Aetna Casualty & Surety Company v. Hatridge

282 F. Supp. 604, 1968 U.S. Dist. LEXIS 8236
CourtDistrict Court, W.D. Arkansas
DecidedApril 1, 1968
Docket1167
StatusPublished
Cited by9 cases

This text of 282 F. Supp. 604 (Aetna Casualty & Surety Company v. Hatridge) is published on Counsel Stack Legal Research, covering District Court, W.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aetna Casualty & Surety Company v. Hatridge, 282 F. Supp. 604, 1968 U.S. Dist. LEXIS 8236 (W.D. Ark. 1968).

Opinion

MEMORANDUM OPINION

OREN HARRIS, Chief Judge.

This is an action for declaratory judgment in which the plaintiff seeks a determination of the coverage of its insurance policy.

Defendants herein were parties to an action in the Circuit Court of Union County, Arkansas. A default judgment was entered in that case awarding Gene Rodney Hatridge $50,000.00 and his wife, Barbara Ann Hatridge, in her claim for loss of consortium $10,000.00 against the defendant, Herman L. Reid. The suit was based on the negligence of Reid who was the driver of a bus involved in a vehicular accident in which Gene Rodney Hatridge was a passenger.

Subsequently Barbara Ann Hatridge brought a direct action in the Union County Circuit Court under the provisions of Ark.Stat. 66-4001 against Aetna, the plaintiff herein, seeking a judgment against Aetna under the terms of its insurance policy issued to Ford, Bacon & Davis, Inc., owner of the bus and employer of both Reid and Hatridge. In her complaint the plaintiff alleged a waiver of the statutory penalty and attorney’s fee (Ark.Stat. § 66-3238) and reduced her claim to $9,999.99. Notwithstanding, the case was removed to this Court and docketed as Case No. 1165 and is presently pending on a motion to remand.

Case No. 1165 was removed on September 28, 1967, and the present Declaratory Judgment action was filed on October 10, 1967.

In the case of James Q. Bryan and Gratha Bryan v. Aetna Casualty and Surety Company, Case No. 1112, this Court ruled on an identical factual situation involving a different party plaintiff. James Q. Bryan was injured in the same accident, obtained a default judgment against Herman L. Reid, and *606 brought an action in this Court against Aetna under the provisions of the same insurance policy. This Court granted Aetna’s motion for a summary judgment based on exclusionary provision of the insurance policy. On appeal this ruling was affirmed by the Eighth Circuit Court of Appeals. Bryan v. Aetna Casualty and Surety Company, 8 Cir., 381 F.2d 872 (1967).

Plaintiff admits that the determinative legal issues in the present cause and the Bryan case are identical, but contends that this court lacks jurisdiction of Case No. 1165 because the jurisdictional amount is insufficient, and that it may not exercise its jurisdiction over the present cause during the pendency of Case No. 1165.

It is well settled that the mere pendency of another action involving the same issues does not of itself preclude the exercise of declaratory jurisdiction. 6A Moore’s Federal Practice ¶ 57.08(6). Diversity of citizenship and jurisdictional amount being present there is no question as to the Court’s jurisdiction. The issue is whether the Court should or should not entertain jurisdiction in the proper exercise of its discretion granted by the statute (28 U.S.C. § 2201) and the rule (Fed.R.Civ.P. 57). As to this issue the Court concludes that it should exercise its jurisdiction. Indeed under the rather unusual circumstances surrounding this litigation the failure of the Court to exercise its jurisdiction may well be an abuse of its discretion.

In Borchard, Declaratory Judgments (2d ed. 1941) 296-298 the criteria for affirmative exercise of the Court’s discretion is well stated and supported by numerous authorities:

“The cases rarely indicate the special grounds upon which the court’s discretion is exercised in favor of a declaratory judgment. When it is so exercised, it may be assumed first that all the jurisdictional and procedural prerequisites of justiciability were present. In addition, the Court must have concluded that its judgment will ‘terminate the uncertainty or controversy giving rise to the proceeding’ and that it will serve a useful purpose in stabilizing legal relations. The wide discretion of the court in moulding the declaration to the needs of the occasion, unhampered by the issues joined or the claims of counsel, enables it to respond effectively to those practical requirements. It was by an empirical demonstration of the practical utility, of the declaration in such cases as * * * (citing numerous authority) * * * that the scope of its application was gradually broadened, * * * and the court’s discretion exerted in favor of the decclaration whenever it was convinced that it would serve a useful purpose. Attention was thus directed from form and formula to substance and policy, so that we find convenience, expediency, need, desirability, public interest, or policy the common criteria of the grant of the declaration. Moreover, it may be well to repeat that a declaration may not be denied merely because another remedy could have been used or because of the pendency of another suit in which the rights of the parties would not necessarily be determined.”

Certainly these criteria are met in this action. In addition it is obvious that the complaint of Barbara Ann Hat-ridge in Case No. 1165 was a device contrived by her attorney to avoid federal jurisdiction over the exact legal issues which have previously been determined by this Court against a plaintiff represented by the same attorney. This procedure of itself may well be proper; it is normally within the plaintiff’s election to choose the forum in which to proceed. However, in considering the present action for declaratory relief, it is proper for this Court to take into account the various ramifications that might result should plaintiff proceed as she proposes.

As previously stated Barbara Ann Hatridge’s claim is based on a default judgment obtained in the State Court. Her damages there were based on loss *607 of consortium due to injuries suffered by her husband Gene Rodney Hatridge. In the same judgment in which Mrs. Hatridge was awarded $10,000.00 Mr. Hatridge was awarded $50,000.00. The Arkansas law is clear that a wife’s claim for loss of consortium is derivative of and dependent upon the husband’s right to recovery. Sisemore v. Neal, 236 Ark. 574, 367 S.W.2d 417, 12 A.L.R.3d 929 (1963); Tollett v. Mashburn, 291 F.2d 89 (C.C.W.D.Ark.1961).

The principle of judicial economy and fairness to the parties would surely be violated should this Court, by failure to exercise its discretionary power, permit counsel for parties injured in the same accident to shop from forum to forum thus subjecting the defendant to the evils inherent in a multiplicity of actions.

An order will therefore be entered denying defendant’s motion to dismiss and granting plaintiff’s motion for summary judgment adjudging that its insurance policy did not afford coverage to the defendant. The merits of the action need not be discussed here since, as stated, the exact issues have been previously resolved in Case No. 1112 and affirmed by the Eighth Circuit Court of Appeals. Bryan v. Aetna Casualty & Surety Company, supra.

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Bluebook (online)
282 F. Supp. 604, 1968 U.S. Dist. LEXIS 8236, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aetna-casualty-surety-company-v-hatridge-arwd-1968.