Ramonita Ortiz v. United States Government v. Hospital Mimiya, Inc., Third-Party

595 F.2d 65, 27 Fed. R. Serv. 2d 692, 1979 U.S. App. LEXIS 15753
CourtCourt of Appeals for the First Circuit
DecidedOctober 6, 1979
Docket78-1321
StatusPublished
Cited by49 cases

This text of 595 F.2d 65 (Ramonita Ortiz v. United States Government v. Hospital Mimiya, Inc., Third-Party) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ramonita Ortiz v. United States Government v. Hospital Mimiya, Inc., Third-Party, 595 F.2d 65, 27 Fed. R. Serv. 2d 692, 1979 U.S. App. LEXIS 15753 (1st Cir. 1979).

Opinion

LEVIN H. CAMPBELL, Circuit Judge.

This appeal concerns the power of the district court to permit certain Puerto Rican residents, who have sued the United States for the alleged negligence of a Veterans Hospital, to add to their complaint a nonfederal tort claim 1 against Hospital Mimiya, Inc., a private institution in Puerto Rico. By the time of the proposed amendment, Hospital Mimiya had been brought into the litigation as a third-party defendant by the United States, which claimed a right of indemnification from Mimiya should the United States be found liable. The district court refused to allow plaintiffs to amend their complaint so as to sue Hospital Mimiya directly, and denied their motion for reconsideration, stating that it lacked power to exercise either ancillary or pendent jurisdiction over the proposed non-federal claim against Hospital Mimiya. 2 We hold that statutory considerations do not bar “the exercise of jurisdiction over the particular nonfederal claim” involved herein, see Owen Equipment and Erection Co. v. Kroger, 437 U.S. 365, 373, 98 S.Ct. 2396, 57 L.Ed.2d 274 (1978) and remand to the district court with directions for it to follow in determining whether Article III of the Constitution bars such exercise.

I.

Upon exhausting their administrative remedies, 28 U.S.C. § 2675, Ramonita Ortiz, et al. (hereinafter appellants) sued the United States under the Federal Tort Claims Act, 28 U.S.C. §§ 1346(b), 2671-80, 3 alleging that on January 21, 1973 appel *67 lants’ decedent was taken to the Veterans Hospital in San Juan where the employees and agents of that hospital, “failing to diagnose the seriousness of the condition, did not hospitalize or treat him, but at his wife’s insistence, referred him to Mimiya Clinic for hospitalization with a diagnosis of ‘malaria attack.’ ” Thereafter he allegedly was not given proper treatment and by the time, three days later, that he was returned to the V.A. Hospital he had allegedly sustained “permanent, irreparable damage.” Appellants also contend that the V.A. Hospital’s “referral [to Mimiya] was an authorization for admission under Veterans Administration’s instructions.” The decedent, in any event, steadily declined until he died one and one-half years later.

After suit was brought, the United States filed a third-party complaint against Hospital Mimiya seeking indemnification. This complaint, although it failed to make mention of the fact, was bottomed on an independent federal jurisdictional basis, 28 U.S.C. § 1345. 4 Thereafter, appellants unsuccessfully sought leave of court to amend their own complaint to add a negligence claim directly against Mimiya. After denying the motions to amend and for reconsideration, the district court granted appellants permission, to which we assented, to bring an interlocutory appeal, 28 U.S.C. § 1292(b), from these orders. We stayed consideration of the appeal pending the United States Supreme Court’s decision in Qwen Equipment and Erection Co. v. Kroger, which issued last June, 437 U.S. 365, 98 S.Ct. 2391, 57 L.Ed.2d 274 (1978).

While when Kroger was first called to our attention it seemed as if it might be controlling, it is now clear that its underlying facts differ significantly from those before us. In Kroger, plaintiff, a citizen of Iowa, sued defendant, a citizen of Nebraska, under the diversity statute (there were no federal claims as such). After filing a third-party complaint against Owen Equipment and Erection Company, defendant moved for summary judgment on plaintiff’s claim against it. While this motion was pending, plaintiff successfully moved to amend its complaint to add a claim against Owen. Summary judgment was thereafter rendered in defendant’s favor on the original claims, leaving only plaintiff’s claim against Owen to proceed to trial. On the third day of trial, Owen moved to dismiss for lack of subject matter jurisdiction on the ground that it was a citizen of the same state as plaintiff. The district court denied the motion and was affirmed on appeal. The Eighth Circuit reasoned that in light of United Mine Workers v. Gibbs, 383 U.S. 715, 725, 86 S.Ct. 1130, 16 L.Ed.2d 218 (1966), because plaintiff’s claims against the defendant and Owen arose out of a common nucleus of operative fact, exercise of jurisdiction over the nonfederal claim was not barred by Article III of the Constitution which defines the scope of district court jurisdiction. 5 The Supreme Court reversed, *68 holding that it would conflict with the intent of Congress as manifested in the diversity statute for the district court to exercise jurisdiction over plaintiff’s claim against Owen.

The Court said that there are two “hurdle[s] that must be overcome in determining that a federal court has jurisdiction over a particular controversy. For the jurisdiction of the federal courts is limited not only by the provisions of Art. Ill of the Constitution, but by Acts of Congress.” Kroger, 437 U.S. at 372, 98 S.Ct. at 2402. The Court went on to rule that the history of the diversity of citizenship statute, 28 U.S.C. § 1332(a)(1), “clearly demonstrates a congressional mandate that diversity jurisdiction is not to be available when any plaintiff is a citizen of the same State as any defendant.” Id. at 374, 98 S.Ct. at 2403. Since the exercise of jurisdiction over plaintiff’s claim against Owen destroyed complete diversity between the plaintiff and defendants, the claim was outside the scope of the jurisdiction conferred on federal courts by Congress in enacting the diversity statute. Id. The Court never reached the issue whether jurisdiction would have existed under Article III.

The Kroger analysis is not dispositive here since the present case was not brought under the diversity statute but rather under the Federal Tort Claims Act. Furthermore, Hospital Mimiya’s status in the case is different from Owen’s, as it is a third-party defendant under a federal jurisdictional statute. These factors point to a different analysis and, ultimately we believe, a different result, from Kroger.

In deciding whether the district court erred in ruling that it lacked judicial power to hear appellants’ claim against Hospital Mimiya, we first consider whether jurisdiction is precluded by Article III. While this question was bypassed in Kroger,

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Bluebook (online)
595 F.2d 65, 27 Fed. R. Serv. 2d 692, 1979 U.S. App. LEXIS 15753, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ramonita-ortiz-v-united-states-government-v-hospital-mimiya-inc-ca1-1979.