Supreme Court of the United States

Lexecon Inc. v. Milberg Weiss Bershad Hynes & Lerach

March 3, 1998523 U.S. 26

Summary

The Court held that a district court receiving an action for multidistrict pretrial proceedings under 28 U.S.C. § 1407(a) cannot use § 1404(a) to retain that action for trial. Section 1407(a) mandates remand of unterminated actions by the conclusion of pretrial proceedings, making the Panel’s rule authorizing self-assignment invalid. Lexecon did not waive remand by failing to request it directly from the Panel, and the erroneous retention for trial was not harmless. The Court reversed the Ninth Circuit and remanded, while explaining that the proper pretrial dismissal of claims against Cotchett need not be reconsidered. Justice Souter wrote for the Court; Justice Scalia joined except for Part II-C, concerning legislative history. There were no separate opinions.

Holding

  • Authority of an multidistrict transferee court to retain an action for trial under § 1404(a).. Section 1407(a) precludes a transferee court from granting a § 1404(a) motion to retain the transferred action for trial; the Panel’s rule authorizing that practice is invalid.
  • Waiver through failure to request remand directly from the Panel.. Lexecon’s failure to file a remand motion directly with the Panel did not waive its objection.
  • Harmlessness of the violation of the mandatory remand requirement.. The uncorrected violation of § 1407(a), continuously challenged by Lexecon, required reversal and a new trial rather than harmless-error affirmance.

Docket 96-1482

Cited authorities

  • Rule 14(d)
  • Rule 54(b)
  • Rule 54(b)
  • Rule 14(b)
  • Rule 14(b)
  • Rule 15(d)
  • Rule 14(b)
  • Rule 14(c)

Cited by

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