Pauley v. Pauley

58 F.R.D. 386, 17 Fed. R. Serv. 2d 653, 1972 U.S. Dist. LEXIS 10614
CourtDistrict Court, D. Maryland
DecidedDecember 20, 1972
DocketCiv. No. 73-778-Y
StatusPublished
Cited by4 cases

This text of 58 F.R.D. 386 (Pauley v. Pauley) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pauley v. Pauley, 58 F.R.D. 386, 17 Fed. R. Serv. 2d 653, 1972 U.S. Dist. LEXIS 10614 (D. Md. 1972).

Opinion

MEMORANDUM OPINION AND ORDER

JOSEPH H. YOUNG, District Judge.

Michael Hatfield, while operating the vehicle of defendant Fannie Pauley in anticipation of purchase, was involved in an accident with resulting injuries to George Curtis Pauley, Jr., a passenger and grandson of defendant. Pauley, Jr., by his father and next friend, George Curtis Pauley, Sr., has sued defendant [387]*387on the theory of respondeat superior, contending that Hatfield operated the vehicle negligently while acting as an agent of the defendant.

Defendant has moved to dismiss the complaint alleging a lack of diversity jurisdiction and the failure of plaintiffs to join Hatfield as a necessary party under Rule 19, Federal Rules of Civil Procedure, the latter more properly stated as “indispensable” party.

I.

It was undisputed at the hearing that the plaintiff, Pauley, Sr., is domiciled in Maryland and defendant Pauley in West Virginia. Pauley, Sr. has presented the Court with a copy of a divorce decree showing that he retains custody over his son. Thus, Pauley, Jr. must be presumed domiciled in Maryland. Bergen v. Bergen, 439 F.2d 1008 (3rd Cir. 1971), cf. Ziady v. Curley, 396 F.2d 873 (4th Cir. 1968). His attendance at school in West Virginia does not affect this conclusion. See Bell v. Milsak, 106 F.Supp. 219 (W.D.La.1952). There is nothing in the record to indicate that he is “emancipated,” distinguishing the case of Appelt v. Whitty, 286 F.2d 135 (7th Cir. 1961), or that he intends to reside permanently in West Virginia, see Texas v. Florida, 306 U.S. 398, 59 S.Ct. 563, 83 L.Ed. 817 (1939), Helvering v. Campbell, 139 F.2d 865 (4th Cir. 1944). Based upon the unrebutted presumption, plaintiffs properly invoke diversity jurisdiction.

II.

Relying on Federal Rules of Civil Procedure 19 and 12(b)(7), defendant moves to dismiss because Michael Hatfield has not been joined and is not subject to personal jurisdiction.

The issue of personal jurisdiction is governed by state law. Arrow-smith v. United Press International, 320 F.2d 219 (2nd Cir. 1963). It is clear that under Maryland law, this Court lacks jurisdiction over West Virginia resident Hatfield. Maryland Annotated Code, Article 75, § 96. See Piracci v. New York City Employers’ Retirement System, 321 F.Supp. 1067 (D.Md.1971), Lawson v. Baltimore Paint and Chemical Corp., 298 F.Supp. 373 (D.Md.1969).

If, therefore, it is determined that Hatfield is an “indispensable party,” the suit must be dismissed or transferred. This involves broad considerations of equity and, more specifically, the considerations detailed in Provident Tradesmens Bank and Trust Co. v. Patterson, 390 U.S. 102, 88 S.Ct. 733, 19 L. Ed.2d 936 (1968).

First, the plaintiffs have a legitimate interest that a forum be available. But as will be shown, West Virginia is an obvious alternative.

Secondly, the defendant may properly wish to avoid multiple litigation, or inconsistent relief, or sole responsibility for liability shared with another. That there may be multiple litigation follows from the fact that if plaintiffs succeed, the next step is for defendant to sue Hatfield in West Virginia for indemnity. The theory that an actively negligent agent must indemnify his technically liable principal is deeply rooted in the common law. See United States v. Gilman, 347 U.S. 507, 74 S.Ct. 695, 98 L.Ed. 898 (1954), General Dynamics Corp. v. Adams, 340 F.2d 271 (5th Cir. 1965), Canadian Indemnity Co. v. United States Fidelity & Guarantee Co., 213 F.2d 658 (9th Cir. 1954), cf. Wallenius Bremen G.m.b.H. v. United States, 409 F.2d 994 (4th Cir. 1969), 42 C.J.S. Indemnity § 21. The possibility of inconsistent relief or sole responsibility for a shared obligation is derived from the inapplicability of collateral estoppel to Hatfield. The latter, not having had his day in court, his opportunity to present evidence, cross-examine witnesses, and generally conduct the trial, would not be barred from defending. [388]*388Thus, in several cases involving successful suits against owners of cars, the agents have not been foreclosed from either defending suits against themselves or prosecuting countersuits against the original plaintiffs. Makariw v. Rinard, 336 F.2d 333 (3rd Cir. 1964), Maekris v. Murray, 397 F.2d 74 (6th Cir. 1968), see also Graves v. Associated Transport, Inc., 344 F.2d 894 (4th Cir. 1965). The West Virginia Supreme Court of Appeals, whose law would apply, is also insistent that there should be no collateral estoppel in such a case. That Court emphasized in addition the problems of collusion between a plaintiff and defendant owner in a family dispute. Gentry v. Farruggia, 132 W.Va. 809, 53 S.E.2d 741 (1949), Barnett v. Wolfolk, 149 W.Va. '246, 140 S.E.2d 466 (1965). Thus, Hatfield might defend successfully, leading to the anomalous conclusion that while Hatfield is found free of negligence, defendant here would be liable based on a finding of Hatfield’s negligence. Rule 19 was designed to avoid such illogical results.

Thirdly, Hatfield’s absence as a party could prejudice his defense as a practical matter despite there being no collateral estoppel. An argument could be made that Hatfield should be bound for bypassing an adequate opportunity to intervene. This, however, is unpersuasive as an indirect way of expanding the Court’s in personam jurisdiction. There remains the elusive problem of whether Hatfield would be prejudiced by having to defend a subsequent indemnity suit rather than participating in a complete lawsuit. He would lose whatever aid the defendant here might afford him, and the lapse of time could make trial preparation more difficult. Although speculative, there is some chance of prejudice.

Fourthly, a paramount determinant of Rule 19 motions must be the efficient, complete and equitable adjudication of a multiparty lawsuit. A court in West Virginia could fairly and completely resolve all issues relevant to this lawsuit between all interested parties. This includes the problem of indemnity and any claim Hatfield might make. The accident having occurred in West Virginia, it is equitable for plaintiffs to try the suit there. Pauley, Jr.’s attendance at school in West Virginia reinforces this inference.

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Bluebook (online)
58 F.R.D. 386, 17 Fed. R. Serv. 2d 653, 1972 U.S. Dist. LEXIS 10614, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pauley-v-pauley-mdd-1972.