Gulf & S. I. R. v. Gulf Refining Co.

260 F. 262, 1919 U.S. Dist. LEXIS 1009
CourtDistrict Court, S.D. Mississippi
DecidedSeptember 4, 1919
DocketNo. 94
StatusPublished
Cited by2 cases

This text of 260 F. 262 (Gulf & S. I. R. v. Gulf Refining Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gulf & S. I. R. v. Gulf Refining Co., 260 F. 262, 1919 U.S. Dist. LEXIS 1009 (S.D. Miss. 1919).

Opinion

HOLMES, District Judge.

This is a motion by the plaintiff to remand the cause to the state court. The suit, was filed by the Gulf & Ship Island Railroad Company, a Mississippi corporation, seeking indemnity or contribution from the defendants, the Gulf Refining Company, a Pennsylvania corporation, and J. L. Carr and Mrs. May Blackwell, individual citizens of Mississippi, alleged to be joint tort-feasors with the plaintiff in the commission of an injury which has been fully satisfied solely by the plaintiff.

In the absence of a showing that the resident defendants were fraudulently joined for the purpose of preventing a removal, the facts as stated in the plaintiff’s pleading are decisive of the nature of the controversy. Chicago & Alton R. R. Co. v. McWhirt, 243 U. S. 422, 37 Sup. Ct. 392, 61 L. Ed. 826. Accordingly on this motion we must look to these facts to ascertain whether the case stated is one of joint liability against all of the defendants, or whether the facts reveal a separable controversy wholly between the plaintiff and the nonresident defendant.

The Gulf Refining Company extracts, manufactures, and sells at wholesale and retail kerosene, gasoline, and other petroleum products. Pursuant to orders previously given to one of its traveling salesmen, [263]*263the Gulf Refining Company intended to ship to J. R. Carr, a retail country merchant, a drum of kerosene, and to E. Burnham three drums of gasoline. The drums were of iron, and were designated by stock numbers indented into the metal. The drum of kerosene intended for J. R. Carr carried the stock number 23937, and one of the drums of gasoline intended for E. Burnham bore the number 9770; the other numbers of the gasoline drums being immaterial. The bills of lading, waybills, and freight bills were made out correctly, and showed that Carr was to get the properly numbered drum of kerosene and Burn-ham the properly numhered three drums of gasoline. Both consignments were destined to stations on the line of the Gulf & Ship Island Railroad Company, the last of two connecting carriers over which the shipments were routed. In addition to being identified by stock numbers indented in the iron drums, which corresponded with the numbers on the bills of lading, waybills, and freight bills, shipping tags were prepared by the consignor’s clerk; a cream-colored tag bearing the address, “J- E. Carr, Taylorville, Miss.,” to be attached to the drum of kerosene, and three red tags for the gasoline drums, with the inscription, “E. Burnham, Magee, Miss.”

And here is where the initial error occurred. Through the negligence of the nonresident and removing defendant’s employé, the cream-colored tag was attached to drum numbered 9770, containing gasoline, and one of the red tags was attached to drum numbered 23937, containing kerosene. With this conflict between the addresses on the tags and the stock numbers on the drums and shipping bills, the three drums of gasoline and one of kerosene were delivered to the Mississippi Central Railroad Company, the initial carrier, and by it delivered to the plaintiff, the last carrier, which did not notice, or neglected to regard, the said conflict, and, in accordance with the addresses on the tags, delivered the drum of gasoline numbered 9770 to Carr, at Taylor-ville, and the drum of kerosene numbered*23937 and two drums of gasoline to Burnham, at Magee.

The resident defendant J. R. Carr thereafter carried the drum so delivered to his store, and, with the assistance of his clerk, the other resident defendant, Mrs. May Blackwell, poured its contents into a kerosene tank used for retailing, and, as alleged in the bill of complaint :

“With the information from the defendant oil company, charging them with notice of the likelihood of the said oil company’s having made a mistake in the shipment, sold the said oil as kerosene, and wrongfully and unlawfully represented the said oil to be kerosene, when by the use of ordinary care and caution they could and should' have known that it was gasoline.”

But it is not alleged what the information, “charging them with notice of the likelihood of the oil company’s having made a mistake,” consisted of, nor how by “the use of ordinary care and caution they could and should have known that it was gasoline.” These are mere conclusions of the pleader, who should state the facts from which he makes these deductions.

Among the purchasers at Carr’s store of this gasoline for kerosene was Archie Yelverton, to whom the resident defendant, Mrs. May [264]*264Blackw.ell, sold a gallon of supposed kerosene, which, while being used in his home as kerosene for illuminating purposes, because of its highly volatile and inflammable characteristics, exploded and burned to death two of his daughters.

Suits for the wrongful deaths were instituted against the Gulf Refining Company and J. R. Carr. The nonresident and removing defendant induced the plaintiffs in these suits to dismiss them and file other suits against the Gulf & Ship Island Railroad Company as sole defendant in each. These suits resulted in judgments against the railroad company for sums aggregating $50,000, which were satisfied in full by the payment of $17,500 in settlement of both judgments, and $2,500 in payment of court costs and reasonable attorney’s fees.

The railroad company, by suit in equity, is now demanding indemnity in the sum of $20,000, the amount actually paid in satisfaction, upon the theory that its negligence, in not having detected the error of the oil company in mislaheling the drums and thereby preventing the sale by the other two defendants of gasoline for kerosene, was slight and secondary to the negligence of the defendants, who were primarily liable for the injuries for which the plaintiff has been compelled to pay damages.

The record and voluminous briefs bristle with many interesting questions of remote and proximate cause, joint and several tort-feasors, and contribution and indemnity between wrongdoers; but for the purpose of this motion it is only necessary to determine whether there is a separable controversy between the plaintiff and nonresident defendant which will warrant a removal.

[ 1 ] It has been repeatedly held that the cause pf action is the subject-matter of the controversy, and that is, for' dll the purposes of the suit, whatever the plaintiff declares it to be in his pleadings. While it is true that a defendant has no right to say that an action shall be several which a plaintiff?* elects to make joint, yet if the complaint fails to allege facts showing a joint cause of action, or alleges facts showing separate causes, or fails to allege facts showing any cause of action against the resident defendant, then there is a separable controversy which entitles the nonresident defendant to remove.

In reversing the case of McAllister v. Chesapeake & Ohio Railroad Co. (D. C.) 198 Fed. 660, the Supreme Court, in 243 U. S. at page 302, 37 Sup. Ct. 274, 61 L. Ed. 735, examines first the liability of the resident defendant, and having reached the conclusion that the complaint stated a case against the resident defendant, said:

“There remains only the question whether the amended petition states a cause of action against the lessor” (nonresident and removing defendant).

And, having come to the conclusion that the lessor was also liable, it was said:

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Cite This Page — Counsel Stack

Bluebook (online)
260 F. 262, 1919 U.S. Dist. LEXIS 1009, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gulf-s-i-r-v-gulf-refining-co-mssd-1919.