William R. Harr and Finster Courier, Inc. d/b/a Elite Express v. Julian Hayes and Tracey Hayes

106 N.E.3d 515
CourtIndiana Court of Appeals
DecidedJuly 3, 2018
Docket49A02-1711-CT-2595
StatusPublished
Cited by5 cases

This text of 106 N.E.3d 515 (William R. Harr and Finster Courier, Inc. d/b/a Elite Express v. Julian Hayes and Tracey Hayes) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
William R. Harr and Finster Courier, Inc. d/b/a Elite Express v. Julian Hayes and Tracey Hayes, 106 N.E.3d 515 (Ind. Ct. App. 2018).

Opinion

Robb, Judge.

Case Summary and Issues

[1] Following an accident between two semi-tractor trailers, a lawsuit commenced between the two drivers, Julian Hayes ("Hayes") and William R. Harr, and Harr's employer, Finster Courier, Inc., d/b/a/ Elite Express (collectively, "Defendants"). The Defendants attempted to remove the case to federal court contending the parties were citizens of different states and that the amount in controversy exceeded $75,000. Hayes objected to removal, arguing *519 such action was premature and that the amount in controversy did not exceed $75,000. The district court determined it lacked subject matter jurisdiction and remanded the case to state court. Following a jury verdict in state court of $187,500 in favor of Hayes, the Defendants filed a motion to correct error and asked the trial court to modify the judgment to $75,000 based on the doctrines of judicial estoppel, waiver, and judicial admission. The trial court denied the Defendants' motion and the Defendants now appeal, raising the sole issue of whether the trial court erred in denying their motion to correct error. Hayes cross-appeals, arguing the appeal is frivolous and requesting attorneys' fees. Concluding the trial court did not err in denying the Defendants' motion to correct error and that Hayes is not entitled to attorneys' fees, we affirm.

Facts and Procedural History

[2] On July 23, 2015, two semi-tractor trailers collided on Interstate 465 causing injury to one of the drivers, Julian Hayes. On October 26, 2015, Hayes filed suit in the Marion Superior Court against the other driver, William Harr, and Harr's employer, Finster Courier, Inc., d/b/a/ Elite Express. 1 Almost immediately, Defendants filed a notice of removal alleging diversity of citizenship under 28 U.S.C. § 1332 . 28 U.S.C. § 1332 provides, in relevant part:

(a) The district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs, and is between-
(1) citizens of different States ....

[3] The Defendants alleged that the district court possessed diversity jurisdiction because "the amount in controversy exceeds the sum or value of Seventy-Five Thousand Dollars ($75,000), exclusive of interest and costs," and that Harr is a citizen of Pennsylvania, Finster is incorporated in New Jersey, and Hayes is a citizen of Indiana. Appellees' Appendix, Volume II at 5-6. Upon the Defendants' motion, the case was removed to the United States District Court for the Southern District of Indiana, Indianapolis Division. On December 16, 2015, Hayes filed a motion to remand, arguing removal was "pre-mature in not having conducted discovery to investigate the amount of this claim or even inquire as to Plaintiff's demand." Appellants' Corrected Appendix, Volume II at 52. Hayes alleged that the district court lacked subject matter jurisdiction:

3. Plaintiff further provides that diversity jurisdiction is not met in this matter because the amount in controversy does not exceed Seventy-Five Thousand Dollars ($75,000.00).
* * *
6. On December 16, 2015, Plaintiff submitted his first demand to Defendants in the amount of Seventy-Two Thousand, Five Hundred Dollars ($72,500.00). [Exhibit "I"].
7. Therefore, even if the citizenship of the parties is diverse, the requirements of diversity jurisdiction under 28 U.S.C. § 1441 are not met because the amount in controversy does not exceed Seventy-Five Thousand Dollars ($75,000.00).

Id. at 52-53 .

[4] At the time of removal, Hayes had been released to return to work full time but was receiving ongoing medical treatment and had accumulated around $3,500 *520 in medical bills. His workers compensation claim was still being processed. The same day Hayes filed the motion to remand, he also submitted a settlement demand for $72,500. In response, the Defendants sent a letter stating that they would agree to remand the case if Hayes would "provide[ ] assurance that he would not execute on any potential judgment over $75,000," and included a proposed covenant not to execute. Id. at 77 . Hayes responded that "WE [sic] cannot agree to any agreement without payment. Are you offering the $75,000? If so, send a check." Id.

[5] On December 29, Defendants objected to remanding the case, arguing the amount in controversy was clearly over $75,000 because Hayes refused to sign the proposed covenant. Id. at 78 . On January 20, 2016, the district court granted Hayes' motion to remand, determining that it lacked subject matter jurisdiction because it is the removing party's burden to establish by a preponderance of the evidence that each requirement of 28 U.S.C. § 1332 has been met and "Defendants have made no effort whatsoever to explain why they had a good faith belief, at the time of removal, that the amount in controversy exceeded $75,000." Id. at 78-79 .

[6] With the case back in Marion Superior Court, Defendants filed a motion to limit entry of judgment.

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Bluebook (online)
106 N.E.3d 515, Counsel Stack Legal Research, https://law.counselstack.com/opinion/william-r-harr-and-finster-courier-inc-dba-elite-express-v-julian-indctapp-2018.