MillerCoors LLC v. Anheuser-Busch Companies, LLC ( 2019 )


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  •                             In the
    United States Court of Appeals
    For the Seventh Circuit
    ____________________
    Nos. 19-2200, 19-2713 & 19-2782
    MILLERCOORS LLC,
    Plaintiff-Appellant, Cross-Appellee,
    v.
    ANHEUSER-BUSCH COMPANIES, LLC,
    Defendant-Appellee, Cross-Appellant.
    ____________________
    Appeals from the United States District Court
    for the Western District of Wisconsin.
    No. 19-cv-218-wmc — William M. Conley, Judge.
    ____________________
    ARGUED SEPTEMBER 23, 2019 —
    INTERIM ORDER OCTOBER 18, 2019
    ____________________
    Before EASTERBROOK, HAMILTON, and ST. EVE, Circuit
    Judges.
    PER CURIAM. On May 24, 2019, the district court entered
    an opinion that concludes with language that the judge be-
    lieved would serve as a preliminary injunction. MillerCoors
    filed an appeal, which has been docketed as No. 19-2200. But
    the district court did not comply with Fed. R. Civ. P.
    2                             Nos. 19-2200, 19-2713 & 19-2782
    65(d)(1)(C), which requires every injunction to be set forth
    without referring to any other document. See, e.g., Chicago v.
    Sessions, No. 17-2991 (7th Cir. Aug. 10, 2018) (en banc), slip
    op. 3 (Rule 65 “requires a separate document setting forth
    the terms of such an injunction”); Auto Driveaway Franchise
    Systems, LLC v. Auto Driveaway Richmond, LLC, 
    928 F.3d 670
    ,
    676 (7th Cir. 2019); BankDirect Capital Finance, LLC v. Capital
    Premium Financing, Inc., 
    912 F.3d 1054
    , 1057 (7th Cir.
    2019); Bethune Plaza, Inc. v. Lumpkin, 
    863 F.2d 525
    , 527 (7th
    Cir. 1988); Chief Freight Lines Co. v. Teamsters Local No. 886,
    
    514 F.2d 572
    , 578 n.6 (10th Cir. 1975).
    In supplemental jurisdictional memoranda filed at our
    request after oral argument, both sides acknowledged that
    the district court failed to comply with Rule 65(d). Neither
    side asked us to depart from the decisions we have cited.
    On September 4, 2019, while appeal No. 19-2200 was
    pending, the district court entered another opinion stating
    that it was “modifying” the decision of May 24. The district
    court did not follow the procedure specified by Fed. R. Civ.
    P. 62.1 for modifying an order that is before the court of ap-
    peals, nor did it discuss the rule that only one court at a time
    has jurisdiction over “those aspects of the case involved in
    the appeal.” Griggs v. Provident Consumer Discount Co., 
    459 U.S. 56
    , 58 (1982). And as with the May 24 opinion, the dis-
    trict court did not comply with Rule 65(d). Nor did the judge
    modify the injunction as a condition of a stay or bond pend-
    ing appeal, as Rule 62(d) permits. (It provides: “While an
    appeal is pending from an interlocutory order or final judg-
    ment that grants, continues, modifies, refuses, dissolves, or
    refuses to dissolve or modify an injunction, the court may
    suspend, modify, restore, or grant an injunction on terms for
    Nos. 19-2200, 19-2713 & 19-2782                               3
    bond or other terms that secure the opposing party’s rights.”
    The authority to make changes linked to bonds or otherwise
    secure the enjoined party’s rights differs from a blanket
    grant of permission to impose new obligations, and substan-
    tially alter the issues, while appeals are pending.) Anheuser-
    Busch’s appeal from the September 4 order has been docket-
    ed as No. 19-2713.
    On September 6, 2019, the district court modified the
    modification of September 4. Once again it did not discuss
    its jurisdiction to do so, did not rely on Rule 62(d), did not
    follow the procedure specified by Rule 62.1, and did not
    comply with Rule 65(d). Anheuser-Busch’s appeal from the
    order of September 6 has been docketed as No. 19-2782.
    Although the district court’s intent to afford enforceable
    equitable relief is sufficiently clear to provide appellate ju-
    risdiction despite the noncompliance with Rule 65(d),
    see Calumet River Fleeting, Inc. v. Operating Engineers Union,
    
    824 F.3d 645
    , 650 (7th Cir. 2016), enforcing that Rule is suffi-
    ciently important that we order a limited remand with in-
    structions to enter the injunction on a document separate
    from the opinions.
