Galbraith v. Bond Stores, Inc.

4 F.R.D. 319, 1945 U.S. Dist. LEXIS 1377
CourtDistrict Court, W.D. Missouri
DecidedJanuary 4, 1945
DocketNos. 1868, 1869
StatusPublished
Cited by9 cases

This text of 4 F.R.D. 319 (Galbraith v. Bond Stores, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Galbraith v. Bond Stores, Inc., 4 F.R.D. 319, 1945 U.S. Dist. LEXIS 1377 (W.D. Mo. 1945).

Opinion

REEVES, District Judge.

Facts pertinent to these motions are identical in both cases and are not questioned.

The suits were originally filed by the resident plaintiffs against the corporate non-resident defendant alone. The amount in controversy being sufficient and there being a clear diversity of citizenship, no question then arose as to the right of removal. While both cases were properly pending in this court after removal, the plaintiffs filed amended complaints and, in so doing, brought in as a' party defendant in each case the local resident, Charles W. Fisher.

As the facts are presented here by verified motion to remand, the amendment was made by leave of court and with the consent of the corporate non-resident defendant. The only question now presented is whether this court, having once properly acquired jurisdiction of the parties and the subject matter, has lost such jurisdiction by reason of the introduction of a resident as a co-defendant, thereby destroying the diversity of citizenship. Counsel have presented authorities which apparently are not in harmony on the question. Such authorities have been carefully examined and analyzed.

1. It-is the contention of the corporate non-resident defendant that jurisdiction having been once acquired such jurisdiction cannot be divested by acts of the parties either in amending the pleadings or by changing the citizenship of any of the parties.

The Court of Appeals, Eighth Circuit, in Highway Const. Co. et al. v. McClelland, 8 Cir., 15 F.2d 187, loc. cit. 188, in a per curiam opinion, said: “While it is the general rule that jurisdiction, once having attached, will not be devested by subsequent events, yet there is this exception to the rule: The plaintiff, after jurisdiction has attached, may so change his pleading voluntarily that the court will no longer have’jurisdiction on the face of the pleading. If this is done, it then becomes the duty of the court to remand the case, if it be a removed case.”

The court cites a large array of authorities in support of this rule. The strongest case opposed to the exception is that of Southern Pacific Co. v. Haight, 9 Cir., 126 F.2d 900, loc. cit. 903. The Ninth Circuit Court of Appeals in an exhaustive opinion committed itself as follows: “Where a case has been properly removed, jurisdiction over it will not be defeated by later changes or developments in the suit, such as changes in citizenship, in parties, in the amount involved or in the cause of action pleaded.”

The court cited in support of its proposition a number of cases. Certiorari was denied by the Supreme Court, 317 U.S. 676, 63 S.Ct. 154, 87 L.Ed. 542.

The cases cited in the Southern Pacific case, supra, have been examined. The [321]*321case of Pullman Co. v. Jenkins, 305 U.S. 534, 59 S.Ct. 347, 83 L.Ed. 334, was not in point. The opinion was delivered by former Chief Justice Hughes. The suit was originally filed in a state court and removed on the ground of a separable controversy. On the same day that the case was removed an amended complaint was filed in the state court containing averments “that the action was brought against the Southern Pacific Company under the Federal Employers’ Liability Act.” Quite clearly the case would not have been removable if such averments had appeared in the original complaint. The Circuit Court of Appeals ordered a remand of the case because of the averments in the amended complaint. The Supreme Court, 305 U.S. loc. cit. 537, 59 S.Ct. loc. cit. 349, simply said: “The second amended complaint should not have been considered in determining the right to remove, which in a case like the present one was to be determined according to the plaintiffs’ pleading at the time of the petition for removal.”

It is obvious that this case is not helpful on the questions here presented.

Stewart v. Dunham, 115 U.S. 61, 5 S.Ct. 1163, 1164, 29 L.Ed. 329, was also cited in the Southern Pacific case. Adverting to that opinion: It was a creditor’s bill filed on behalf of the complainants, “and all other creditors choosing to come in and share the expenses of the litigation.” As the suit was originally brought, there was a diversity of citizenship. This diversity was made debatable by the introduction of other creditors by amendment to the complaint. The court said, 115 U.S. 61 loc. cit. 64, 5 S.Ct. 1163, loc. cit. 1164, 29 L.Ed. 329: “The right of the court to proceed to decree between the appellants and the new parties did not depend upon difference of citizenship; because, the bill having been filed by the original complainants on behalf of themselves and all other creditors choosing to come in and share the expenses of the litigation, the court, in exercising jurisdiction between the parties, could incidentally decree in favor of all other creditors coming in under the bill. Such a proceeding would be ancillary to the jurisdiction acquired between the original parties, and it would be merely a matter of form whether the new parties should come in as co-complainants, or before a master, under a decree ordering a reference to prove the claims of all persons entitled to the benefit of the decree. If the latter course had been adopted, no question of jurisdiction could have arisen. The adoption of the alternative is, in substance, the same thing.”

The case of Phelps et al. v. Oaks et al., 117 U.S. 236, 6 S.Ct. 714, 716, 29 L.Ed. 888, was also cited, and is frequently relied upon to support the proposition that jurisdiction once acquired cannot be divested. It involved an action against a tenant for possession of real estate. The state court had no jurisdiction over the landlord. However, the landlord appeared, as provided by a Missouri statute, and was made a co-defendant. This destroyed diversity of citizenship. The question of jurisdiction was again mooted. In upholding jurisdiction, the court said: “The controversy, so far as the Zeidlers (the landlords) were interested in it, was of their own seeking, and as their rights could not be concluded by a judgment against the tenant, they were not in a position to insist that the plaintiffs should forego their legal right to proceed against the most convenient defendant. The landlord could defend the possession of the tenant, as it was his right and duty to do on notice of the action, but he could do so as well in the name of the tenant as in his own. At any rate, the plaintiffs had a right to eject the defendant, who actually and unlawfully withheld from them possession of their lands; and it is not correct to say that the controversy in law is with the landlord in virtue of whose claim of title the wrongful possession is maintained.”

The court then said, as an innuendo and a corollary: “Much less can the plaintiff’s right to prosecute his action in the courts of the United States, once vested, be defeated by imposing upon him an adversary against whom he cannot maintain the jurisdiction of these tribunals.”

In the case at bar, the resident defendant was brought into each case with leave of the court and by the consent of the nonresident defendant.

2.

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Bluebook (online)
4 F.R.D. 319, 1945 U.S. Dist. LEXIS 1377, Counsel Stack Legal Research, https://law.counselstack.com/opinion/galbraith-v-bond-stores-inc-mowd-1945.