Cohen v. Beneficial Indus. Loan Corp., 337 U.S. 541 (1949)
Cohen v. Beneficial Indus.
Whether an interlocutory order requiring security by a shareholder in a derivative suit is an appealable final decision under 28 U.S.C. § 1291.
The rule formulated is the 'collateral order doctrine.' An interlocutory order may be appealed immediately if it: (a) conclusively determines the disputed question, (b) resolves an issue completely separate from the merits of the action, and (c) would be effectively unreviewable on appeal from a final judgment.
The Supreme Court held that the order involving the posting of security was a collateral order and thus appealable. The decision was binding and not interlocutory for purposes of appeal.
Cohen is significant for law students as it encapsulates one of the key exceptions to the 'final judgment rule' in appellate procedure. By clarifying that certain types of decisions and orders could be appealed immediately under the collateral order doctrine, the case provides critical insight into the strategic considerations behind case management and the tactical use of appeals by litigants. This remains essential knowledge for students and practitioners navigating the complexities of federal litigation.