changed at any time before entry of judgment adjudicating all the claims and the rights and liabilities of all the parties.
There is an exception to this general prohibition if a party is able to meet two requirements: "(1) the plaintiff is legally prejudiced by certain conditions placed by the court on the voluntary dismissal, and (2) the plaintiff evidences no acquiescence in those conditions."
Barton
,
This is, of course, not to say that the district court could have certified its denial of Mr. Palmer's motion to amend and to join a party as final under rule 54(b). It is not clear to us that the district court's denial "would be appealable but for the fact that other claims or parties remain in the action."
Copper Hills
,
While we have discretion under Utah Rule of Appellate Procedure 5(a) to treat certain improper 54(b) certifications as interlocutory appeals, we decline to exercise this discretion here based on the other jurisdictional concerns we raise.
Reference
- Full Case Name
- FIRST NATIONAL BANK OF LAYTON, Appellee, v. Ray William PALMER, Appellant.
- Cited By
- 14 cases
- Status
- Published