McMahon v. Federal Insurance

131 F. Supp. 5, 1955 U.S. Dist. LEXIS 3144
District Court, S.D. Georgia·Decided May 13, 1955·No. Civ. A. No. 718·Published·Cited by 1 cases

Opinion

SCARLETT, District Judge.

The above-entitled action was commenced in the Superior Court of Richmond County, Georgia by personal service of process upon the defendant, Federal Insurance Company, and by statutory service upon the defendant, Skinner & Ruddock, Inc., through the Secretary of State of the State of Georgia. Thereafter by petition for removal dated November 23, 1954, the defendants removed the within action from the Superior Court of Richmond County, Georgia, to this Court on the ground of diversity of citizenship and, after said removal, the defendants moved for a transfer of this case to the United States District Court for the Eastern District of South Carolina at Charleston, South Carolina on the ground that such transfer would be for the convenience of parties and of witnesses and in the interest of justice and was thus authorized by 28 U.S.C. § 1404(a). The motion of the defendants for transfer was accompanied by an affidavit of John Bell Tow-ill, Esquire, of counsel for the defendants, and by copies of papers of record in Chatham County, Georgia, indicating that on December 18, 1952 any indebtedness of the defendants to the plaintiffs growing out of certain work done by the plaintiffs in the construction of the Chatham Apartments in Savannah, Georgia had been acknowledged of record by plaintiff E. J. McMahon as having been fully paid and satisfied on said date. The force of this document was to show that claims by the plaintiffs growing out of work done by them on the Chatham Apartments were groundless. These claims, while forming only a partial basis of plaintiffs’ suit, were the only ones arising out of work done in this district.

Full hearing on this motion for transfer was had by me on April 29, 1955 at ■Brunswick, Ga., at which hearing counsel for all parties were present. At the ■ hearing counsel for the defendants, John Bell Towill, Esquire, submitted an additional affidavit supplemental to that originally accompanying the motion, and affidavits were likewise submitted by counsel for the plaintiffs, William P. Congdon, Esquire, and by E. J. McMahon, one of the plaintiffs herein. These affidavits set forth the factual circumstances surrounding the case and having a bearing on its future trial. After receiving and reviewing these affidavits, full argument on the question of transfer was made by counsel for each of the parties. From these affidavits and argu[7] ments I have drawn the following set forth findings of fact and conclusions of law:

Findings of Fact

1. I find that the within controversy involves the performance of four contracts between the plaintiffs and the defendant, Skinner & Ruddock, Inc., to wit: plumbing and heating subcontracts in the construction of the Chatham Apartments at Savannah, Ga., Spence Field at Moultrie, Ga., Malden Air Base at Malden, Mo., and the Charleston County TB Hospital at Charleston, S. C.

2. I find that the defendant, Federal Insurance Company, is liable as a surety on payment bonds given in only two of the foregoing projects, to wit, the Chatham Apartments at Savannah, Ga. and the Charleston County TB Hospital at Charleston, S. C.

3. I find that it appears of record in the Office of the Clerk of the Superior Court, Chatham County, Georgia, that on December 18, 1952 the plaintiff, E. J. McMahon, on behalf of himself and the other plaintiff herein recited that defendant Skinner & Ruddock, Inc.’s indebtedness on the Chatham Apartment job, having been paid in full, the claim of lien of plaintiffs herein on said building was cancelled. The import of this record is clear. It has not been controverted by the plaintiffs or by their counsel and, indeed, plaintiff E. J. McMahon had notice in advance of hearing that the defendants asserted that this record was conclusive that this indebtedness was satisfied, yet he made an affidavit which was submitted to me in advance of argument which affidavit did not controvert or seek to explain the purport of this record. I must accordingly assume, and I so find for the purpose of the motion here considered, that no balance is due by the defendants to the plaintiffs growing out of the Chatham Apartment construction.

4. I find that none of the contracts forming a basis of plaintiffs’ claim involved performance in this district, since the Chatham Apartments project at Savannah, Ga. is, as above-stated, controverted by the public record and apparently groundless.

5. I find that the owners of Spence Field, the Chatham Apartments and the Charleston County TB Hospital, work on all of which formed the sole basis of claim in plaintiffs’ complaint, were at the time of performance of the contracts herein and are now domiciled in Charleston, South Carolina.

6. I find that the architects on the Chatham Apartments were William G. Lyles, Carlisle, Bissett & Wolfe of Columbia, S. C., and the architects on the Charleston County TB Hospital are Simons & Lapham of Charleston, S. C. and that there were no architects on the other jobs herein involved.

7. I find that the owners of these projects or their officers and agents, as well as the architects named, are, in view of the nature of the action stated in the complaint, essential witnesses to the cause, and a transfer to Charleston, South Carolina would be necessary in order to secure their presence as witnesses by subpoena. Briefly, the testimony of these parties would concern performance, payments, back charges, extras, and completion of various contracts set forth in plaintiffs’ complaint.

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McMahon v. Federal Insurance, 131 F. Supp. 5, 1955 U.S. Dist. LEXIS 3144 (S.D. Ga. 1955).

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