Grone v. Northern Insurance Co.

7 Pa. D. & C.2d 777, 1956 Pa. Dist. & Cnty. Dec. LEXIS 269
CourtPennsylvania Court of Common Pleas, Montour County
DecidedApril 7, 1956
Docketno. 90
StatusPublished

This text of 7 Pa. D. & C.2d 777 (Grone v. Northern Insurance Co.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Montour County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grone v. Northern Insurance Co., 7 Pa. D. & C.2d 777, 1956 Pa. Dist. & Cnty. Dec. LEXIS 269 (Pa. Super. Ct. 1956).

Opinion

Kreisher, P. J.,

This suit was filed in the Court of Common Pleas of Montour County on May 14, 1953, entered to no. 90, February -term, 1953.

Six of the defendants issued to plaintiffs an insurance policy covering plaintiffs’ premises in Mahoney Township, Montour County. They bear the following dates and amounts:

Name Date Amount

Northern Insurance Company of New York . . .June 18, 1952 $10,000

Boston Insurance Company .June 18, 1952 $10,000

Westchester Fire Insurance Company . .June 18, 1952 $10,000

National-Ben Franklin Fire Insurance Company .May 10, 1952 $15,000

Buffalo Insurance Company .May 10, 1952 $15,000

Briar Creek Farmers Mutual Insurance Company.September 21, 1951 $ 4,000

[779]*779The Montour Mutual Fire Insurance Company, on March 23, 1951, issued its policy covering the same premises, then owned by Ray Cragle and Florence Cragle, in the sum of $4,500. This policy, with the consent of the issuing company, was assigned on March 8, 1951, to plaintiffs, who then became the Owners of the premises. Only the sum of $2,250 is claimed on this policy as being applicable to this loss.

On June 19, 1952, the cause of action arose by reason of a fire on that date which totally destroyed plaintiffs’ premises.

The total of the policies is $66,250, and the total damage suffered by plaintiffs by reason of said fire is $61,151.73.

Due proofs of loss were filed by plaintiffs with each defendant insurance company, who refused to pay plaintiffs’ loss. Suit then followed in the State court.

The suit against the seven defendants was instituted in this court on May 14, 1953, and service made on three nonresident defendants, namely, Northern Insurance Company of New York, Boston Insurance Company and Westchester Fire Insurance Company, May 18, 1953, under The Insurance Department Act of May 17,1921, P. L. 789, art. 2, sec. 210, as amended by the Act of April 27, 1927, P. L. 476, sec. 2, 40 PS §48, a Pennsylvania statute providing for service on a foreign insurance company doing business in Pennsylvania.

Counsel for the Buffalo Insurance Company and National-Ben Franklin Fire Insurance Company accepted service for them May 19, 1953; the Montour Mutual Fire Insurance Company was served by the High Sheriff of Montour County May 15, 1953, and the Briar Creek Farmers Mutual Insurance Company was served by the High Sheriff of Columbia County May 19, 1953.

Three of the defendants, namely, Northern Insur-[780]*780anee Company of New York, Boston Insurance Company and Westchester Fire Insurance Company, filed a joint petition for removal of the case to the United States District Court for the Middle District of Pennsylvania on June 4, 1953, in which petition they allege that service of process was made on them May 18, 1953.

The Buffalo Insurance Company filed a separate petion for removal on June 4, 1953.

When John L. Pipa, Jr., one of counsel for plaintiffs, learned that petitions for removal were filed (not by written notice as required by the Removal Act), he filed a motion to dismiss the petitions with the Clerk of the United States District Court for the Middle District of Pennsylvania, in the United States Court House, Lewisburg, on June 19, 1953, and on the same day, by letter, forwarded a copy of the dismissal motion, together with notice that a hearing would be held thereon July 16, 1953, at 11 a.m., in the United States Court House, Lewisburg, to each of counsel for the removing petitioners.

The motion to dismiss dealt with the following:

(a) Lack of total diversity of citizenship.

(b) All of the defendants are not parties to the petitions for removal.

(c) The claim of plaintiffs is not a separate and independent claim and cause of action.

(d) Petitioners failed to strictly comply with the removal statute.

This matter was so proceeded in by the United States District Court that it filed the following opinion and order:

“MEMORANDUM
“Plaintiffs brought an action in the Court of Common Pleas of Montour County, Pennsylvania, against the seven defendants alleging liability on certain policies issued by each defendant company for a fire loss [781]*781which occurred on the premises of plaintiffs located in Montour County, Pennsylvania, and for which the defendants refused to pay for reasons of fraud and other defenses. The action was removed to this Court and the matter is now before the Court on motion of plaintiffs to remand. I do not think it necessary to consider in detail the fifteen reasons given by plaintiffs as the basis of their motion.
“The pertinent removal statute, 28 U. S. C. Section 1441(c) States:
“ ‘Whenever a separate and independent claim or cause of action, which would be removable if sued upon alone, is joined with one or more otherwise non-removable claims or causes of action, the entire case may be removed and the district court may determine all issues therein, or in its discretion, may remand all matters not otherwise within its original jurisdiction/
“Defendants strongly urge that the claims against the several insurance companies are separate and independent claims, that there is diversity, that the amount involved against each defendant exceeds $3,000.00 and that accordingly the case should not be remanded but should remain removed to this Court.
“The ease, in my opinion, is completely covered by American Fire & Casualty Co. vs. Finn, 341 U. S. 6. In that ease a suit was brought in a Texas Court by a resident of that State to recover for a loss by fire. The complaint named as defendants two foreign insurance companies and a resident agent of the companies. The case was removed to the Federal Court. Prior to trial plaintiff tried unsuccessfully to remand. After trial, by jury, judgment was entered for the insurance claimed and costs against the one insurance company. No liability was found against the other insurance company or the local agent. The District Court denied motion to vacate the judgment and the Court of Appeals affirmed. The latter Court concluded that there [782]*782were causes of action against the foreign insurance companies ‘separate and independent’ from that stated against the resident individual, and that the entire suit was removable. The Supreme Court reversed, stating, inter alia:
“ ‘In the declaration or bill, an allegation of citizenship of the parties must be made, as it has been held that an averment of residence is insufficient.’ The same court has also said that ‘citizenship,’ and ‘residence,’ ' are not synonymous terms.
“ ‘. . . Considering the previous history of “separable controversy,” the broad meaning of “cáuse of action,” and the congressional purpose in the revision resulting in 28 U. S. C. Section 1441

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Bluebook (online)
7 Pa. D. & C.2d 777, 1956 Pa. Dist. & Cnty. Dec. LEXIS 269, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grone-v-northern-insurance-co-pactcomplmontou-1956.