Marseilles Hydro v. Marseilles Land ( 2002 )


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  •                                In the
    United States Court of Appeals
    For the Seventh Circuit
    ____________
    No. 01-1238
    MARSEILLES HYDRO POWER, LLC,
    Plaintiff-Appellee,
    v.
    MARSEILLES LAND AND WATER COMPANY,
    Defendant-Appellant.
    ____________
    Appeal from the United States District Court
    for the Northern District of Illinois, Eastern Division.
    No. 00 C 1164—Suzanne B. Conlon, Judge.
    ____________
    ARGUED JANUARY 14, 2002—DECIDED AUGUST 5, 2002
    ____________
    Before POSNER, RIPPLE, and DIANE P. WOOD, Circuit Judges.
    POSNER, Circuit Judge. The plaintiff (“the power com-
    pany”) owns a disused hydroelectric plant built in 1912.
    When functional the plant was powered by water from
    a canal, owned by the defendant (“the canal company”),
    that connects the plant to the Illinois River. A contract be-
    tween the parties’ predecessors required the owner of the
    plant to pay rent to the owner of the canal and required
    the latter to keep the canal in good repair. The require-
    ment had no practical significance when the plant was not
    being used. But the current owner of the plant, that is, the
    2                                                  No. 01-1238
    power company, decided to put the plant back into ser-
    vice and so it became concerned about the state of the ca-
    nal and in particular feared that the canal’s wall was about
    to collapse. The canal company refused to repair it, and
    so the power company brought this suit to enforce the ca-
    nal company’s duty under the contract and moved for a
    preliminary injunction; but before the motion could be
    heard, the canal wall collapsed. The canal company coun-
    terclaimed for the rent due under the contract, rent that
    the power company refused to pay until the canal was re-
    paired. After a bench trial, the judge awarded judgment
    for the power company both on its complaint and on
    the canal company’s counterclaim. The judgment seems
    (the reason for this hedge will appear momentarily) to in-
    clude an order injunctive in character that entitles the pow-
    er company to enter upon the canal company’s property
    for the purpose of repairing the canal wall and to obtain
    a lien on the property for the cost of the repair.
    Before considering the issues presented by the appeal, we
    must satisfy ourselves that we have jurisdiction. Rule 65(d)
    of the Federal Rules of Civil Procedure requires that any
    injunction issued by a federal district court be detailed and
    specific (and also that it be a self-contained document, of
    which more shortly). The purpose is to provide a solid
    foundation for any subsequent efforts to enforce the injunc-
    tion by contempt proceedings or otherwise. PMC, Inc. v.
    Sherwin-Williams Co., 
    151 F.3d 610
    , 619 (7th Cir. 1998);
    Chicago & North Western Transportation Co. v. Railway La-
    bor Executives’ Ass’n, 
    908 F.2d 144
    , 149 (7th Cir. 1990). It is
    also to spare the courts and the litigants a struggle over the
    injunction’s scope and meaning. Schmidt v. Lessard, 
    414 U.S. 473
    , 476 (1974) (per curiam); Hispanics United of DuPage
    County v. Village of Addison, 
    248 F.3d 617
    , 620 (7th Cir. 2001).
    Some cases suggest, in the words of the Tenth Circuit, that
    No. 01-1238                                                  3
    prohibiting vague injunctions is also necessary to protect
    “those who are enjoined by informing them of the spe-
    cific conduct regulated by the injunction and subject to
    contempt.” Consumers Gas & Oil, Inc. v. Farmland Industries,
    Inc., 
    84 F.3d 367
    , 371 (10th Cir. 1996). But this rationale is
    questionable because, if the injunction is vague, it is not en-
    forceable by contempt.
    Neither party has mentioned Rule 65(d) even though the
    “injunction” (essentially against the canal company’s inter-
    fering with the power company’s entering the canal com-
    pany’s property to repair the canal) violates it blatantly.
