Petralia v. AT&T Global

USCA1 Opinion











UNITED STATES COURT OF APPEALS
FOR THE FIRST CIRCUIT
____________________

No. 96-2007

ROSEMARY PETRALIA,

Plaintiff - Appellant,

v.

AT&T GLOBAL INFORMATION SOLUTIONS COMPANY,
ETC., ET AL.,

Defendants - Appellees.

____________________

APPEAL FROM THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF NEW HAMPSHIRE

[Hon. Steven J. McAuliffe, U.S. District Judge] ___________________

____________________

Before

Bownes and Cyr, Senior Circuit Judges, _____________________

and Keeton,* District Judge. ______________

_____________________

James A. Fuller for appellant. _______________
John A. Houlihan, with whom Edwards & Angell was on brief _________________ ________________
for appellees.



____________________

June 12, 1997
____________________




____________________

* Of the District of Massachusetts, sitting by designation.












KEETON, District Judge. In this proceeding we conclude KEETON, District Judge ______________

that the remand order of the district court is not immediately

appealable as a final judgment, and that the collateral order

exception to the final judgment rule does not apply.

Accordingly, we dismiss for lack of appellate jurisdiction.



I. Background I. Background

The case before us arose from the termination of the

short-term disability benefits of the Plaintiff-Appellant,

Rosemary Petralia, by the Defendants-Appellees, AT&T Global

Information Solutions Company ("AT&T"), and The Employee and

Group Benefit Plan for Account Managers and Sales Representatives

for the Systemedia Division ("the plan").

Plaintiff-Appellant sought review of the termination in

the district court. The district court granted summary judgment,

in part, in favor of Petralia. Specifically, the district court

found that the termination notice Defendants-Appellees provided

to Petralia did not comply with requirements of the Employee

Retirement and Income Security Act, 29 U.S.C. 1001-1461

("ERISA"). The notice failed to inform Petralia of her right to

appeal the termination, and it failed to inform her of what

additional information she could provide to avoid termination.

The district court determined that the proper remedy for the

ERISA violations was to remand the issue of Petralia's continued

eligibility for short-term benefits to the plan fiduciary.

The district court granted summary judgment in favor of


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Defendants-Appellees on the issue of long-term disability

benefits. Since eligibility for long-term benefits is contingent

upon exhaustion of short-term benefits, and the Defendants-

Appellees terminated the Plaintiff-Appellant's short-term

benefits before she exhausted them, the Plaintiff-Appellant has

not applied for, and the Defendants-Appellees have not denied,

long-term benefits. Plaintiff-Appellant requests that this court

vacate the remand order of the district court, and use its

equitable powers to reinstate the Appellant to the plan

retroactively and to award past and future long-term disability

benefits to the Appellant.



II. Appellate Jurisdiction II. Appellate Jurisdiction

Before we inquire into the merits of a dispute, we must

address the question of appellate jurisdiction. Doughty v. _______

Underwriters at Lloyd's, London (In re Wallis), 6 F.3d 856, 860 _______________________________________________

(1st Cir. 1993). There is a "bedrock requirement that

jurisdiction can never be assumed but must be premised on some

affirmative source." Id. ___

Generally, appellate jurisdiction is limited to review

of final decisions of the district courts. 28 U.S.C. 1291; see ___

Massachusetts v. V & M Management, Inc., 929 F.2d 830, 833 (1st _____________ _______________________

Cir. 1991)(per curiam).

A "collateral order" may be immediately appealable,

however, if it has certain prescribed characteristics. Cohen v. _____

Beneficial Indus. Loan Corp., 337 U.S. 541, 546 (1949) (immediate ____________________________


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appeal is proper if the decision of the district court "appears

to fall in that small class which finally determine claims of

right separable from, and collateral to, rights asserted in the

action, too important to be denied review and too independent of

the cause itself to require that appellate consideration be

deferred until the whole case is adjudicated").

"[A]n order or judgment is usually considered 'final'

(hence, appealable) only when it resolves the contested matter,

leaving nothing to be done except execution of the judgment. A

corollary rule is that an order remanding a matter to an

administrative agency for further findings and proceedings is not

final." Director, Office of Workers' Compensation Programs, ______________________________________________________

United States Dep't of Labor v. Bath Iron Works Corp., 853 F.2d _____________________________ ______________________

11, 13 (1st Cir. 1988)(quotations, citations, and footnote

omitted).

