Lohman v. General American Life Insurance

478 F.2d 719, 17 Fed. R. Serv. 2d 377
CourtCourt of Appeals for the Eighth Circuit
DecidedApril 20, 1973
DocketNo. 72-1123
StatusPublished
Cited by1 cases

This text of 478 F.2d 719 (Lohman v. General American Life Insurance) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lohman v. General American Life Insurance, 478 F.2d 719, 17 Fed. R. Serv. 2d 377 (8th Cir. 1973).

Opinion

DURFEE, Senior Judge.

This is an appeal from a judgment of the United States District Court for the District of South Dakota, Northern Division, in favor of plaintiff-appellee, Gloria M. Lohman, and the additional defendant-appellees, Federal Deposit Insurance Corporation and Federal Deposit Insurance Company as Statutory Receiver of Cedar Vale National Bank, and against defendant-appellant, General American Life Insurance Company.

The action was' brought by Gloria Lohman as plaintiff on a double indemnity policy of insurance issued by defendant-appellant on the life of her deceased husband, William D. Lohman.

The FDIC had notified defendant it claimed the principal sum. When the case was removed from a state court to a Federal court, the FDIC was made a party by interpleader and the sum of $100,000.00 plus accrued interest was paid into court.

The FDIC counterclaimed against plaintiff to collect approximately $1.5 million in bogus notes at Cedar Vale National Bank in Kansas, alleging plaintiff and her husband were parties to the fraud, and that the entire estate was liable therefor. The FDIC also cross-claimed against defendant praying that the court impress a “constructive equitable trust” in its favor, and grant judgment for all funds owing under the insurance policy issued by defendant.

At the trial, the only issue for the jury was whether Lohman’s death was accidental. The jury found that the death was accidental, and judgment was entered against defendant-appellant on the verdict. We affirm.

Before discussing the facts and merits of the case, we shall deal with a procedural question raised by appellant as the first issue of its appeal.

After a dismissal of plaintiff’s ease by order of April 16, 1971, of the District Court, plaintiff filed notice of appeal with this court, which dismissed the appeal by order of June 15, 1971, on motion by defendant, plaintiff having failed to perfect her appeal pursuant to Rule 30(b), Federal Rules of Appellate Procedure and local Rules 8 and 13. Thereafter, plaintiff filed a motion in the District Court to amend the order of the District Court dismissing her complaint so that she could reinstate her case. On October 15, 1971, the trial court made findings of fact as to the rights of plaintiff to maintain her action, and concluded that its prior order of dismissal was void under Rule 60(b)(4) Federal Rules of Civil Procedure, and that: “Gloria M. Lohman’s original status as plaintiff in this action, be, and it is hereby shown and established as having had continuous existence since the time this action was commenced.”

Appellant submits (1) that the District Court was without jurisdiction to act under Rule 60(b) upon plaintiff’s motion to amend that court’s order dismissing the complaint; (2) that the [722]*722District Court did not have the power to “deviate” from this court’s prior mandate of dismissal of the appeal when permission to proceed was not obtained from the Eighth Circuit Court of Appeals; and (3) that the District Court erred in holding that its previous order of dismissal under Rules 37 and 41(b) was void under Rule 6^(b)(4), Federal Rules of Civil Procedure. We deal with these arguments in the order presented.

For its proposition that the District Court was without jurisdiction to act under Rule 60(b), appellant relies chiefly upon Thornton v. Carter, 109 F.2d 316, 320 (8th Cir. 1940) where Judge Sanborn said, as to a decision by this court on appeal with remand to the District Court:

A mandate is completely controlling as to all matters within its compass, but on remand the trial court is free to pass upon any issue which was not expressly or impliedly disposed of on appeal. (Footnote omitted). Since, however, a final judgment upon the merits concludes the parties as to all issues which were or could have been decided (Guettel v. United States, 8th Cir., 95 F.2d 229, 230, 118 A.L.R. 1060 and cases cited), it is obvious that such a judgment of this court on appeal puts all such issues out of the reach of the trial court on the remand of the case. * * * [Emphasis supplied].

Appellant argues that the former decision of this court dismissing plaintiff’s appeal was a final judgment on the merits, and therefore the District Court was without jurisdiction further to consider any issues.

First of all, it is clear that the District Court’s initial decision was not a judgment on the merits. Even if this appellate court had fully considered the initial decision of the trial court, we in turn would not have been rendering a final judgment on the merits.

Rule 41(b) Provides:

Unless the Court in its order for dismissal otherwise specifies, a dismissal under this subdivision and any dismissal not provided for in this rule * operates as an adjudication upon the merits. [Emphasis supplied].

The District Court in its order for dismissal did “otherwise specify” by finding that plaintiff had failed to comply with the court’s order to compel plaintiff to answer interrogatories, as ordered pursuant to Rules 37 and 41(b) of the Federal Rules of Civil Procedure.

A similar situation was presented in Madden v. Perry, 264 F.2d 169, 175 (7th Cir. 1959) where the court said:

We hold that, under Rule 41(b), Judge Perry, having in the order for dismissal specified the grounds therefor, which, as to the locals (Unions) did not involve the merits of the case, the dismissal order does not operate as an adjudication upon the merits.

When the appeal from the dismissal first came to this court, we did not even go so far as to consider the grounds for the dismissal. This court ordered dismissal of the appeal on the technical ground urged in motion by General American.1 Dismissal on this technical ground can hardly be considered a “final judgment on the merits” as required by Thornton, supra. The mandate of this court dismissing plaintiff’s appeal neither “encompassed” nor “disposed of” any of the issues subsequently considered by the District Court.

Appellant’s reliance on Butcher & Sherrerd v. Welsh, 206 F.2d 259 (3rd Cir. 1953), cert. denied, Alker v. Butcher & Sherrerd, 346 U.S. 925, 74 S.Ct. 312, 98 L.Ed. 418, reh. denied, 347 U.S. 924, 74 S.Ct. 513, 98 L.Ed. 1078, reh. denied, [723]*723347 U.S. 940, 74 S.Ct. 626, 98 L.Ed. 1089, reh. denied, 348 U.S. 939, 75 S.Ct. 354, 99 L.Ed. 736, vacated on other grounds 223 F.2d 262 (3rd Cir.), is misplaced. In that case there was an initial decision on the merits by the trial court and the trial court’s judgment was affirmed on the merits, 151 F.2d 907 (3rd Cir. 1945). The case of Tribble v.

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478 F.2d 719, 17 Fed. R. Serv. 2d 377, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lohman-v-general-american-life-insurance-ca8-1973.