Dermody v. Smith

88 F. Supp. 620, 25 L.R.R.M. (BNA) 2119, 1949 U.S. Dist. LEXIS 1911
CourtDistrict Court, N.D. Indiana
DecidedNovember 23, 1949
DocketCiv. No. 510
StatusPublished
Cited by2 cases

This text of 88 F. Supp. 620 (Dermody v. Smith) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dermody v. Smith, 88 F. Supp. 620, 25 L.R.R.M. (BNA) 2119, 1949 U.S. Dist. LEXIS 1911 (N.D. Ind. 1949).

Opinion

SWYGERT, District Judge.

In arriving at a decision in this case the jurisdictional questions raised by the defendants must be treated and disposed of first. If the court does not have jurisdiction, the action must be dismissed without reaching the merits as to whether a permanent injunction should replace the temporary restraining order which was issued on November 15, 1949.

The defendants attack on jurisdiction is based on three grounds. Their contentions are (1) that the requisite jurisdictional amount is not present in this controversy, (2) that the plaintiff has not established diversity of citizenship between the plaintiff and the defendants and (3) that the principles of comity require this court to dismiss the action or hold it in abeyance until a prior state court action that may involve the same parties and the identical subject matter is concluded.

The jurisdicion of federal courts in diversity cases depends upon whether the amount in controversy exceeds $3,000, exclusive of interest and costs. In McNutt v. General Motors Acceptance Corporation, 1936, 298 U.S. 178, 189, 56 S.Ct. 780, 785, 80 L.Ed. 1135, the Supreme Court dealt with this jurisdictional requirement. There the court said: “He (the plaintiff) must allege in his pleading the facts essential to show jurisdiction. If he fails to make the necessary allegations he has no standing. If he does make them, an inquiry into the existence of jurisdiction is obviously for the purpose of determining whether the facts support his allegations. In the nature of things, the authorized inquiry is primarily directed to the one who claims that the power of the court should be exerted in his behalf. As he is seeking relief subject to this supervision, it follows that he must carry throughout the litigation the burden of showing that he is properly in court. The authority which the statute vests in the court to enforce the limitations of its jurisdiction precludes the idea that jurisdiction may be maintained by mere averment or that the party asserting jurisdiction may be relieved of his burden by any formal procedure. If his allegations of jurisdictional facts are challenged by his adversary in any appropriate manner, he must support them by competent proof. And where they are not so challenged the court may still insist that the jurisdictional facts be established or the case be dismissed, and for that purpose the court may demand that the party alleging jurisdiction justify his allegations by a preponderance of evidence.”

No clearer statement can be found of the necessity for a federal court to make a positive finding that the requisite amount is involved in the controversy before assuming jurisdiction in diversity cases.

Where the invasion of a right is sought to be prevented by injunction the value of the challenged right determines the amount in controversy, Dewar v. Brooks, D.C.Nev.1936, 16 F.Supp. 636.

The theory of the plaintiff’s complaint is that he and the other members of the United Electrical, . Radio and Machine Workers of America (UE) for whom he brings the action have the right to prevent an election within a local union through the use of its facilities and property which may result in the secession of the local union, and which secession, if successful, will bring injury and harm to the UE and its members.

The plaintiff places reliance upon two methods of reckoning the value of this asserted right. First, he contends that if the local union is permitted to secede,' the national union and its members in other locals will suffer a substantial loss by a [622]*622break in the heretofore united bargaining front of the industrial employees working in the General Electric Company’s plants throughout the country. The plaintiff’s evidence relating to this contention shows that the UE bargains in behalf of its members with the General Electric Company on an industry-wide basis and that there are approximately twenty-eight local unions chartered by the UE in the various. General Electric plants. But there is no evidence whatever of the amount of pecuniary loss in bargaining power which may be suffered by the plaintiff and other members of the UE if Local 901 secedes to a rival labor organization.

Because of this lack of evidence, the court would need to resort to speculation and conj ecture in- determining whether the requisite jurisdictional amount is involved. This cannot be done. “Jurisdiction is based on actuality, not prophecy, the pressure of a grievance immediately felt and presently measurable in money of the jurisdictional amount. Speculative anticipation that conditions, from which present ills, not now sufficient in amount to give jurisdiction, flow, may in time aggregate the necessary amount, will not support jurisdiction.” Vicksburg, S. & P. R. Co. v. Nattin, 5 Cir., 1932, 58 F.2d 979, 980.

As a second method of evaluation, the plaintiff attempts to base his injury upon the loss of future per capita payments to the UE by Local 901.

Article 4 of the UE constitution provides that persons whose normal occupation is in the Electrical, Radio and Machine Industry are eligible for membership in the UE. Article 18, Section D, reads: “The monthly dues shall be a minimum of One Dollar and Fifty cents ($1.50) unless otherwise authorized by the General Executive Board”; Article 14, Section A, provides for the chartering of local unions by the General Executive Board of the UE. The provision for per capita payments to the UE is contained in Article 15, Section A of the UE Constitution. That section reads in part: “The revenue of the United Electrical, Radio and Machine Workers of America (UE) shall be derived by the payment of monthly per capita of Fifty (.50) cents for each full month’s dues collected each month.” (Emphasis supplied).

Basing his calculations upon the present membership of the local as being somewhere in excess of 4,000, the plaintiff reaons that secession of the local would cause loss of over $3,000 in revenue to the UE within a short period of time. Thus the plaintiff attempts an evaluation of the right sought to be protected by setting up the pecuniary value of an injury which he avers will result if the court does not protect this alleged right. That such is a proper method of calculating the amount in controversy in suits for injunction in the Federal District Courts is supported by the weight of authority. In Local No. 7 of Bricklayers’, etc., Union of America v. Bowen, D.C.Tex.1922, 278 F. 271, 273, the court said: “Further, it is the settled rule that the amount in controversy in injunction suits is not the sum which the plaintiff might recover in a suit for the damage already sustained, but the amount or value of the right which, the -complainant seeks to protect from invasion, or of the object to be gained by the bill.” See also First English Lutheran Church, etc., et al. v. Evangelical Lutheran Synod, etc., 10 Cir.1943, 135 F.2d 701; Dewar v. Brooks, supra.

On the other hand the alleged injury which the plaintiff claims will result from the threatened invasion of his right must neither be collateral to the violation of his right nor be contingent or speculative. .In. other words, it must be directly and definitely attributable to the threatened invasion of the right asserted by the plaintiff.

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Bluebook (online)
88 F. Supp. 620, 25 L.R.R.M. (BNA) 2119, 1949 U.S. Dist. LEXIS 1911, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dermody-v-smith-innd-1949.