Highway Ins. Underwriters v. O'Neal

92 F. Supp. 423, 1950 U.S. Dist. LEXIS 2535
District Court, W.D. Louisiana·Decided August 24, 1950·No. Civ. A. No. 2959·Published·Cited by 2 cases

Opinion

DAWKINS, Chief Judge.

Petitioner, a citizen of Texas, as insurer of Loraine Transfer Company (called “Loraine”), seeks a declaratory judgment against defendants, all citzens of Louisiana and claimants under its policy of liability insurance. It alleges that the driver of a truck of the insured was without fault in a collision between it and the automobile in which defendants O’Neal, Callender and the deceased, George D. Litton, were riding; pleads the negligence of O’Neal as driver of the automobile and contributory negligence as to all of its occupants. In the alternative, complainant alleges its policy limits liability in the sum of $20,000 for one, and $40,000 where two or more claimants are involved; and that claims have been made against it in the sum of $83,682.-90 by O’Neal; $62,004.14 by Callender; and $15,000 by the tutrix for the minor children of the said Litton.

. O’Neal an'd Callender have each filed pleas of lis pendens, averring that at the time of this suit they had pending in the state court actions against the complainant and its insured in the amounts stated in the petition in this case. On May 20, 1950, these two defendants moved for dismissal for the alleged reason that the complaint “does not state a cause upon which relief can be granted” and on the same day answered, charging ■ the insured with negligence which caused the accident and prayed for judgments in amounts stated. In identical paragraphs of each answer, it is alleged as follows: “Respondent alleges Act 253 of the Louisiana Legislature of 1918 as amended and prays for the benefits granted therein.”

.Presumably, Ac.t No. 55 of 1930, which amended Act No. 253 of the Legislature of 1918, was intended. However, nothing is stated about third-party process under the Rules of Civil Procedure of the Federal Courts, but each prayer asks for service and citation upon Loraine and that judgment “jointly and in solido”'be awarded against Highway, the insurer, and Loraine, the insured.

Thereafter, on June 6, 1950, the tutrix for the minors Litton also filed a motion to dismiss on grounds similar to the other defendants, alleging as follows:

“2.

“That this Honorable Court does not have jurisdiction to hear said cause for the reason that the Loraine Transfer Company, Inc., is a Louisiana corporation and is a necessary party to this cause, and your appearer being a Louisiana resident may not implead said Loraine Transfer Company for the reason that no federal question exists herein nor would there be a complete diversity of citizenship of the parties-plaintiff and parties-defendant.

“3.

“That the said Loraine Transfer Company, Inc., is a necessary party for the reason that justice may not be done between the parties hereto since the maximum recovery under the Highway Insurance [425] Underwriters policy is the sum of $40,000.-00, whereas Charles F. O’Neal is claiming the sum of $83,682.90, Mae Callender is claiming the sum of $62,004.14, and your appearer intends to file suit against the Highway Insurance Underwriters and the Loraine Transfer Company, Inc., in an amount in excess of $50,000.00.”

The prayer of this motion was that the “complaint * * * he dismissed” and for “necessary orders and general and equitable relief.”

On June 23 following, Loraine moved to dismiss the proceeding by which it had thus been brought in for the following reasons:

“1.

“The instant suit is one by a foreign corporation against a citizen of Louisiana; the defendant called your mover, who is also a citizen of Louisiana, as a third party defendant herein.

“2.

“Mover shows that the only possible controversy arising under the allegations of the complaint and answer herein involving your mover is between mover, a citizen of the State of Louisiana, and defendants, also citizens of the State of Louisiana.

“3.

“Mover shows that its interest and that of the plaintiff herein are the same, and the parties should be realigned as their interests appear; such realignment would result in an action by citizens of the State of Louisiana against another citizen of the State of Louisiana.

“4.

“Mover shows that it was improper to join mover as a third party defendant herein.

“5.

“Mover shows that the necessary diversity of citizenship is lacking as to your mover.”

Opinion

The pleas of lis pendens may be disposed of by the simple statement that, as a matter of law, such pleas do not lie in personal actions brought in both state and federal courts at the same time. Kline v. Burke Construction Company, 260 U.S. 226, 43 S.Ct. 79, 67 L.Ed. 226, 24 A.L.R. 1077; Cyclopedia of Federal Procedure, 2d Ed., Volume 1, Section 116; Volume 54, Corpus Juris Secundum, Lis Pendens, § 9, Page 577. Each proceeds, and any judgment first obtained in either court may be plead as res judicata in the other.

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

Highway Ins. Underwriters v. O'Neal, 92 F. Supp. 423, 1950 U.S. Dist. LEXIS 2535 (W.D. La. 1950).

92 F. Supp. 423 (Highway Ins. Underwriters v. O'Neal) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Gentry v. Hibernia Bank
152 F. Supp. 469 (N.D. California, 1957)
Kirby v. Pennsylvania R. Co
188 F.2d 793 (Third Circuit, 1951)