Myers v. Hertz Penske Truck Leasing, Inc.

572 F. Supp. 500, 1983 U.S. Dist. LEXIS 13552
CourtDistrict Court, N.D. Georgia
DecidedSeptember 21, 1983
DocketCiv. A. C82-2958A
StatusPublished
Cited by9 cases

This text of 572 F. Supp. 500 (Myers v. Hertz Penske Truck Leasing, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Myers v. Hertz Penske Truck Leasing, Inc., 572 F. Supp. 500, 1983 U.S. Dist. LEXIS 13552 (N.D. Ga. 1983).

Opinion

ORDER

FORRESTER, District Judge.

This action is before the court on two motions. Plaintiff asks that he be allowed to dismiss, without prejudice, his cause of action in this court. Defendant opposes this motion and asks that the court enjoin the plaintiff from prosecuting an action filed in the Superior Court of Fulton County, Georgia.

Plaintiff, a resident of Ohio, originally filed this action for malicious prosecution against the defendant, a Delaware Corporation, in the Superior Court of Fulton County, Georgia, where the cause of action arose. Defendant properly removed the case to this court pursuant to 28 U.S.C. § 1332 and 28 U.S.C. § 1441. Plaintiff did not challenge the removal or seek remand. Instead, after several months of discovery plaintiff brought a virtually identical suit in the Superior Court of Fulton County naming as additional defendants two local employees of the defendant Hertz. Both additional defendants are residents of Georgia. Plaintiff seeks now to dismiss its federal court action and proceed in the state court system. Defendant opposes the dismissal and seeks to enjoin the state court action.

I Defendant’s Motion for an Injunction

Defendant’s opposition to the further prosecution of the state court action is founded on the argument that the addition of the two Georgia defendants would destroy its “right” to remove the action to federal court. Although complete diversity would still exist, removal is not authorized where any named defendant with a real interest in the case is a resident of the forum state. 28 U.S.C. § 1441(b). When an action is properly removed to a federal court, 28 U.S.C. § 1446(e) provides for an automatic injunction against further action in the case by the state court. Defendant argues that allowing the plaintiff to start a new action, identical in all respects save the joinder of additional parties, is inconsistent with, and would make a sham of, the removal jurisdiction of this court. Plaintiff bases his opposition to the injunction on the Anti-Injunction Act, 28 U.S.C. § 2283. He argues that this statute bars federal courts from enjoining or staying state court actions except in a few narrowly construed exceptions. The present case, he argues, is not within one of those exceptions.

There can be no doubt that the federal courts have power to enjoin a state court from further considering a case which has been properly removed. The Supreme Court has held that this injunction, provided for by 28 U.S.C. § 1446(e), falls within the class of “expressly authorized” exceptions to the Anti-Injunction Act. Toucey v. New York Life Ins. Co., 314 U.S. 118, 62 S.Ct. 139, 86 L.Ed. 100 (1941). The present case, however, does not involve an attempt by the plaintiff to continue prosecution of the same case in the state court after removal. Rather, it involves an attempt by the plaintiff to file a new action which, because it names additional defendants who are residents of the forum state, cannot be removed to federal court. The question is whether this forum-shopping maneuver of the plaintiff is also covered by the injunctive provision of 28 U.S.C. § 1446(e).

*502 The issue is a sensitive one because of the delicate relationship between the state and federal judiciaries, the growing concern about the propriety of diversity jurisdiction, and increasing public impatience with tactical legal maneuvering which only delays resolution of cases on their merits. If there were no precedents in this area this court might well deny the injunction and allow the plaintiff to dismiss his case here and pursue his remedy in the state court. However, this court is bound to follow two recent cases which have dealt with this precise issue. In Brown v. Seaboard Coast Line Railroad Co., 309 F.Supp. 48 (N.D.Ga.1969) this court dealt with an almost identical situation. After having her wrongful death action removed to federal court plaintiff had filed an identical action in the state court. The only difference between the two actions was that the second one named as an additional defendant a local employee who had been acting within the scope of his employment with the defendant railroad and whose negligence could be imputed to his employer under the doctrine of respondeat superior. The addition of the defendant employee would have destroyed diversity of citizenship. Writing for this court Judge Henderson found that the sole purpose of the second suit was to evade federal jurisdiction and held that this would have frustrated the purpose of the removal statute. Id. at 49. The plaintiff was enjoined from further prosecuting the state court suit.

The Fifth Circuit addressed the same question in Frith v. Blazon-Flexible Flyer, Inc., 512 F.2d 899 (5th Cir.1975). Citing Brown favorably the court wrote, “where a district court finds that a second suit filed in state court is an attempt to subvert the purposes of the removal statute, it is justified and authorized by § 1441(e) in enjoining the proceedings in the state court.” Id. at 901. Plaintiff has introduced no cases from this circuit which might contravene these two cases. Because both cases dealt with precisely the issue at question here this court is bound to follow them.

In ruling on defendant’s motion it is important to set out exactly what facts the court finds. The court does not find that the plaintiff’s joinder of the defendants Morrison and Tooley was fraudulent in the sense that they have absolutely no liability or are mere straw men. Were the plaintiff to sue them individually he might be able to assert a colorable cause of action against them. Also, if the plaintiff had initially joined these defendants in his first claim the ease could not have been removed because 28 U.S.C. § 1441(b) allows removal only when “none of the parties in interest properly joined and served as defendants is a citizen of the state in which such action is brought.” However, the court does not read Brown to require a showing that the joinder of the additional defendants was fraudulent in this sense. Rather, Judge Henderson appears to have looked to the purpose of the second suit, focusing on the nature of the cause of action and the damages sought. He found that the sole purpose of the second suit was “to evade federal jurisdiction, and to frustrate totally the whole purpose of the removal statute.” 309 F.Supp. at 49.

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Cite This Page — Counsel Stack

Bluebook (online)
572 F. Supp. 500, 1983 U.S. Dist. LEXIS 13552, Counsel Stack Legal Research, https://law.counselstack.com/opinion/myers-v-hertz-penske-truck-leasing-inc-gand-1983.