Court Clarifies Appealability of Judgments in Consolidated Cases: Second Circuit | Practical Law

Court Clarifies Appealability of Judgments in Consolidated Cases: Second Circuit | Practical Law

In McCullough v. World Wrestling Entertainment, Inc., the US Court of Appeals for the Second Circuit clarified when judgments entered into in consolidated cases are final for purposes of appellate jurisdiction.

Court Clarifies Appealability of Judgments in Consolidated Cases: Second Circuit

Practical Law Legal Update w-003-6666 (Approx. 3 pages)

Court Clarifies Appealability of Judgments in Consolidated Cases: Second Circuit

by Practical Law Litigation
Published on 04 Oct 2016USA (National/Federal)
In McCullough v. World Wrestling Entertainment, Inc., the US Court of Appeals for the Second Circuit clarified when judgments entered into in consolidated cases are final for purposes of appellate jurisdiction.
On September 27, 2016, in McCullough v. World Wrestling Entertainment, Inc., the US Court of Appeals for the Second Circuit clarified when judgments entered into in consolidated cases are final for purposes of appellate jurisdiction ( (2d Cir. Sept. 27, 2016)).
The US District Court for the District of Connecticut consolidated six cases, five of which were brought against World Wrestling Entertainment, Inc. (WWE). The court granted WWE's motion to dismiss for two of the cases, and the plaintiffs appealed. WWE relied on Hageman v. City Investing Co. and moved to dismiss the appeals on the ground that other consolidated cases remained pending in the district court (851 F.2d 69 (2d Cir. 1988)). The plaintiffs opposed dismissal and urged the court to reconsider Hageman in light of the US Supreme Court's decision in Gelboim v. Bank of America Corp. (135 S. Ct. 897 (2015)).
In Hageman, although the court dismissed the appeal, it noted that there is a strong presumption that a judgment disposing of a claim in a consolidated action is an appealable final decision. In Gelboim, the Supreme Court ruled that an appeal should not have been dismissed because it was an appeal from a judgment dismissing one case that had been consolidated only for MDL purposes (and not consolidated for all purposes). The Supreme Court explained that cases consolidated for MDL pretrial proceedings retain their separate identities, so an order disposing of one case should qualify as an appealable final decision.
The court granted WWE's motion to dismiss the appeals because:
  • The two cases were consolidated with other cases in the district court for all purposes.
  • Hageman is still valid since Gelboim explicitly declined to express an opinion on the appealability of a dismissal of one of multiple cases that was consolidated for all purposes.
  • Applying Hageman, the plaintiffs were unable to overcome the strong presumption that the judgment is appealable.