County of Todd v. Loegering

297 F.2d 470, 5 Fed. R. Serv. 2d 257
CourtCourt of Appeals for the Eighth Circuit
DecidedDecember 20, 1961
DocketNo. 16619
StatusPublished
Cited by14 cases

This text of 297 F.2d 470 (County of Todd v. Loegering) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
County of Todd v. Loegering, 297 F.2d 470, 5 Fed. R. Serv. 2d 257 (8th Cir. 1961).

Opinion

BECK, District Judge.

This appeal is from a Judgment in favor of Louise M. Loegering as trustee for the heirs of Arthur Simonson, decedent, and against Todd County, Minnesota, a municipal corporation, and three of its employees, Earl Steuck, Jay Bain and Lyle Pantzke, Loegering hereinafter being referred to as appellee and the others as appellants.

The case, the trial thereof, the $15,-000 verdict and the Judgment entered accordingly, arose out of a collision between a 1953 model Nash car driven by the plaintiff’s decedent and a Todd County owned highway grader, operated by one of its employees, the said EarZ Steuck. Arthur Simonson, as a result, was killed at the time of the impact or a few minutes later. The statutory basis for the suit is Minnesota’s Wrongful Death Statute M.S.A. § 573.02.

[472]*472Plaintiff’s appointment as trustee for the heirs of Arthur Simonson, deceased, under that Act, factually not disputed, makes her a “trustee of an express trust * * and as such, empowered to bring the action in her own name, without joining with her the party or parties for whose benefit the action was brought. Rule 17 F.R.Civ.P., 28 U.S.C.A. and Beck v. Groe, 245 Minn. 28, 70 N.W.2d 886, 52 A.L.R.2d 875 (1955).

Though the rights of such a trustee under the language of that rule appears as an exception to the general rule that “every action shall be prosecuted in the name of the real party in interest”, 17(a) F.R.Civ.P., it is held that such a trustee, in diversity cases, is in fact the real party in interest. As said in Mecom, Administrator v. Fitzsimmons Drilling Co., Inc. et al., 284 U.S. 183, 52 S.Ct. 84, 86, 76 L.Ed. 233:

“The petitioner insists that, where an administrator is required to bring the suit under a statute giving a right to recover for death by wrongful act, and is, as here, charged with the responsibility for the conduct or settlement of such suit and the distribution of its proceeds to the persons entitled under the statute, and is liable upon his official bond for failure to act with diligence and fidelity, he is the real party in interest, and his citizenship, rather than that of the beneficiaries, is determinative of federal jurisdiction. This we think is the correct view. The applicable statutes make the administrator the trustee of an express trust and require the suit to be brought and controlled by him.” (Emphasis supplied.)

That viewpoint is in the pronouncement, by this court, in Minnehaha County, S. D. v. Kelley, 8 Cir., 150 F.2d 356, 358 (1945):

“Plaintiff sued in a representative capacity; she was a resident and citizen of the State of California; she was the only necessary or proper party plaintiff. Parties acting in a representative capacity, if jurisdictional requirements are otherwise satisfied, have the right to maintain a civil action in a Federal court, and the citizenship of the representative party controls irrespective of the citizenship of the persons for whose benefit the action may be brought. In other words, the Federal courts have jurisdiction of actions by or against executors and administrators, if their citizenship is diverse from that of the opposing party. Mecom v. Fitzsimmons Drilling Co., 284 U.S. 183, 52 S.Ct. 84, 76 L.Ed. 233, 77 A.L.R. 904; Mexican C. R. Co. v. Eckman, 187 U.S. 429, 23 S.Ct. 211, 47 L.Ed. 245.”

Again, on this point it is said in Mecom [284 U.S. 183, 52 S.Ct. 85.] :

“It is settled that the federal courts have jurisdiction of suits by and against executors and administrators if their citizenship be diverse from that of the opposing party, although their testators or in-testates might not have been entitled to sue or been liable to suit in those courts for want of diversity of citizenship. Childress v. Emory, 8 Wheat. 642, 5 L.Ed. 705; Coal Co. v. Blatchford, 11 Wall. 172, 20 L.Ed. 179; Rice v. Houston, 13 Wall. 66, 20 L.Ed. 484; Amory v. Amory, 95 U.S. 186, 24 L.Ed. 428; Blake v. McKim, 103 U.S. 336, 26 L.Ed. 563; American Bible Society v. Price, 110 U.S. 61, 3 S.Ct. 440, 28 L.Ed. 70; Continental Insurance Co. v. Rhoads, 119 U.S. 237, 7 S.Ct. 193, 30 L.Ed. 380.”

Applying the rule in those cases, the trial court, Loegering v. County of Todd, D.C.Minn., 185 F.Supp. 134, 136 (1960), observes:

“In both of the above cases the plaintiffs were suing as administrators appointed by the State Courts. In the instant case, the plaintiff is suing as a Trustee, but there is no reason why the same principle of [473]*473law should not apply regardless of the title of the representative who brings the action for wrongful death.”,

, , , and concludes:

^ ^ “* * * that the purpose of ,, , , the 1951 amendment was mamiy to „ . , , „ permit the appointment of a repre- , ^. , . , ~ l ■ sentative by the District Court m , , , „ . . . ,, ,. . which the wrongful death action is . ° , , . , ,, instituted, and thus to obviate the ’ . . ,, ,... necessity of requiring the qualifica- ,. „ . . . , , tion of an administrator or execu- , . ,, tor m the Probate Court. As the m ...... ., Trustee appointed to bring the „ . . wrongful death action, the plaintiff , . . .. , ,, here is m the same category as the , . special administrator m Minnehaha County v. Kelley, supra."

But, it is argued, the anti-collusion issue, was not before the courts in those cases, here it is, and those pronouncements, therefore, do not apply. That argument is made under the point that: “The District Court erred in failing to dismiss this action because it was brought by a Montana trustee who was appointed for the purpose of manufactaring diversity Jurisdiction^ Invoked m this connection is § 1359, 28 U.S.C.A., which provides:

“A district court shall not have jurisdiction of a civil action in which any party, by assignment or otherwise, has been improperly or collusively made or joined to invoke the jurisdiction of such court.”

Aiding us on that point, is this court’s comment in McCoy v. Blakely, 8 Cir., 217 F.2d 227, 230 (1954) that:

“Even if, as contended by the defendant, the appointment of Blakely was for the sole purpose of creating diversity of citizenship in order to invoke the jurisdiction of the Federal Court, that fact, without more, would not establish the alleged violation of the relied-upon statute. As was stated by this Court in Curb and Gutter Dist. No. 37 of City of Fayetteville v. Parrish, 8 Cir., 1940, 110 F.2d 902, 906, a case involving the appointment of a non-resident trustee for the purpose of creating diversity of citizenship in order to establish the jurisdiction of the Federal Court:
, the motive which may , , , ’ • j j

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County of Todd, Minn. v. Loegering
297 F.2d 470 (Eighth Circuit, 1961)

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Bluebook (online)
297 F.2d 470, 5 Fed. R. Serv. 2d 257, Counsel Stack Legal Research, https://law.counselstack.com/opinion/county-of-todd-v-loegering-ca8-1961.