Source: https://case-law.vlex.com/vid/341-u-s-6-606516834
Timestamp: 2020-03-30 17:22:07
Document Index: 213320824

Matched Legal Cases: ['§ 1441', '§ 1441', '§ 71', '§ 1441', '§ 1441', '§ 1441', '§ 71', '§ 71', '§ 1441', '§ 71', '§ 71']

341 U.S. 6 (1951), 252, American Fire & Casualty Co. v. Finn - Federal Cases - Case Law - VLEX 606516834
341 U.S. 6 (1951), 252, American Fire & Casualty Co. v. Finn
Docket Nº: No. 252
Citation: 341 U.S. 6, 71 S.Ct. 534, 95 L.Ed. 702
Party Name: American Fire & Casualty Co. v. Finn
Case Date: April 09, 1951
341 U.S. 6 (1951)
71 S.Ct. 534, 95 L.Ed. 702
1. In the light of the allegations of the complaint in this case, separate and independent causes of action were not stated; and, under 28 U.S.C. § 1441(c), there was no right of removal of the case from the state court to the federal court. Pp. 9-16.
(a) In adopting the "separate and independent claim or cause of action" test for removability, 28 U.S.C. § 1441(c) (1948), Congress intended to avoid the difficulties experienced in determining the meaning of the former provision of 28 U.S.C. § 71, and to limit removal from state courts. Pp. 9-10.
(c) The phrase "cause of action," as used in § 1441, must be given a meaning which will accomplish the congressional purpose of limiting and simplifying removal. Pp. 12-13.
(d) Where a plaintiff seeks relief for a single wrong, arising from an interlocked series of transactions, there is no "separate and independent claim or cause of action" under 28 U.S.C. § 1441(c). Pp. 13-14.
2. Because of the presence of a citizen of Texas on each side, the District Court would not have had original jurisdiction of this suit, either as stated in the complaint or in the posture of the case at the time of judgment. Therefore, the judgment of the District Court must be vacated. Pp. 16-19.
(a) To permit a federal trial court to enter judgment in a case removed without right from a state court where the federal court could not have original jurisdiction of the suit, even in its posture at the time of judgment, would, by the act of the parties, work a wrongful extension of federal jurisdiction and give district courts power that Congress has denied them. Pp. 17-18.
In a suit removed by petitioner from a state court, the District Court entered judgment against petitioner. The District Court's denial of petitioner's subsequent motion to vacate the judgment and remand the case to the state court was affirmed by the Court of Appeals. 181 F.2d 845. This Court granted certiorari. 340 U.S. 849. Reversed and remanded, p. 19.
The difference, if any, between separable controversies under the old statute and separate and independent claims under the new one is in degree, not in kind. It is difficult to distinguish between the two concepts, but it is not necessary to attempt it in a case like this, which would be removable under either statute.
340 U.S. 849. See also Mayflower Industries v. Thor Corporation, 184 F.2d 537; Bentley v. Halliburton Oil Well Cementing Co., 174 F.2d 788.
And when, in any suit mentioned in this section, there shall be a controversy which is wholly between citizens of different States, and which can be fully determined as between them, then either one or more of the defendants actually interested in such controversy may remove said suit into the [71 S.Ct. 538] district court of the United States for the proper district.
(c) Whenever a separate and independent claim or cause of action, which would be removable if sued upon alone, is joined with one or more otherwise nonremovable claims or causes of action, the entire case may be removed, and the district court may determine all issues therein, or, in its discretion, may remand all matters not otherwise within its original jurisdiction.
One purpose of Congress in adopting the "separate and independent claim or cause of action" test for removability by § 1441(c) of the 1948 revision in lieu of the provision for removal of 28 U.S.C. (1946 ed.) § 71 was by simplification to avoid the difficulties experienced in determining the meaning of that provision.1 Another and important
purpose was to limit removal from state courts.2 Section 71 allowed removal when a controversy was wholly between citizens of different states and fully determinable between them. Such a controversy was said to be "separable." The difficulties inherent in old § 71 show plainly in the majority and concurring opinions in Pullman Co. v. Jenkins, 305 U.S. 534, 542. See note, 41 Harv.L.Rev. 1048. Often plaintiffs in state actions joined other state residents as defendants with out-of-state defendants so that removable controversies wholly between citizens of different states would not be pleaded. The effort frequently failed, see Pullman Co. v. Jenkins, at 538, and removal was allowed. Our consideration of the meaning and effect of 28 U.S.C. § 1441(c) should be carried out in the light of the congressional intention. Cf. Pullman Co. v. Jenkins, supra, at 547; Phillips v. United States, 312 U.S. 246, 250.
The Congress, in the revision, carried out its purpose to abridge the right of removal.3 Under the former provision,
28 U.S.C. (1946 ed.) § 71, separable controversies authorized removal of the suit. "Controversy" had long been associated in legal thinking with "case." It covered all disputes that might come before federal courts for adjudication. In § 71 the removable "controversy" was interpreted as any possible separate suit that a litigant might properly bring in a federal court so long as it was wholly between citizens of different states. So, before the revision, when a suit in a state court had such a separate federally cognizable controversy, the...
609 F.3d 710 (5th Cir. 2010), 08-20313, Bailey v. Shell Western E& P, Inc.