Sunday, April 14, 2013

Liljeberg v. Health Services Acquisition Corp. case brief

Liljeberg v. Health Services Acquisition Corp. case brief summary
486 U.S. 847 (1988)

CASE SYNOPSIS:
Petitioner developer appealed the judgment of the United States Court of Appeals for the Fifth Circuit (Louisiana), which reversed the district court's judgment holding that the district court judge should have disqualified himself under the Judicial Code, 28 U.S.C.S. § 455(a), in the action by respondent acquisition corporation against the developer seeking a declaration of ownership of a corporation.

OVERVIEW: Respondent acquisition corporation brought suit against petitioner developer seeking a declaration of ownership of a corporation. Upon learning that the district judge was a board member of an entity seeking to purchase from petitioner the same parcel of land in the parties' dispute, respondent filed a motion to disqualify the judge under Judicial Code, 28 U.S.C.S. § 455(a). The district court denied the motion and the appeals court reversed. Petitioner appealed.

HOLDING:
The court affirmed, holding that § 455(a) was violated and the judge should have disqualified himself.

ANALYSIS:
The judge should have disqualified himself because even if the judge was not conscious of the circumstances creating the appearance of impropriety, a reasonable person knowing the relevant facts, would have expected that judge to have known of circumstances creating an appearance of partiality, and that the relief of vacating the declaratory relief judgment was available under the Fed. R. Civ. P. 60(b) because the judge deprived respondent of a basis for making a timely motion for a new trial and also deprived it of an issue on direct appeal.

OUTCOME: The court affirmed the judgment, holding that in its action for declaratory relief against the developer, the acquisition corporation was entitled to have its motion to disqualify the district judge granted because even if the judge was not conscious of the circumstances creating the appearance of impropriety, a reasonable person knowing the relevant facts, would have expected that judge to have been aware of the circumstances.



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