Port of New York Authority v. Eastern Air Lines, Inc.

259 F. Supp. 142, 1966 U.S. Dist. LEXIS 8303
CourtDistrict Court, E.D. New York
DecidedSeptember 30, 1966
Docket66-C-867
StatusPublished
Cited by13 cases

This text of 259 F. Supp. 142 (Port of New York Authority v. Eastern Air Lines, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Port of New York Authority v. Eastern Air Lines, Inc., 259 F. Supp. 142, 1966 U.S. Dist. LEXIS 8303 (E.D.N.Y. 1966).

Opinion

BARTELS, District Judge.

The Port of New York Authority, a citizen of New York, commenced this action in the Supreme Court of the State of New York against Eastern Air Lines, Inc. (Eastern), Trans World Airlines, Inc. (TWA), and United Air Lines, Inc. (United), seeking a permanent injunction against each defendant from violating certain rules and regulations adopted by Port Authority concerning the use by jet airplanes of certain runways at LaGuardia Airport, upon the ground that each of the Airlines by its unauthorized use of said runways, was guilty of repeated trespasses against Port Authority property.

On August 25, 1966 a temporary restraining order was granted by the State court ex parte which, pursuant to a stipulation, has been extended against Eastern and TWA until November 15, 1966, after which date the whole question will become moot because the Port Authority has agreed to voluntarily discontinue the action against those defendants on November 16, 1966. United did not agree to the stipulation and on September 7, 1966 removed the case to this Court purportedly in compliance with 28 U.S.C.A. § 1441(c). The complete section reads as follows:

“(a) Except as otherwise expressly provided by Act of Congress, any civil action brought in a State court of which the district courts of the United States have original jurisdiction, may be removed by the defendant or the defendants, to the district court of the United States for the district and division embracing the place where such action is pending.
(b) Any civil action of which the district courts have original jurisdiction founded on a claim or right arising under the Constitution, treaties or laws of the United States shall be removable without regard to the citizenship or residence of the parties. Any other such action shall be removable only if none of the parties in interest properly joined and served as defendants is a citizen of the State in which such action is brought.
(c) Whenever a separate and independent claim or cause of action, which would be removable if sued upon alone, is joined with one or more otherwise non-removable claims or causes of action, the entire case may be removed and the disrict court may determine all issues therein, or, in its discretion, may remand all matters not otherwise within its original jurisdiction.”

I

Port Authority seeks to remand the action to the State court upon the grounds that (1) the separate and independent claim or cause of action against United is not in the language of 28 U.S. C.A. § 1441(c) “joined with one or more otherwise non-removable claims or causes of action”, and (2) neither Eastern nor TWA joined in the removal petition. At the outset it is necessary to determine a question of fact since United claims that TWA has its principal place of business in New York and therefore must be considered a New York citizen for diversity purposes, thus converting the claim against TWA into a non-removable one. Although this contention is contrary to the finding of fact in Clothier v. United Air Lines, Inc., E.D.N.Y.1961, 196 F.Supp. 435, United argues that due to certain changes in TWA’s operations *144 which took place in 1964, that case is no longer controlling.

The affidavit and testimony of Ronald Duckworth, secretary of TWA, and the affidavit of Charles C. Tillinghast, Jr., president of TWA, assert that the principal place of business of TWA is in the City and State of New York. In support thereof Ronald Duckworth states in his affidavit and repeated in his testimony, among other things, that in 1964 many of the executives previously located in Kansas City, Missouri, were transferred to New York City; that at the present time 14 of TWA’s 16 corporate officers are located in New York City; that since 1964 most of the Transportation Division Headquarters staff has been transferred from Kansas City to New York City; that, among other things, the president, secretary, treasurer, and the management policy committee have their offices in New York, and that in addition to the change in location of the Transportation Division Headquarters staff in 1964, part of the Cash Control Section, part of the Industrial Relations Department, the Tax Department, the Contracts Administration, and the Properties and Facilities Department were also transferred from Kansas City to New York in 1964, and that out of 33,890 employees, 8,600 are employed in Kansas City and 6,908 are now employed in New York. He further testified that as a result of the changes “the management and operating control of the corporation is now centered at its executive offices in New York City”. To this Court it is clear that today the principal place of business of TWA is located in New York City, due to the changes which took place in 1964. Consequently the Court finds that the claim against United is joined with a non-removable cause of action against TWA.

