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Showtime/the Movie Channel, Inc., Southeastern Cable Corporation, Sunbelt-Denntronics Cable, Ltd., Sunbelt Cable, Ltd., Sunbelt Cable Corporation and Espn, Inc., Counterclaim v. Covered Bridge Condominium Association, Inc., Counterclaim Plaintiff-Third-Party Harold Berger, Herbert Gross, Jack Tager, Bertha Goodman, Seymour Paris, Louis Lax and Frank Steinberger, Dennis Chambers, Etc., Third-Party

Citations: 895 F.2d 711; 14 U.S.P.Q. 2d (BNA) 2061; 1990 U.S. App. LEXIS 2308Docket: 88-5422

Court: Court of Appeals for the Third Circuit; January 9, 1990; Federal Appellate Court

Narrative Opinion Summary

This case concerns an appeal by a group of plaintiffs, including a premium cable channel and several cable companies, against a condominium association and other defendants. After the district court entered judgment, the parties reached a comprehensive settlement that required, among other terms, dismissal of the pending appeal and the imposition of a permanent injunction. Despite the settlement, the district court attempted to dismiss the case while the appeal was pending, an act which the appellate court found to be without legal effect due to the jurisdictional bar created by the notice of appeal. Appellants then moved in the Eleventh Circuit to dismiss the appeal and vacate the prior appellate opinion, a request opposed by appellees. The court addressed the procedural complexities arising from the timing of the motions and the partial execution of the settlement, emphasizing that, when a case becomes moot on appeal due to settlement, established practice is to vacate the lower court’s judgment and remand with instructions to dismiss. Exercising its discretion, the appellate court granted the motions to dismiss and vacate, and remanded to the district court for implementation of the settlement, affirming that the district court’s earlier dismissal order was ineffective. Unresolved counterclaims not encompassed by the appeal were expressly left undisturbed. The outcome facilitates enforcement of the settlement and ensures proper jurisdictional procedure.

Legal Issues Addressed

Appellate Procedure When Case Becomes Moot During Appeal

Application: Upon determining that a civil case becomes moot on appeal due to settlement, the appellate court vacated the district court's judgment and remanded the case with instructions to dismiss, in accordance with established precedent.

Reasoning: The district court lacked jurisdiction to dismiss the case, as established by appellate court practices which dictate that when a civil case becomes moot during an appeal, the appropriate action is to vacate the lower court's judgment and remand with instructions to dismiss.

Discretion of Appellate Court Over Post-Decision Motions to Dismiss and Vacate

Application: The appellate court exercised its discretion to grant appellants' post-decision motions to dismiss the appeal and vacate its prior opinion, despite opposition from appellees and the unusual timing, because a settlement agreement expressly required such dismissal and vacatur.

Reasoning: Regarding the appellants' motions to dismiss the appeal and vacate the prior opinion, the Court of Appeals retains discretion over such motions. Although the circuit typically grants unopposed motions to withdraw appeals, this case is atypical due to opposition from the appellees and the timing of the motions, which were filed post-decision.

Effect of Notice of Appeal on District Court Jurisdiction

Application: The district court was found to lack jurisdiction to dismiss the case after a notice of appeal had been filed, as the filing of such notice ordinarily divests the lower court of control over the aspects involved in the appeal.

Reasoning: The court also addressed the issue of jurisdiction, noting that while the filing of a notice of appeal typically divests the district court of control over the case, there are no applicable exceptions to allow for dismissal during the appeal process in this situation, as the settlement had not been fully executed or filed with the court at the time of dismissal.

Implementation of Settlement Agreements on Appeal

Application: The court ordered dismissal and vacatur in accordance with the parties' settlement, which included a permanent injunction and mandated dismissal of the appeal, as both parties had agreed to those terms.

Reasoning: In this instance, however, dismissal and vacatur are deemed appropriate because the parties reached a settlement that mandates dismissal of the appeal and includes a permanent injunction—central to the appeal's original focus. The appellees agreed to the settlement terms and do not contest them.

Scope of Appellate Remand and Unaddressed Claims

Application: The appellate court clarified that any counterclaims not part of the appeal remain unaffected by its ruling and are not addressed where their relation to the settlement is speculative.

Reasoning: The district court's earlier dismissal of the appellants' counterclaim against a third-party defendant, Hoffman, was not part of the appeal and remains unaddressed due to its speculative nature regarding the settlement's impact on that claim.