Datcom v. Integrated ( 1993 )


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  • USCA1 Opinion









    November 24, 1993 [NOT FOR PUBLICATION]

    UNITED STATES COURT OF APPEALS
    FOR THE FIRST CIRCUIT


    ___________________


    No. 93-1252




    DATCOM, INC.,

    Plaintiff, Appellee,

    v.

    INTEGRATED TECHNOLOGY, INC.,

    Defendant, Appellant.


    __________________

    APPEAL FROM THE UNITED STATES DISTRICT COURT

    FOR THE DISTRICT OF MASSACHUSETTS

    [Hon. Edward F. Harrington, U.S. District Judge]
    ___________________

    ___________________

    Before

    Breyer, Chief Judge,
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    Selya and Cyr, Circuit Judges.
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    ___________________

    Kevin E. Sharkey and Kenna, Johnston, & Sharkey on brief for
    ________________ __________________________
    appellant.
    Lawrence R. Opert, Opert & Shandler on brief for appellee.
    _________________ ________________



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    Per Curiam. The question before us is whether the
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    district court order granting defendant's motion to dismiss a

    petition for removal is appealable. We conclude that it is

    not.

    In October 1992, plaintiff-appellee, Datcom, Inc., a

    Massachusetts corporation, filed suit in Middlesex Superior

    Court in Cambridge, Massachusetts, against defendant-

    appellant, Integrated Technology, Inc., a Delaware

    corporation, with its principal place of business in Salem,

    New Hampshire. The suit sought in excess of $300,000 damages

    for tortious interference with contractual relations and

    unfair and deceptive business practices. On January 20,

    1993, a default order was issued against Integrated

    Technology pursuant to Mass. R. Civ. P. 55(a) because of its

    failure to plead or otherwise defend itself as required by

    Mass. R. Civ. P. 12(a). On January 22, Integrated Technology

    filed a petition to remove the matter to the United States

    District Court for the District of Massachusetts on the basis

    of diversity jurisdiction. In response, Datcom, Inc. filed a

    motion to dismiss contending that the petition for removal

    had not been timely filed since a default had already entered

    in state court prior to the filing of the remand petition.

    On February 10, 1993, the district court allowed the motion

    to dismiss, noting that the case was in default in state

    court when the petition for removal was filed. Datcom



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    appeals the district court's order dismissing its petition

    for removal.



    Discussion
    Discussion

    Integrated Technology contends first that the order of

    the district court dismissing its petition for removal was a

    dismissal of its action and not a remand to the state court.

    It notes that the word "remand" was never used in the order

    and that no certified remand order appears to have been

    mailed to the state court clerk as required by 28 U.S.C.

    1447(c). Integrated Technology further asserts that the

    order is thus directly appealable as a final order pursuant

    to 28 U.S.C. 1291.

    While not expressly called such, the order dismissing

    the petition for removal was in effect a remand. The

    district court docket sheet indicates an "intradistrict

    transfer" of the case to state court on February 12, 1993.

    Moreover, the docket sheet of the Middlesex Superior Court

    indicates on June 3, 1993, a "[r]etransfer to Sup[erior]

    C[ou]rt from U.S. District Court of Mass." The record also

    shows that the case is now proceeding in state court.

    Integrated Technology's contention that the district court

    order was a dismissal rather than a remand is without merit.

    Given that the district court order was a remand, the

    next question is whether the order was issued pursuant to 28



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    U.S.C. 1447(c). If it were, 28 U.S.C. 1447(d) precludes

    appellate review of the order "whether erroneous or not and

    whether review is sought by appeal or by extraordinary writ."

    Thermtron Products, Inc. v. Hermansdorfer, 423 U.S. 336, 343
    ________________________ _____________

    (1976).

    Section 1447(c) provides that a court may remand a case

    to state court either "on the basis of any defect in removal

    procedures" or if "it appears that the district court lacks

    subject matter jurisdiction." The order in this case does

    not refer to section 1447(c) nor does it indicate that there

    was either a defect in removal procedure or a lack of

    jurisdiction.1

    While the district court did not make explicit the basis

    for its remand order, it appears to have acted on the basis

    of a perceived defect in removal procedure. Datcom's motion

    to dismiss the petition for removal was predicated on its

    claim that, because the petition was filed after the default

    order had issued in state court, the "Petition for Removal

    was not timely filed." "[A]n untimely notice of removal"

    qualifies as a procedural defect under section 1447(c). FDIC
    ____

    v. Cabral, 989 F.2d 525, 525 (1st Cir. 1992). As such, this
    ______

    court is precluded from considering whether the district

    court was correct in its remand decision. Id.
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    1. The order simply states that the "Motion to Dismiss is
    allowed, as case was in default in State Court when Petition
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    for Removal was filed."

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    Moreover, even if we were to find that the district

    court remand was not on the basis of section 1447(c), we

    still would not disturb the remand order.

    An order remanding a removed case is not appealable as a

    final judgment. Garcia v. Island Program Designers, No. 92-
    ______ ________________________

    1853, slip op. at 6-8 (1st Cir. Sept. 14, 1993); Doughty v.
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    Underwriters at Lloyds, London, et al, Nos. 93-1174, slip op.
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    at 7-11 (1st Cir. Oct. 18, 1993).

    Nor does the remand order in this case qualify as

    appealable under the collateral doctrine order. See Cohen v.
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    Beneficial Industrial Loan Corp., 337 U.S. 541, 546 (1949).
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    To qualify under the Cohen test, a remand order must, inter
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    alia, decide a "salient legal question that stands separate
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    and apart from the merits in th[e] case, that is, [a]

    'collateral' issue." Doughty, slip op. at 12. In this case,
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    the "collateral" issue is which forum should resolve the

    dispute. However, "[d]etermining whether a state or federal

    court is to resolve an issue constitutes the definitive

    resolution of a collateral matter only when special

    circumstances exist." Id. at 13. No such special
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    circumstances exist in the present case.

    Finally, this is not a proper case for the issuance of a

    writ of mandamus requiring the district court to vacate the

    remand order and to accept jurisdiction of the case. For one

    thing, appellant has not asked us to issue a prerogative



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    writ. For another thing, mandamus relief is discretionary

    with this court, Kerr v. United States Dist. Court for
    ____ ________________________________

    Northern Dist., 426 U.S. 394, 403 (1975), and will only be
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    granted when the challenged order is palpably erroneous and
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    when the petitioner has shown that he faces a special risk of

    irreparable harm, In re Pearson, 990 F.2d 653, 656 & n.4 (1st
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    Cir. 1993) (collecting cases). "Interlocutory procedural

    orders . . . rarely will satisfy th[e] preconditions for

    mandamus relief." In re Recticel Foam Corp., 859 F.2d 1000,
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    1006 (1st Cir. 1988). The mere fact that petitioner may

    prefer a federal forum is insufficient to establish a

    likelihood that petitioner will suffer irreparable harm by

    having its case litigated in the state system. Doughty, slip
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    op. at 22.

    Appeal dismissed.
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