    In the process, the district court may be able to avoid the
    potential jurisdictional problems that its modifications of the
    initial order have created. (We call them modifications even
    though the order of September 4 does not change any lan-
    guage of the May 24 decision. It seems more like a second
    preliminary injunction, although the judge called it a modifi-
    cation. The September 6 order, by contrast, explicitly modi-
    fies the September 4 order.) While we recognize that a dis-
    trict court is in the best position to address urgent issues and
    changes in circumstance related to a preliminary injunction,
    4                              Nos. 19-2200, 19-2713 & 19-2782
    the court must nonetheless comply with the procedures for
    doing so in order to avoid creating potential complications
    on review. A single injunction complying with Rule 65(d)
    would be subject to appeal—and, as there has not yet been
    even one injunction that satisfies Rule 65(d), the consolidated
    injunction could be treated as the initial order, allowing both
    sides to appeal without any potential obstacle in the
    Griggs doctrine or Rule 62.1, or any need for us to consider
    the disagreement among the circuits about the extent to
    which preliminary injunctions are subject to modification by
    a district judge while an appeal is pending. Compare Ortho
    Pharmaceutical Corp. v. Amgen, Inc., 
    887 F.2d 460
    , 464 (3d Cir.
    1989), with Coastal Corp. v. Texas Eastern Corp., 
    869 F.2d 817
    ,
    820 (5th Cir. 1989).
    If the district court wants to make still further changes, in
    light of discovery in the ongoing litigation, it is free to do
    so—though the judge also is free to enter an injunction con-
    solidating all decisions made to date but leaving all else to
    the permanent-injunction phase. We leave this decision in
    the capable hands of the district court.
    Once the district court has complied with this limited
    remand, both sides should file new notices of appeal and
    propose a schedule for new briefs. The briefs already filed
    concerning the May 24 order may be incorporated by refer-
    ence, but we have yet to receive briefs concerning the Sep-
    tember 4 and 6 orders. All aspects of the case must be fully
    briefed before this court will proceed to decision.
    Nos. 19-2200, 19-2713 & 19-2782                               5
    HAMILTON, Circuit Judge, dissenting. I respectfully dissent
    from the remand order. We do not need to remand this appeal
    from the district court’s preliminary injunction of May 24,
    2019. It is briefed, argued, and ready to be decided on the
    merits. Judge Conley complied with all of the formal
    requirements for issuing an injunction. With respect, contrary
    to my colleagues’ views, Rule 65(d)(1) simply does not
    contain the “separate-document” requirement that is the basis
    for the majority’s remand. The majority offers here no textual
    or other defense for dicta in prior cases asserting such a
    requirement. Never before have we put any teeth behind this
    groundless and trivial “requirement.” This is a case where
    text and pragmatics point in the same direction. We need not
    remand for formalistic compliance with an imagined and
    non-jurisdictional rule that no party has raised. In addition,
    on the more consequential issue here, the district court had
    jurisdiction to issue its two September orders on BudLight’s
    packaging.
    I address in Part I the Rule 65(d) issue and in Part II the
    issues posed by the district court’s separate injunction on
    packaging and its emergency order relaxing that injunction at
    Anheuser-Busch’s request.
    I. A Separate Document?
    The formal requirements of Rule 65(d)(1)—those actually
    included in the text of the rule—are vital when a district judge
    exercises one of the most awesome powers of the office: issu-
    ing a preliminary injunction that is enforceable by contempt
    sanctions. Here are the textual requirements:
    (1) Contents. Every order granting an injunction
    and every restraining order must:
    6                               Nos. 19-2200, 19-2713 & 19-2782
    (A) state the reasons why it issued;
    (B) state its terms specifically; and
    (C) describe in reasonable detail—and not by refer-
    ring to the complaint or other document—the act or
    acts restrained or required.
    Compliance with these requirements ensures that a party
    who is restrained by a preliminary injunction knows clearly
    what conduct is being restrained and why. Oral orders can be
    vague and easily misunderstood. Incorporating other
    documents can lead to uncertainty. Failing to state clearly the
    reasons for the injunction may lead to hasty, sometimes too-
    casual analysis.
    In this case, the preliminary injunction is in a document
    titled “Opinion and Order,” which sets forth a detailed and
    thoughtful analysis of the facts and the law. Under the head-
    ing “Order” on page 49, the document spells out what is pro-
    hibited:
    IT IS ORDERED that:
    1) Plaintiff MillerCoors, LLCʹs motion for pre-
    liminary injunction (dkt. #8) is GRANTED IN
    PART AND DENIED IN PART as follows. De-
    fendant Anheuser Busch is PRELIMINARILY
    ENJOINED from using the following language
    within ten (10) days of this order in its commer-
    cials, print advertising and social media:
    • Bud Light contains “100% less corn syrup”;
    • Bud Light in direct reference to “no corn
    syrup” without any reference to “brewed with,”
    “made with” or “uses”;
    Nos. 19-2200, 19-2713 & 19-2782                                7
    • Miller Lite and/or Coors Light and “corn
    syrup” without including any reference to
    “brewed with,” “made with” or “uses”; and
    • Describing “corn syrup” as an ingredient “in”
    the finished product.
