Susie Randolph v. Employers Mutual Liability Insurance Company of Wisconsin Garnishee

260 F.2d 461
CourtCourt of Appeals for the Eighth Circuit
DecidedNovember 28, 1958
Docket16009_1
StatusPublished
Cited by52 cases

This text of 260 F.2d 461 (Susie Randolph v. Employers Mutual Liability Insurance Company of Wisconsin Garnishee) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Susie Randolph v. Employers Mutual Liability Insurance Company of Wisconsin Garnishee, 260 F.2d 461 (8th Cir. 1958).

Opinion

VAN OOSTERHOUT, Circuit Judge.

Plaintiff, Susie Randolph, appeals from judgment denying her the right to recover from the garnishee, Employers Mutual Liability Insurance Company of Wisconsin, Stokes’ alleged insurer, the amount of a judgment obtained by plaintiff against Stokes in the Circuit Court of the City of St. Louis, Missouri.

Plaintiff was a passenger in Stokes’ automobile when it collided with a train. She obtained the state court judgment for $10,000 against Stokes for damages alleged to have been caused her as a result of Stokes’ negligent operation of his automobile. Said judgment has become final. Plaintiff caused execution to issue upon said judgment and, pursuant thereto, Employers Mutual Liability Insurance Company of Wisconsin was summoned as garnishee. The garnishee, after being served with summons, filed timely petition for removal of the action to the United States District Court for the Eastern District of Missouri, pursuant to the provisions of 28 U.S.C.A. § 1441 *463 et seq., alleging that garnishment is a civil action, that the issues are completely different, separate, and distinct from the issues in the state suit, that diversity of citizenship exists, and over $3,000 is in controversy. Plaintiff moved to remand the proceedings to the state court, on the ground that garnishment is auxiliary to the principal action, and that the garnishment proceeding is not a separate and independent cause of action. The motion to remand was overruled. Thereupon, the g'arnishee filed answer to interrogatories, in which it states that it originally questioned whether its policy of automobile liability insurance issued to Stokes was in full force at the time of the accident, but that it had waived such defense. Garnishee specifically denied any liability on its policy, because of Stokes’ failure to cooperate in the defense of plaintiff’s suit against Stokes. In response to further interrogatories requiring it to state the facts upon which it based its contention that Stokes had failed to cooperate, the garnishee stated that Stokes, although notified and requested to do so, had failed to appear in court at the time his case was to be tried.

Plaintiff’s position is that Stokes’ failure to appear at the state court trial was justified because the garnishee insurance company had, prior to the scheduled trial, breached its insurance contract by refusing to reimburse Stokes for expenses incurred in one day’s attendance in court in connection with a previous attempt to try this case, which resulted in a mistrial, and had refused to guarantee Stokes’ expenses at the time he was requested to attend. The issues were submitted to a jury, verdict was returned for the garnishee, and judgment was entered thereon. This appeal by the plaintiff followed.

Plaintiff asserts that she is entitled to a reversal for the following reasons: (1) the federal court lacks jurisdiction to try the Missouri garnishment proceeding; (2) the court erred in overruling plaintiff’s motion for a directed verdict made at the close of all the evidence; and (3) the court erred in admitting certain evidence offered by the garnishee. We shall consider plaintiff’s contentions in the order stated.

On the jurisdictional issue, it is plaintiff’s contention that under Missouri law garnishment is not an independent suit, but is auxiliary to the main action, and hence that such a proceeding is not a removable civil action under 28 U.S.C.A. § 1441(a). Plaintiff further contends that the removal is prohibited by 28 U.S.C.A. § 1441(c). This court has passed upon the jurisdictional problem here presented in Stoll v. Hawkeye Casualty Co., 185 F.2d 96, 22 A.L.R.2d 899, and has ruled adversely to plaintiff’s contentions. In the Stoll case this court fully considered the authorities bearing upon the question of whether a garnishment proceeding after final judgment is a civil action. Many of the conflicting authorities are cited in footnote 1 at page 98. Other authorities are collected in Annotation, 22 A.L.R.2d 904. The court held that a post judgment garnishment proceeding is a civil action within the meaning of 28 U.S.C.A. § 1441(a), and that diversity of citizenship and the jurisdictional amount having been established, the garnishment proceeding was properly transferred to the federal court.

Plaintiff urges that the Stoll case is not controlling since there a South Dakota garnishment was involved while we deal with a Missouri garnishment. It would appear that Missouri regards garnishment as a proceeding auxiliary to the main suit. See Hoagland v. Rost, D.C.W.D.Mo., 126 F.Supp. 232, and cases therein cited. In the Stoll case, supra, we found it unnecessary to determine whether South Dakota regarded the garnishment proceeding as auxiliary and ancillary or as an independent suit. We stated (185 F.2d at page 99):

“The question whether a civil action is removable and has been properly removed is one for the consideration of the federal court and is not controlled by State law. Harrison v. St. Louis & San Francisco R. Co., 232 U.S. 318, 328-329, 34 *464 S.Ct. 333, 58 L.Ed. 621; Donald v. Philadelphia & Reading Coal & Iron Co., 241 U.S. 329, 333, 36 S.Ct. 563, 60 L.Ed. 1027; Terral v. Burke Construction Co., 257 U.S. 529, 532, 42 S.Ct. 188, 66 L.Ed. 352; Commissioners of Road Improvement District [No. 2 of Lafayette County, Ark.,] v. St. Louis Southwestern Ry. Co., 257 U.S. 547, 557-558, 42 S.Ct. 250, 66 L.Ed. 364.
“We therefore find it unnecessary to consider whether the Supreme Court of South Dakota regards a garnishment proceeding as auxiliary and ancillary to the main action or as an independent suit, a question as to which the parties disagree. * * * ’>

Since federal law controls on the question of whether the garnishment proceeding is a civil action, the classification which the Missouri courts give garnishment proceedings is in no way binding upon us.

Federal district courts have followed the Eighth Circuit and have upheld removal of Missouri garnishment proceedings to the federal court. Clarkin v. Worthley, D.C.W.D.Mo., 114 F.Supp. 877; E. C. Robinson Lumber Co. v. Fort, D.C.E.D.Mo., 112 F.Supp. 242. A contrary result was reached in Hoagland v. Rost, supra. In that case the court was of the opinion that American Fire & Cas. Co. v. Finn, 341 U.S. 6, 71 S.Ct. 534, 95 L.Ed. 702, 19 A.L.R.2d 738, made the state law on classification of garnishment proceedings controlling. Plaintiff takes the same position here. We find nothing in the Finn case which impairs the basis of our decision in the Stoll case. In the Finn case a Texas resident brought' suit against a Texas resident and two nonresident insurance companies. One of the insurance companies secured the removal of the case to the federal court.

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Bluebook (online)
260 F.2d 461, Counsel Stack Legal Research, https://law.counselstack.com/opinion/susie-randolph-v-employers-mutual-liability-insurance-company-of-wisconsin-ca8-1958.