William Hallam Webber v. The Eye Corporation

Summary

The Seventh Circuit reversed a district court order dismissing claims arising from the purchase of paintings allegedly misattributed to Arthur Szyk. The court held that dismissal with prejudice for failure to prosecute was an abuse of discretion because the record did not show contumacious conduct or a clear pattern of delay, and lesser sanctions were available. It also held that the plaintiff's claimed lost profits were sufficient to prevent dismissal of the first claim for lack of the amount-in-controversy requirement.

Holdings

1. The district court abused its discretion by dismissing the second and third claims with prejudice for failure to prosecute because the record did not establish a clear record of delay or contumacious conduct, and the court did not adequately consider less severe sanctions.

Questions Presented

1. Whether the district court abused its discretion by dismissing two claims with prejudice for failure to prosecute when the plaintiff failed to appear for trial after receiving relatively short notice.
2. Whether the district court properly dismissed the express-warranty claim for lack of diversity jurisdiction because the amount in controversy was allegedly below the statutory minimum.