We think this corollary rule applies to the order

remanding this case to the plan administrators. See, e.g., ___ ____

Shannon v. Jack Eckerd Corp., 55 F.3d 561, 563 (11th Cir. 1995). _______ _________________

The district court sent the present case back to the plan

administrators to determine "the issue of [Appellant's] continued

eligibility for short-term benefits." Petralia v. AT&T Global ________ ___________

Info. Solutions Co., No. 94-533-M (D.N.H. July 29, 1996) (order ____________________

remanding case to plan administrators). The district court

stated in its order: "[The plan] shall afford Ms. Petralia a

full opportunity under the plan's terms to establish her

continued eligibility for short-term benefits, as of the time of


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improper termination, which of course will require an assessment

of whatever evidence she might present to establish her continued

eligibility." Id. Rather than "leaving nothing to be done," the ___

district court required further proceedings and findings on ________

remand. Applying the standard cited above to the remand order in

this case, we conclude that the order is not a final judgment.

Therefore, 28 U.S.C. 1291 does not confer appellate

jurisdiction over this case.

The "collateral order" doctrine developed in Cohen and _____

later decisions does not apply in the circumstances of this case.

That doctrine is, in essence, "a 'narrow exception to the normal

application of the final judgment rule,'" prescribed in 28 U.S.C.

1291. Doughty, 6 F.3d at 862 (quoting Midland Asphalt Corp. v. _______ _______ _____________________

United States, 489 U.S. 794, 798 (1989)). The collateral order _____________

doctrine is "limited to orders that (1) conclusively determine

(2) important legal questions which are (3) completely separate

from the merits of the underlying action and are (4) effectively

unreviewable on appeal from a final judgment." Doughty, 6 F.3d _______

at 862.

The issue remanded to the plan in this case is not ___

collateral; Petralia's continued eligibility for benefits, the

issue remanded to the plan, is the very heart of this case.

Consequently, the issue is effectively reviewable on appeal from

a final judgment, and the rationale of the collateral order

doctrine does not apply to this case. Moreover, the issue has

not been conclusively determined below, as required by the first


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prong of the collateral order doctrine. "[T]o come within the

collateral order rule, a decree must definitively resolve the

merits of the collateral issue, not merely determine which court

will thereafter resolve it." Id. at 863. Because the order of ___

the district court did not conclusively determine a legal

question separate from the merits of the underlying action, and

the issue remains subject to review on appeal from a final

judgment, we conclude that the collateral order exception to the

final judgment rule does not apply to this case.



III. Mandamus or Other Prerogative Writ III. Mandamus or Other Prerogative Writ

The initial briefs of the parties having failed to

address the issue of appellate jurisdiction, the Panel questioned

counsel about jurisdiction and allowed the filing of Supplemental

Briefs. Appellees acknowledged lack of appellate jurisdiction.

In her Supplemental Brief, Appellant argues that in Gillespie v. _________

United States Steel Corp., 379 U.S. 148 (1964), the Court ___________________________

recognized "what might well be called the 'twilight zone' of

finality," id. at 152, and asks us to take jurisdiction on the ___

ground that otherwise Rosemary Petralia may be "forever

foreclosed" from appellate review of "the proof of her [claim of]

chronic fatigue syndrome." Supplemental Brief of

Plaintiff/Appellant at 4. Although this request in the

Supplemental Brief was not in the form of a petition for a

prerogative writ, in the interests of assurance of fair process

we address the request as if it were so designated.


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A writ of mandamus "must be used stintingly and brought

to bear only in extraordinary situations." Doughty, supra, 6 F.3d _______ _____

at 865. To show grounds for such extraordinary relief here,

Rosemary Petralia would be required to demonstrate that the

remand order was palpably erroneous and that she faces a special ___

risk of irreparable harm. Id. Plaintiff-Appellant has not made ___

this showing since, as noted above, issues regarding her proof of

her claim of chronic fatigue syndrome remain effectively

reviewable on appeal from a final judgment, after one is ordered

and entered. See id. at 866. ___ ___



IV. Retention of Jurisdiction in the District Court IV. Retention of Jurisdiction in the District Court

Ordinarily implicit in a district court's order of

remand to a plan fiduciary is an understanding that after a new

decision by the plan fiduciary, a party seeking judicial review

in the district court may do so by a timely motion filed in the

same civil action, and is not required to commence a new civil

action. To avoid any misunderstanding that might otherwise

occur, we state that we interpret the order of the district court

in this case as having retained jurisdiction, in this sense, to

hear and decide any timely motion for judicial review filed after

further proceedings before the plan fiduciary. This is so

regardless of whether the case is formally held open or instead

administratively closed on the district court docket in the

meantime.




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V. Conclusion V. Conclusion

Having determined that the remand order of the district

court is not a final judgment, that the collateral order doctrine

does not apply to the decision of the district court remanding an

issue to the plan administrators, and, that a prerogative writ is

not warranted, we dismiss the appeal for lack of jurisdiction.

So ordered. Costs are awarded to Appellees.








































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