Ferris v. Wray

22 F. Supp. 135, 1938 U.S. Dist. LEXIS 2372
CourtDistrict Court, W.D. Oklahoma
DecidedJanuary 21, 1938
DocketNo. 6342
StatusPublished
Cited by1 cases

This text of 22 F. Supp. 135 (Ferris v. Wray) is published on Counsel Stack Legal Research, covering District Court, W.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ferris v. Wray, 22 F. Supp. 135, 1938 U.S. Dist. LEXIS 2372 (W.D. Okla. 1938).

Opinion

VAUGHT, District Judge.

The plaintiff, as administrator of the estate of Warren A. Ferris, deceased, brings this action against Otto Wray, Emmitt Meeks, and Employers Casualty Company, a corporation, defendants.

The defendant casualty company is made a party defendant by virtue of a liability insurance bond issued by it to the defendant Otto Wray at the time Wray was granted a license to operate a motor freight line in the state of Oklahoma. The defendant casualty company removed the cause to this ■ court on the theory that the cause of action pleaded against it constituted a separable controversy, and the plaintiff has filed his motion to remand.

The plaintiff alleged in his first cause of action that the deceased was injured because of the negligence of the defendant insured, and that the casualty company bound itself to make compensation for injuries to or death of persons, or loss and damage to property resulting from the operation of any such motor carrier for which such carrier is legally liable.

The section of the Oklahoma statute involved is section 4, chapter 156, Session Laws of 1933, 47 Okl.St.Ann. § 169, which, after providing for the giving of an insurance bond as a prerequisite to the issuance of a certificate of convenience and necessity, further provides: “Which bond or policy shall be approved by the Corporation Commission, and shall be in such sum and amount as fixed by a proper order of said Commission; and such liability and property damage insurance policy or bond shall bind the obligor thereunder to make compensation for injuries to, or death of, persons, and loss or damage to property, resulting from the operation of any such motor carrier for which such carrier is legally liable; provided, that said Commission, may, in its discretion, relieve any motor carrier herein classified under class ‘C,’ from the obligation of filing such public liability and property damages bond. A copy of such policy or bond shall be filed with said Commission, and, after judgment against the carrier for any such damage, the injured party may maintain an action upon such policy or bond to recover the same, and shall be a proper party so to do.”

The Supreme Court of Oklahoma in Enders et al. v. Longmire, 179 Okl. 633, 67 P.2d 12, quoting from the syllabus, said:

“1. A joint action may be maintained against a motor carrier and his liability insurance bondsman, under the provisions of section 3708, O.S.1931, as amended'by section 4, chapter 156, of the act of the Legislature approved April 12, 1933 (47 Okl.St.Ann. § 169), and it is not necessary that the cause of action against them be divided and the liability of each set out in separate counts.
. “2. Under the above statutes, a motor carrier and fiis liability insurance bondsman are jointly liable to make compensation for injuries to persons resulting from the operations of such motor carrier, the liability being created by statute, and such an injury constitutes one cause of action against the [137]*137joint defendants and not a separate cause of action against each of them.
“3. Under the above statutes, when a motor carrier files with the Corporation Commission a liability insurance bond as a prerequisite to the issuance to it of a certificate of public necessity and convenience, and thereby procures the issuance of such a certificate by the Corporation Commission, neither the motor carrier nor its liability insurance bondsman may successfully contend that such bond limits the liability imposed by the statute, except only as to amount.
“4. Under the above statute, a liability insurance bond filed with the Corporation Commission as a prerequisite to the issuance to the motor carrier of a certificate of public necessity and convenience, not expressly obligating the bondsman to make compensation for injuries to persons resulting from the operations of said motor carrier, must be construed to include the statutory requirements therefor, and the motor carrier and his bondsman, having procured the issuance of a certificate of public necessity and convenience by the filing of such bond, are estopped from asserting any defense alleged to be allowable under the bond hut in contravention to the liability created by said statute.”

In this opinion the Supreme Court reviews its former opinions construing the statute of which the Act of 1933 is amendatory, and for the purposes of this decision it is not necessary for this court to review those decisions. The statute provides that, “after judgment against the carrier for any such damage, the injured party may maintain an action upon such policy or bond to recover the same.”

The bonding company contends that a judgment against the carrier wa§ necessary before an action could be maintained against it, and prior decisions of this court and of the Eastern District of Oklahoma have supported that contention. Without reflecting in the slightest upon the Supreme Court of the State of Oklahoma, this court is of the opinion that that conclusion is the most reasonable conclusion that can be reached by a proper interpretation of the statute itself, but this is a state statute that we, are construing, and there are certain fundamental rules of procedure which the federal courts have always recognized: First, a state statute means what the highest court of the state says it means. Second, the construction of a state statute by the highest court of that state is binding upon the federal courts. These principles of procedure in the federal courts are of long standing and are binding upon this court. The decisions by the Western and Eastern Districts of Oklahoma, above referred to, were rendered prior to the decision of the Supreme Court of Oklahoma, holding the action against both defendants to be a joint, fiction and not a separable one.

In Chicago, Burlington & Quincy Railway Company v. Willard, 220 U.S. 413, 31 S.Ct. 460, 55 L.Ed. 521, the court held, quoting from the syllabus:

“Where, as in Illinois, the lessor railroad company remains liable with the lessee company for torts arising from operation, a plaintiff sustaining injuries may bring an action either separately or against both jointly and in the latter case neither defendant can remove on the ground of diverse citizenship if either is a resident of the plaintiff’s State.
“A defendant cannot say that an action shall be several if the plaintiff has a right, and so declares, to make it joint; and to make it joint is not fraudulent if the right to do so exists, even if plaintiff does so to prevent removal.”

In Chesapeake & Ohio Railway Company v. Cockrell, Adm., 232 U.S. 146, 34 S.Ct. 278, 58 L.Ed. 544, the court held, quoting from the syllabus:

“Where plaintiff’s statement of his case shows a joint cause of action, as tested by the law of the State, the duty is on the nonresident defendant seeking removal to state facts showing that the joinder was a mere fraudulent device to prevent removal.”

In Chicago & Alton Railroad Company et al. v. McWhirt, 243 U.S. 422, 37 S.Ct. 392, 61 L.Ed. 826, it was held, quoting from the syllabus:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Highway Ins. Underwriters v. Nichols
85 F. Supp. 527 (E.D. Oklahoma, 1949)

Cite This Page — Counsel Stack

Bluebook (online)
22 F. Supp. 135, 1938 U.S. Dist. LEXIS 2372, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ferris-v-wray-okwd-1938.