Document: 437 U.S. 365 98 S.Ct. 2396 57 L.Ed.2d 274 OWEN EQUIPMENT AND ERECTION COMPANY, Petitioner,v.Geraldine KROGER, Administratrix of the Estate James D. Kroger, Deceased. No. 77-677. Argued April 18, 1978. Decided June 21, Syllabus Respondent, a citizen Iowa, sued for damages based on wrongful death her husband, who was electrocuted when boom steel crane next to which he walking came too close high-tension electric power line. The action brought in federal court basis diversity c tizenship against Nebraska corporation (OPPD), whose negligent operation line alleged have caused decedent's death. OPPD then filed third-party complaint petitioner company owned and operated crane, alleging that petitioner's negligence proximately Respondent thereafter granted leave amend by naming petitioner, she be with its principal place business Nebraska, as an additional defendant. successfully moved summary judgment, leaving sole Though answer admitted it organized existing under laws during trial disclosed Iowa. Since both parties were thus Iowa citizens, dismiss lack jurisdiction. After jury had returned verdict respondent, District Court denied motion dismiss. Appeals affirmed, holding Mine Workers v. Gibbs, 383 715, 86 1130, 16 218, jurisdictional power, discretion, adjudicate claim, arose from "core 'operative facts' giving rise [respondent's] claim OPPD's [petitioner]," properly exercised discretion because concealed citizenship respondent. Held: no entertain respondent's lawsuit defendant since jurisdiction lacking. supra, distinguished. Pp. 370-377. (a) A finding nonfederal claims arise "common nucleus operative fact," Gibbs test, does not suffice establish has hear well claims, since, though constitutional may exist, follow statutory authorization been granted. Aldinger Howard, 427 1, 96 2413, 49 276; Zahn International Paper Co., 414 291, 94 505, 38 511. 370-373. (b) Here relevant statute, 28 U.S.C. § 1332(a)(1), confers upon courts over civil actions where amount controversy exceeds $10,000 is between citizens different States, requires complete citizenship, congressionally mandated available any plaintiff same State defendant, situation developed this case respondent amended complaint. 373-374. (c) Under Appeals' ancillary-jurisdiction theory could defeat requirement simply suing only those defendants diverse waiting them implead nondiverse defendants. 374-375. (d) In determining whether exists, context asserted crucial. ancillary one, entirely separate original OPPD, liability did depend at all or also liable. Moreover, here plaintiff, voluntarily chose sue state-law court, whereas typically involves party haled into his will, another person rights might irretrievably lost unless assert ongoing court. 375-376. 558 F.2d 417, reversed. Emil F. Sodoro, Omaha, Neb., petitioner. Warren C. Schrempp, Mr. Justice STEWART deliver d opinion Court. 1 there independent claim? Eighth Circuit held such within courts. We certiorari, 434 1008, 54 749, decision conflicts several recent decisions other Courts Appeals.1 2 * On January 1972, Kroger (his widow, administratrix estate) wrongful-death United States Omaha Public Power (OPPD). Her construction, maintenance, Kroger's Federal corporation. 3 pursuant Fed.Rule Civ.Proc. 14(a)2 Owen Equipment Erection Co. (Owen), Owen, Owen's proximate cause death.3 later judgment it. While pending, file Thereafter, unreported opinion.4 went alone. 4 "a Nebraska." Nebraska," every allegation third day trial, however, Nebraska,5 Iowa.6 reserved motion, favor issued after 5 affirmed appeal. 417. Court's Owen." 424. It further proceeding decide even Rehearing en banc equally divided II 6 undisputed tort are And although 14(a) permits see n. 2, purport say Indeed, determine question, axiomatic Rules Civil Procedure do create withdraw jurisdiction.7 7 affirming relied doctrine jurisdiction, contours believed defined supra. differed one involved pendent concerns resolution plaintiff's federal- single action. By contrast, substantive law, but rather two Nonethel ss, correct perceiving species generic problem: what circumstances arising State?8 But we believe failed understand scope theGibbs case. 8 union violated common law Tennessee prohibition secondary boycotts. This that, entertained claim. crucial stated follows: 9 "Pendent sense judicial exists whenever 'arising [the] Constitution, Laws Treaties made, shall their Authority . ,' U.S.Const., Art. III, relationship state conclusion entire before comprises 'case.' must derive fact. if, considered without regard character, would ordinarily expected try proceeding, then, assuming substantiality issues, whole." U.S., 725, S.Ct., 1138. (emphasis original).9 10 apparent delineated limits power. if assumed present petitioner,10 correct. Constitutional merely first hurdle overcome particular controversy. For limited provisions III Acts Congress. Palmore 411 389, 401, 93 1670, 1678, 36 342; Lockerty Phillips, 319 182, 187, 63 1019, 1022, 87 L.Ed. 1339; Kline Burke Constr. 