Gilbert v. Gulf Oil Corporation

153 F.2d 883, 170 A.L.R. 319, 1946 U.S. App. LEXIS 1989
CourtCourt of Appeals for the Second Circuit
DecidedFebruary 4, 1946
Docket167
StatusPublished
Cited by24 cases

This text of 153 F.2d 883 (Gilbert v. Gulf Oil Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gilbert v. Gulf Oil Corporation, 153 F.2d 883, 170 A.L.R. 319, 1946 U.S. App. LEXIS 1989 (2d Cir. 1946).

Opinions

CLARK, Circuit Judge.

In this action plaintiff, resident in Virginia, sued defendant, a Pennsylvania corporation doing business in New York, for damages for the destruction of his Lynch-burg warehouse and contents through an explosion of gasoline and resulting fire claimed to have been occasioned through defendant’s negligence. Defendant by motion raised issues as to the venue of the action and the convenience of the forum, asserting that the witnesses were located at or near the scene of the destructive fire. The District Court found the venue proper, but accepted the view that the court should refuse jurisdiction, citing and relying on New York state precedents. 62 F.Supp. 291. This appeal is prosecuted from the resulting dismissal of the action.

The District Court is clearly correct in holding venue proper. Since it appears that defendant had filed certificates for the doing of business with both the states of New York and Virginia, the combined operation of 28 U.S.C.A. § 112 and Neirbo Co. v. Bethlehem Shipbuilding Corp., 308 U.S. 165, 60 S.Ct. 153, 84 L.Ed. 167, 128 A.L.R. 1437, makes it clear that suit was proper in federal courts in either Virginia or Pennsylvania or New York. And while plaintiff questions whether defendant is carrying on business in the Western District of Virginia, wherein Lynchburg is located, it is clear that service runs throughout the state, and thus to the Secretary of the Commonwealth, defendant’s statutory agent for service, in the Eastern District at Richmond. Federal Rules of Civil Procedure, rule 4(f), 28 U.S.C.A. following section 723c, upheld in Mississippi Pub. Corp. v. Murphree, 66 S.Ct. 242.

The question therefore turns upon the applicability of the doctrine of forum non conveniens under the circumstances here disclosed. That doctrine has a recognized ambit in both federal and local law to prevent the exercise abroad of supervision over the “internal affairs” of a corporation. Rogers v. Guaranty Trust Co. of New York, 288 U.S. 123, 53 S.Ct. 295, 77 L.Ed. 652, 89 A.L.R. 720; Cohen v. American Window Glass Co., 2 Cir., 126 F.2d 111; Weiss v. Routh, 2 Cir., 149 F.2d 193, 159 A.L.R. 658, discussing New York cases; Langfelder v. Universal Laboratories, 293 N.Y. 200, 56 N.E.2d 550, 155 A.L.R. 1226. But even there the tendency is to limit it; and it has been confined to cases of relief which calls for “such detailed and continuing supervision that the matter could be more efficiently handled nearer home.” Williams v. Green Bay & Western R. Co., 66 S.Ct. 284, 287, and see Frank, J., dissenting below, 2 Cir., 147 F.2d 777, 779. Here, however, we have the question of the application of the doctrine to an ordinary tort claim. The discussion in the Williams case appears to be directed to the single instance of supervision of a corporation; as we read the opinion, we see nothing in it authorizing the broad expansion of the doctrine throughout the field of torts. Certainly the whole tenor of the opinion is restrictive of the doctrine’s application. Thus there is stressed its applicability only where maintenance of suit away from the defendant’s domicile "is “vexatious or oppressive,” and it is said: “But where in this type of litigation only a money judgment is sought, the case normally is different. The fact that the claim involves complicated affairs of a foreign corporation is not alone a sufficient reason for a federal court to decline to decide it.” Concluding that each case “turns on its facts,” the court reverses the exercise by the lower courts of discretion in refusing jurisdiction. D.C.S.D.N.Y., 59 F.Supp. 98, and 2 Cir., 147 F.2d 777.

It is true, as the District Court held, that the refusal of jurisdiction over tort claims between nonresidents has been extensively developed in the New York courts, much more so than in the federal system, so that jurisdiction may be refused to claimants under the Federal Employers’ Liability Act, 45 U.S.C.A. § 51 et seq., equally with other foreign claimants, Murnan v. Wabash R. Co., 246 N.Y. 244, 158 N.E. 508, 54 A.L.R. 1522; Douglas v. New York, N. H. & H. R. Co., 279 U.S. 377, 49 S.Ct. 355, 73 L.Ed. 747, even though the litigant’s choice in the federal courts is held absolute under the statute. Baltimore & O. R. Co. v. Kepner, 314 U. S. 44, 62 S.Ct. 6, 86 L.Ed. 28, 136 A.L.R. 1222. Though the rule is stated broadly as though applicable to all tort claims, it seems in practice restricted to claims for personal injury and wrongful death; at least we have been cited to, and have [885]*885found, no other cases. It clearly does not apply to contract claims,1 and is said not to apply to cases of a commercial or property nature,2 so that commentators have expressed doubt of its wider applicability.3 Moreover, the acceptance of jurisdiction even in personal injury cases seems not unusual by the trial courts, and quite accept able to the appellate courts.4 Thus, there is a very substantial doubt whether jurisdiction of this case would be refused by the New York courts.

We are clear, however, that New York law should not control in this situation. It is true that in Weiss v. Routh, supra, the court looked to New York law for light as to the extent to which courts would interfere with the internal management of a corporation. But that appears to us much nearer substantive law — that of corporate supervision — than is this question of the place of enforcement of a claim for money damages, and hence much closer to that mystic line past which we dare not venture without state tutelage. “Neither ‘substance’ nor ‘procedure’ represents the same invariants. Each implies different variables depending upon the particular problem for which it is used.” Guaranty Trust Co. of New York v. York, 326 U.S. 99, 65 S.Ct. 1464, 1469. Further, we have the direct warning of the Williams case, where the Court considered the issue of the controlling effect of state law as held in the Weiss case and expressly reserved decision on that question.

We have, therefore, a problem which under federal precedents still seems debatable. The Kepner case, supra, warned against refusal of jurisdiction in a particular case controlled by congressional act; here the only difference is that congressional act, plus judicial interpretation (under the Neirbo case), spells out the result. Moreover, the Court has lately stressed that district courts cannot refuse jurisdiction merely because of difficulties of decision. Meredith v. Winter Haven, 320 U.S. 228, 234, 64 S.Ct. 7, 88 L.Ed. 9; Markham v. Allen, 66 S.Ct. 296. But even if we assume arguendo that a case of this general sort may be sent elsewhere, we think there has been no showing of vexation and oppression to the defendant sufficient to justify closing the doors of the courts here.

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Bluebook (online)
153 F.2d 883, 170 A.L.R. 319, 1946 U.S. App. LEXIS 1989, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gilbert-v-gulf-oil-corporation-ca2-1946.