II

Even if the cause of action against TWA is non-removable, the Port Authority argues that before the action can be properly removed, Section 1441(c) requires the joinder in the removal petition of the other removable claim which in this case is the claim against Eastern, and it cites Universal Surety Co. v. Manhattan Fire & Marine Insurance Co., D.S.D.1958, 157 F.Supp. 606, in support of its position. It adds that any question upon this score must be resolved in its favor. There is no doubt that the “policy of the successive acts of Congress” relating to removal “is one calling for the strict construction of such legislation”, Shamrock Oil & Gas Corp. v. Sheets, 1941, 313 U.S. 100, 108, 61 S.Ct. 868, 872, 85 L.Ed. 1214. The application of this principle, however, does not justify a distortion of the congressional purpose in the enactment in 1948 of 28 U.S.C.A. § 1441(c), which in fact, was a revision of the former 28 U.S.C.A. § 71. Before the revision, Section 71 provided that either one or more defendants interested in a controversy wholly between citizens of different States, could remove the cause if the controversy between that defendant or defendants was “separable”. Under this concept a suit covering multiple parties, based upon a single cause of action, might contain separable controversies and thus permit the removal of the entire suit. The 1948 amendment of Section 1441(c) no longer permits such removal by reason of a separable controversy between citizens of different States unless the controversy also constitutes a separate and independent claim or cause of action. In this respect removal from State courts was clearly limited. 1

Subdivision (a) remains unchanged and refers, as heretofore, to suits involving multiple parties predicated upon a single cause of action as well as separate and independent claims or causes of action not joined to non-removable causes. There is nothing in the wording or interpretation of subdivision (a) or in the wording of subdivision (c) indicating that Congress intended by the enactment of subdivision (c) to sub *145 ject that subdivision to the requirements of subdivision (a). The two subdivisions refer to two completely different situations. The only requirement is that the claim or cause of action be “separate and independent” and “removable if sued upon alone”.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Montana v. Abbot Laboratories
266 F. Supp. 2d 250 (D. Massachusetts, 2003)
Branch v. Coca-Cola Bottling Co. Consolidated
83 F. Supp. 2d 631 (D. South Carolina, 2000)
Jetstar Inc. v. Monarch Sales & Service Co.
652 F. Supp. 310 (D. Nevada, 1987)
Ortiz v. General Motors Acceptance Corp.
583 F. Supp. 526 (N.D. Illinois, 1984)
Killian v. Union L.P. Gas System, Inc.
568 F. Supp. 679 (W.D. Missouri, 1983)
Rembrant, Inc. v. Phillips Const. Co., Inc.
500 F. Supp. 766 (S.D. Georgia, 1980)
George Cohen Agency, Inc. v. Donald S. Perlman Agency, Inc.
69 A.D.2d 725 (Appellate Division of the Supreme Court of New York, 1979)
Reiken v. Nationwide Leisure Corp.
458 F. Supp. 179 (S.D. New York, 1978)
Melru International Ltd. v. Finnsilver Corp.
433 F. Supp. 277 (S.D. Florida, 1977)
Her Majesty Industries, Inc. v. Liberty Mutual Insurance
379 F. Supp. 658 (D. South Carolina, 1974)
Van Slambrouck v. Employers Mut. Liab. Ins. Co. of Wis.
354 F. Supp. 366 (E.D. Michigan, 1973)
U. S. Industries, Inc. v. Gregg
348 F. Supp. 1004 (D. Delaware, 1972)
Nowell v. Nowell
272 F. Supp. 298 (D. Connecticut, 1967)

Cite This Page — Counsel Stack

Bluebook (online)
259 F. Supp. 142, 1966 U.S. Dist. LEXIS 8303, Counsel Stack Legal Research, https://law.counselstack.com/opinion/port-of-new-york-authority-v-eastern-air-lines-inc-nyed-1966.