Lincoln Mine Operating Co. v. Manufacturers Trust Co.

17 F. Supp. 499, 1936 U.S. Dist. LEXIS 1814
CourtDistrict Court, D. Idaho
DecidedNovember 27, 1936
DocketNo. 1953
StatusPublished
Cited by2 cases

This text of 17 F. Supp. 499 (Lincoln Mine Operating Co. v. Manufacturers Trust Co.) is published on Counsel Stack Legal Research, covering District Court, D. Idaho primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lincoln Mine Operating Co. v. Manufacturers Trust Co., 17 F. Supp. 499, 1936 U.S. Dist. LEXIS 1814 (D. Idaho 1936).

Opinion

CAVAN AH, District Judge.

This case is now before the court on plaintiff’s motion to remand in which it is urged:

1. That the record was not entered in this court within thirty days of the filing of the petition, as petition was filed on July 17, 1936, and the record entered August 24, 1936.

2. A diversity of citizenship does not appear as the plaintiff and Fred Turner, one of the defendants, are citizens and residents of Idaho. The petition for removal was filed on July 17, 1936, and the record entered in this court on August 24, 1936, more than thirty days from the time of the filing of the petition for removal. From the showing in connection with the delay in entering the record within the proper time, made by the defendant Manur facturers Trust Company, it appears that the time for the hearing of the application for an order of removal before the state District Judge was postponed from July 27, 1936, until August 3, 1936, at the request of counsel for the plaintiff, and at which time order of removal was made by the state District Judge. On August 3, 1936, counsel for the defendant Manufac[500]*500turers Trust Company ordered from the clerk of the state District Court certified copy of the record and on August 7, 1936, sent to the clerk a form of certificate to be used in certifying the record and thereafter on August 24, 1936, the clerk returns and transmits the record to the clerk of this court.

In the affidavit of the clerk of'the state District Court it is stated that she, on August 4, 1936, was requested by counsel for the defendant Manufacturers Trust Company for a certified copy of the record, and at that time she not being familiar with the preparation of the removal records, did on August 7, 1936, request counsel for the defendant Manufacturers Trust Company to prepare the necessary certificate of the record and on account of being required by law, as clerk, to perform services in connection with the state primary election on August 11, 1936, she did not complete the preparation of the record until August 21, 1936, and on August 22, 1936, she mailed the record to the clerk of this court, which was received and filed August 24, 1936. While promptness should be insisted upon by the courts in entering records on removal, yet, where as is shown here, the short delay was not due to inadvertence of counsel applying for the removal, but was caused by the clerk in not being able to certify the record in time, such showing is a sufficient justification for not complying with the statute and the request to file the record is granted.

The second contention that diversity of citizenship does not appear as it is’ urged that the plaintiff and one of the defendants, Fred Turner, are citizens and residents of Idaho, and that all defendants must be nonresidents of Idaho. Kiefer v. Idaho Falls (D.C.) 19 F.(2d) 538. Undoubtedly this is the correct rule if supported by the record. The nature of the action is one brought by the plaintiff, an Idaho corporation, to recover of the defendant Manufacturers Trust Company, a New York corporation, and the defendant Turner, a resident and citizen of Idaho, and the defendant Lewis, a resident and citizen of New York, certain personal property or for the sum of $55,000, the value thereof in case a delivery cannot be had and damages for its detention. The petition for removal states that the citizenship of the parties as thus stated, and that the defendant Turner has no interest in the controversy or makes any claim in or possession of the property other than as an employee of the Huron Holding Corporation, a New York corporation, and that any controversy between the defendant Turner and the plaintiff is separable and unconnected with any controversy between the plaintiff and the defendant Manufacturers Trust Company, and therefore is a controversy between citizens and residents of different states. .The defendant Turner filed on July 17, 1936, .a sworn disclaimer in which he disclaimed any right or title to or in the property involved. In the affidavit of James L. Fozzard it appears that the defendant Manufacturers Trust Company did not, after February 9, 1932, employ the defendant Turner for any purpose, but the plaintiff asserts that although there appears by the complaint, the petition for removal and affidavits, a diversity of citizenship as between it and the defendant Manufacturers Trust Company, yet there is no showing of a separable controversy between diverse citizens. To determine these contentions, it becomes necessary to first consider the controlling question on the motion to remand which is, Does the verified petition for removal allege facts showing that the defendant Turner, a resident and citizen of Idaho, was joined with the nonresident defendant Manufacturers Trust Company as a fraudulent device to prevent removal, and when so alleged by verifie"d petition must the facts therein stated be accepted as true, unless the plaintiff by its motion to remand, by plea or answer, traverse such allegation of the petition and meets the facts set forth therein, and in the affidavits filed by the defendant Manufacturers Trust Company, and failure to take issue with them, is it deemed to have assented to the truth of what is stated in the petition, and is proof to sustain it required by the petitioning defendant? The answer to this inquiry is furnished by the Supreme Court in the case of Wilson v. Republic Iron & Steel Company et al., 257 U.S. 92, 42 S.Ct. 35, 37, 66 L.Ed. 144, wherein Mr. Justice VanDevanter lays down the rule: “A civil case, at law or in equity, presenting a controversy between citizens of different states and involving the requisite jurisdictional amount, is one which may be removed from a state court into the District Court of the United States by the defendant, if not a resident of the state in which the case is brought (section 28, Judicial Code [28 U.S.C.A. § 71]); and this right of removal cannot be defeated by a fraudu[501]*501lent joinder of a resident defendant having no real connection with the controversy (Wecker v. National Enameling & Stamping Co., 204 U.S. 176, 185, 186, 27 S.Ct. 184, 51 L.Ed. 430, 9 Ann.Cas. 757). If in such a case a resident defendant is joined, the joinder, although fair upon its face, may be shown by a petition for removal to be only a sham or fraudulent device to prevent a removal; but the showing must consist of a statement of facts rightly leading to that conclusion apart from the pleader’s deductions. Chesapeake & Ohio Ry. Co. v. Cockrell, 232 U.S. 146, 152, 34 S.Ct. 278, 58 L.Ed. 544. The petition must be verified (section 29, Judicial Code [28 U.S.C.A. § 72]), and its statements must be taken by the state court as true (Illinois Central R. R. Co. v. Sheegog, 215 U.S. 308, 316, 30 S.Ct. 101, 54 L.Ed. 208). If a removal is effected, the plaintiff may, by a motion to remand, plea, or answer, take issue with the statements in the petition. If he does, the issues so arising must be heard and determined by the District Court (Stone v. South Carolina, 117 U.S. 430, 432, 6 S.Ct. 799, 29 L.Ed. 962; Chicago, Rock Island & Pacific Ry. Co. v. Dowell, 229 U.S. 102, 113, 33 S.Ct. 684, 57 L.Ed.

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Cite This Page — Counsel Stack

Bluebook (online)
17 F. Supp. 499, 1936 U.S. Dist. LEXIS 1814, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lincoln-mine-operating-co-v-manufacturers-trust-co-idd-1936.