Cohen v. Beneficial Industrial Loan Corporation

In Cohen v. Beneficial Industrial Loan Corporation, 337 U.S. 541, 69 S.Ct. 1221, 93 L.Ed. 1528 (1949), the Supreme Court delineated one of the several exceptions to the general rule that a final judgment is a prerequisite to appeal. The Supreme Court held the given order appealable because it is a final disposition of a claimed right which is not an ingredient of the cause of action and does not require consideration with it. 337 U.S. at 546-47, 69 S.Ct. at 1226. In Cohen v. Beneficial Industrial Loan Corp., 337 U.S. 541, the District Court refused to order the plaintiff in a stockholder's derivative action to post the security for costs required by a New Jersey statute. The defendant sought immediate review of the question whether the state statute applied to derivative suits in federal court. The Court noted that the purpose of the finality requirement "is to combine in one review all stages of the proceeding that effectively may be reviewed and corrected if and when final judgment results." Id., at 546. Because immediate review of the District Court's order was consistent with this purpose, the Court held it appealable as a "final decision" under 28 U.S. C. 1291 In Cohen v. Beneficial Indus. Loan Corp., 337 U.S. 541, 546, 69 S.Ct. 1221, 93 L.Ed. 1528 (1949), the Court held that courts could entertain appeals of certain decisions that - although not final in a technical sense - "fall into that small class 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." Id. In Cohen v. Beneficial Loan Corp., 337 U.S. 541, 545-47, 69 S.Ct. 1221, 1225, 1226, 93 L.Ed.2d 1528 (1949) the Supreme Court held that to be collaterally appealable an issue must fall within that small class of cases which finally determine claims of right separable from and collateral to the rights asserted in the action, and are 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 Abney v. United States, 431 U.S. 651, 97 S.Ct. 2034, 52 L.Ed.2d 651 (1977) applied the Cohen "collateral order" doctrine to a criminal proceeding. Abney held that, although the pretrial denial of a motion to dismiss an indictment on double jeopardy grounds is obviously not "final" in the sense that it terminates the criminal proceedings in the district court, nonetheless, such pretrial orders fall within the "collateral order" exception. The rights conferred on a criminal accused by the double jeopardy clause would be significantly undermined if appellate review of double jeopardy claims were postponed until after conviction and sentence. The double jeopardy clause not only protects an individual against more than being subject to double punishments; it is a guarantee against being twice put to trial for the same offense." 431 U.S. at 660-62, 97 S.Ct. at 2040-2041.