Citizens National Trust & Savings Bank v. Munson Equipment

24 F.R.D. 193, 2 Fed. R. Serv. 2d 87, 1959 U.S. Dist. LEXIS 4185
CourtDistrict Court, S.D. California
DecidedJuly 27, 1959
DocketCiv. No. 311-57
StatusPublished
Cited by2 cases

This text of 24 F.R.D. 193 (Citizens National Trust & Savings Bank v. Munson Equipment) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Citizens National Trust & Savings Bank v. Munson Equipment, 24 F.R.D. 193, 2 Fed. R. Serv. 2d 87, 1959 U.S. Dist. LEXIS 4185 (S.D. Cal. 1959).

Opinion

CLARKE, District Judge.

This action is now before the court for determination of cross-defendant International Harvester Company’s motion for an order striking certain portions of cross-complainants Henry J. Munson and Munson Equipment’s second amended cross-claim.

The action was originally commenced by Citizens National Trust and Savings Bank of Riverside (hereinafter “Citizens”) against Henry J. Munson and Munson Equipment (the latter being a corporation owned by Munson and his wife, and hereinafter “Equipment”) in the Superior Court of the State of California in and for the County of Riverside.

Munson and Equipment, pursuant to agreements with International Harvester Company, had operated dealerships in agricultural and automotive equipment manufactured by Harvester, the operation thereof being financed through Citizens. The sole subject matter of the original complaint pertained to the right to possession of certain equipment involved in the financial and credit dealings between Citizens and both Munson and Equipment.

In response to the complaint, Munson and Equipment filed an answer and a counterclaim. Harvester was neither a party to the original complaint or counterclaim, nor was it in any way involved in that dispute.

Munson and Equipment, denominating themselves “cross-complainants,” subsequently filed a “cross-claim” against both Citizens and Harvester (labeling them “cross-defendants”) wherein they alleged wrongful conduct by Citizens, in discontinuing its line of credit, and by Harvester, in terminating its dealership agreements.

Harvester then removed the action to this court pursuant to § 1441(c) of Title 28 U.S.C., on the ground that the cross-claim presented separate and independent claims against Harvester which would have been removable if sued upon alone due to diversity of citizenship. Cross-complainants Munson and Equipment filed a first amended cross-claim against cross-defendants Citizens and Harvester, in reply to which Harvester filed an answer; Harvester then filed a counter-claim for unfair competition and trade-mark infringement against cross-complainants, to which they filed a reply. Cross-complainants have since .filed a second amended cross-claim against Citizens and Harvester.1

Harvester has not yet filed an answer to the second amended cross-claim. Instead, it has moved for an order “striking those portions of the Second Amended Cross-claim relating to claims which were the subject matter of an agreement and release executed by Henry J. Munson and Christine Munson on September 28, 1954, * * * on the ground that no claim upon which relief can be granted is, or can be asserted with respect thereto.” (Emphasis added.) Harvester bases this motion upon its “Notice of Motion, the Memorandum of Points and Authorities and depositions of Henry J. Munson and Cameron B. Aikens filed herein, the Interrogatories heretofore propounded by International Harvester [195]*195Company and the Answers filed thereto, and upon all the records and files in this cause.” 8 Thus does Harvester seek to have this court rule upon its asserted affirmative defense of release.

A motion to dismiss for failure to state a claim upon which relief can be granted, pursuant to Rule 12(b) (6), 28 U.S.C., goes solely to the complaint, or “cross-claim” in this instance.2 3 Although clarity is not one of the virtues of this cross-claim, it cannot be said that, as to those allegations antedating September 28, 1954, it does not state a claim upon which relief can be granted. But Harvester, pointing to certain depositions on file herein, asks this court to regard its motion as one to which matters outside the pleading have been presented to and not excluded by the court, and thus one to be treated as a motion for summary judgment.

Rule 12(b) provides that the defense of a “failure to state a claim upon which relief can be granted” may “at the option of the pleader be made by motion * * *.” It further provides that “if, on a motion asserting the defense * * * to dismiss for failure of the pleading to state a claim upon which relief can be granted, matters outside the pleading are presented to and not excluded by the court, the motion shall be treated as one for summary judgment and disposed of as provided in Rule 56, and all parties shall be given reasonable opportunity to present all material made pertinent to such a motion by Rule 56.” (Emphasis added.)

Cross-complainants argue that, although Rule 12(b) provides for converting a motion to dismiss into a motion for summary judgment, no such provision is made for a motion to strike, the latter being the label given its motion by Harvester. Although Harvester has sought an order “striking” certain portions of the cross-claim, no significance is attached to this labeling of the motion.

Cross-complainants next object to the procedure followed by Harvester in seeking to raise the affirmative defense of release by motion instead of by including it in its answer.

The treating of a motion to dismiss for failure to state a claim as one for summary judgment under Rule 56 is conditioned by Rule 12(b) upon the proviso that “matters outside the pleading are presented to and not excluded by the court * * *.”

In support of its motion, Harvester has filed no affidavit. Instead, it relies upon certain testimony by Munson taken by deposition on oral examination, quoted in memoranda filed in support of this motion. But, memoranda of points and authorities may not be classified among such documents. Sardo v. McGrath, 1952, 90 U.S.App.D.C. 195, 196 F.2d 20, 22. Harvester has not formally offered in evidence any portions of the depositions relied upon in its memoranda. Although these depositions have been filed, this court is of the opinion that this alone does not amount to their having been “presented to and not excluded by the court * * *.”

If the opposite view were taken, it is difficult to imagine how such depositions, already on file, might have been excluded by the court. The susceptibility to such exclusion is a distinguishing characteristic of a motion to dismiss which is to be treated as one for summary judgment under Rule 56.4

As a rejoinder to this approach, it might be argued that Rule 56, in providing that “the judgment sought shall be rendered forthwith if the pleadings, depositions, and admissions on file, together [196]*196with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law,” specifies depositions, and does not require them to have been offered in evidence. (Emphasis added.) But, if a motion were brought originally under Rule 56, it would be labeled as one for summary judgment, and the party against whom the motion was made would have explicit notice as to its nature. In short, there would exist no possibility that the other party might be taken by surprise.

Examination of the authorities has disclosed no case wherein a motion, solely to dismiss for failure to state a claim under Rule 12(b), and not joined with an alternative motion for summary judgment under Rule 56, was treated as one for summary judgment under Rule 56 and granted.5

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Cite This Page — Counsel Stack

Bluebook (online)
24 F.R.D. 193, 2 Fed. R. Serv. 2d 87, 1959 U.S. Dist. LEXIS 4185, Counsel Stack Legal Research, https://law.counselstack.com/opinion/citizens-national-trust-savings-bank-v-munson-equipment-casd-1959.