Walls, Inc. v. Maryland Casualty Co.

315 F. Supp. 764, 1970 U.S. Dist. LEXIS 11365
CourtDistrict Court, D. Kansas
DecidedJune 11, 1970
DocketCiv. A. No. W-4352
StatusPublished
Cited by2 cases

This text of 315 F. Supp. 764 (Walls, Inc. v. Maryland Casualty Co.) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Walls, Inc. v. Maryland Casualty Co., 315 F. Supp. 764, 1970 U.S. Dist. LEXIS 11365 (D. Kan. 1970).

Opinion

MEMORANDUM ON ORDER OF REMAND

WESLEY E. BROWN, District Judge.

In this action plaintiffs seek to recover a total sum of $918,983.65, in losses allegedly suffered by reason of a fire which occurred on April 12, 1968 in the “Eastridge Shopping Center”, Wichita, Kansas. The plaintiffs include the owner of the shopping center [Ridgewood Development, Inc., loss, $263,116.21]; tenants of Ridgewood [Walls, Inc., loss, $633,090.88; Tull, Inc., d/b/a Dowd’s Cleaners, loss, $19,942.02]; and two insurors of tenants in the center who are subrogated to the rights of their insureds [Gulf Insurance Company, loss to tenant Grillott, $199.54; Employers Casualty Company, loss to tenant Farha, $2,635.00], ■

The case was removed from the District Court of Sedgwick County, Kansas by defendant Home Insurance Company under 28 U.S.C. § 1441(c) upon the ground that the petition contains separable controversies, stating two separate and independent causes of action — one in tort, and one upon the contract of insurance between Walls and Home Insurance Company. All of the plaintiffs have moved to remand the action to state court upon the ground that plaintiffs seek recovery of damages for a single injury, arising from an interlocked series of transactions and seek recovery against defendants jointly and severally.

Diverse citizenship between all parties on both sides is essential for removal of a case from state to federal court, except where there are separate and independent claims, or some improper joinder of a resident defendant to defeat jurisdiction, and no defendant may be a citizen of the state in which the action is brought. [28 U.S.C.A. § 1441(b).] 1

When a separate and independent claim or cause of action is joined with one or more non-removable claims, the entire case may be removed, and the district court may determine all of the issues, or, in its discretion, may remand matters not otherwise within its original jurisdiction. [28 U.S.C.A. § 1441(c).] 2 Willoughby v. Sinclair Oil and Gas Company (10th Cir. 1951) 188 F.2d 902.

In the leading case of American Fire & Casualty Company v. Finn (1051) 341 U.S. 6, 71 S.Ct. 534, 95 L.Ed. 702, the Supreme Court pointed out that “separable controversies” are no longer enough to establish jurisdiction on removal. In Finn, a Texas citizen brought suit against two foreign insurance companies, and their resident agent, also a eit[766]*766izen of Texas, claiming recovery for a fire loss. Recovery was sought in the alternative, on one or the other of the policies, or, as to the agent, for breach of his duty to keep the property insured. In arriving at its conclusion that the action was improperly removed, the Court noted that while recovery was sought in the alternative among three different defendants, upon separate theories, the damage resulted from one single wrong, the fire loss. The Court reviewed at length the purposes to be served by congressional amendment changing the measure from “separable controversies” to “separate and independent claim or cause of action”:

“A separable controversy is no longer an adequate ground for removal unless it also constitutes a separate and independent claim or cause of action. * * * of course, ‘separate cause of action’ restricts removal more than a ‘separable controversy.’ In a suit covering multiple parties or issues based on a single claim, there may be only one cause of action and yet be separable controversies. The addition of the word ‘independent’ gives emphasis to congressional intention to require more complete disassociation between the federally cognizable proceedings and those cognizable only in state courts before allowing removal" [341 U.S. 534, 71 S.Ct. 538, 95 L.Ed. 707.]

In defining the term “cause of action”, the Court turned to its definition in Baltimore S.S. Co. v. Phillips, 274 U.S. 316, 321, 47 S.Ct. 600, 71 L.Ed. 1069 [71 S. Ct. at 539, 95 L.Ed. at 708] :

‘Upon principle, it is perfectly plain that the respondent suffered but one actionable wrong and was entitled to but one recovery, whether his injury was due to one or the other of several distinct acts of alleged negligence or to a combination of some or all of them. In either view, there would be but a single wrongful invasion of a single primary right of the plaintiff, namely, the right of bodily safety, whether the acts constituting such invasion were one or many, simple or complex.
“ ‘A cause of action does not consist of facts, but of the unlawful violation of a right which the facts show.’ ’’

The Complaint here alleges:

1. That the fire and losses were “directly caused by the negligence of the defendants, and each of them, in that, defendants Roy C. Burton and or Burton Boilers, Inc., and Kendall, Inc., negligently installed and/or serviced a boiler located on the Walls premises, and defendants Maryland and Home [Insurance] negligently failed to inspect, or inspected said boiler in a negligent manner and failed to discover and report its dangerous and defective condition;

2. That the defendants Maryland and Home Insurance companies issued policies covering Walls and the boiler, and undertook the duty to inspect the boiler and to report any dangerous and defective condition, owing to plaintiffs and the public generally a duty to discharge this obligation “with reasonable and proper care,” and that breaches of such duties were direct causes of the fire and loss; and

3. That defendants “and each of them expressly and/or impliedly warranted that the installation, repair and servicing of the boiler and the inspection and reporting of conditions of the boiler * * * would be done and carried out in a safe and workmanlike manner and that the products and/or services sold or furnished by them were suitable for the uses and purposes intended,” but that defendants breached such warranties, thereby causing the fire and losses in question.

Judgments are requested in favor of the respective plaintiffs, according to their separate losses, against the defendants, jointly and severally.

Since the decision in Finn, there have been but few instances in which courts have found separate and independent claims to exist for purposes of jurisdiction on removal. Cases denying or approving removal are collected at 1 Bar[767]*767ron & Holtzoff, § 105, f. ns. 73.973.12, 73.13. This Court recently remanded a case for lack of jurisdiction under 28 U. S.C. § 1441(c). Ranger Insurance Company v. Delux Manufacturing Company, No. W-4080, 5/16/69, Unreported. That case involved the collapse and destruction of a grain dryer in Western Kansas during a windstorm, in which plaintiff sought recovery from multiple defendants for negligent design, installation, erection and construction of the equipment.

One of the few cases in which a separate and independent claim was designated as removable under § 1441(c) is the Tenth Circuit decision in Climax Chemical Company v. C. F. Braun & Co.

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Bluebook (online)
315 F. Supp. 764, 1970 U.S. Dist. LEXIS 11365, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walls-inc-v-maryland-casualty-co-ksd-1970.