Gunderson v. Barber Asphalt Corp.

71 F. Supp. 40, 1947 U.S. Dist. LEXIS 2663
CourtDistrict Court, E.D. New York
DecidedMarch 7, 1947
DocketNo. 7716
StatusPublished
Cited by2 cases

This text of 71 F. Supp. 40 (Gunderson v. Barber Asphalt Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gunderson v. Barber Asphalt Corp., 71 F. Supp. 40, 1947 U.S. Dist. LEXIS 2663 (E.D.N.Y. 1947).

Opinion

KENNEDY, District Judge.

This is a motion to remand. Plaintiff, on December 26, 1946, began his action in the Supreme Court of the State of New York, County of Kings, alleging in two causes of action that he had been injured through the negligence of the defendant, while, he, the plaintiff, was an employee (master) on board two vessels operated, controlled and maintained by it as general agent for the War Shipping Administration in the United States of America. The third cause of action is for maintenance and cure. On January 16, 1947 the cause was removed to this court on the petition of the defendant: the ground of removal was existence of diversity and the claim that in truth and in fact plaintiff was an employee, not of the defendant, but of the United States of America, since defendant’s only connection with the operation of the two ships was under what is known as General Agency Agreement 4 4-42.

Plaintiff now moves to remand. He urges that his action in the state court was based upon the Jones Act, 46 U.S.C.A. § 688, that this statute incorporates by ref[41]*41erence the remedial and jurisdictional features of the Federal Employers’ Liability Act, 45 U.S.C.A. §§ 51-60, and that, therefore, removal is specifically forbidden by statute, even if diversity exists, 45 U.S.C.A. § 56; 28 U.S.C.A. § 71. As an incident to its opposition to the motion to remand, defendant seeks a preliminary inquiry into the issue of employment either by the taking of plaintiff’s deposition, or by a hearing in open court (presumably under Rule 45(e), Federal Rules of Civil Procedure, 28 U.S.C.A. following section 723c).

The problem, as I see it, is, therefore, as follows: Has the District Court, on motion to remand, the power and the duty to resolve the issue of employment, either on the pleadings or by inquiry into the facts, where a complaint, on its face, invokes the remedy created by the Jones Act?

Such controversies are not novel. At least two decisions (Steele v. American South African Line, D.C., S.D.N.D., Cal., 1945, 62 F.Supp. 636; and Baker v. MooreMcCormack Lines, D.C., S.D.N.D., Cal., 1944, 57 F.Supp. 207) are squarely in favor of an affirmative answer. At least one case suggests that the answer should be in the negative, although it is not exactly in point (Kristiansen v. National Dredging Co., D.C., E.D.N.Y., 1933, 4 F.Supp. 925). This conflict of opinion indicates that the background of decision ought to be briefly examined.

No case need be cited to support the proposition that a federal district court, in order to protect -its jurisdiction, has a right to examine the record, and, if necessary, to go behind it in order, for example, to determine the existence of diversity. Such a proceeding has nothing whatever to do with the merits. The decision of a case never turns on the existence of diversity of citizenship; that fact merely bears on the right of the litigant to set the wheels of the court in motion. Therefore, preliminary inquiry into such a question is not only proper, but necessary, whether the federal jurisdiction invoked is original, or by way of removal. It follows that jurisdiction cannot be defeated by fraudulent joinder in the state court (Wilson v. Republic Iron & Steel Company et al., 1921, 257 U.S. 92, 42 S.Ct. 35, 66 L.Ed. 144, cited by defendant), and that the federal district court can and should set on foot inquiry calculated to disclose the fraudulent character of such devices to prevent removal. And the plaintiff who protests against removal does so in vain, if he stands mute when true diversity is asserted in support of removal (Philipbar et al. v. Derby et al., 2 Cir., 1936, 85 F.2d 27) or when the charge is made that he has joined a co-citizen as a party defendant, although no right to relief could possibly exist against that party (Wecker v. National Enameling & Stamping Co, 1906, 204 U.S. 176, 27 S.Ct. 184, 51 L.Ed. 430, 9 Ann.Cas. 757, cited by defendant),

The citizenship of the parties, in diversity cases, is so completely devoid of influence on the merits of the case, and the power and duty of the federal district court to insure that no one improperly invokes or stifles its jurisdiction is so plain, that elaborate inquiry into the question of citizenship is often indispensable. As a corollary, it is also proper and necessary to inquire into the existence or non-existence of a separable controversy as a ground for removal (Henly et al. v. Community Natural Gas Co. et al., D.C.Tex.N.D., Dallas Division, 1928, 24 FBd 252, cited by defendant) .

After the enactment of the Federal Employers’ Liability Act, 45 U.S.C.A. §§ 51-59 there were decisions which applied, or seemed to apply, the principle which I have mentioned to cases under that statute (e. g., Martin v. New York, N. H. & H. R. Co., D.C., S.D.N.Y., 1917, 241 F. 696, cited by defendant; Aldredge v. Baltimore & O. R. Co., 8 Cir., 1927, 20 F.2d 655, certiorari denied 1927, 275 U.S. 550, 48 S.Ct. 114, 72 L. Ed. 420, not mentioned by defendant but relevant here as will be shown; and Farmers’ Bank & Trust Co. of Hardinsburg, Ky., v. Atchison, T. & S. F. Ry. Co., 8 Cir., 1928, 25 F.2d 23, cited by defendant). In all these cases there was inquiry into the question of employment in interstate commerce.

An argument can be made that nothing in this line of decision, at least none of the cases I have mentioned, squarely supports defendant’s contention here. Judge Mayer said in the Martin case, supra, that a “novel question” was presented, and it [42]*42was. Plaintiff, in the state court action, had joined the railroad and the Pullman Company. Remand was resisted, not so much on the negative ground that decedent was not an employee of the railroad, as it was on the positive ground that he was an employee of the Pullman Company, and the action was, therefore, purely at common law. Judge Mayer ordered an exchange of affidavits, in order to avoid, as he said, the harsh result that would follow to the widow and minor children if remand was improperly granted and a recovery was later had in the state courts. That harsh result could never follow in this case, a matter which will be touched upon again later. On the surface, the Aldredge case is a precedent squarely in defendant’s favor: in fact, Steele v. American South African Line, supra, is based very largely upon the Aldredge decision. But in Farmers’ Bank & Trust Co. of Hardinsburg, supra, the court says (8 Cir., 25 F.2d 23, 27): “However, a court should be careful not to determine the merits of a case in passing on a jurisdictional question”. And its own formula of decision was (8 Cir., 25 F.2d 23, at page 29) : “Did the record so conclusively show that, at the time decedent was killed, he was not engaged in interstate commerce, that the allegations of the petition stating that he was must be regarded as so baseless and colorable

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71 F. Supp. 40, 1947 U.S. Dist. LEXIS 2663, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gunderson-v-barber-asphalt-corp-nyed-1947.