Smith v. New York Life Insurance

171 S.E. 330, 205 N.C. 348, 1933 N.C. LEXIS 553

• Court: Supreme Court of North Carolina
• Decided: November 1, 1933
• Status: Published

Opinion

JBeogdeN, J.

Tbe question for decision is whether tbe cause was removable upon tbe allegations contained in tbe complaint, upon tbe ground tbat tbe suit involved more than $3,000, thus ousting tbe jurisdiction of tbe State court.

There are three decisions of this Court bearing upon tbe subject involved, to wit: Harrison v. Allen, 152 N. C., 720, 68 S. E., 207; Fields v. Ins. Co., 199 N. C., 454, 154 S. E., 738; Smith v. Travelers Protective Association, 200 N. C., 740, 158 S. E., 402. Tbe Fields case, supra, is directly in point and decisive of tbe controversy. Tbe Court said: “In cases involving removal to tbe Federal Court on tbe ground tbat more than $3,000 is involved, tbe test is tbe value of tbe property of wbicb tbe defendant may be deprived by tbe judgment demanded, rather than tbe amount of tbe claim of plaintiff alone, where, of course, such claim upon its face does not exceed tbe jurisdictional limitations.” Tbe North Carolina cases are supported in principle by Wright v. Ins. Co., 19 Fed. (2d), p. 117; New York Life Ins. Co. v. Swift, 38 Fed. (2d), 175; Woods v. Mass. Protective Association, 34 Fed. (2d), 501; Beaty v. Mass. Protective Association, 158 S. E., 206.

Tbe defendant relies upon tbe Swift case, sufra. It is to be noted, however, that in tbe Swift case tbe suit was brought to cancel two policies of $5,000 each, and hence is distinguishable from tbe case at bar.

Reversed.