    MillerCoors, LLC v. Anheuser-Busch Cos., 
    385 F. Supp. 3d 730
    ,
    760 (W.D. Wis. 2019). This approach was not unusual; district
    judges issue such orders often, combining the opinion and the
    order, ordinarily without objection from the parties or this
    court as to the form. See, e.g., Dexia Credit Local v. Rogan, 
    602 F.3d 879
    , 884 (7th Cir. 2010) (affirming injunction in same doc-
    ument as reasons for issuing it: “The injunction is sufficiently
    precise and self-contained, and we require nothing more to
    comply with Rule 65.”); Russian Media Group, LLC v. Cable
    America, Inc., 
    2009 WL 440957
    , at *3 (N.D. Ill. Feb. 19, 2009)
    (combining findings of fact, conclusions of law, and specific
    terms of preliminary injunction in one document), aff’d, 
    598 F.3d 302
     (7th Cir. 2010).
    The order at the end of the combined “Opinion and Or-
    der” complied with all of the express requirements of Rule
    65(d)(1). It served all the purposes of that rule. No party has
    objected to its form. When the panel questioned this form in
    oral argument, counsel for Anheuser-Busch confirmed that
    his client understood that it was being enjoined and under-
    stood what was required. It also understood that it could ap-
    peal if it wanted to. The order may or may not turn out to be
    sound on the merits, but there is no formal problem with it,
    nothing that affects appellate jurisdiction, and nothing that
    justifies a remand for the district judge to copy the text from
    page 49 and paste it into a new, separate document.
    8                             Nos. 19-2200, 19-2713 & 19-2782
    The majority, however, asserts that Rule 65(d) requires
    every injunction to be set forth on a separate document that
    does not refer to any other document. With respect, that re-
    quirement does not appear in Rule 65(d). The requirement
    does appear as dicta in a number of our cases dating back to
    1988, but as explained below, those cases required us to ad-
    dress other, genuine problems in the preliminary injunctions.
    Until now, we have never attached any real consequences to
    a failure to comply only with this imagined, non-textual re-
    quirement. Rather than attach new consequences now
    through this remand, we should retreat from our earlier dicta.
    A good place to start is BankDirect Capital Finance, LLC v.
    Capital Premium Financing, Inc., 
    912 F.3d 1054
    , 1057 (7th Cir.
    2019), where we identified several critical problems in a pre-
    liminary injunction: the injunction left important issues unre-
    solved; it used ambiguous language and seemed to incorpo-
    rate another document; and it required no bond. We also said
    this regarding a separate document:
    Third, the district court failed to enter an injunc-
    tion as a separate document under Fed. R. Civ.
    P. 65(d)(1)(C). Language in an opinion does not
    comply with Rule 65(d). See Gunn v. University
    Committee to End the War, 
    399 U.S. 383
     (1970).
    Neither side reminded the district court of the
    need to enter an injunction.
    
    Id.
     As noted, Rule 65(d)(1)(C) contains no such requirement.
    My colleagues and I agree, of course, that language in an
    opinion that stops short of an explicit order does not amount
    to an enforceable order. Here, however, the language of the
    Nos. 19-2200, 19-2713 & 19-2782                                             9
    order was clear here, and Gunn is not on point for a “separate-
    document” requirement.1
    In BankDirect, we recognized that the district court had is-
    sued a written order that it expected the defendant to obey.
    That was enough to give us appellate jurisdiction—draining
    of any force the suggestion in the opinion that “no injunction”
    had been entered. Failure to comply with the textual require-
    ments of Rule 65(d) does not defeat appellate jurisdiction, lest
    the enjoined party be unable to obtain appellate review with
    the threat of contempt sanctions hanging over her head. E.g.,
    Abbott v. Perez, 
    138 S. Ct. 2305
    , 2321 (2018); Advent Electronics,
    Inc. v. Buckman, 
    112 F.3d 267
    , 273 (7th Cir. 1997) (finding ap-
    pellate jurisdiction over appeal from preliminary injunction
    that merely incorporated terms of another document). By con-
    trast, when there is genuinely no injunction at all, there is no
    appellate jurisdiction. E.g., Bates v. Johnson, 
    901 F.2d 1424
    ,
    1428 (7th Cir. 1990) (“Because the state is not under an en-
    forceable constraint, there is nothing before us on appeal.”).
    We vacated the injunction in BankDirect—but not because of
    the formal problems we identified. We vacated because the
    1  In Gunn, a three-judge district court had issued an opinion saying
    that a statute was unconstitutional. Regarding relief, the opinion said:
    “The Plaintiffs herein are entitled to their declaratory judgment to that ef-
    fect, and to injunctive relief against the enforcement of [the statute] as now
    worded, insofar as it may affect rights guaranteed under the First Amend-
    ment.” 
