Estate of Johnson v. Bellville Hospital

56 F.R.D. 380, 1972 U.S. Dist. LEXIS 15315
CourtDistrict Court, S.D. Texas
DecidedFebruary 1, 1972
DocketCiv. A. No. 71-H-610
StatusPublished
Cited by3 cases

This text of 56 F.R.D. 380 (Estate of Johnson v. Bellville Hospital) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of Johnson v. Bellville Hospital, 56 F.R.D. 380, 1972 U.S. Dist. LEXIS 15315 (S.D. Tex. 1972).

Opinion

MEMORANDUM AND ORDER:

SEALS, District Judge.

Plaintiff in this wrongful death action is the estate of an individual who died following an automobile accident near Bellville, Texas. The decedent was taken to Bellville Hospital and subsequently transferred to Sharpstown General Hospital in Houston, where he was pronounced dead on arrival. Plaintiff contends that death resulted from the combined negligence of the defendants. The case is presently before the Court on Defendants’ motion to dismiss.

Plaintiff is represented by Dale Singleton, as independent executor of decedent’s estate. The beneficiaries of the estate-—decedent’s wife and children— are residents of the State of Texas. Defendants assert that, under the terms of [382]*382decedent’s will, Ruth Marie Johnson, a resident of Texas, was designated as independent executrix and that Singleton, a resident of Illinois, was named as substitute independent executor. Ms. Johnson, however, signed a waiver of her right to serve as independent executrix, “for the sole purpose,” according to defendants, “of having Singleton named as independent executor herein in order to create the requisite diversity of citizenship which otherwise does not exist.” Defendants contend that such a device falls squarely within the terms of 28 U.S.C. § 1359, which prohibits “manufactured” diversity.

The Court of Appeals for the Fifth Circuit has recently dealt with the precise issue before the Court. In Bass v. Texas Power and Light Company, 432 F.2d 763 (C.A.1970) the Court held that appointment of an out-of-state administrator for the sole purpose of creating diversity of citizenship in order to invoke the jurisdiction of the federal court was improper and collusive. But,

“[t]he question of whether a device is so lacking in substance as to be improper and collusive under Section 1359 is a question of fact.” Bass, supra, at 766-767.

A hearing is therefore required to dispose of this issue.

Accordingly, it is ordered that a hearing on Defendants’ motion, restricted to the issue of jurisdiction, will be held at 4:00 P.M. on February 14,1972.

This is a wrongful death action. The beneficiaries of the estate are decedent’s widow and children, all residents of Texas. Decedent’s estate is represented in this cause of action by Dale Singleton, as independent executor. Under the terms of decedent’s will, Ms. Johnson, the widow, was designated independent executrix and Singleton, her brother and a resident of Illinois, was named as substitute independent executor. Ms. Johnson waived her right to serve, and Singleton assumed the role of independent executor. Defendants assert that Ms. Johnson’s waiver was motivated by Plaintiff’s desire “to create the requisite diversity of citizenship which otherwise does not exist,” and is therefore a device prohibited by the terms of 28 U.S.C. § 1359. The case is presently before the Court on Defendants’ motion to dismiss.

In a Memorandum and Order dated February 1, 1972, the Court concluded, on the basis of the Fifth Circuit's decision in Bass v. Texas Power and Light Company, 432 F.2d 763 (C.A.5, 1970), that disposition of Defendants’ motion to dismiss required an evidentiary hearing, to determine whether the action taken here “is so lacking in substance as to be improper and collusive under § 1359.” Id., at 767. At the hearing, held on February 15, 1972, Plaintiff presented three witnesses, the sum of whose testimony convinces the Court beyond doubt that neither Ms. Johnson’s waiver nor Singleton’s appointment as executor constitutes an “improper and collusive [action] under § 1359.”

Ms. Johnson testified that, when she and her husband signed their wills in 1968, decedent had no living adult relatives within the State of Texas. All four of the couple’s children were minors. Decedent had no brothers, but his parents and two sisters were residents of the State of Illinois. In addition to Singleton, Ms. Johnson had one sister, an Illinois resident. Singleton was selected as substitute independent executor in the wills of both husband and wife. Since Mr. Johnson’s death, the widow has composed a new will in which she names Singleton as independent executor.

According to Ms. Johnson, she relinquished to Singleton her right to serve as decedent’s independent executrix for a number of reasons. She had no business experience of her own, and had frequently relied on her brother’s advice in the past. Singleton, the owner of a [383]*383grain elevator company in Hoopeston, Illinois, and a director in a savings and loan association, is a veteran businessman.

Ms. Johnson executed the waiver on the advice of her family attorney, John J. King. Shortly after he learned of decedent’s fatal accident, King, who practices mostly probate law, contacted attorney Frank Abraham to discuss the possibility of legal action. At that time, however, no decision was made, and this suit was not in fact filed until June 4, 1971, six months after the accident.

King gave several reasons of his own for preferring Singleton’s appointment as independent executor. In the first place, Mr. Johnson’s death necessitated immediate decisions concerning the corporation of which he owned forty percent. Johnson had never discussed his business affairs with his wife and, in addition, the shock of her husband’s accidental death had rendered her emotionally unprepared to confront so soon a confusing array of complex corporate detail. Finally, King knew that Ms. Johnson would rely heavily on her brother’s advice, particularly with respect to the investment possibilities which King would be proposing. To protect himself legally, King preferred to secure the approval of Singleton in an official capacity—as executor of the estate. King states unequivocally that the decision to substitute Singleton had absolutely no relation to the present suit: he would have been appointed irrespective of legal action.

Plaintiff’s attorney, Dale Friend, confirmed that Singleton had been substituted as independent executor well before his firm made the decision to initiate this litigation. Defendants’ allegation that Singleton’s appointment was effected solely for the purpose of creating diversity jurisdiction is thus refuted—and most convincingly-—not only by the principal beneficiary of this cause of action, but also by two distinguished members of the Bar, one of whom is not an attorney of record in the instant suit. The Court is persuaded that, under the principles announced in Bass supra, there is here nothing possibly identifiable as “improper and collusive under § 1359.” Accordingly, Defendants’ motion to dismiss is denied and this cause is retained on the docket of the Court.

Plaintiff, Dale Singleton, brings this action as Executor of the Estate of Doyle Eugene Johnson, deceased, under Vernon’s Ann.Tex.Rev.Civ.Stat., Art. 4671 et seq., and 5525, commonly referred to as the Wrongful Death Act and Survival Act. Suit is brought by Mr. Singleton on behalf of the Estate of the Deceased, Doyle Johnson, and the beneficiaries of the Estate.

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56 F.R.D. 380, 1972 U.S. Dist. LEXIS 15315, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-johnson-v-bellville-hospital-txsd-1972.