260 226, 234, 43 79, 82, 67 226; Cary Curtis, How. 236, 245, 11 576. That Constitution limit court's claims11 illustrated Court, 276 51 lacked county, county officials 42 1983. class 23(b)(3), each member independently satisfy minimum set 1332(a), rejected argument existed less more. case, despite fact statute conferring allow exercise claim.12 cases make clear test end inquiry along ones. Beyond minimum, examination posture specific order "Congress [that statute] expressly implication negated" 2422. 12 "civil matter sum value States." predecessors consistently require citizenship.13 is, exist plaintiff. Over years Congress repeatedly re-enacted intact rule diversity.14 Whatever purposes diversity-of-citizenship jurisdiction,15 subsequent history clearly demonstrates congressional mandate Cf. Snyder Harris, 394 332, 338-339,16 89 1053, 1057-1058, 22 319. 13 Thus originally suit codefendants, sides litigation. Yet identical resulted Complete destroyed just surely initially. either situation, plain language "matter controversy" "between 14 fundamental precept imposed Congress, neither disregarded nor evaded. reasoning simple expedient defendants.17 If, thought, fact" principled reason why joined OPPD. Congress' evaded completely. 15 true, noted, often upheld situations involving impleader, cross-claims counterclaims.18 See 14, 2420. arises setting quite kinds viewed falling First, example, impleader always is. depends least part primary lawsuit. 3, Its relation mere factual similarity logical dependence. Moore New York Cotton Exchange, 270 593, 610, 46 367, 371, 70 750. depended Far being dependent new one. 17 Second, bring defending court.19 cannot complain encompass possible chosen than forum accept limitations. "[T]he efficiency seeks so avidly question courts." Kenrose Mfg. Fred Whitaker 512 890, 894 (CA4).20 18 unreasonable assume generally requiring diversity, intend confine inflexibly they unable protect legal effectively resolve entire, logically entwined Those practical needs convenience litigants considerations economy can justify extension established basic 1332 citizenship. "The policy calls strict construction." Healy Ratta, 292 263, 270, 700, 703, 78 1248; Indianapolis Chase Nat. Bank, 314 63, 76, 62 15, 20, 47; Thomson Gaskill, 315 442, 446, 673, 675, 951; 340, 1058. To circumvented flout command.21 19 Accordingly, 20 ordered. 21 WHITE, whom BRENNAN joins, dissenting. today states "[i]t lawsuit." Ante, 377. spite recognition, majority goes hold suits how already Because I find support dissent "unnecessarily grudging"1 approach. 23 below, Mrs. (OPPD) No questions time greater $10,000; therefore 1332(a). As permitted 14(a), impleaded & (Owen). Although raise apparently encompassed Subsequently, everyone believing these States. light concludes 24 1138, 218 (1966), once sufficient substance confer subject-matter district consider claim2 derived fact." facts concerned said federal-question broad enough cover instant situation: "[I]f, i Ibid. (footnote omitted). fact; necessarily "aris[e] out transaction occurrence subject ." Furthermore, unquestioned. far concerned, Owen. 25 correctly points out, analysis stop here. (1976), teaches, Constitution. Aldinger, Spokane County closely connected 1983 treasurer, for, precedents time, thought specifically determined cities counties. so, refused "the fashion general enabling circumvent exclusion 16,3 2421. 26 indication intent contained "district interpreted Strawbridge Curtiss, Cranch 267, 179 (1806), holds holding, unnecessarily expands complete-diversity while substantially limiting 27 requirement, course, meaning Thus, citizenship; true defendant's Even majority, refuses read broadly; recognizes seeming approval cross-claims, co nterclaims. ante, 375. Given willingness recognize contexts, requirements justification refusal approve significant asserts seeking add and, having done, sought presented unlike wherein noted: 29 "[I]t thing authorize parties, virtue litigate addition permit respect join second 'derive fact.' True, served insofar 'are .' [Gibbs, 1138.] completely run counter well-established principle courts, opposed marked Congress." 