    399 U.S. at 386
    . No language in the district court’s opinion could
    be understood as enjoining any particular defendant from doing anything
    in particular, as required under Rule 65. No wonder, then, that the Su-
    preme Court dismissed the appeal for want of jurisdiction under 
    28 U.S.C. § 1253
     because the district court “has issued neither an injunction nor an
    order granting or denying one.” 
    399 U.S. at 390
    .
    10                                 Nos. 19-2200, 19-2713 & 19-2782
    injunction should have expired, according to its rationale,
    months before the appeal was even argued. 912 F.3d at 1059.
    In Auto Driveaway Franchise Systems, LLC v. Auto Driveaway
    Richmond, LLC, 
    928 F.3d 670
     (7th Cir. 2019), we repeated, with
    very careful wording, the separate-document point from
    BankDirect: “We interpret Rule 65(d)(1)(C) to require that an in-
    junction must be embodied in a standalone separate docu-
    ment.” 
    Id. at 676
     (emphasis added), citing 912 F.3d at 1057.
    The district court in Auto Driveaway issued one document. It
    started with eight pages of legal analysis and ended with a
    preliminary injunction with specific terms. Our opinion did
    not question the “separate-document” dicta from BankDirect,
    but we declined to attach any consequences to failure to com-
    ply. We found that the absence of a separate document did
    not affect appellate jurisdiction. 928 F.3d at 676–79. The order
    had the practical effect of an injunction and satisfied all of the
    textual requirements of Rule 65(d). Id. at 678. We therefore
    said there was no need to remand the case to cure the lack of
    a separate document, and we proceeded to the merits. Id. at
    679. We should do the same here.2
    The “separate-document” requirement in this circuit
    stems from language in Bethune Plaza, Inc. v. Lumpkin, 
    863 F.2d 525
     (7th Cir. 1988), where the district court had failed to com-
    ply with the Rules’ express and important requirements. The
    2My colleagues and I agree that failure to comply with the express
    formal requirements of Rule 58 and 65 can cause all sorts of avoidable and
    expensive procedural snarls. That has been shown in scores or hundreds
    of our cases in recent decades. I too can be a Rule 58 “hawk.” My objection
    here is to enforcement of a non-textual requirement that serves no appar-
    ent purpose beyond the textual requirements.
    Nos. 19-2200, 19-2713 & 19-2782                             11
    district court had issued an opinion that was intended to re-
    solve the case entirely. It ended:
    It is therefore ordered, that summary judgment
    is granted in favor of the plaintiff. The court fur-
    ther orders that the preliminary injunction now
    in effect against defendant be made permanent,
    subject to the following conditions: defendant is
    permanently enjoined from determining any vi-
    olations, or assessing any penalties or fines, or
    issuing a conditional license, to plaintiff, for any
    matter arising out of the matters listed in the
    Proof of Service dated November 14, 1986.
    
    863 F.2d at 526
    . That was bad enough, but the court’s separate
    final judgment was not even consistent with that opinion. The
    judgment said: “IT IS ORDERED AND ADJUDGED that the
    defendant’s motion for summary judgment is denied. Plain-
    tiff’s motion for summary judgment is granted, and the pre-
    liminary injunction previously entered against defendant is
    hereby made permanent.” 
    Id.
     Complicating matters further,
    there was no actual preliminary injunction; there had been
    only an initial temporary restraining order that had been ex-
    tended by consent of the parties.
    “This is a mess,” we wrote. 
    863 F.2d at 527
    . There were
    clear problems under both Rule 65 and Rule 58. No document
    spelled out the requirements of an injunction without refer-
    ence to another document, and the actual judgment conflicted
    with the opinion. Regarding a separate document, we wrote:
    A judicial opinion is not itself an order to act or
    desist; it is a statement of reasons supporting
    the judgment. The command comes in the
    12                                  Nos. 19-2200, 19-2713 & 19-2782
    separate document entered under Fed. R. Civ.
    P. 58, which alone is enforceable. There must be
    a separate document, with a self-contained
    statement of what the court directs be done. So
    if the opinion contains language awarding de-
    claratory relief, but the judgment does not, the
    opinion has been reduced to dictum; only the
    judgment need be obeyed.
    
    Id. at 527
    . All of that is clearly correct as far as it went, applied
    to the final judgment that was subject to the explicit separate-
    document requirement of Rule 58. Our opinion does not sup-
    port extending such a requirement to interlocutory orders,
    much less to preliminary injunctions under Rule 65(d), which
    does not contain it.3
    The strongest effort to offer a textual basis for a “separate-
    document” requirement for preliminary injunctions is in Beu-
    kema’s Petroleum Co. v. Admiral Petroleum Co., 
    613 F.2d 626
     (6th
    Cir. 1979). That case was an appeal from a district court’s
    opinion saying that “A preliminary injunction will be is-
    sued”—but none ever was. 
