Greene v. Verven

203 F. Supp. 607, 5 Fed. R. Serv. 2d 400, 1962 U.S. Dist. LEXIS 3205
CourtDistrict Court, D. Connecticut
DecidedMarch 22, 1962
DocketCiv. No. 7706
StatusPublished
Cited by10 cases

This text of 203 F. Supp. 607 (Greene v. Verven) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greene v. Verven, 203 F. Supp. 607, 5 Fed. R. Serv. 2d 400, 1962 U.S. Dist. LEXIS 3205 (D. Conn. 1962).

Opinion

TIMBERS, District Judge.

American Motorists Insurance Company moves, pursuant to Rule 24(a) and (b), Fed.R.Civ.P., 28 U.S.C.A., for leave to intervene as a plaintiff herein.

The action was brought by the administrator of the estate of Einar A. Petterson under the Connecticut wrongful death statute, Conn.Gen.Stat. § 52-555 (1958), to recover damages for the wrongful death of plaintiff’s decedent alleged to have been caused by defend[609]*609ant Verven’s negligent operation of an automobile in which plaintiff’s decedent was a passenger. Recovery, pursuant to Conn.Gen.Stat. § 14-154 (1958), also is sought against defendant, Triboro Drive-It-Yourself, Inc., the lessor of the automobile.

Petterson sustained injuries in Connecticut March 15, 1958 while riding in the automobile driven by defendant Ver-ven and died in Connecticut two months later as a result. Petterson and Verven were fellow employees of Daystrom Electric Company, a New Jersey corporation, which has been impleaded as a third party defendant.

At the time of the accident, Petterson and Verven were traveling from Woods Hole, Massachusetts, through Connecticut, to Poughkeepsie, New York. The automobile involved had been leased to Daystrom by Triboro, a New York corporation, and was being operated by Ver-ven with Daystrom’s permission.

Jurisdiction is based on diversity of citizenship. The amount in controversy, exclusive of interest and costs, exceeds $10,000.

American Motorists Insurance Company, an Illinois corporation, is the workmen’s compensation insurance carrier of Daystrom. Pursuant to the terms of its compensation policy and in accordance with the Workmen’s Compensation Law of New York, American Motorists paid medical expenses and compensation to and on behalf of decedent prior to his death; subsequently it has paid and continues to pay death benefits to decedent’s dependants.

American Motorists seeks to intervene in this action either as of right or permissively, alleging that it has a lien on and is entitled to the proceeds of any recovery obtained by plaintiff against any defendant.

The motion to intervene must be denied on the grounds that (1) American Motorists, being the liability insurance carrier for Daystrom, the third party defendant, should not be permitted to assume the dual and inconsistent role of plaintiff in an action the objective of which is a recovery against which American Motorists already is committed to defend; and (2) American Motorists does not have a lien on the proceeds of any recovery which may be obtained by plaintiff herein.

(1) American Motorists Should Not Be Permitted To Assume Dual And Inconsistent Role Of Plaintiff And Defendant

It is settled law that where statutes give a workmen’s compensation insurer a substantive right of subrogation to the proceeds of an action by an injured party against a tort-feasor, intervention, either as of right or permissively, will be permitted in the federal courts. Kelley v. Summers, 210 F.2d 665 (10 Cir. 1954) (intervention as of right); Virginia Elec. & Power Co. v. Carolina Peanut Co., 186 F.2d 816 (4 Cir. 1951) (intervention as of right); Strate v. Niagara Machine and Tool Works, 160 F.Supp. 296 (S.D.Ind.1958) (intervention as of right); Komlos v. Compagnie Nationale Air France, 18 F.R.D. 363 (S.D.N.Y.1955) (permissive intervention) ; McGee v. McNany, 10 F.R.D. 5 (W.D.Pa.1950) (permissive intervention).

Nevertheless, where the workmen’s compensation payor of plaintiff is also the liability insurer for a defendant tort-feasor, intervention will be denied. Christon v. United States, 8 F.R.D. 327 (E.D.Pa.1947); Gutowitz v. Pennsylvania R. R., 7 F.R.D. 147 (E.D.Pa.1946).