    Buried in the district judge’s oral opinion terminating the
    case (the judgment order merely announces that judgment
    is for the power company, and thus violates the precept that
    “the judgment should award the relief to which the prevail-
    ing party is entitled, not simply announce an entitlement,”
    American Inter-Fidelity Exchange v. American Re-Insurance Co.,
    
    17 F.3d 1018
    , 1020 (7th Cir. 1994) (emphasis in original)), the
    “injunction” consists of a statement that “the plaintiff is
    entitled to enter upon the defendant’s property in order to
    repair the wall in accordance with” a repair plan that had
    been submitted to the court, and of little more. Crucial
    details, such as the power company’s duty to purchase
    insurance against damage to the canal company’s property
    from the repair activity, are omitted. The reference to the
    repair plan does not cure the deficiency, not only because
    the plan also lacks such crucial details as insurance but
    also because Rule 65(d) requires that the injunction be self-
    contained; its terms may not be filled out by reference to
    another document.
    So the “injunction” does not satisfy Rule 65(d). The rule
    is not jurisdictional, however, and thus the repair plan
    incorporated by reference may be looked to for assistance
    in deciding whether the injunction is sufficiently definite
    4                                                  No. 01-1238
    to be enforceable by means of a contempt proceeding.
    Chathas v. Local 134 International Brotherhood of Electrical
    Workers, 
    233 F.3d 508
    , 513 (7th Cir. 2000). That is an in-
    quiry of jurisdictional significance because if the injunc-
    tion is not at least that definite the canal company can
    disobey it with impunity and thus, not being hurt by it,
    would lack standing to challenge it, United States v. Board of
    Education, 
    11 F.3d 668
    , 672 (7th Cir. 1993); Original Great
    American Chocolate Chip Cookie Co. v. River Valley Cookies,
    Ltd., 
    970 F.2d 273
    , 276 (7th Cir. 1992); Chicago & North
    Western Transportation Co. v. Railway Labor Executives’ 
    Ass’n, supra
    , 908 F.2d at 149; see also Henrietta D. v. Giuliani, 
    246 F.3d 176
    , 182 (2d Cir. 2001), since an unenforceable order
    is no order at all. But the order in this case is that definite,
    at least. Although there are a number of open issues,
    there is a core of ascertainable duty imposed by the in-
    junction. If the canal company flatly refused without ex-
    cuse to allow the power company onto its property for
    the purpose of formulating a definite plan of repair, it
    would be punishable for contempt.
    It does not follow from the fact that the canal company
    has standing to appeal from the injunction that there is no
    remedy for the district court’s violation of Rule 65(d). True,
    neither party has cited the rule; but because injunc-
    tions impose continuing responsibilities on courts and
    frequently have effects on third parties, courts have an
    independent responsibility for assuring the ready admin-
    istrability of injunctions. So we could, as in PMC, Inc.
    v. Sherwin-Williams 
    Co., supra
    , 151 F.3d at 619-20, remand
    for the redrafting of the injunction. But there is more to
    the appeal. For in addition to seeking an injunction, the
    power company sought and, in the same oral opinion,
    obtained a declaration of its right to go on the canal com-
    pany’s property and repair the canal. Rule 65 does not ap-
    No. 01-1238                                                  5
    ply to declaratory judgments, Metzl v. Leininger, 
    57 F.3d 618
    , 619 (7th Cir. 1995), and such judgments are appeal-
    able, Gjertsen v. Board of Election Commissioners, 
    751 F.2d 199
    , 201 (7th Cir. 1984), even though, if they are disobeyed,
    they provide merely a platform for seeking further relief.
    Another of the federal civil rules is violated by this dec-
    laratory “judgment,” however (and by the “injunction” as
    well, for that matter)—Rule 58, which requires that a final
    judgment, including a final declaratory judgment, be set
    forth in a separate document from the opinion. Metzl v.
    
    Leininger, supra
    , 57 F.3d at 619; American Inter-Fidelity Ex-
    change v. American Re-Insurance 
    Co., supra
    , 17 F.3d at 1020.
    But a final judgment is appealable even if it does not com-
    ply with Rule 58. Bankers Trust Co. v. Mallis, 
    435 U.S. 381
    ,
    385-86 (1978) (per curiam).
