Farmers Union Cooperative Elevator & Shipping Ass'n v. Grain Dealers Mutual Insurance

398 P.2d 571, 194 Kan. 181, 1965 Kan. LEXIS 245
Supreme Court of Kansas·Decided January 23, 1965·No. 43,872·Published·Cited by 5 cases

Opinion

The opinion of the court was delivered by

Hatcher, C.:

This is an appeal from an order denying defendant’s motion to dismiss an action, or in the alternative to stay its prosecution, because of a prior pending action in the United States District Court for the District of Kansas, involving the same parties and the same controversy.

The procedural facts may be briefly stated.

On or about February 6, 1959, the defendant, Grain Dealers Mutual Insurance Company of Indianapolis, Indiana, issued its five-year policy of insurance to the plaintiff, The Farmers Union Cooperative Elevator and Shipping Association, Kirwin, Kansas, insuring it against loss or damage to its elevator caused, among other things, by an explosion. An explosion was defined in the policy as the rapid combustion of a volatile or combustible substance.

On August 15, 1962, the plaintiff sustained a loss by virtue of the rupture of one of its elevator bins. Thereafter, on or about June 3, *182 1963, plaintiff filed an action in the district court of Phillips County, Kansas, against the insurance company in the sum of $10,500 alleging the rupture of its elevator was caused by an explosion. Whereupon defendant took appropriate and timely steps and secured the removal of the action to the United States District Court for the District of Kansas. After removal the action was dismissed by the plaintiff without prejudice pursuant to Rule 41 (a) (1) of the Federal Rules of Civil Procedure.

The defendant then filed a declaratory judgment action in the United States District Court for the District of Kansas on July 2, 1963, seeking a determination that it was not liable under its policy of insurance to the plaintiff for the events occurring on August 15, 1962. On July 5, 1963, plaintiff refiled its action against defendant in the district court of Phillips County, Kansas in the sum of $9,500. After the declaratory judgment action was commenced in the United States District Court for the District of Kansas the plaintiff filed its motion to dismiss the action on the ground, among others, that it had commenced the state court action to determine the same controversy between the same parties. In overruling the motion to dismiss the federal court action on September 11, 1963, the United States District Court found “the ends of justice would be better served in this Court.”

Defendant filed its motion in the state court to dismiss plaintiff’s action on the grounds of the prior pending action in the federal court involving the same parties and the same controversy. On September 16, 1963, the state court overruled defendant’s motion.

Defendant then filed a renewal of its motion to dismiss because of the prior pending action or, in the alternative, requested a stay of prosecution of the action. On October 23, 1963, the defendant’s renewed motion was denied. The court then gave the defendant 10 days in which to file its answer or file a notice of appeal. In case of appeal the proceedings were to be stayed. The defendant has appealed.

The appellant asks the question, “does a motion to dismiss lie where a prior pending action between the same parties all in the same cause is pending in the United States District Court for the District of Kansas, . . .?”

The answer is that a motion to dismiss under such circumstances does not lie as a matter of right. The federal and state courts that have concurrent jurisdiction over civil actions are to be considered *183 as courts of separate jurisdictional sovereignties and the pendency of a personal action in either a state or federal court does not entitle the defendant to abatement of a like action in the other. This rule has been well settled. It is announced in 1 C. J. S., Abatement and Revival, § 67 a, p. 101:

“As a general rule, the pendency in a federal court of a personal or transitory action, although between the same parties and for the same cause of action or relief, is not ground for abating a subsequent action in a state court, and, conversely, the pendency of such an action in a state court cannot be pleaded in abatement of a subsequent similar action in a federal court; for the reason that each court derives its authority from a separate and distinct sovereignty. . . .”

Again under the same section at page 103 we find the additional statement:

“Even though both courts have the same territorial jurisdiction, that is they both sit in the same state, and the state court is within the district covered by the jurisdiction of the federal court, by the weight of authority, they belong to foreign jurisdictions in that each derives its authority from a different sovereignty, and the pendency of a prior action, between the same parties for the same cause of action, in either the state or federal court cannot be pleaded in abatement of a subsequent action in the other. . . (See; also, 1 Am. Jur. 2d, Abatement, Survival, and Revival, § 18, p. 58.)

Where the judgment sought in a federal and in a state court of concurrent jurisdiction is strictly in personam for the recovery of money both courts may proceed with the litigation, at least until judgment is obtained in one court which may be set up as res judicata in the other. (Mandeville v. Canterbury, 318 U. S. 47, 87 L. ed. 605, 63 S. Ct. 472.) The recent case of Allegheny County v. Mashuda Co., 360 U. S. 185, 3 L. ed. 2d 1163, 79 S. Ct. 1060 fully disposed of the question beginning on page 197 of the opinion as follows:

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Farmers Union Cooperative Elevator & Shipping Ass'n v. Grain Dealers Mutual Insurance, 398 P.2d 571, 194 Kan. 181, 1965 Kan. LEXIS 245 (kan 1965).

398 P.2d 571 (Farmers Union Cooperative Elevator & Shipping Ass'n v. Grain Dealers Mutual Insurance) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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