Rawls v. Ryder Truck Rental, Inc.

236 F. Supp. 116, 1964 U.S. Dist. LEXIS 8663
CourtDistrict Court, E.D. South Carolina
DecidedDecember 9, 1964
DocketCiv. A. No. AC-1516
StatusPublished
Cited by2 cases

This text of 236 F. Supp. 116 (Rawls v. Ryder Truck Rental, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rawls v. Ryder Truck Rental, Inc., 236 F. Supp. 116, 1964 U.S. Dist. LEXIS 8663 (southcarolinaed 1964).

Opinion

HEMPHILL, Chief Judge.

Petition for removal to the United States District Court for the Eastern District of South Carolina from the Court of Common Pleas of Lexington County, South Carolina, and Motion to Remand to the State Court, precipitate this consideration. Original complaint, bearing caption “Josephine C. Rawls, Plaintiff, vs. Ryder Truck Rental, Inc., and Crown Cabinet Company, Defendants” was dated July 21,1964 and pitched in the State Court; the Summons,1 with complaint demanding $15,600.00 damages, attached, was served on defendant Ryder Truck Rental, Inc. at Greenville, S. C., July 31, 1964. The record in this [117]*117Court does not reveal when service was accomplished, or how, on Crown Cabinet Co.,2 but the lack of such information is not fatal to this determination. The xeeoxd does reveal that on August 18, 1964 counsel for Crown made Special Appearance in the State Court, in part as follows:

“(a) that the charter of Crown Cabinet Company was cancelled by the Secretary of State of South Carolina on September 5, 1963 for nonpayment of capital stock taxes, and, therefore, the Crown Cabinet Company was not in existence at the time service was attempted;
“(b) that the Crown Cabinet Company, having been dissolved by the Secretary of State of South Carolina on September 5,1963, is not in existence, is without assets, and has no facilities by which a defense can be made to the claim of Josephine C. Rawls;
*“(c) affirming, and not negating (a) and (b) above, the complaint of the plaintiff Josephine C. Rawls .states a cause of action in tort which does not survive the dissolution of a •corporation;
“(d) affirming, and not negating (a) and (b) above, because the action sued upon by the plaintiff does not survive the dissolution of the Crown Cabinet Company, William H. Duffie was not an existing agent upon whom service of process could be attempted;
“(e) that there has not been a valid service of the named defendant Crown Cabinet Company;
“(f) that the named defendant Crown Cabinet Company actually liquidated on November 1, 1960, and did not exist at the time of the attempted service of the summons and complaint.”

On August 18, 1964, counsel for defendant Ryder filed Petition and Bond for Removal, the crux of which was:

“5. At the time this cause of action arose, the defendant Crown Cabinet Company was, as the defendant, Petitioner is informed and believes, a resident and citizen of South Carolina and a corporation created and existing under and by virtue of the laws of the State of South Carolina. However, the defendant, Petitioner, is informed and believes that the corporate charter of the defendant, Crown Cabinet Company, has since been revoked by the Secretary of State of South Carolina for nonpayment of stock tax and no longer exists as a corporate entity. (Attached hereto is the cancellation certificate of the Secretary of State for South Carolina.) Therefore a diversity of citizenship exists between the plaintiff and the only legally existing defendant, Ryder Truck Rentals, Inc.”

On August 21, 1964, defendant Ryder interposed its answer, pitched in the United States District Court for the Eastern District of South Carolina, [118]*118Columbia Division (which includes Lexington County),3 alleging, among others:

“The defendant Ryder Truck Rental had leased its truck to the defendant Crown Cabinet Company a corporation no longer in existence and if there was any negligent, willful or reckless acts on the part of the driver of the truck it is the negligence of the co-defendant Crown Cabinet Company, a corporation no longer in existence whose agent and servant, Zeb Bellflower committed the negligent acts, if any. Zeb Bellflower is not now and was not at the time of this collision an agent and servant or employee of the defendant Ryder Truck Rental.
“Plaintiff is a resident of the State of South Carolina and the defendant, Ryder Truck Rental is a corporation duly organized under the laws of the State of Florida with its principal place of business in Miami.
“The amount in controversy exceeds Ten Thousand ($10,000) Dollars exclusive of costs.”

On August 25, 1964, plaintiff served Ryder and others,4 an “amended summons”, with complaint attached, this complaint making demand for $9,999.99.

This activity is described in Ryder’s Petition 5 for stay of State proceedings as:

“That the cause being thus at issue upon the pleadings, the plaintiff sought to amend its pleadings in the State Court so as to deprive this-Honorable Court of jurisdiction of said cause; that in furtherance of such purpose plaintiff served upon petitioner and others her amended Summons and Complaint of date August 25, 1964, wherein she sought to add new parties defendant, so as to destroy diversity and sought to reduce the recovery demanded against the defendants to a figure below the jurisdictional amount necessary to maintain her action in the United States District Court. That such “amended” action is in all other respects the identical action earlier removed by petitioner.”

On October 12, 1964 a hearing was held at Columbia, S. C., at which time it was admitted that plaintiff was a resident of Lexington County, Ryder a foreign corporation, and Crown Cabinet Co. was formerly a South Carolina corporation with principal place of business at Florence, South Carolina, whose corporate charter had been cancelled, by the Secretary of State for the State of South Carolina “for non payment of stock tax.”6 [119]*119The fact that one or more of the directors was, or is, a citizen and resident of South Carolina is not questioned.

The attempted reduction of the demand below the jurisdictional amount of this Court7 will not suffice to deprive this Court of jurisdiction.8 There was no evidence from which this Court could determine, as a matter of law, that plaintiff was not entitled to recover an amount equal to the jurisdictional amount.9 'Generally, the right of removal, a statutory remedy,10 is determined as of the time of filing the Petition which, in this case, was August 18,1964.11

On October 15, 1964 plaintiff noticed Motion to Remand, upon grounds:

“(1) That there is no diversity of citizenship as the .Directors of the Crown Cabinet Company are liable to suit in the name of corporation after its dissolution pursuant to Section 12-603 of the 1962 South Carolina Code of Law.
"“(2) That the case was improperly removed to the Federal Court as there had been no disposition in the State Court of the Special appearance by the Defendant, Crown Cabinet Company.”

No motion to remand was necessary at this juncture as the burden was on Petitioner to establish grounds for removal. The question, then, is: Does the Crown corporation exist for the purpose of answering to suit beyond the date and time of admitted forfeiture of charter?

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

Related

King v. McMillan
252 F. Supp. 390 (D. South Carolina, 1966)
Meyers-Arnold Company v. Maryland Casualty Company
248 F. Supp. 140 (D. South Carolina, 1965)

Cite This Page — Counsel Stack

Bluebook (online)
236 F. Supp. 116, 1964 U.S. Dist. LEXIS 8663, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rawls-v-ryder-truck-rental-inc-southcarolinaed-1964.