    So we have jurisdiction and can proceed to the merits of
    the appeal, where the canal company’s principal argu-
    ment, and the only one we strictly need to consider, is that
    it was entitled to a jury trial. Rule 38(b) of the civil rules
    gives a party only ten days “after the service of the last
    pleading directed to the issue” (that is, “any issue triable
    of right by a jury,” id.) to demand a jury trial on that issue.
    The canal company filed its demand within ten days
    after serving on the power company its counterclaim de-
    manding payment of the rent specified in the contract
    for the use of the canal, which the power company had de-
    cided to withhold until the canal was repaired. The district
    judge thought the demand had come too late, because the
    rent issue was clearly flagged in the power company’s
    complaint; part of the declaratory judgment sought was
    a declaration that the power company owed no rent until
    the canal was back in working order.
    The power company and the judge were confused by the
    word “issue” in Rule 38(b). They think it means that if an
    6                                                   No. 01-1238
    issue could give rise to a claim for damages, either party can
    demand that it be tried to a jury. That is not correct. If the
    only relief sought is equitable, such as an injunction or
    specific performance (a type of affirmative injunction),
    neither the party seeking that relief nor the party opposing
    it is entitled to a jury trial. United States v. Louisiana, 
    339 U.S. 699
    , 706 (1950); Great American Federal Savings & Loan
    Ass’n v. Novotny, 
    442 U.S. 366
    , 374-75 (1979); Townsend v.
    Indiana University, 
    995 F.2d 691
    , 693 (7th Cir. 1993); Lac Du
    Flambeau Band of Lake Superior Chippewa Indians v. Stop
    Treaty Abuse-Wisconsin, Inc., 
    991 F.2d 1249
    , 1254 (7th Cir.
    1993); 9 Charles Alan Wright and Arthur R. Miller, Fed-
    eral Practice and Procedure § 2308, pp. 79-80, § 2309, p. 85
    (2d ed. 1995); cf. Spinelli v. Gaughan, 
    12 F.3d 853
    (9th Cir.
    1993). Rule 38(a), so far as applicable to this case, creates
    a right to a jury trial merely coextensive with the Seventh
    Amendment, which in turn confines that right to “Suits
    at common law.” A suit seeking only equitable relief is
    not a suit at common law, regardless of the nature of
    the issues likely or even certain to arise in the case, Atlas
    Roofing Co. v. Occupational Safety & Health Review Comm’n,
    
    430 U.S. 442
    , 459 (1977); City of Monterey v. Del Monte
    Dunes at Monterey, Ltd., 
    526 U.S. 687
    , 726 n. 1 (1999) (con-
    curring opinion), most of which indeed might be legal,
    such as (see Atlas) whether the canal company broke its
    contract with the power company, an issue normally de-
    termined by the common law of contracts rather than by
    some principle of equity jurisprudence.
    We state this with confidence though mindful of the
    statement in Chauffeurs, Teamsters & Helpers Local No. 391
    v. Terry, 
    494 U.S. 558
    , 565 (1990) (a plurality opinion, but
    the statement in question was agreed to by a majority of
    the Justices), that “to determine whether a particular action
    will resolve legal rights, and therefore give rise to a jury trial
    right, we examine both the nature of the issues involved
    No. 01-1238                                                  7
    and the remedy sought. First, we compare the statutory ac-
    tion to 18th-century actions brought in the courts of Eng-
    land prior to the merger of the courts of law and equity.
    Second, we examine the remedy sought and determine
    whether it is legal or equitable in nature. The second inquiry
    is the more important in our analysis.” This formula for
    guiding the Seventh Amendment inquiry has been repeated
    frequently by lower courts, e.g., Lebow v. American Trans
    Air, Inc., 
    86 F.3d 661
    , 668 (7th Cir. 1996); Brown v. Sandimo
    Materials, 
    250 F.3d 120
    , 126 (2d Cir. 2001); Spinelli v.
    
    Gaughan, supra
    , 12 F.3d at 855-56; Ramos v. Roche Products,
    Inc., 
    936 F.2d 43
    , 50 (1st Cir. 1991), though criticized in
    Crocker v. Piedmont Aviation, Inc., 
    49 F.3d 735
    (D.C.
