Johns-Manville Sales Corp. v. Chicago Title & Trust Co.

261 F. Supp. 905, 10 Fed. R. Serv. 2d 537, 1966 U.S. Dist. LEXIS 7612
CourtDistrict Court, N.D. Illinois
DecidedDecember 20, 1966
Docket64 C 1845
StatusPublished
Cited by22 cases

This text of 261 F. Supp. 905 (Johns-Manville Sales Corp. v. Chicago Title & Trust Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johns-Manville Sales Corp. v. Chicago Title & Trust Co., 261 F. Supp. 905, 10 Fed. R. Serv. 2d 537, 1966 U.S. Dist. LEXIS 7612 (N.D. Ill. 1966).

Opinion

MEMORANDUM AND ORDER

I

JURISDICTION

CAMPBELL, Chief Judge.

Plaintiff Johns-Manville Sales Corporation predicates jurisdiction on diversity of citizenship. (28 U.S.C.A. § 1332) Plaintiff Martin-Marietta Corporation makes a similar jurisdictional claim, however, in specifically alleging damages Martin-Marietta claims less ($3,298.45) than the required jurisdictional amount —i. e. “ * * * the sum or value of $10,000, exclusive of interest and costs * * (28 U.S.C.A.-§ 1332(a))

Martin-Marietta, by brief, urge the applicability of the “ancillary jurisdiction” doctrine. Hurn v. Oursler, 289 U.S. 238, 53 S.Ct. 586, 77 L.Ed. 1148. Briefly restated Martin-Marietta first argues the appropriaténess of its joinder as party plaintiff pursuant to Rule 20 of the Federal Rules of Civil Procedure. This argument is well founded in that plaintiff’s claims concern common questions of law and fact “ * * * arising out of the same transaction, occurrence, or series of transactions or occurrences -* * * (Rule 20(a)) From this premise the ancillary jurisdiction conclusion is reached.

This is not a typical ancillary jurisdiction situation. We do not have a party-plaintiff whose interest- is affected by the court’s control of property. Freeman v. Howe, 24 How. 450, 65 U.S. 450, 16 L.Ed. 749. Plaintiff, Martin-Marietta, is not necessary to permit the court to effectuate any judgment it may enter herein. Supreme Tribe of Ben Hur v. Cauble, 255 U.S. 356, 41 S.Ct. 338, 65 L.Ed. 673. Nor do we have the same counterclaim factual situation as was present in Moore v. New York Cotton Exchange, 270 U.S. 593, 46 S.Ct. 367, 70 L.Ed. 750.

A good argument, addressed to efficient judicial administration, could be made that in situations such as this where one plaintiff satisfies the jurisdictional requirement a party otherwise joinable should not be required to institute an independent suit in the state courts. (See: The Federal Jurisdictional Amount Requirement and Joinder of Parties Under the Federal Rules of Civil Procedure, 1952, 27 Ind.L.J. 199). This is the same argument and ' rationale which led to and is the basis of the an- *907 ciliary jurisdiction decisions. See: United Mine Workers of America v. Gibbs, 383 U.S. 715, 86 S.Ct. 1130, 16 L.Ed.2d 218; Hurn v. Oursler, 289 U.S. 238, 53 S.Ct. 586; Clark v. Paul Gray Inc., 306 U.S. 583, 59 S.Ct. 744, 83 L.Ed. 1001.

To a limited extent this argument has been accepted: Orn v. Universal Automobile Association of Indiana, D.C., 198 F.Supp. 377, where the court found jurisdiction in the removal statute, § 1441 (e); Raybould v. Mancini-Fattore Co., D.C., 186 F.Supp. 235, where a single plaintiff suing in a different capacity aggregated for purposes of satisfying the jurisdictional amount his claims against a single defendant. Admittedly these cases do not decide the present issue. They do, however, lend support to the efficient judicial administration argument.

The weight of authority appears to be to the contrary, most courts holding that although joinder of party-plaintiffs might well be proper under the Rules of Civil Procedure, such a joinder does not per se satisfy statutory jurisdictional requirements. Hackner v. Guaranty Trust Co. of New York, 2 Cir., 117 F.2d 95, cert. den. 313 U.S. 559, 61 S.Ct. 835, 85 L.Ed. 1520; Aetna Insurance Co. v. Chicago R. I. and P. R. Co., 10 Cir., 229 F.2d 584; Jewell v. Grain Dealers Mutual Insurance Co., 5 Cir., 290 F.2d 11; Diana v. Canada Dry Corp., D.C., 189 F.Supp. 280; Diepen v. Fernow, D.C., 1 F.R.D. 378.