    Id. at 628
    . Although the parties
    3The majority also cites our en banc but non-precedential order va-
    cating the grant of en banc review in the sanctuary-city case, Chicago v.
    Sessions, No. 17-2991 (7th Cir. Aug. 10, 2018) (en banc), where the order
    said that Rule 65 “requires a separate document setting forth the terms of
    such an injunction.” We were talking there about a permanent injunction,
    which is ordinarily a final judgment subject to Rule 58’s explicit separate-
    document requirement. The problem we faced in the August 10, 2018 or-
    der was that the district judge had said he intended to issue a permanent
    injunction but had not yet done it. He quickly did so, and on August 30,
    2018, we dismissed as moot the appeal of the superseded preliminary in-
    junction. That situation was much like that in Beukema’s Petroleum, dis-
    cussed next.
    Nos. 19-2200, 19-2713 & 19-2782                                             13
    had treated that opinion as a preliminary injunction, the Sixth
    Circuit remanded the case for issuance of the order promised
    in the opinion.
    Beukema’s Petroleum relied not on Rule 65(d) but on Rule
    54(a), which provides: “‘Judgment’ as used in these rules in-
    cludes a decree and any order from which an appeal lies. A
    judgment should not include recitals of pleadings, a master’s
    report, or a record of prior proceedings.” Beukema’s Petroleum
    relied on this provision to extend the separate-document re-
    quirement of Rule 58 to a preliminary injunction. 
    613 F.2d at
    627 & n.1.
    The result in Beukema’s Petroleum was correct since the
    promised (or threatened) preliminary injunction had never
    been issued. But its Rule 54 rationale does not hold up—and
    points toward an unworkable rule—when extended accord-
    ing to its logic to every order subject to interlocutory appeal.4
    The universe of nonfinal appealable orders is not small. Its
    exact bounds cannot always be determined in advance by a
    district court. The majority’s rule would seem to require high-
    church, Rule 58-compliant separate documents, not only for
    grants of preliminary injunctions but also, for example, for
    4 Beukema’s Petroleum also cited, as the majority does here, Chief Freight
    Lines Co. v. Teamsters Local No. 886, 
    514 F.2d 572
    , 578 n.6 (10th Cir. 1975),
    where the district court had made an oral statement purporting to grant a
    preliminary injunction but had not issued any written order doing so. See
    also Furr’s Cafeterias, Inc. v. NLRB, 
    566 F.2d 505
    , 506–07 (5th Cir. 1978) (re-
    manding where district court held hearing on motion for preliminary in-
    junction and issued an order enjoining the NLRB from holding certain
    hearings and declaring “This is a final order and judgment.”). Both of
    these cases presented conflicts between a district judge’s different pro-
    nouncements. There is no such conflict here.
    14                             Nos. 19-2200, 19-2713 & 19-2782
    any order denying or “refusing to … modify” a preliminary
    injunction, 
    28 U.S.C. § 1292
    (a)(1), any mine-run Rule 12(b)(6)
    or Rule 56 order denying qualified immunity, see Mitchell v.
    Forsyth, 
    472 U.S. 511
    , 530 (1985), and every other collateral or-
    der subject to interlocutory appeal.
    Are we ready to start remanding appeals from orders
    denying motions for preliminary injunctions for entry of a
    document, separate from an opinion explaining the judge’s
    reasons? I hope not. Such omissions have heretofore escaped
    our every notice. See, e.g., HH-Indianapolis LLC v. Consol. City
    of Indianapolis/Marion Cty., 
    265 F. Supp. 3d 873
    , 892 (S.D. Ind.
    2017) (denying injunction with phrase “so ordered” at end of
    opinion), aff’d, 
    889 F.3d 432
     (7th Cir. 2018). The drafters of the
    federal rules knew better than to insist on such formalisms.
    See Fed. R. Civ. P. 58 advisory committee’s note to 2002
    amendment (“The new all-purpose definition of the entry of
    judgment must be applied with common sense … .”); see also
    Fed. R. App. P. 4(a)(7)(B) (“failure to set forth a judgment or
    order on a separate document … does not affect the validity
    of an appeal from that judgment or order.”).
    The majority’s “separate-document” addition to Rule
    65(d) does not solve any problem not addressed by the ex-
    press formal requirements in the rule. It does, however, raise
    some new problems. Neither the majority here nor any other
    opinion endorsing a “separate-document” requirement for
    preliminary injunctions explains how a district court is sup-
    posed to comply with both this non-textual requirement and
    the important, explicit requirement in Rule 65(d)(1)(A) that
    the preliminary injunction “state the reasons why it issued.”