    Cir. 1995): “Where the right at issue is a creature of recent
    statute, the search for an 18th-century English analog
    typically yields no clear answer. Given the radical difference
    between mid-20th-century American ideas of the proper
    role of the state and the ideas prevailing in 18th-century
    England, this difficulty is hardly surprising; it is certainly
    present here. Moreover, as the focus of the inquiry is
    on whether the ‘issue to be tried’ was analogous to one
    characteristically dealt with in equity or at common law,
    and as most traditional issues could be tried in both con-
    texts (albeit leading to different remedies), inconclusive
    results seem foreordained.” 
    Id. at 745
    (emphasis in orig-
    inal). But the historical inquiry, and the criticism of it, are
    not about unsettling the principle that there is no right to
    a jury trial when the plaintiff is seeking only equitable re-
    lief; that principle is firm; the inquiry is to determine
    whether a modern legal right has a sufficient analogy to
    a right enforced by common law courts in the eighteenth
    century to be enforceable by “a suit at common law” within
    the meaning of the Seventh Amendment. Tull v. United
    States, 
    481 U.S. 412
    , 420 (1987); City of Monterey v. Del
    8                                                  No. 01-1238
    Monte Dunes at Monterey, 
    Ltd., supra
    , 526 U.S. at 726 n. 1
    (concurring opinion); Lebow v. American Trans Air, 
    Inc., supra
    , 86 F.3d at 668; 8 Moore’s Federal Practice § 38.10[4][a],
    p. 38-49 (3d ed. 1997).
    The complaint in this case sought an injunction against
    the canal company’s preventing the power company from
    going on the canal company’s land to repair the canal at
    the latter’s expense, as well as specific performance (the
    granting of a lien), also a form of equitable relief. If that
    were all, it would be clear there was no right to a jury trial.
    But declaratory relief was also sought. Despite the equita-
    ble origins of such relief, Edwin Borchard, Declaratory
    Judgments 399 (2d ed. 1941), the Supreme Court has said
    that actions for declaratory judgments are “neither legal
    nor equitable.” Gulfstream Aerospace Corp. v. Mayacamas
    Corp., 
    485 U.S. 271
    , 284 (1988); see also Moretrench American
    Corp. v. S.J. Groves & Sons Co., 
    839 F.2d 1284
    , 1286 (7th
    Cir. 1988); Hartford Financial Systems, Inc. v. Florida Software
    Services, Inc., 
    712 F.2d 724
    , 727 (1st Cir. 1983). (So much
    for the historical test for Seventh Amendment rights.) Rule
    57 of the civil rules provides that “the procedure for obtain-
    ing a declaratory judgment pursuant to [the Declaratory
    Judgment Act, 28 U.S.C. § 2201] shall be in accordance
    with these rules, and the right to trial by jury may be
    demanded under the circumstances and in the manner
    provided in Rules 38 and 39.” In other words, casting one’s
    suit in the form of a suit for a declaratory judgment,
    or adding a claim for a declaratory judgment to one’s other
    claim or claims for relief, does not create a right to a jury
    trial. Rather, as the Third Circuit put it nicely in Owens-
    Illinois, Inc. v. Lake Shore Land Co., 
    610 F.2d 1185
    , 1189
    (3d Cir. 1979), “If the declaratory judgment action does
    not fit into one of the existing equitable patterns but
    is essentially an inverted law suit—an action brought by
    one who would have been a defendant at common law—
    No. 01-1238                                                 9
    then the parties have a right to a jury. But if the action is
    the counterpart of a suit in equity, there is no such right.”
    See also Beacon Theatres, Inc. v. Westover, 
    359 U.S. 500
    ,
    504 (1959); James v. Pennsylvania General Ins. Co., 
    349 F.2d 228
    , 230 (D.C. Cir. 1965). (And here it is the latter.) We
    prefer the formulation that we just quoted from Owens-
    Illinois to that in Petition of Rosenman & Colin, 
    850 F.2d 57
    ,
    60 (2d Cir. 1988): “the nature of the underlying dispute
    determines whether a jury trial is available.” The “nature of
    the underlying dispute” here is breach of contract, but a
    plaintiff who is seeking equitable relief and not damages
    cannot wrest an entitlement to a jury trial by the facile
    expedient of attaching a claim for declaratory judgment.
