Datcom v. Integrated

USCA1 Opinion









November 24, 1993 [NOT FOR PUBLICATION]

UNITED STATES COURT OF APPEALS
FOR THE FIRST CIRCUIT


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No. 93-1252




DATCOM, INC.,

Plaintiff, Appellee,

v.

INTEGRATED TECHNOLOGY, INC.,

Defendant, Appellant.


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APPEAL FROM THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF MASSACHUSETTS

[Hon. Edward F. Harrington, U.S. District Judge]
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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
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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
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(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
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v. Cabral, 989 F.2d 525, 525 (1st Cir. 1992). As such, this
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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-
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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
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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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