    If we extend the separate-document requirement of Rule
    58 to preliminary injunctions, what should a district judge do
    Nos. 19-2200, 19-2713 & 19-2782                                  15
    with our repeated instructions that a Rule 58 final judgment
    should not contain legal reasoning? See, e.g., TDK Electronics
    Corp. v. Draiman, 
    321 F.3d 677
    , 679 (7th Cir. 2003); American
    Nat’l Bank & Trust Co. v. Secretary, 
    946 F.2d 1286
    , 1289 (7th Cir.
    1991), citing Reytblatt v. Denton, 
    812 F.2d 1042
    , 1044 (7th Cir.
    1987); In re Behrens, 
    900 F.2d 97
    , 99 (7th Cir. 1990); In re Pahule,
    
    849 F.2d 1056
    , 1058 (7th Cir. 1988); Foremost Sales Promotions,
    Inc. v. Director, 
    812 F.2d 1044
    , 1045 (7th Cir. 1987). Perhaps the
    judge could say, of course, that “in accord with a separate
    opinion,” the following parties are enjoined from the follow-
    ing conduct. But those two separate documents, an opinion
    and an injunction, are not a noticeable improvement on the
    combined “Opinion and Order” here.
    More troubling is the majority’s silence about the legal
    consequences of a district judge’s failure to comply with this
    non-textual requirement. The majority and I agree we have
    appellate jurisdiction in No. 19-2200. See Auto Driveaway, 928
    F.3d at 676–79. But is a decision in the form used here—
    combining findings of fact, conclusions of law, and specific
    terms of a preliminary injunction—valid and enforceable with
    contempt sanctions? Or is the enjoined party free to disregard
    it with impunity? Is the majority implying that Anheuser-
    Busch may start running the enjoined advertisements
    tomorrow? I hope not, for institutional reasons, but I cannot
    tell from the majority’s order.
    On a related note, even a violation of the textual separate-
    document requirement in Rule 58 is waivable. Bankers Trust
    Co. v. Mallis, 
    435 U.S. 381
     (1978). I hope the same is true for
    this non-textual requirement of a separate document, but the
    majority does not say. It remands, after all, on a point that it
    does not seem to treat as jurisdictional, yet a point that was
    16                                     Nos. 19-2200, 19-2713 & 19-2782
    not raised by either party. If this supposed violation is not
    waivable, we are inviting a new flock of appeals over point-
    less formalism, or some high-stakes contempt cases. Cf.
    Walker v. City of Birmingham, 
    388 U.S. 307
     (1967) (affirming
    criminal contempt convictions where demonstrators had vio-
    lated temporary restraining order that was substantively un-
    constitutional). And if the court’s orders were enforceable by
    contempt here despite the majority’s finding of a formal error,
    what is the point of this remand?5
    5 Contrary to the majority’s assertion, the parties did not acknowledge
    in oral argument that the district court “failed to comply with Rule 65(d).”
    This was a non-jurisdictional issue that surprised—even mystified—
    highly capable counsel on both sides. Counsel agreed only that there was
    no document satisfying the majority’s (imagined) requirement. The sup-
    plemental briefs by both sides did not devote energy to arguing about the
    supposed requirement, but neither contended that a remand is needed on
    this basis. They presumably just want a ruling on the merits. Still, Mil-
    lerCoors made this point diplomatically at page 13, note 2:
    MillerCoors respectfully notes some tension between this
    Court’s interpretation of Rule 65(d), which requires the
    injunction to stand on its own in a separate document en-
    tered as a judgment under Rule 58, and the text of Rule
    65(d), which requires that an injunction “state the reasons
    why it issued.” Fed. R. Civ. P. 65(d)(1)(A). Combined with
    Rule 65(d)(1)(C)’s prohibition on incorporation by refer-
    ence, this would seem to require that a stand-alone in-
    junction restate any judicial reasoning that might other-
    wise be set forth in a separate opinion, resulting in an in-
    junction that looks very much like the district court’s May
    24 Opinion and Order. That is, if the district court’s May
    24 Opinion and Order were simply retitled “Judgment,”
    it would appear to comply with Rule 65(d) in all other re-
    spects.
    Exactly.