    Otherwise anyone seeking an injunction could obtain a jury
    trial.
    So neither the power company nor the canal company
    had a right to demand a jury trial on the basis of the com-
    plaint. Any such right would have had to arise later. It
    did arise later; it arose when the canal company counter-
    claimed for the withheld rent. Founded on an alleged
    breach of contract by the power company, the counter-
    claim was a claim for damages and hence—despite its
    being a counterclaim rather than a free-standing lawsuit,
    since a counterclaim is a suit, only joined for econ-
    omy with an existing suit—it was a suit at common law
    within the meaning of the Seventh Amendment. Beacon
    Theatres v. 
    Westover, supra
    , 359 U.S. at 504, 508, 510;
    Lee Pharmaceuticals v. Mishler, 
    526 F.2d 1115
    , 1116 (2d
    Cir. 1975) (per curiam). The canal company’s demand for
    a jury, filed within ten days after the counterclaim, was
    the earliest either party could have demanded a jury trial.
    At that point the fact that there was a common issue
    underlying both the equitable and the legal claims, name-
    ly the duty if any of the power company to pay rent, and
    under that issue perhaps the deeper issue of which party
    had actually broken the contract, became significant. Com-
    10                                                 No. 01-1238
    mon issues, if triable at all in the sense that their resolution
    requires resolving a material dispute of fact, as was the
    case here, must be tried to a jury in order to prevent a
    judge’s determination from foreclosing a party’s right to
    have the issues in a common law suit tried by a jury. Dairy
    Queen, Inc. v. Wood, 
    369 U.S. 469
    , 472-73, 479 (1962); Wade v.
    Orange County Sheriff’s Office, 
    844 F.2d 951
    , 954 (2d Cir.
    1988). So the demand for a jury trial was timely and its
    rejection error; and until the jury trial to which the canal
    company is entitled is completed issuance of an injunc-
    tion is premature.
    We need to address two other issues presented by
    the appeal in order to guide the proceedings on remand.
    (It is of course implicit in our earlier discussion that if the
    power company prevails at the jury trial and again seeks
    and obtains an injunction, the injunction is to comply
    with Rules 58 and 65(d).) The first is whether the dis-
    trict judge erred in refusing to allow the canal company to
    file a third-party complaint under Fed. R. Civ. P. 14(a)
    against Illinois Power Company (a former owner of the
    hydroelectric plant), which the canal company’s ex-
    pert thought may have contributed to the collapse of
    the canal wall by planting utility poles too near the edge of
    the canal. The judge thought the canal company had
    waited too long to file the third-party complaint, but that
    is clearly wrong. The suit was filed in February 2000; in June
    the canal company filed its counterclaim and moved to file
    the third-party complaint against Illinois Power. We cannot
    for the life of us see what procedural economy could be
    gained by forcing the canal company to sue Illinois Power
    in a separate action or how the plaintiff could be prejudiced.
    “As long as a third-party action falls within the general
    contours limned by Rule 14(a), does not contravene cus-
    tomary jurisdictional and venue requirements, and will
    not work unfair prejudice, a district court should not pre-
    No. 01-1238                                                11
    clude its prosecution.” Lehman v. Revolution Portfolio L.L.C.,
    
    166 F.3d 389
    , 395 (1st Cir. 1999). These conditions are so
    manifestly satisfied here that we are constrained to deem
    the judge’s denial of the canal company’s motion an abuse
    of discretion. Ford Motor Co. v. Milby, 
    210 F.2d 137
    , 138-39
    (4th Cir. 1954) (per curiam).
