Wright v. Bell

225 F. Supp. 746, 1964 U.S. Dist. LEXIS 6484
CourtDistrict Court, D. Montana
DecidedJanuary 28, 1964
DocketCiv. No. 449
StatusPublished

This text of 225 F. Supp. 746 (Wright v. Bell) is published on Counsel Stack Legal Research, covering District Court, D. Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wright v. Bell, 225 F. Supp. 746, 1964 U.S. Dist. LEXIS 6484 (D. Mont. 1964).

Opinion

JAMESON, District Judge.

In each of four separate causes of actions, it is alleged that the plaintiff is a citizen of Alaska, that the defendants John H. Bell and Stockgrowers National Bank of Cheyenne, Wyoming, are citizens of Wyoming, and the defendant Jim Rayburn, a citizen of Montana; that the amount in controversy exceeds $10,-000, exclusive of interest and costs; that on June 1, 1955, A. G. Wright and Gladys Wright, as sellers, contracted with the defendant Bell for the sale to him of certain real property located in Wibaux County, Montana; that the Wrights assigned their interest in the contract to the plaintiff; that pursuant to the contract, the sellers executed a warranty deed which was placed in escrow with the defendant bank, to be held pending satisfactory proof of full payment of the purchase price.

In the first cause of action, plaintiff seeks recovery from the defendant Bell of the balance due on the contract. The second cause of action seeks actual and exemplary damages from the defendant Bell for alleged fraud in securing a release from escrow of the deed covering the lands (or in lieu thereof the declaration of a constructive and resulting trust). The third cause of action seeks actual and exemplary damages from the defendant Bank for fraudulent and negligent breach of trust in improperly releasing the deed from escrow (or in lieu thereof a declaration of a constructive and resulting trust). The fourth cause of action alleges a conveyance of the real property from Bell to the defendant Rayburn and seeks a judgment against Rayburn for the cancellation of the deeds from Wright to Bell and from Bell to Rayburn, and possession of the real property.

The defendants Bell and Stockgrowers National Bank filed separate motions to dismiss on the grounds of (1) insufficiency of service of process; (2) improper venue; and (3) failure to state a claim against the defendants upon which relief can be granted. The defendant Rayburn filed a motion to dismiss on the grounds of improper venue and failure to state a claim. Briefs have been filed by' the respective parties, and there has been no request for oral argument. The motions accordingly are deemed submitted pursuant to Rule 7(a) of the Local Rules of Court.

Since all of the parties rely upon improper venue, this ground of dismissal will be considered first. It is undisputed that the plaintiff is a resident, as well as citizen, of Alaska, that the defendant Bell is a resident of Wyoming, and the defendant Rayburn a resident of Montana. Under 28 U.S.C.A. § 1348 the defendant Bank is deemed a citizen of Wyoming, and under 12 U.S.C.A. § 94 is deemed a resident of the District of Wyoming for venue purposes. See Buffum v. Chase National Bank of City of New York, 7 Cir. 1951, 192 F.2d 58, (cert. denied, 342 U.S. 944, 72 S.Ct. 558, 96 L.Ed. 702).

28 U.S.C.A. § 1332 provides: “(a) The district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $10,000, exclusive of interest and costs, and is between — (1) citizens of different states; * * * ”. The allegations of the complaint meet the requirements of this section. 28 U.S.C.A. § 1391 is the general venue statute for diversity actions. In pertinent part, it provides: “(a) A civil action wherein jurisdiction is founded only on diversity of citizenship may, except as otherwise provided by law, be brought only in the judicial district where all plaintiffs or all defendants reside.”

Obviously, under section 1391, venue in either Montana or Wyoming would be improper, since all of the defendants do not reside in either state. Plaintiff contends, however, that section 1391 “is not applicable inasmuch as the gravamen of the action pertains to title to real property, quieting title, removing cloud and ejectment as against defendant, Jim [748]*748Rayburn, and that by reason thereof section 1655 is the controlling statute * 1

As pointed out in Miller & Lux Inc. v. Nickel, N.D.Cal.1957, 149 F.Supp. 463, 465, the statute prescribing the venue for actions involving property is section 1392(b) I.2, and the primary purpose of section 1655 “is to permit constructive service of process in actions involving interests in real or personal property within the district.” Section 1655 “provides, by its terms, for bringing in absent defendants only in proceedings in rem such as suits to remove clouds upon title to real or personal property. It cannot be invoked to aid service upon absent defendants sued in personam”. Stewart v. United States, 5 Cir. 1957, 242 F.2d 49, 52. See also cases there cited and Buzzell v. Edward H. Everett Co., D.C.Vt.1960, 180 F.Supp. 893.

