Opinion ID: 396223
Heading Depth: 1
Heading Rank: 3

Heading: Other counterclaims

Text: 15 Alleging Bobby Moore's conduct as executor evidenced a conflict of interest, a breach of fiduciary duty and an unfitness to serve as an executor, Lindsey counterclaimed for coercive relief including the removal of Bobby Moore as executor, enjoining him from further dealings with the estate, an accounting and the appointment of a receiver. The district court, leaving the matter to state courts, refrained from reaching the merits. 16 The district court properly refrained. Since these claims constitute a permissive counterclaim under Fed.R.Civ.Pro. 13(b), they must be supported by independent grounds of federal jurisdiction. Diamond v. Terminal Railway Alabama State Docks, 421 F.2d 228, 236 (5th Cir. 1970). This is a diversity action. In general a federal court in a diversity action has jurisdiction over any civil action that may be brought in a state court if the requisite diversity and amount in controversy requirements of 28 U.S.C. § 1332(a) are met. There are two exceptions, probate and divorce. As to probate, 17 federal courts of equity have jurisdiction to entertain suits in favor of creditors, legatees and heirs and other claimants against a decedent's estate to establish their claims so long as the federal court does not interfere with the probate proceedings or assume general jurisdiction of the probate or control of the property in the custody of the state court. 18 Markham v. Allen, 326 U.S. 490, 494, 66 S.Ct. 296, 298, 90 L.Ed. 256, 259 (1946), quoting Waterman v. Canal-Louisiana Bank & Trust Co., 215 U.S. 33, 43, 30 S.Ct. 10, 12, 54 L.Ed. 80, 84 (1909). 19 An exception to the general rule that federal courts are without jurisdiction to entertain matters affecting probate proceedings other than to establish claims and to determine the rights of persons claiming an interest in the estate exists where a state by statute or custom gives parties a right to bring an action in courts of general jurisdiction. Fakouri v. Cadais, 147 F.2d 667, 670 (5th Cir.), cert. denied, 326 U.S. 742, 66 S.Ct. 54, 90 L.Ed. 443 (1945). In Georgia courts of equity will interfere with the regular administration of estates upon application of any person other than the executor only where there is danger of loss or other injury to his interests. Ga.Code Ann. § 37-403. The danger of loss must be of an immediate loss, however, and the probate court must be unable to grant adequate relief. Turner v. Turner, 210 Ga. 586, 82 S.E.2d 137 (1954). Absent extreme circumstances, 10 therefore, a court of equity will not interfere. For example, an allegation that the executor is incompetent and not handling the estate in its best interests but manipulating it for his own personal interests is insufficient to authorize interference. Gaines v. Gaines, 171 Ga. 169, 154 S.E. 883 (1930). Moreover, where petition sought removal of administratrix, an accounting, and an injunction against administratrix because she refused to file an inventory, neglected to distribute assets, failed to collect rents and refused to account for rents, the Georgia Supreme Court held that equity had no subject matter jurisdiction. Turner v. Turner, 210 Ga. 586, 82 S.E.2d 137 (1954). 20 Applying these rules to this case, the district court had jurisdiction to adjudicate the claims of the parties to the assets, and it properly acted to determine liability for the PCA indebtedness. It had no subject matter jurisdiction, however, to issue an injunction forbidding Bobby Moore from further dealing with the estate, to remove the executor, to appoint a receiver or to require an accounting, see, e. g., Robinson v. Georgia Savings Bank & Trust Co., 106 F.2d 944 (5th Cir. 1939) (accounting and personal money judgment), Goff v. First National Bank, 170 Ga. 691, 153 S.E. 767 (1930) (receiver). There were adequate remedies at law. See Ga.Code Ann. §§ 113-1101, 113-1229. The district court properly refrained from addressing these claims. 21 AFFIRMED in part, REVERSED in part and REMANDED.