    The second issue arises from the fact that the power
    company will have to obtain a license from the Federal
    Energy Regulatory Commission to put its hydro-
    electric plant back into service. To the canal company’s
    argument that the question of what is to be done about
    the collapsed wall of the canal is, by virtue of the li-
    cense requirement, within FERC’s primary jurisdiction, the
    district judge replied that it is no business of the canal
    company whether the power company is ever allowed
    to generate electricity at its plant because the power com-
    pany is entitled under the contract to a supply of water
    regardless. We do not agree. It would be inequitable and
    indeed extortionate for a court to issue an order that
    allowed the power company to repair the canal at the
    canal company’s expense if the repair would confer no
    value on the power company (or, so far as appears, any-
    one else) because it was denied a hydroelectric license
    and as a result had no use for the water. The power com-
    pany would in that event merely threaten to repair the
    canal in order to induce a monetary settlement, that is, a
    payment by the canal company to dissuade the power
    company from carrying out its threat. Suppose it would
    cost $500,000 to repair the canal. The power company, if
    the repair would be worthless to it, would be happy to
    accept payment from the canal company to give up its
    right; at any settlement amount between $0 and $500,000,
    both parties would be better off. To issue an injunction
    in order to arm a plaintiff to obtain such a windfall would
    be a perverse exercise of judicial power. See Youngs v. Old
    12                                                No. 01-1238
    Ben Coal Co., 
    243 F.3d 387
    , 393 (7th Cir. 2001); Northern
    Indiana Public Service Co. v. Carbon County Coal Co., 
    799 F.2d 265
    , 279-80 (7th Cir. 1986); Odetics, Inc. v. Storage Technol-
    ogy Corp., 
    185 F.3d 1259
    , 1273-74 (Fed. Cir. 1999); Foster
    v. American Machine & Foundry Co., 
    492 F.2d 1317
    , 1324
    (2d Cir. 1974); Edwards v. Allouez Mining Co., 
    38 Mich. 46
    , 48-
    51 (1878); see generally Ian Ayres & Kristin Madison,
    “Threatening Inefficient Performance of Injunctions and
    Contracts,” 148 U. Pa. L. Rev. 45, 47-53 (1999).
    But there may be more to the matter than this. The pow-
    er company may reasonably want to repair the canal wall
    forthwith so that it can begin generating power as soon
    as it obtains its license, assuming that happy outcome is
    likely (which we do not know). And, realistically, since
    the canal company’s finances are distinctly shaky, repair
    at the canal company’s expense may mean simply that the
    power company will apply to the cost of repairing the ca-
    nal the rental payments that it would otherwise owe the
    canal company under their contract.
    Application of the doctrine of primary jurisdiction
    would be premature, moreover. The doctrine comes into
    play when an issue arising in a lawsuit is one that the
    legislature has confided for determination to an administra-
    tive agency, such as FERC. United States v. Western Pacific
    R.R., 
    352 U.S. 59
    , 63-64 (1956); Arsberry v. Illinois, 
    244 F.3d 558
    , 563 (7th Cir. 2001). When properly invoked, as
    these cases and many others we could cite explain, the
    doctrine requires that the suit be stayed until the agency
    resolves the issue, whereupon the lawsuit resumes if
    the agency’s resolution (assuming it survives review
    by whatever court has jurisdiction to review the agency’s
    decisions) has not resolved the entire controversy. See
    also 2 Kenneth Culp Davis & Richard J. Pierce, Jr., Ad-
    ministrative Law Treatise § 14.1, pp. 271-73 (3d ed. 1994).