    Nos. 19-2200, 19-2713 & 19-2782                                17
    In this case, the district court’s preliminary injunction of
    May 24, 2019 was clear, unmistakable, and appealable. It com-
    plied with all the terms of Rule 65(d)(1). Until this case, we
    have used the “separate-document” language in cases that
    addressed real problems under Rule 65. That language has
    been harmless until now. Here, however, the majority finds
    that “enforcing the Rule is sufficiently important that we or-
    der a limited remand with instructions to enter the injunction
    on a document separate from the opinions.” With all due re-
    spect, that importance is not evident to me, especially if the
    problem can be solved by having the district judge copy the
    text of his injunction of May 24 and paste it into a separate
    document. In the Supreme Court’s words, “Wheels [will] spin
    for no practical purpose.” Bankers Trust Co., 
    435 U.S. at 385
    . If,
    on the other hand, the majority means that the district court’s
    orders here have never been enforceable for want of a sepa-
    rate document (even though we have appellate jurisdiction),
    then we are inviting needless litigation in the future over this
    unjustified formalism.
    II. The September Orders
    This case is actually a little more complicated because of
    the orders the district court issued on September 4 and Sep-
    tember 6 granting MillerCoors some preliminary injunctive
    relief concerning the packaging for BudLight. The district
    court had jurisdiction to issue its September 4 order first
    granting relief on packaging. That order did not really “mod-
    ify” the May 24 injunction but was separate in content,
    providing additional relief.
    The district court also had jurisdiction to issue its Septem-
    ber 6 modification of the September 4 injunction. It was per-
    missible under Rule 62(d), and it did not undermine the
    18                             Nos. 19-2200, 19-2713 & 19-2782
    integrity of the pending appeals. In a rare case where a district
    judge acts so as to undermine the integrity of a pending ap-
    peal, Rule 62(g) makes clear that a court of appeals has suffi-
    cient power to deal with the problem. We should treat these
    modification issues as case-management problems for the dis-
    trict court and for us, not as issues of jurisdiction.
    The general rule, of course, is that only one court can have
    jurisdiction over a case at the same time. E.g., Griggs v. Provi-
    dent Consumer Discount Co., 
    459 U.S. 56
    , 58 (1982). Cases with
    preliminary injunctions can complicate matters, though. Even
    after a notice of appeal for a preliminary injunction has been
    filed, the district court retains jurisdiction over other aspects
    of the case. The boundaries between what has been appealed
    and what remains before the district court may not be sharp.
    In this case, when the district court issued its May 24 injunc-
    tion addressing the more urgent issue of the corn-syrup ad-
    vertising campaign, the district court simply did not address
    MillerCoors’ request for packaging relief. That topic had not
    been presented fully to the court at the time of the preliminary
    injunction hearing, so the court invited additional briefing. In
    September the court issued the new injunction.
    If the September 4 packaging order is treated as “modify-
    ing” the May 24 order, as the judge wrote, Rule 62(d) author-
    ized it. But the September 4 order is better understood as just
    a separate injunction. Nothing would have stopped Mil-
    lerCoors from filing a new motion for a preliminary injunc-
    tion on May 25, or stopped the district court from ruling on
    such a motion. There was no overlap between the relief or-
    dered on May 24 and the relief sought on packaging. See Ad-
    ams v. City of Chicago, 
    135 F.3d 1150
    , 1153–54 (7th Cir. 1998)
    (no jurisdictional bar to consideration of new motion for
    Nos. 19-2200, 19-2713 & 19-2782                             19
    preliminary injunction while appeal from first injunction is
    pending). There was no need for MillerCoors to have gone
    through separate formalities of filing a new motion for a new
    preliminary injunction. 
    Id.
     (construing compliance with Cir-
    cuit Rule 57 pragmatically as equivalent to new motion for
    new preliminary injunction).
    The September 6 order modifying the September 4
    packaging order poses a more controversial problem, but the
    answer should not be difficult. On September 5, Anheuser-
    Busch filed an emergency motion to vacate, modify, or stay
    the September 4 order. Dkt. 107. Also on September 5,
    Anheuser-Busch filed its notice of appeal for the September 4
    order. Dkt. 110. On September 6, the district judge granted in
    part the emergency motion to modify.
    It made good sense for the district judge to address the
    emergency motion immediately. Exercising equitable judg-
    ment, the judge sensibly intended for the September 4 pack-
    aging order to give Anheuser-Busch a brief but reasonable
    time to change its packaging and to avoid throwing away cur-
    rent inventory. The emergency motion persuaded the judge
    that, because Anheuser-Busch had used up its existing stock
    of packaging more quickly than expected, the September 4 or-
    der would not allow time for a smooth transition. It had in-
    stead put Anheuser-Busch immediately in violation, without
    an opportunity to comply. The judge therefore delayed by
    two months the effective date of the packaging order.
    Given the urgency of that issue and the district judge’s fa-
    miliarity with the case, he was much better positioned than a
    motions panel of this court, entirely new to the case, would
    have been to address the problem immediately. In fast-
    20                              Nos. 19-2200, 19-2713 & 19-2782
    moving litigation over injunctive relief, no one should be too
    surprised when circumstances change quickly.