It is true, as plaintiff contends, that under section 1655 jurisdiction and venue do not depend upon the citizenship or residence of the parties but solely upon the location of the property within the district. The cases cited by plaintiff, however, recognize that this rule is applicable only as to actions in rem where “the adjudication shall, as regards the absent defendant, affect only the property which is the subject of the action.” Graff v. Nieberg, 7 Cir. 1956, 233 F.2d 860, 862.

The question for determination accordingly is whether the various causes of action alleged in plaintiff’s complaint are actions in rem or in personam.

The first cause of action seeks recovery from the defendant Bell of the balance due on the contract. It is recognized that the nature of an action is to be determined by the law of the state. Josevig-Kennecott Copper Co. v. James F. Howarth Co., 9 Cir. 1919, 261 F. 567. See also Big Robin Farms v. California Spray-Chemical Corp., W.D.S.C.1958, 161 F.Supp. 646.

Apparently the Montana Supreme Court has never determined expressly whether an action for the balance due on a contract is in personam or in rem. It has held, however, that an action for specific performance of a contract to sell realty is in personam. Silver Camp Mining Co. v. Dickert, 1904, 31 Mont. 488, 78 P. 967, 67 L.R.A. 940.

Even in jurisdictions which hold that an action by a vendee seeking specific performance is a local action in rem, an action by the vendor seeking a money judgment is regarded as a transitory personal action. See Hammon v. American Exploration & Mining Co., 1962, 203 Cal.App.2d 306, 21 Cal.Rptr. 409, 412, where the court said:

“Indeed, even if an action involves realty, it constitutes for venue purposes a transitory action if the main relief sought is a money judgment. Thus an action for the specific performance of a contract for the sale of realty is deemed local if brought by the vendee, since the vendee seeks possesion (citation omitted); it is considered transitory if brought by the vendor, since the vendor merely [749]*749seeks the purchase price.” (Emphasis added.)

The claim for the balance due on the contract constitutes an action in per-sonam.

In the second and third causes of action plaintiff seeks actual and exemplary-damages from Bell and the Bank respectively.

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Related

Buffum v. Chase Nat. Bank of City of New York
192 F.2d 58 (Seventh Circuit, 1951)
George Graff v. Samuel Nieberg and Ida Nieberg
233 F.2d 860 (Seventh Circuit, 1956)
Buzzell v. Edward H. Everett Co.
180 F. Supp. 893 (D. Vermont, 1960)
Maya Corporation v. Smith
32 F.2d 350 (D. Delaware, 1929)
Miller & Lux Incorporated v. Nickel
149 F. Supp. 463 (N.D. California, 1957)
Hammon v. American Exploration & Mining Co.
203 Cal. App. 2d 306 (California Court of Appeal, 1962)
Big Robin Farms v. California Spray-Chemical Corp.
161 F. Supp. 646 (W.D. South Carolina, 1958)
McKinney v. Mires
26 P.2d 169 (Montana Supreme Court, 1933)
Patterson v. Gray
62 F.2d 387 (Seventh Circuit, 1933)
Findlay v. Florida East Coast Ry. Co.
68 F.2d 540 (Fifth Circuit, 1934)
Silver Camp Mining Co. v. Dickert
67 L.R.A. 940 (Montana Supreme Court, 1904)
Kleinschmidt v. Kleinschmidt Laboratories, Inc.
89 F. Supp. 869 (N.D. Illinois, 1950)
Thruston v. Big Stone Gap Imp. Co.
86 F. 484 (U.S. Circuit Court for the District of Western Virginia, 1898)

Cite This Page — Counsel Stack

Bluebook (online)
225 F. Supp. 746, 1964 U.S. Dist. LEXIS 6484, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wright-v-bell-mtd-1964.