Travelers Indemnity Co. v. Winmill

294 F. Supp. 394, 1968 U.S. Dist. LEXIS 7997
CourtDistrict Court, D. Minnesota
DecidedDecember 31, 1968
DocketNo. 3-68-Civ.-233
StatusPublished
Cited by7 cases

This text of 294 F. Supp. 394 (Travelers Indemnity Co. v. Winmill) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Travelers Indemnity Co. v. Winmill, 294 F. Supp. 394, 1968 U.S. Dist. LEXIS 7997 (mnd 1968).

Opinion

MEMORANDUM AND ORDER

DEVITT, Chief Judge.

This is an action by an automobile liability insurer for a declaration that it is not obliged to defend any action against, or assume any liability of, Robert C. Winmill growing out of an auto collision which occurred on January 18, 1968.

On that night, Robert Winmill, with the company of his friends Dufour and Robinette, was driving a car belonging to his mother, Catherine Winmill, plaintiff’s insured. The car collided with that driven by Corrine Strand at an intersection near downtown St. Paul. Apparently, all four persons involved were injured.

Corrine Strand has brought suit for her injuries in state court against Robert and Catherine Winmill. In addition, passengers Dufour and Robinette claim to be entitled to damages against the Win-mills.

Robert Winmill claims that plaintiff is obligated to defend and, if necessary, indemnify him against any claims growing out of the accident. A conflict arises from plaintiff’s contention that Robert Winmill was operating his mother’s car without her permission and consent, and that his liability is therefore not within the scope of his mother’s policy coverage. Plaintiff asks this court to declare its nonliability and has joined as defendants both Winmills, both passengers in the Winmill car, and Corrine Strand.

To date, defendants Dufour and Robinette have answered, counterclaimed, and cross-claimed against defendants Robert and Catherine Winmill and Corrine Strand for injuries caused by the accident. Plaintiff has moved to dismiss the counterclaim and cross-claims. Defendant Strand has asked leave to join [396]*396in the motion to dismiss the cross-claim against her.

Unfortunately, there is nothing rare about the criss-crossing and overlapping complex of demands that this, a seemingly simple auto accident, has spawned. The diversity of citizenship existent between the plaintiff and the defendants has provided an alternative forum for the trying out of at least some of the matters involved. As a result, the facts of the collision or its legal offshoots are now pending, in various forms, in two courts of concurrent jurisdiction..

The authority of a' federal district court to declare the obligation or lack thereof of a liability insurer to defend or indemnify its insured is commonly acknowledged. This power was recognized in Aetna Life Ins. Co. of Hartford v. Haworth, 300 U.S. 227, 57 S.Ct. 461, 81 L.Ed. 617 (1937), and since has not been assaulted seriously. Yet, no matter how firm, that principle gives a choice and not a command. For the granting of declaratory relief is discretionary with the trial court. Zemel v. Rusk, 381 U.S. 1, 19, 85 S.Ct. 1271, 14 L.Ed.2d 179 (1965); Public Affairs Associates, Inc. v. Rickover, 369 U.S. Ill, 112, 82 S.Ct. 580, 7 L.Ed.2d 604 (1962); Public Service Comm. of Utah v. WyCoff Co., 344 U.S. 237, 241, 73 S.Ct. 236, 97 L.Ed. 291 (1952); 3 Barron & Holtzoff — Federal Practice and Procedure § 1265 (1958); 6A Moore’s Federal Practice j[ 57.08 [1],

Of course, across the geography of discretion there are mandatory routes and prohibitory ■ boundaries, and there are loose paths of custom. While not binding in a particular case, these paths, having been worn by the tread of several courts taking a similar direction in a given type of dispute, often have formidable judicial wisdom behind them. Of particular importance here is the admonition of Brillhart v. Excess Insurance Co., 316 U.S. 491, 495, 62 S.Ct. 1173, 1175, 86 L.Ed. 1620 (1942):

“Ordinarily it would be uneconomical as well as vexatious for a federal court to proceed in a declaratory judgment suit where another suit is pending in a state court presenting the same issues not governed by federal law, between the same parties. Gratuitous interference with the orderly and comprehensive disposition of a state court litigation should be avoided.”

Recently, the Supreme Court has had occasion to reaffirm the efficacy of the Brillhart principle. Provident Tradesmens Bank & Trust Co. v. Patterson, 390 U.S. 102, 88 S.Ct. 733, 746, 19 L.Ed.2d 936 (1968).

More than once the late Chief Judge John J. Parker forcefully wrote of the proper caution that should be observed in the granting of declaratory relief where similar and related matters are pending in a state court of concurrent jurisdiction. In Aetna Casualty & Surety Co. v. Quarles, 92 F.2d 321 (4th Cir. 1937), plaintiff’s insured was sued in a state court by his wife for injuries allegedly caused by his negligence. While that action was pending, plaintiff sought declaratory relief to the effect that it was not obliged, because the personal injury action was collusive, to defend or indemnify its insured. The wife won a judgment in the personal injury action and sought to recover the amount in an action against the plaintiff insurer. In affirming the dismissal of the declaratory judgment action, Judge Parker said that the discretionary jurisdiction appurtenant thereto,

“should not be exercised for the purpose of trying issues involved in cases already pending, especially where they can be tried with equal facility in such cases, or for the purpose of anticipating the trial of an issue in a court of co-ordinate jurisdiction. The object of the [declaratory judgments] statute is to afford a new form of relief where needed, not to furnish a new choice of tribunals or to draw into the federal courts the adjudication of causes properly cognizable by courts of the states.” 92 F.2d at 324.

Years later, in Doby v. Brown, 232 F.2d 504, 506 (4th Cir. 1956), cert. denied [397]*397352 U.S. 837, 77 S.Ct. 57, 1 L.Ed.2d 55 he wrote:

“it is well settled that the granting of declaratory relief is a matter resting in the sound discretion of the trial judge and that it ought not be exercised to try a case piecemeal or to drag into the federal courts matters properly triable before the courts of the state.”

Cases which have heeded this advice and applied its restraint in situations like the present are numerous. See, e. g., Utilities Ins. Co. v. Ledford, 255 F.2d 123 (6th Cir. 1958); State Farm Mut. Auto. Ins. Co. v. Bonwell, 248 F.2d 862 (8th Cir. 1957); National Union Fire Ins. Co. of Pittsburgh v. Lippert Bros., Inc., 233 F.Supp. 650 (D.Neb.1964); Allstate Ins. Co. v. Thompson, 121 F.Supp. 696 (W.D.Ark.1954). And this court itself, in a case very like the one at hand, has declined to grant declaratory relief. Westchester Fire Ins. Co. v. Larson, 199 F.Supp. 224 (D.Minn.1961).

In Brillhart v. Excess Ins. Co.

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Bluebook (online)
294 F. Supp. 394, 1968 U.S. Dist. LEXIS 7997, Counsel Stack Legal Research, https://law.counselstack.com/opinion/travelers-indemnity-co-v-winmill-mnd-1968.