In the instant case, plaintiff contends and American Motorists admits that in addition to being the workmen’s compensation payor of plaintiff, it also is the liability insurance carrier for Daystrom, the third party defendant. Intervention by American Motorists here would therefore create a potential conflict of interest situation so fraught with possibilities of collusion and abuse that this Court in good conscience cannot allow it. Gutowitz v. Pennsylvania R. R., supra.

[610]*610Petitioner has failed to show that the representation by the named plaintiff will be inadequate to protect its interests. The classic situation of possible collusion between plaintiff and defendants which would affect American Motorists’ interest adversely and would necessitate its presence in the suit as of right, is not here present. Cf. Klein v. NuWay Shoe Co., Inc., 136 F.2d 986 (2 Cir. 1943); Twentieth Century-Fox Film Corp. v. Jenkins, 7 F.R.D. 197 (S.D.N.Y.1947).

Petitioner, in seeking to intervene, does not fall within the mandatory provisions of Rule 24(a) (intervention as of right) and the Court is therefore not without discretion in denying the motion under Rule 24(b) (permissive intervention). The Court holds that to allow intervention by American Motorists would “unduly delay or prejudice the adjudication of the rights of the original parties.” Rule 24(b), Fed.R.Civ.P.

(2) American Motorists Does Not Have A Lien On Any Proceeds Which May Be Recovered By Plaintiff In This Action

A party seeking to intervene pursuant to the provisions of either Rule 24(a) or (b), Fed.R.Civ.P., must have some substantial legal interest to protect by his intervention. 4 Moore’s Federal Practice, ¶ 24.09, p. 45 (2d ed. 1950); Pure Oil Co. v. Ross, 170 F.2d 651, 653 (7 Cir. 1948).

American Motorists claims as its chief interest a lien on any proceeds recovered by plaintiff from defendants. American Motorists’ right of subrogation, if it exists, would be a sufficient interest in the subject matter of the litigation to allow intervention. Kelley v. Summers, 210 F.2d 665, 673 (10 Cir. 1954).

The Court holds, however, that by reason of the peculiar facts here present American Motorists is not entitled to be subrogated to any recovery by plaintiff.

The right of subrogation to a workman’s rights in a third party action does not exist independently of the workmen’s compensation law; it depends entirely on the statute. See Note, Right of Subrogation Under The Workmen’s Compensation Acts, 43 Minn.L.Rev. 170 (1958).

This being a diversity case, under the rule of Erie R. R. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938), this Court must follow the conflict of laws rules prevailing in the State of Connecticut. Klaxon Co. v. Stentor Elec. Mfg. Co., 313 U.S. 487, 61 S.Ct. 1020, 85 L.Ed. 1477 (1941).

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

Related

Davila v. Arlasky
141 F.R.D. 68 (N.D. Illinois, 1991)
Perry v. Carter
620 S.W.2d 50 (Missouri Court of Appeals, 1981)
Hughes v. Newton
324 So. 2d 270 (Supreme Court of Alabama, 1975)
Hobson v. Hansen
5 A.L.R. Fed. 497 (District of Columbia, 1968)
Bartolotta v. United States
276 F. Supp. 66 (D. Connecticut, 1967)
Claim of Petterson v. Daystrom Corp.
215 N.E.2d 329 (New York Court of Appeals, 1966)
State v. Baltimore Transit Co.
37 F.R.D. 34 (D. Maryland, 1965)
Claim of Petterson v. Daystrom Corp.
21 A.D.2d 582 (Appellate Division of the Supreme Court of New York, 1964)
Varney v. Taylor
379 P.2d 84 (New Mexico Supreme Court, 1963)

Cite This Page — Counsel Stack

Bluebook (online)
203 F. Supp. 607, 5 Fed. R. Serv. 2d 400, 1962 U.S. Dist. LEXIS 3205, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greene-v-verven-ctd-1962.