14-15, 30 someone suit, economy, convenience, fairness litigants—the factors Gibbs—support recognition Already whole initially contended responsible; turn very limitations will still 376-377, certainly duplicative litigation.4 31 brushes aside recognizing thereby "flout command." occasion deliberate circumvention absent collusion collusion, absolutely here,5 authority 1359.6 absence adopt absolute prohibiting asserting 14(a). brings assurance able control party, should irrelevant. some foresee chain events leading seem me declare defendant.7 32 previously noted "[s]ubsequent indicate given expansive reading." Farm Fire Cas. Tashire, 386 523, 531 6, 1199, 1203, (1967). teaching, seems appropriate view actually suit. statutory, among original, jurisdiction-conferring disposition Fawvor Texaco, Inc., 546 636 (CA5); Saalfrank O'Daniel, 533 325 (CA6); Parker W. Sons, 528 764 (CA4); Joseph Chrysler Corp., 513 626 (CA3), aff'g 61 F.R.D. 347 (WD Pa.); 890 (CA4). Rule provides part: "At commencement summons liable him him. complaint, hereinafter called defenses provided counterclaims 13. thereupon counter-claims 13." supra ; Advisory Committee's Notes 1946 Amendment App., pp. 7752-7753. death, nowhere spelled evidently common-law right ontribution joint tortfeasors. Dairyland Ins. Mumert, 212 N.W.2d 436, 438 (Iowa); Best Yerkes, 247 800, 77 23. never challenged propriety such. Judgment entered 54(b), affirmed. District, 523 161 (CA8). problem geography. Missouri River marks boundary Carter Lake, accident occurred main office, lies west river, adjacent Neb. Apparently river avulsed bends, cutting Lake off rest Title 1332(c) "[f]or [diversity jurisdiction] ., deemed incorporated business." 82; 319; Sibbach Wilson 312 10, 422, 424, 85 479. more 276, necessary "whether 'principled' differences jurisdiction; or, are, effect differences." Id., 13, remains "considerations litigants," 726, 1139, abused retaining existence law. determines outer boundaries constitutionally permissible deciding regard. infra. used opinion, term "nonfederal claim" means Conversely, "federal exists. Monell City Dept. Social Services, 436 658, 2018, 56 611, overruled Monroe Pape, 167, 81 473, 492, political subdivisions amenable 1983—the 1343(3) county. way qualifies constitutional, point dissenters agreed n.3, 2424 (BRENNAN, J., MARSHALL BLACKMUN, JJ., dissenting). E. g., 435; Coal Blatchford, Wall. 172, 179; 69, 16, American Finn, 341 17, 71 534, 541, 95 702. settled requirement. 530-531, 1203-1204, 270. various enumerated described J. Moore, Practice ¶ 0.71[4] (2d ed. 1977). Wright, Law (3d 1976), discussion theories advanced explain grant Notably, enacted Judicial Code 1948, Stat. 930, shortly 1946. When amended, Committee "in attempt unavailing." p. 7752. re-enactment change seen evidence "majority view." unlikely hypothesis, impleading tortfeasors indemnity contribution. Some commentators suggested abuse practice dealt 1359, forbids collusive attempts See, e. 14.27[1], 14-571 1974); Wright A. Miller, 1444, 231-232 (1971); Note, Claims Ancillary Jurisdiction, Va.L.Rev. 265, 274-275 (1971). dissenting expresses view. Post, 383. nothing about selectively named defendants' desire Nonetheless, eviscerated course events. derives Freeman Howe, 450, "effectively controls property fund dispute, claimants thereto allowed intervene interests, jurisdiction." 11, 2419. More recently, include involve multiparty practice, compulsory counterclaims, 750; H. L. Peterson Applewhite, 430, 433 Dery Wyer, 265 804 (CA2); LASA Per L'Industria Del Marmo Soc. Azioni Alexander, 143 Scott Fancher, 369 842, 844 Glen Falls Indemnity ex rel. Westinghouse Electric Supply 229 370, 373-374 (CA9); intervention right, Phelps Oaks, 117 241, 714, 716, 888; Smith Petroleum Service, Inc. Monsanto Chemical 420 1103, 1113-1115 (CA5). Whether Iowa's now bar 614.10 (1977). Compare 420, id., 432 (Bright, dissenting; cf. Burnett Central R. 380 431-432, 9, 1050, 1056-1057, 941. Our inequity concealment "prior consent parties." 17-18, 542. (1966). use terms uses them. 372 11. careful nature our holding: "There many variations employed issue so-called 'pendent party' §§ Other grants alignments call result." prior dismissed indicated dismissal well. 1139. unusual however—in particular, actual location revealed until trial—fairness lead conclude disposition, tried, Therefore, desired done directly Section 1359 states: "A assignment otherwise, improperly collusively made invoke court." analysis, mean required cases. concluded interests retention majority's recognized met case-by-case basis, adopts.

Category: 8