ROSEMARY M. COLLYER, United States District Judge.
Before the Court is Plaintiffs' Request for a Rule 54(b) Judgment on the Dismissal of Count IV of the Third Amended Complaint. See Notification [Dkt. 194]. Plaintiffs request entry of final judgment on Count IV, which the Court dismissed and with respect to which the Court denied Plaintiffs' motion for reconsideration. Federal Defendants oppose the motion, arguing that such an action would add procedural uncertainty to this complex litigation. For the reasons stated below, the Court "expressly determines that there is no just reason for delay," Fed.R.Civ.P. 54(b), and will grant Plaintiffs' motion.
This case concerns the Ambassador Bridge, which spans the Detroit River between Detroit, Michigan and Windsor, Ontario and carries more than one-quarter of the total commercial traffic between the United States and Canada. The Bridge is privately owned by the Detroit International Bridge Company (DIBC) and its wholly-owned subsidiary, the Canadian Transit Company, which collect toll revenue for Bridge maintenance and profit. However, the Ambassador Bridge is more than eighty years old. Its owners want to use private money to construct a Twin Span immediately adjacent to the existing Bridge to service customers while maintenance work is performed on the Ambassador Bridge. However, a cross-border partnership of government entities has proposed the construction of a new publicly-owned bridge, the NITC/DRIC,
In its campaign to build a Twin Span, DIBC has sued in the United States and in Canada. The Court refers the reader to its earlier opinions
Federal Rule of Civil Procedure 54(b) provides that "[w]hen an action presents more than one claim for relief," the district court "may direct entry of a final
A district court must follow certain steps in making this determination. See Curtiss-Wright Corp. v. Gen. Elec. Co., 446 U.S. 1, 7-8, 100 S.Ct. 1460, 64 L.Ed.2d 1 (1980) (citing Sears, Roebuck & Co. v. Mackey, 351 U.S. 427, 76 S.Ct. 895, 100 L.Ed. 1297 (1956)). "A district court must first determine that it is dealing with a `final judgment,'" id. that is, "an ultimate disposition of an individual claim entered in the course of a multiple claims action." Sears, 351 U.S. at 436, 76 S.Ct. 895. Next, the district court must decide "whether there is any just reason for delay." Curtiss-Wright, 446 U.S. at 8, 100 S.Ct. 1460. The Supreme Court notes that "[n]ot all final judgments on individual claims should be immediately appealable, even if they are in some sense separable from the remaining unresolved claims." Id. In exercising its discretion, "a district court must take into account judicial administrative interests as well as the equities involved" and should consider whether it is likely an "appellate court would have to decide the same issues more than once." Id.
The D.C. Circuit has directed the district courts to "supply a statement of reasons" when ruling on a motion under Rule 54(b). Taylor v. FDIC, 132 F.3d 753, 761 (D.C.Cir.1997). Absent such a statement, the appellate court may be "uncertain whether the district judge exercised its discretion soundly, or indeed whether it exercised its discretion at all." Id.; see also Bldg. Indus. Ass'n of Superior Cal. v. Babbitt, 161 F.3d at 745 ("As we cannot on the record before us determine that the district court [properly exercised its discretion], we conclude that the Rule 54(b) certification before us is not proper.").
Plaintiffs argue that entry of a Rule 54(b) order is appropriate here because delaying their ability to appeal Count IV delays "Plaintiffs' ability to compete in the `race' to proceed with their Twin Span before the government sponsors of the NITC/DRIC proceed with their proposed bridge, the construction of which will usurp Plaintiffs' right (and ability) to build their Twin Span." Pl. Reply [Dkt. 199] at 3. Moreover, Plaintiffs maintain that Count IV is separable from the remaining claims and issues. Federal Defendants contend that the remaining claims are "based on the same facts and related legal
The Court expressly finds that its decision on Count IV is a final judgment. The Court decided that the Coast Guard's refusal to issue a navigational permit to Plaintiffs for the Twin Span was not arbitrary and capricious, which was an "ultimate disposition of an individual claim." Sears, 351 U.S. at 436, 76 S.Ct. 895; see Order [Dkt. 163] (ordering that "judgment is entered in favor of the Federal Defendants on Count IV"). On December 17, 2014 the Court denied Plaintiffs' motion for reconsideration. Order [Dkt. 193]. This Court will take no further action on Count IV.
While all of Plaintiffs' claims center on Plaintiffs' stymied efforts to build their Twin Span before the government-sponsored NITC/DRIC, Count IV bears minimal legal and factual similarity to the remaining claims. See Baystate Med. Ctr. v. Leavitt, 587 F.Supp.2d 44, 47 n. 1 (2008) (granting order for Rule 54(b) judgment because claims were "factually and legally distinct," but stating that "[n]ot surprisingly, there is some relationship" between the claims). Appellate efficiency will not be frustrated by the entry of final judgment on Count IV because Count IV is separable from the remaining claims. Count IV alleges that the United States Coast Guard was arbitrary and capricious and violated the Administrative Procedure Act, 5 U.S.C. §§ 701-06, in delaying and failing to issue a navigational permit for the Twin Span. See Third Am. Compl. ¶¶ 325-31. Specifically, Count IV challenges whether the 1906 Bridge Act, 33 U.S.C. § 491-98, and its regulations authorized the Coast Guard to refuse to amend Plaintiffs' navigation permit to cover the Twin Span on the basis that Plaintiffs must first acquire an air rights easement from the City of Detroit because the Twin Span would pass above Detroit-owned land intended sometime to become Riverside Park. Plaintiffs' remaining claims challenge the actions of other Federal Defendants (not the Coast Guard) in seeking approval for and constructing the NITC/DRIC in alleged violation of Plaintiffs' franchise rights (Counts II and III) and as otherwise being unlawful, ultra vires, and unconstitutional (Counts I, V-IX). Appellate review of the statutes and Coast Guard regulatory requirements that underpin the navigation permit process will not be duplicated upon subsequent appeals of any or all of the remaining claims.
Count IV was decided first by this Court because it is first on the critical path to determining Plaintiffs' rights and opportunities to construct a Twin Span. The Coast Guard's interpretation and application of its regulation are, at a minimum, matters on which reasonable minds might differ. And, should the Circuit reverse and order the Coast Guard to issue a navigation permit for the Twin Span, Plaintiffs will have received all the government approvals necessary for its construction. At that point, the litigation against the other Federal Defendants may become unnecessary.
The Court is also persuaded that the equities weigh in favor of granting Plaintiff's
Further, Plaintiffs' allegations against the remaining Federal Defendants are not as straight-forward as either side believes. Plaintiffs and Federal Defendants have fully briefed motions that would dispose of various counts of the Third Amended Complaint. Having fully considered whether it would be more appropriate to decide those motions and send the entire case to the Circuit at once, this Court concludes it cannot be done. Discovery may be needed concerning various actions by the federal actors, which discovery requests would raise, in turn, serious collateral matters that could warrant immediate review. Sound discretion suggests that immediate review of Count IV, which will resolve critical and independent aspects of this suit, is fully warranted.
For all these reasons, the Court "expressly determines that there is no just reason for delay," Fed.R.Civ.P. 54(b), and it will grant Plaintiffs' motion for entry of final judgment on Count IV of the Third Amended Complaint.
For the foregoing reasons, Plaintiffs' motion for an order under Rule 54(b) will be granted. A separate order accompanies this memorandum opinion.