    There is (or should be) no legal obstacle to such urgent and
    pragmatic modifications of a preliminary injunction pending
    an appeal. The broad language of Rule 62(d) allows it: “While
    an appeal is pending from an interlocutory order … that
    grants … an injunction, the court may suspend, modify, re-
    store, or grant an injunction on terms for bond or other terms
    that secure the opposing party’s rights.” Rule 62(d) is not lim-
    ited to modifications tied to stays or bonds pending appeal.
    Rule 62(d) also fits together with Federal Rule of Appellate
    Procedure 8(a)(1), which provides in relevant part: “A party
    must ordinarily move first in the district court for the follow-
    ing relief: … (C) an order suspending, modifying, restoring,
    or granting an injunction while an appeal is pending.” See
    also Eli Lilly and Co. v. Arla Foods, Inc., 
    893 F.3d 375
    , 384 (7th
    Cir. 2018) (district court was authorized to modify injunction
    in response to issues raised in appellant’s opening brief; district
    court’s modifications aided the appeal by “resolving technical
    objections or clarifying imprecise wording”), citing Dixon v.
    Edwards, 
    290 F.3d 699
    , 709 n.14 (4th Cir. 2002) (district court
    retained jurisdiction to proceed as to matters “in aid of the
    appeal”). It would surely be odd for a district court to respond
    to a motion prompted by Appellate Rule 8(a)(1) by saying, “I
    don’t have jurisdiction anymore.”
    Despite these textual provisions in the rules authorizing
    the district court’s actions here, some circuits have added a
    non-textual gloss to these rules, saying that the district court’s
    power over its own injunctions pending appeal is limited to
    acts designed to “preserve the status quo.” See generally 16
    Wright & Miller, Federal Practice & Procedure § 3921.2.
    Nos. 19-2200, 19-2713 & 19-2782                                           21
    Wright and Miller show in detail why this line of cases should
    be questioned. Compare Int’l Ass’n of Machinists and Aerospace
    Workers v. Eastern Air Lines, Inc., 
    847 F.2d 1014
    , 1018 (2d Cir.
    1988) (repeating “status quo” gloss), and Ideal Toy Corp. v.
    Sayco Doll Corp., 
    302 F.2d 623
    , 625 (2d Cir. 1962) (adopting
    “status quo” gloss); with 
    id. at 628
     (Clark, J., dissenting) (“The
    rule [now Rule 62(d)] is clear and unequivocal; I see no justi-
    fication whatever for the novel and restrictive gloss now
    placed upon it by my brothers.”), and Ortho Pharmaceutical
    Corp. v. Amgen, Inc., 
    887 F.2d 460
    , 464 (3d Cir. 1989) (district
    court had jurisdiction to enter order modifying injunction on
    appeal not only to preserve status quo but also to “preserve
    integrity of the appeal”).
    The non-textual “status quo” gloss has both metaphysical
    and pragmatic foundations. The metaphysical is the principle
    that only one court at a time may exercise jurisdiction over a
    case or portion of a case. Yet American federalism split the in-
    divisible atom of sovereignty with a workable but sometimes
    complicated sharing of sovereignty. Similarly, federal courts
    can manage a little concurrent jurisdiction between trial and
    appellate courts when there are good reasons—and express
    textual authorization—to do so.6
    The pragmatic foundation for the “status quo” gloss is a
    concern that a district judge could use her power under Rule
    62(d) to interfere with an appeal, forcing the court of appeals
    and appellant to aim at a moving target. I agree with Wright
    6 The majority implicitly criticizes the district court for not using the
    procedure in Federal Rule of Civil Procedure 62.1 for modifying an order
    that is before the court of appeals. The majority’s point begs the jurisdic-
    tional question, however. By its terms, Rule 62.1(a) applies only when the
    district court “lacks authority” to grant relief.
    22                            Nos. 19-2200, 19-2713 & 19-2782
    and Miller that this danger “seems more abstract than real.”
    § 3921.2 at 69. In the rare case where a district judge seems to
    be interfering with an appeal, Rule 62(g) makes clear that the
    court of appeals retains ample power to take charge.
    As with the Rule 65(d) issue, the parties are not confused
    about their rights and obligations. The better course here is to
    recognize that we are dealing with equitable powers and fast-
    moving litigation. We and the district court are capable of
    managing the case and the multiple appeals in practical and
    legally permissible ways. We should not remand now. We
    should promptly address the merits of MillerCoors’ appeal of
    the May 24 order (No. 19-2200), and we should order expe-
    dited briefing and argument on the merits of the Anheuser-
    Busch appeals from the September orders (Nos. 19-2713 & 19-
    2782).
    

Document Info

Docket Number: 19-2782

Judges: Per Curiam

Filed Date: 10/18/2019

Precedential Status: Precedential

Modified Date: 10/18/2019

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