Let’s say two civil actions in federal court are consolidated according to Fed. R. Civ. P. 42(a). A final judgment is entered in one of the consolidated cases but not the other. Is that judgment appealable? Yesterday, the U.S. Supreme Court answered “yes.” See Hall v. Hall, No. 16-1150 (Mar. 27, 2017). The Court reasoned that consolidation does not merge the consolidated cases into one civil action; instead each case retains its identity as a separate civil action.
Let’s say a trial court renders judgment on exceptions that dismisses the plaintiff’s amended petition “in its entirety with prejudice at [plaintiff’s] cost.” Is the judgment final and appealable? In a recent decision, the La. First Circuit said, “Nope.” State v. Teva Pharmaceuticals Indus., Ltd., 2017-0448 (La. App. 1 Cir. 2/8/18), 2018 WL 773968, 2018 La. App. LEXIS 224. Why? Because the judgment did not dismiss leftover claims in the original petition.
Not surprisingly, the procedural history of this case is complicated. In its original petition, the state alleged claims under the Louisiana Monopolies Act, the Louisiana Unfair Trade Practices Act, and unjust enrichment. The defendants pleaded some peremptory exceptions. In a judgment signed on June 1, 2016, the trial court sustained most of the exceptions (no right of action, no cause of action), and overruled the exceptions with respect to the state's claim for an injunction under LUTPA. Importantly, the only claim that this judgment dismissed was the unjust-enrichment claim.
The state then filed an amended petition that incorporated by reference the original petition and added some paragraphs. The defendants repleaded their exceptions. In a judgment signed on December 8, 2016, the trial court struck all but three paragraphs of the amended petition, sustained peremptory exceptions as to all claims, and dismissed the amended petition with prejudice.
On appeal, the First Circuit determined that it lacked appellate jurisdiction because neither the June 1 judgment nor the December 8 judgment was a final, appealable judgment. the June 1 judgment was not final because it dismissed fewer than all of the state’s claims against the defendants. The December 8 judgment was not final because it dismissed only the amended petition; it failed to dismiss the original petition. Therefore, the state’s claims under the LMA and LUTPA remained undismissed.
Most lawyers (including me) would have thought that the December 8 judgment was final and appealable. This decision is something to keep in mind when drafting a judgment intended to sustain peremptory exceptions and dismiss the entire suit—make sure that the judgment explicitly dismisses all claims.