Roy E. Fajen v. Foundation Reserve Insurance Company, Inc.

683 F.2d 331
CourtCourt of Appeals for the Tenth Circuit
DecidedJuly 19, 1982
Docket80-1411
StatusPublished
Cited by362 cases

This text of 683 F.2d 331 (Roy E. Fajen v. Foundation Reserve Insurance Company, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roy E. Fajen v. Foundation Reserve Insurance Company, Inc., 683 F.2d 331 (10th Cir. 1982).

Opinions

SEYMOUR, Circuit Judge.

This lawsuit arises out of plaintiff Roy Fajen’s attempts to enforce a default judgment obtained in Nevada state court. After a series of proceedings in state and federal courts, the United States District Court of New Mexico dismissed the action following its removal from New Mexico state court. We conclude that removal was improper and remand this case with directions to the district court to remand the action to state court.

In 1971 Fajen filed suit in a Nevada district court against William Sublett and Nelda McCallister for personal injuries sustained in an automobile accident that occurred on April 4, 1970, near Reno, Nevada (Cause No. 274721). Fajen served Sublett and McCallister through the director of the department of motor vehicles, under a statute that provides for substituted service on nonresident operators of motor vehicles involved in accidents in Nevada. Id. The statute also requires the plaintiff to send by registered or certified mail notice of the service and a copy of the process to the defendant at the address supplied by the accident report or at the best address available to the plaintiff. The original process, a return receipt from the mailing, and an affidavit of compliance, must be filed in the lawsuit. Nev.Rev.Stat. § 14.070. Fajen purported to comply with these requirements. The defendants did not appear and the Nevada court entered a judgment of default on December 5, 1972.

In 1977, Fajen filed suit in the United States District Court of New Mexico on the unsatisfied Nevada judgment (No. CIV 77-211-M). In this suit he named the present defendant, Foundation Reserve Insurance Company, Inc., as the insurer of Nelda McCallister and her vehicle, which had been driven by William Sublett. Foundation Reserve moved to dismiss on the ground that the Nevada state court was without personal jurisdiction over McCallister and William when it entered the default judgment.

The federal court in CIV 77-211-M found that the affidavit of compliance filed with the Nevada court did not meet the requirements of the Nevada substituted service of process statute because it failed to state the address where the process was sent and the source of the address, so as to establish the good faith effort of the plaintiff to give actual notice. In an effort to cure the problem, counsel for Fajen filed an affidavit in the federal court action explaining the source of the three addresses to which [333]*333service of process had been sent. The court rejected this effort to remedy in federal court the defect in the Nevada state court proceeding, stating:

“All of the affidavits filed by the plaintiff in opposition to summary judgment attempting to show the good faith, due diligence and actual service of Sublett are of no avail. The Nevada Court must have had sufficient facts before it to justify its exercise of jurisdiction, which the record clearly indicates it did not. The record cannot be cured at this late date by affidavit. The Nevada statute requires that an affidavit of compliance, stating the address and source of that address of the defendant, must be filed, regardless of whether the return receipt was signed and received, refused or not signed by the defendant.”

Rec., vol. II, at 87. The court granted summary judgment in favor of Foundation Reserve, finding that the Nevada court did not have jurisdiction over the alleged tortfeasors. Fajen appealed the decision to this court. However, he voluntarily dismissed the appeal on May 31, 1978, thus leaving the trial court judgment intact.

On May 11, 1978, Fajen returned to the Nevada state court that had entered the default judgment. His Nevada counsel filed an amended affidavit of compliance along with an affidavit by plaintiff’s Idaho counsel that set out additional facts showing compliance with the statute. Based on these affidavits, the state court determined that the requirements of Nev.Rev.Stat. § 14.070 had been fully met and entered an amended default judgment nunc pro tunc (Cause No. 79-500).

In 1979, Fajen filed a complaint against defendant Foundation Reserve Insurance Company, Inc. in a New Mexico state court to enforce the unsatisfied amended Nevada judgment. Defendant petitioned to remove the action to federal court under the federal question removal statute, 28 U.S.C. § 1441(b). The United States District Court of New Mexico granted the petition of removal over plaintiff’s objection, holding that it had jurisdiction to protect its judgment entered against plaintiff in 1977. The district court also consolidated the removed action with the first case (CIV 77-211-M) and treated plaintiff’s claim as a Rule 60(b) motion to vacate the initial federal judgment. The court denied the Rule 60(b) motion and dismissed the case.

The threshold issue on this appeal is whether removal jurisdiction is proper. Removal statutes are to be strictly construed, Shamrock Oil & Gas Corp. v. Sheets, 313 U.S. 100, 108-09, 61 S.Ct. 868, 872, 85 L.Ed. 1214 (1941), and all doubts are to be resolved against removal. Greenshields v. Warren Petroleum Corp., 248 F.2d 61, 65 (10th Cir.), cert. denied, 355 U.S. 907, 78 S.Ct. 334, 2 L.Ed.2d 261 (1957). This circuit has held that to support removal jurisdiction, “the required federal right or immunity must be an essential element of the plaintiff’s cause of action, and that the federal controversy must be ‘disclosed upon the face of the complaint, unaided by the answer or by the petition for removal.’ ” Madsen v. Prudential Federal Savings & Loan Assn., 635 F.2d 797, 800 (10th Cir. 1980) (citing Gully v. First National Bank, 299 U.S. 109, 113, 57 S.Ct. 96, 81 L.Ed. 70 (1936)), cert. denied, 451 U.S. 1018, 101 S.Ct. 3007, 69 L.Ed.2d 389 (1981); see also Oklahoma ex rel. Wilson v. Blankenship, 447 F.2d 687, 691-92 (10th Cir. 1971), cert. denied, 405 U.S. 918, 92 S.Ct. 942, 30 L.Ed.2d 787 (1972).

The district judge did not address these tests but instead held removal proper because he concluded that jurisdiction existed to protect the effect of his prior decision in CIV 77-211-M, citing Villarreal v. Brown Express, Inc., 529 F.2d 1219, 1221 (5th Cir. 1976). However, that case can be distinguished from the facts of the instant case. In Villarreal, the original action was brought in federal court and the judgment in that federal suit was a material part of the plaintiff’s subsequent state court case. Here, the original cause of action resulting in the default judgment was brought in state court based on negligence. It involved no federal or Constitutional question. The first suit to enforce that judg[334]

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683 F.2d 331, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roy-e-fajen-v-foundation-reserve-insurance-company-inc-ca10-1982.