Moore v. MacKinac County Board of Road Commissioners

688 F. Supp. 308, 1988 WL 73544
CourtDistrict Court, W.D. Michigan
DecidedJune 15, 1988
Docket1:15-cr-00003
StatusPublished

This text of 688 F. Supp. 308 (Moore v. MacKinac County Board of Road Commissioners) is published on Counsel Stack Legal Research, covering District Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Moore v. MacKinac County Board of Road Commissioners, 688 F. Supp. 308, 1988 WL 73544 (W.D. Mich. 1988).

Opinion

OPINION

BELL, District Judge.

Before this Court is a motion of Defendant Mackinac County Board of Road Commissioners (Mackinac) to dismiss Plaintiff William J. Moore’s (Moore) complaint for lack of subject matter jurisdiction. Macki *309 nac claims that diversity jurisdiction was improperly manufactured for this Court by inappropriately joining Moore as personal representative in this wrongful death action because of his diverse state citizenship.

BACKGROUND

This wrongful death action arises out of an automobile accident that occurred in Mackinac County, Michigan, on September 22, 1986, when the car in which plaintiff’s decedent was a passenger ran a stop sign and was hit by a Mackinac County Road Commission vehicle. The deceased died intestate. The deceased, her father, and other survivors were all Michigan residents. The drivers and owners of the vehicles involved were all Michigan citizens. The deceased’s father was appointed administrator of the estate and temporary personal representative of the estate on October 8, 1986, and then permanent representative on October 21, 1986. Except for this present wrongful death action, the father fully administered the estate. The father sought discovery through the probate court to explore the possibility of a wrongful death action. Later, the father petitioned the probate court to withdraw as permanent personal representative and requested the appointment of William J. Moore, a citizen of Illinois, as the permanent personal representative. On December 28, 1986, the probate court granted the father’s request. Within a month Moore, as personal representative, brought this present action in this court alleging diversity jurisdiction under 28 U.S.C. § 1332(a)(1) by relying on his Illinois citizenship.

Defendant Mackinac asserts that this Court lacks subject matter jurisdiction to hear Plaintiff’s complaint because Plaintiff Moore was improperly appointed as the personal representative merely to manufacture diversity jurisdiction. Plaintiff Moore contends that his appointment as a nonresident fiduciary personal representative is entirely valid and confers subject matter jurisdiction upon this Court.

ANALYSIS

The issue now before this Court is whether this Court has subject matter jurisdiction by reason of diversity of citizenship where Plaintiff is alleged to have been collusively appointed as personal representative expressly to create diversity.

This Court acknowledges that diversity jurisdiction under 28 U.S.C. § 1332(a)(1) may be predicated upon the citizenship of a foreign personal representative who is a real party in interest. Mecom v. Fitzsimmons Drilling Co., Inc., 284 U.S. 183, 52 S.Ct. 84, 76 L.Ed.2d 233 (1931), Deposit Guaranty Bank and Trust v. Burton, 380 F.2d 346 (6th Cir.1967). However, Congress qualified this jurisdictional grant by enacting 28 U.S.C. § 1359 to insure litigation only of cases based upon authentic diversity jurisdiction. Specifically 28 U.S.C. § 1359 provides:

A district court shall not have jurisdiction of a civil action in which any party, by assignment or otherwise, has been improperly or collusively made or joined to invoke the jurisdiction such court.

Federal appellate case law has consistently recognized Congress’ intent when interpreting § 1359.

By enacting Sec. 1359, Congress sought to assure that ordinary contract and tort litigation is not diverted to the Federal Courts by litigants using devices to create the appearance, but not the substance, of Federal diversity jurisdiction.... The courts of appeal have interpreted Sec. 1359 to limit the scope of Sec. 1332 in case involving administrators and guardians appointed for the apparent purpose of creating diversity of citizenship.... These courts have concluded that the appointment of an administrator with diverse citizenship is not dispositive of the jurisdictional question, even if the representative has the power to sue in his own name.... These decisions are premised upon the need to assure that the federal courts consider only those “cases that ‘really and substantially’ involve a dispute within the jurisdiction of the federal courts” by assuring that the federal courts do not assume jurisdiction when the dispute is local, rather interstate, in character .... *310 Thus, these courts have concluded that a “party ... has been improperly or collusively made or joined ...” 28 U.S.C. Sec. 1359, when the primary aim of the transaction or appointment is to manufacture federal jurisdiction, (citations omitted)

Gross v. Hougland, 712 F.2d 1034, 1038 (6th Cir.1983). Clearly the Sixth Circuit prohibits appointment of a nonresident personal representative merely to manufacture diversity jurisdiction. See also Kramer v. Caribbean Mills, 394 U.S. 823, 89 S.Ct. 1487, 23 L.Ed.2d 9 (1969); Messer v. American Gems, 612 F.2d 1367 (4th Cir.1980) ce rt. denied 446 U.S. 956, 100 S.Ct. 2927, 64 L.Ed.2d 815 (1980); Betar v. De Havilland Aircraft of Cananda, Ltd., 603 F.2d 30 (7th Cir.1979) cert. denied 444 U.S. 1098, 100 S.Ct. 1064, 62 L.Ed.2d 785 (1980).

The court in Gross also suggested factors to consider in applying § 1359:

In the context of Sec. 1359, the plaintiff must show that the primary purpose for the appointment of the fiduciary is not to manufacture diversity of citizenship.... We emphasize, however, that the subjective purpose of the party procuring the appointment is not the sole factor in this inquiry.... In the course of such an inquiry, several factors may be material: the court should consider, among other things, whether the fiduciary has duties other than prosecuting the lawsuit ... whether the fiduciary is the “natural” representative ... whether the appointment was in fact motivated by a desire to create diversity jurisdiction ... and whether the suit is local in character, (citations omitted)

Gross, at 1038, 1039.

In summary the Plaintiff has the burden to establish that the primary purpose for the appointment of a nonresident personal representative was not to manufacture diversity jurisdiction.

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Bluebook (online)
688 F. Supp. 308, 1988 WL 73544, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moore-v-mackinac-county-board-of-road-commissioners-miwd-1988.