    No. 01-1238                                                 13
    This case, at least at its present stage, lies outside the
    heartland of the doctrine. Remember that it is a contract
    dispute. No issue concerning the parties’ respective rights
    and duties under the contract is within FERC’s jurisdic-
    tion, primary or otherwise. FERC comes into the picture
    in two ways. First, if it never grants the power com-
    pany a license to operate the hydroelectric plant, the
    company will not be entitled to the relief it is seeking
    against the canal company, although it may, for all we
    know, be entitled to other relief, such as abatement of
    the rent. Second, FERC may have its own ideas about
    how best to repair the canal wall, and it can condition
    the license it issues to the power company, if it does issue
    a license, on the company’s implementing those ideas, pro-
    vided only that they are reasonable. See 16 U.S.C. §§ 799,
    803(a)(1), (c), (g); 18 C.F.R. § 12.4(b)(2); David B. Spence,
    “Managing Delegation Ex Ante: Using Law to Steer Admin-
    istrative Agencies,” 28 J. Legal Stud. 413, 420-21 (1999);
    cf. Midwestern Gas Transmission Co. v. McCarty, 
    270 F.3d 536
    , 538 (7th Cir. 2001). FERC orders issuing licenses for
    hydroelectric generation often reserve regulatory control
    over the construction plan, including the waterway, see,
    e.g., Midwest Hydraulic Co., 79 F.E.R.C. ¶ 62,101 (1997);
    J & T Hydro Co., 66 F.E.R.C. ¶ 62,138 (1994)—including even
    repairs to the waterway, as in Windsor Locks Canal Co. &
    Windsor Locks Hydroelectric Limited Partnership, 49 F.E.R.C.
    ¶ 62,300 (1989); see also Seneca Falls Power Corp., 84 F.E.R.C.
    ¶ 61,005 (1998), just like the present case.
    This discussion shows that it would be premature to re-
    fer any issue to FERC until the relief stage of this litiga-
    tion is reached. Only if the power company again pre-
    vails and again obtains an injunction entitling it to repair
    the canal might it be necessary to adjust the terms of
    the injunction to make sure that the company is not al-
    14                                                 No. 01-1238
    lowed to do anything contrary to whatever conditions
    FERC imposes on plans for repairing the canal wall. But
    though there is no issue to refer to the FERC at the present
    time it might be a good idea for the district court to stay the
    lawsuit until the FERC proceeding concludes, since that
    proceeding may quite possibly either render the lawsuit
    moot (if the license is denied) except for the matter of
    unpaid rent, or require significant changes in the equitable
    relief ordered should the power company succeed in
    proving its case. Rohr Industries, Inc. v. Washington Metropoli-
    tan Area Transit Authority, 
    720 F.2d 1319
    , 1324-25 (D.C. Cir.
    1983); Leyva v. Certified Grocers of California, Ltd., 
    593 F.2d 857
    , 863-64 (9th Cir. 1979). The question whether to stay the
    suit is something for the district court to decide in the first
    instance.
    We trust that in the further proceedings that we are or-
    dering the lawyers will be less insouciant about rules and
    procedures; for they are courting sanctions. Neither par-
    ty seems to have been aware of Fed. R. Civ. P. 65. The pow-
    er company seems not to have heard of the Seventh Amend-
    ment either. The canal company’s brief makes a hash of
    the jurisdictional statement (thus violating 7th Cir. R.
    28(a)(1); see Meyerson v. Harrah’s East Chicago Casino, No. 01-
    1993, 
    2002 WL 1483222
    , at *1 (7th Cir. July 11, 2002) (per
    curiam), and cases cited there), alleging that the power
    company’s principal place of business is in Illinois, which
    if true (it is false) would destroy diversity, and failing
    to allege the state of citizenship of the members of the
    power company, a limited liability company, so that the
    relevant citizenship for diversity purposes is that of the
    members, not of the company. Cosgrove v. Bartolotta, 
    150 F.3d 729
    , 731 (7th Cir. 1998). The canal company’s brief
    omits the statement of the standard of appellate review
    required of appellants, Fed. R. App. P. 28(a)(9)(B), while
    the power company’s brief states the standard incorrectly.
    No. 01-1238                                               15
    It says that procedural rulings are reviewed for abuse
    of discretion and substantive rulings (because this is a
    diversity case) for clear error. Some procedural rulings are
    reviewed for abuse of discretion, others not, while in di-
    versity as in other cases findings of fact are reviewed for
    clear error but rulings of law, whether substantive or pro-
    cedural, are subject to plenary review.
    Circuit Rule 36 shall apply on remand.
    REVERSED AND REMANDED.
    A true Copy:
    Teste:
    _____________________________
    Clerk of the United States Court of
    Appeals for the Seventh Circuit
    USCA-97-C-006—8-5-02