Opinion

Cohen v. Beneficial Industrial Loan Corp.

  • 337 U.S. 541
  • 69 S. Ct. 1221
  • 93 L. Ed. 2d 1528
  • 93 L. Ed. 1528
  • 1949 U.S. LEXIS 2149
Court
Supreme Court of the United States
Filed
Jun 20, 1949
Status
Published
Author
Douglas
On the bench
Jackson, Douglas, Rutledge, Frankfurter
Cited by
10,256 cases
Authority
More cited than 24.0%

Declined to follow by American Express Warehousing, Ltd. v. Transamerica Insurance Company, 380 F.2d 277 (1967)

explaining that there is a right to appeal a Case: 19-1922 Document: 82 Page: 8 Filed: 07/09/2020 8 UNILOC 2017 LLC v. APPLE, INC. “small class” of orders “which finally determine claims of right separable from, and collateral to, rights asserted in the action, too important to be denied review and too inde- pendent of the cause itself to require that appellate consid- eration be deferred until the whole case is adjudicated”

How later courts described this case

  • explaining that there is a right to appeal a Case: 19-1922 Document: 82 Page: 8 Filed: 07/09/2020 8 UNILOC 2017 LLC v. APPLE, INC. “small class” of orders “which finally determine claims of right separable from, and collateral to, rights asserted in the action, too important to be denied review and too inde- pendent of the cause itself to require that appellate consid- eration be deferred until the whole case is adjudicated”
  • holding that a court shall not “permit itself to be used to litigate a purchased grievance or become a party to speculation in wrongs done to corporations[,]” and requiring plaintiff to show, under Fed. R. Civ. P. 23.1, “that an action is not a collusive one to confer jurisdiction and to set forth the facts showing that the plaintiff has endeavored to obtain his remedy through the corporation itself.”
  • holding that appellate jurisdiction exists, despite the absence of a final judgment, "in that small class [of decisions] 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.”
  • holding that a recognized exception to the final judgment rule exists for a "small class [of interlocu- tory orders] 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."

Written by the judges who cited it.

Later courts went against this

  • Declined to follow by American Express Warehousing, Ltd. v. Transamerica Insurance Company, 380 F.2d 277 (1967)

    The cases relied on by appellant to justify appealability here as a "final" order under Cohen are readily distinguishable.
    Court of Appeals for the Second CircuitJul 5, 19672 citing opinionsRead it
  • Disagreed with by Klestadt & Winters, LLP v. Cangelosi, 672 F.3d 809 (2012)

    We disagree with the concurrence’s suggestion that, notwithstanding § 1291 and Cohen, we should “simply treat jurisdiction of bankruptcy appeals under § 1291 in the same way that we treat bankruptcy appeals under § 158(d)(1).
    Court of Appeals for the Ninth CircuitMar 6, 2012Read it

Distinguished

  • Distinguished by Blake v. Government of the Virgin Islands, 198 F. App'x 216 (2006)

    337 U.S. 541, 69 S.Ct. 1221, 93 L.Ed. 1528 (1949), and its progeny is inapplicable.
    Court of Appeals for the Third CircuitAug 14, 2006Read it
  • Distinguished by Wheeler v. American Heritage Bank, 175 F. App'x 250 (2006)

    337 U.S. 541, 69 S.Ct. 1221, 93 L.Ed. 1528 (1949) is inapplicable here.
    Court of Appeals for the Tenth CircuitApr 11, 2006Read it
  • Distinguished by a later decision, 87 F.3d 1309 (1996)

    Loan Corp., 337 U.S. 541, 546 (1949), is inapplicable.
    Court of Appeals for the Fourth CircuitJun 5, 1996Read it
  • Distinguished by Tri-State Generation And Transmission Association, Inc. v. Shoshone River Power, Inc., 874 F.2d 1346 (1989)

    The line of cases addressing the issue of reviewability of nonappealable matters on appeal from a Cohen v. Beneficial Industrial Loan Corp., 337 U.S. 541, 69 S.Ct. 1221, 93 L.Ed. 1528 (1949), collateral order is also inapposite to this case.
    Court of Appeals for the Tenth CircuitMay 5, 19892 citing opinionsRead it

The opinion

Mr. Justice Douglas,

with whom

Mr. Justice Frankfurter concurs, dissenting in part.

The cause of action on which this suit is brought is a derivative one. Though it belongs to the corporation, the stockholders are entitled under state law to enforce it. The measure of the cause of action is the claim which the corporation has against the alleged wrongdoers. This New Jersey statute does hot add one iota to nor subtract one iota from that cause of action. It merely prescribes the method by which stockholders may enforce it. Each state has numerous regulations governing the institution of shits in its courts.- They may favor the litigation or they may affect it adversely. But they do not fall under the principle of Erie R. Co. v. Tompkins, 304 U. S. 64 , unless they define, qualify or delimit the cause of action or otherwise relate to it.

This-New Jersey statute, like statutes governing security for costs, regulates only the procedure for instituting a particular cause of action and hence need not be applied in- this diversity suit in the federal court. Rule 23 of the Federal Rules of Civil Procedure defines that procedure for the federal courts.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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