Joinder, governed by the Civil Rules, must necessarily be distinguished from statutory jurisdictional requirements. It does not follow that where joinder is proper ancillary jurisdiction necessarily attaches. Further, it is well settled that multipe plaintiffs cannot aggregate damage claims to satisfy the jurisdictional amount. Thomson v. Gaskill, 315 U.S. 442, 62 S.Ct. 673, 86 L.Ed. 951.

However, this- is not an aggregation situation. One plaintiff (Johns-Man-ville Sales Corporation) satisfactorily pleads federal jurisdiction without reference to its co-plaintiff.

Were the court to dismiss the remaining co-plaintiff’s claim, the co-plaintiff would be relegated to the state court. Separate trials in separate courts involving common questions of law and fact arising out of the same transaction and directed against the same defendant would result. Such a result runs contrary to the judicial economy, convenience and fairness to litigants rationale supporting ancillary jurisdiction decisions. On the other hand, neither the federal jurisdictional statutes nor the prohibition against aggregating of amounts claimed is vitiated by permitting a properly joined co-plaintiff to remain in federal court. Jurisdiction in such situations does not come from the joinder Rules, but rather, as is the theory in ancillary jurisdiction cases, from the. fact that a plaintiff is, without the necessity of joinder, properly before the court. The jurisdictional requirements having been met by one plaintiff, those properly joined- should be permitted to litigate their claims in the same action.

The reasons and underlying considerations behind the jurisdictional amount requirement further indicate a resolution of this issue in favor of permitting the joined plaintiff’s claim to remain along with the claim of the plaintiff over whom the court’s jurisdiction clearly attaches. The jurisdictional amount requirement, as most limitations on federal jurisdiction, was intended to reduce the burden on federal courts and to avoid further encroachments on state courts. These purposes are in no way disserved by retaining the additional plaintiff in this case. This court must try this ease in its entirety, with or without the presence of the additional plaintiff. Inclusion of the additional plaintiff’s claim could in no way substantially increase the burden of this court in this case. Secondly, rather than being an encroachment, the disposition of this claim would be a service to the generally overburdened state court. The state *908 could would be relieved from trying the lesser of two identical claims.

Basically law is common sense.

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

Related

Untracht v. Fikri
368 F. Supp. 2d 409 (W.D. Pennsylvania, 2005)
Mutuelle Generale Francaise Vie v. Life Assurance Co.
688 F. Supp. 386 (N.D. Illinois, 1988)
Pittsburgh National Bank v. Welton Becket Associates
601 F. Supp. 887 (W.D. Pennsylvania, 1985)
Hall v. Commissioner
1984 T.C. Memo. 437 (U.S. Tax Court, 1984)
United States v. City of Philadelphia
644 F.2d 187 (Third Circuit, 1980)
Stamm v. Trigg
368 F. Supp. 83 (N.D. Ohio, 1973)
Moor v. County of Alameda
411 U.S. 693 (Supreme Court, 1973)
H. Keith Zahn v. International Paper Company
469 F.2d 1033 (Second Circuit, 1972)
Eidschun v. Pierce
335 F. Supp. 603 (S.D. Iowa, 1971)
Robison v. Castello
331 F. Supp. 667 (E.D. Louisiana, 1971)
Ciaramitaro v. Woods
324 F. Supp. 1388 (E.D. Michigan, 1971)
Katin v. Apollo Savings
318 F. Supp. 1055 (N.D. Illinois, 1970)
Hylte Bruks Aktiebolag v. Babcock & Wilcox Co.
305 F. Supp. 803 (S.D. New York, 1969)
Rompe v. Yablon
277 F. Supp. 662 (S.D. New York, 1967)
Lucas v. Seagrave Corporation
277 F. Supp. 338 (D. Minnesota, 1967)
Dixon v. Northwestern National Bank of Minneapolis
276 F. Supp. 96 (D. Minnesota, 1967)

Cite This Page — Counsel Stack

Bluebook (online)
261 F. Supp. 905, 10 Fed. R. Serv. 2d 537, 1966 U.S. Dist. LEXIS 7612, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johns-manville-sales-corp-v-chicago-title-trust-co-ilnd-1966.