Johannsen v. Mid-Continent Petroleum Corp.

288 N.W. 911, 227 Iowa 712
CourtSupreme Court of Iowa
DecidedDecember 12, 1939
DocketNo. 44866.
StatusPublished
Cited by7 cases

This text of 288 N.W. 911 (Johannsen v. Mid-Continent Petroleum Corp.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johannsen v. Mid-Continent Petroleum Corp., 288 N.W. 911, 227 Iowa 712 (iowa 1939).

Opinion

Miller, J.

On April 16, 1938, plaintiff filed a petition which named as defendants the Mid-Continent Petroleum Corp. and Thomas Lorenzen. It asserted that, on April 30, 1936, the defendant corporation was engaged in business at Denison, Iowa, and there maintained a bulk plant; that plaintiff was employed by the Denison Auto Company, whose premises were adjacent to those of defendant corporation; that defendant Lorenzen was in charge of defendant’s bulk plant; that on said date, defendant was pumping gasoline from a tank car into its bulk plant, left the pumps running without any employee in attendance, plaintiff found the storage tank was overflowing, undertook to shut off the pump, a fire started and plaintiff received severe burns. Plaintiff demanded damages in the sum of $10,000.

On May 16, 1938, the Mid-Continent Petroleum Corporation filed a petition for removal of the cause to the United States District Court for the Northern District of Iowa, the petition asserting that defendant was incorporated under the laws of Kentucky and praying that the court proceed no further except to approve the petition for removal and bond and order the cause removed.

On May 18, 1938, the petition for removal and resistance thereto were submitted and, on the following day, removal of *714 the cause was denied. A transcript of the record was nevertheless filed in the federal court. Plaintiff filed a motion to remand, and, on July 1, 1938, the motion to remand was sustained by the federal court.

On July 19, 1938, the defendant, now specifically designated as the Mid-Continent Petroleum Corporation of Kentucky, filed a special appearance, asserting that it appeared solely to attack the jurisdiction of the court, and alleging as grounds for such attack that the person, who had been served as purported agent of the corporation was not its employee and that no jurisdiction was obtained over the corporation by such purported service. Affidavits were attached which showed that the- alleged employee entered his employment on September 7, 1937, and was employed by the Mid-Continent Petroleum Corporation of Delaware, which commenced operation of the bulk plant at Denison, Iowa, on January 1, 1937.

Certificates were also attached to the special appearance and to an amendment thereto, which showed that the Mid-Continent Petroleum Corporation of Kentucky qualified to do business in Iowa November 8, 1926, but its qualification was canceled February 1, 1938, for failure to file a report for 1937, and that said corporation was in fact dissolved by voluntary action of its stockholders on December 31, 1936, and ceased doing business in Iowa from and after that date.

A special appearance was also filed by the Mid-Continent Petroleum Corporation of Delaware, but is not involved in the issues presented by this appeal.

The original notice, which apparently was served herein, was not filed of record, but on September 26, 1938, an amendment to petition was filed which asserted that the correct name of the original defendant upon whom service of notice was made was the Mid-Continent Petroleum Corporation of Delaware, that, since the filing of the petition, the Mid-Continent Petroleum Corporation of Kentucky had entered appearance in the case and, because of that fact, plaintiff “now makes the Mid-Continent Petroleum Corporation of Kentucky an additional defendant.”

On October 24, 1938, the special appearance of the Mid-Continent Petroleum Corporation of Kentucky was sustained and plaintiff appeals from such ruling.

*715 At tbe outset, it would seem desirable to consider certain established principles in reference to the effect of the filing of a petition for removal to a federal court. The right to remove the case is guaranteed by the United States Constitution. In the case of Barron v. Burnside, 70 Iowa 362, 30 N. W. 872, this court was called upon to determine the constitutionality of Chapter 76 of the Laws of 1886 requiring a foreign corporation, as a condition precedent to its right to secure a permit to transact business in Iowa, to submit to the jurisdiction of the courts of this state to the exclusion of the right to remove causes to the federal courts. This court was in doubt concerning the construction of the constitution of the United States and held that the statute was not in conflict with such constitution to the end that the questions presented might be determined by the supreme court of the United States. The case was taken to that court and was there reversed. Barron v. Burnside, 121 U. S. 186, 7 S. Ct. 931, 936, 30 L. Ed. 915. In so holding, the court states:

“As the Iowa Statute makes the right to a permit dependent upon the surrender by the foreign corporation of a privilege secured to it by the Constitution and laws of the United States, the statute requiring the permit must be held to be void.”

The petition for removal must be filed before noon of the second day of the term for which the action is brought. Wilson v. Block Coal Co., 135 Iowa 531, 113 N. W. 348, 14 Ann. Cas. 266. If so filed, the effect thereof, as stated by us in Carey v. District Court, 226 Iowa 717, 724, 285 N. W. 236, 240, is as follows:

“Of course, if the petition for removal to the federal court was ‘good and sufficient’, timely filed, with proper notice and bond, the trial court lost jurisdiction to the federal court. Van Horn v. Litchfield, 70 Iowa 11, 29 N. W. 783. Wisecarver & Reynard v. Ry. Co., 139 Iowa 596, 117 N. W. 961.”

In the case of Emery & Co. v. C. B. & Q. R. Co., 186 Iowa 1156, 170 N. W. 540, 173 N. W. 12, an appeal was taken to this court from an order removing a case to the federal court. We there held that the decision of the federal court was binding upon us and hence declined to pass upon the merits of the *716 question on appeal, stating at page 1169, of 186 Iowa, 170 N. W. at page 545, as follows:

“The transfer of the case to the Federal court was not effected by the order of the state court, but by the filing of a petition sufficient under the laws of Congress for that purpose, together with the necessary bond. New Orleans, M. & T. R. Co. v. Mississippi, 102 U. S. 135 (26 L. Ed. 96); Crehore v. Ohio & M. R. Co., 131 U. S. 240 (33 L. Ed. 144).

“The only question the state court could determine was whether, admitting the facts stated in the petition to be true, the petitioner was entitled to have the cause transferred to the Federal court. Burlington, C. R. & N. R. Co. v. Dunn, 122 U. S. 632 (30 L. Ed. 1159); Bacon v. Iowa Cent. R. Co., 157 Iowa 493; Iowa Cent. R. Co. v. Bacon, supra [236 U. S. 305, 35 S. Ct. 357, 59 L. Ed. 591]. * * *

“The finding of the Federal court upon the question whether the cause was removable is final, and if jurisdiction is assumed thereof, is binding upon the state court until reversed.”

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Bluebook (online)
288 N.W. 911, 227 Iowa 712, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johannsen-v-mid-continent-petroleum-corp-iowa-1939.