Keckley v. Payton

157 F. Supp. 820, 1958 U.S. Dist. LEXIS 2852
CourtDistrict Court, N.D. West Virginia
DecidedJanuary 15, 1958
Docket535-F and 536-F
StatusPublished
Cited by5 cases

This text of 157 F. Supp. 820 (Keckley v. Payton) is published on Counsel Stack Legal Research, covering District Court, N.D. West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Keckley v. Payton, 157 F. Supp. 820, 1958 U.S. Dist. LEXIS 2852 (N.D.W. Va. 1958).

Opinion

HARRY E. WATKINS, Chief Judge.

These two actions were filed by the plaintiffs, who are husband and wife, for personal injuries to the wife alleged to have been sustained in an automobile collision on June 26, 1956. These separate actions were instituted on June 20, 1957, along with a third action on behalf of plaintiffs’ infant son, and the three cases have been consolidated for trial? Defendant filed answers in all three cases, and counterclaims in these two actions, on July 31, 1957. The counterclaims are for personal injuries alleged to have been suffered in the same collision. Plaintiffs have moved to dismiss the counterclaims on the ground that they are barred by West Virginia Code, Chapter 55, Article 2, Section 12, a one-year statute of limitations. Defendant contends the statute was tolled by the institution of plaintiffs’ actions.

The jurisdiction of this Court in this case is based upon a diversity of citizenship, and West Virginia sub *822 stantive law must be followed. The precise point at issue here has never been considered by the West Virginia Supreme Court of Appeals, since counterclaims are not used in West Virginia practice, and matters of this nature are raised only by cross-suits in the state courts. Looking to analogous cases decided by the West Virginia Supreme Court, however, I conclude that defendant’s counterclaims are barred by the statute and the counterclaims must be dismissed.

It is clear that if the matters raised by defendant’s counterclaims were made the subject of original actions on July 31, 1957, the one-year statute would have barred the actions. It is not contended here by defendant that the statute does not apply merely because the claims took the form of counterclaims. In fact, the weight of authority holds that unless a set-off or counterclaim takes the form of recoupment, which is not the case in this tort action, the statute of limitations applies as much to a set-off or counterclaim as to an original action. See an annotation in 1 A.L.R.2d 634, for cases so holding from thirty-six states. There is a clear split of authority, however, as to whether the statute is tolled by the filing of plaintiff’s action before the statute has run against the counterclaim. The leading treatises indicate that the majority view is that the statute is tolled. 34 Am.Jur., Limitation of Actions, § 249, page 205; 54 C.J.S. Limitations of Actions § 285, p. 342; Annotation, 127 A.L.R. 909.

Defendant adverts to cases involving compulsory counterclaims in which certain federal courts have adopted the majority view and held the statute of limitations to be tolled: Canned Foods, Inc., v. United States, Ct.Cl.1956, 140 F.Supp. 771, reversed in a superseding opinion on the ground that it was not a compulsory counterclaim, 146 F.Supp. 470, 135 Ct.Cl. 862; United States v. Capital Transit Co., D.C.D.C.1952, 108 F.Supp. 348; and De Vito v. Hoffman, 1952, 91 U.S.App.D.C. 263, 199 F.2d 468. All of these cases arose under federal statutes of limitation. Only the Capital Transit case involves facts which are similar to the case at bar. There the plaintiff brought an action for damages to its vehicle which had been damaged in a collision. The defendant counterclaimed for damages to its vehicle arising out of the same collision although the two-year statute of limitations on such claims had run before plaintiff instituted its suit. The court noted that the counterclaim was filed under the Federal Tort Claims Act, 28 U.S.C.A. .§ 2401(b), which statute was to be liberally construed, and held the statute of limitations part of the Act was waived when the United States filed its action. The case has been expressly rejected by at least four district courts in later decisions, all of which involved vehicle collisions: United States v. W. H. Pollard Co., D.C.N.D.Cal.1954, 124 F.Supp. 495; United States v. Webb Trucking Co., D.C.Del.1956, 141 F.Supp. 573; United States v. Bristow, D.C.E.D.Va.1956, 142 F.Supp. 601; and United States v. Wilkes-Barre Transit Corporation, D.C.M.D.Pa., 143 F.Supp. 413. United States v. Gates Service Corporation, D.C.E.D.N.Y.1956, 145 F.Supp. 109, is also contrary to the view of the Capital Transit case.

It is contended by defendant that inasmuch as the statute of limitations affects only the remedy and not the right, and since the remedy of counterclaim is granted by the Federal Rules of Civil Procedure, rule 13, 28 U.S.C.A., this case presents a procedural question and the federal cases cited by him, supra, should be followed. No cases are cited to support such a view of the statute of limitations, and I find no merit in this argument. The statute of limitations involves a matter of substantive law. United States v. Gates Service Corporation, supra, 145 F.Supp. at page 110. Where one is barred from recovery in the state court, he is likewise barred in the federal court. Guaranty Trust Co. of New York v. York, 1945, 326 U.S. 99, 65 S.Ct. 1464, 89 L.Ed. 2079, rehearing denied 326 U.S. 806, 66 S.Ct. 7, 90 L.Ed. *823 491; Ragan v. Merchants Transfer Co., 1949, 337 U.S. 530, 69 S.Ct. 1233, 93 L.Ed. 1520, rehearing denied 338 U.S. 839, 70 S.Ct. 33, 94 L.Ed. 513. Rule 13 of the Federal Rules of Civil Procedure, which permits counterclaims, has no application to a counterclaim that is barred by the statute of limitations. Sullivan v. Hoover, D.C.D.C.1947, 6 F.R.D. 513, 514.

Taking the issue for determination in this case as a question of substantive law, then, the West Virginia Supreme Court has ruled on a quite similar problem. The treatises cited above, 34 Am. Jur., at page 205, 54 C.J.S. at page 343, and 127 A.L.R. at page 914, all agree that West Virginia is a state which adopts the minority view as to the tolling of the statute of limitations on a counterclaim nr set-off by the institution of plaintiffs’ suit. As stated by the author of the A. L.R. Annotation:

“In a few jurisdictions the courts have adopted the view that the running of the statute of limitations against a setoff or counterclaim is not interrupted by the bringing of the action in which it is subsequently interposed but continues until the setoff or counterclaim is actually pleaded, * *

For this proposition, the following West Virginia decisions are cited: Hurst’s Adm’r v. Hite, 20 W.Va. 183; Rowan v. Chenoweth, 49 W.Va. 287, 38 S.E. 544; Boyd v. Beebe, 64 W.Va. 216, 61 S.E. 304, 17 L.R.A.,N.S., 660. These cases involved set-offs of matters arising out of different transactions from that sued on by the various plaintiffs in those cases. Defendant mentions Boyd v. Beebe, supra, in his brief, but urges that the case is distinguishable from the present action because the main action and the set-offs had different origins. Plaintiffs agree with this view in their brief.

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Bluebook (online)
157 F. Supp. 820, 1958 U.S. Dist. LEXIS 2852, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keckley-v-payton-wvnd-1958.