Document: 341 U.S. 6 71 S.Ct. 534 95 L.Ed. 702 AMERICAN FIRE & CASUALTY CO.v.FINN. No. 252. Argued Dec. 7, 1950. Decided April 9, 1951. Mr. David Bland, Houston, Tex., for petitioner. Bailey P. Loften, respondent. Justice REED delivered the opinion of Court. 1 These proceedings present determination proper federal rule to be followed on a motion by defendant vacate United States District Court judgment, obtained plaintiff after removal from state court defendant, and remand suit court. Petitioner, movant, urges that 28 U.S.C. § 1441, U.S.C.A. 1441 did not permit this therefore was without jurisdiction render judgment which respondent, below, seeks retain. The issue arose in way: 2 American Fire Casualty Company, Florida corporation, its codefendant, Indiana Lumbermens Mutual Insurance an removed, accordance with 1446, brought respondent Finn Texas against two corporations individual, Reiss, local agent both resident Texas. fire loss property suffered Respondent tried have case remanded before trial but unsuccessful. After special issues were found jury, entered petitioner amount insurance claimed costs, favor other defendants. denied Appeals affirmed. 181 F.2d 845. latter concluded there causes action foreign companies 'separate independent' stated individual. Since would been removable if sued alone, entire removable. 1441(c), 1441(c). That ruling required consideration changes concerning made superseded (1946 ed.) 71. said: 3 'The difference, any, between separable controversies under old statute separate independent claims new one is degree, kind. It difficult distinguish concepts, it necessary attempt like this, either statute.' 846. 4 Consideration requires whether contained and, conclusion not, effect right, initiated party whom ultimately rendered. As prompt, economical sound administration justice depends large degree upon definite finally accepted principles governing important areas litigation, such as respective jurisdictions courts, we granted certiorari. 340 849, 79. See also Mayflower Industries v. Thor Corporation, Cir., 184 537; Bentley Halliburton Oil Well Cementing Co., 5 174 788. I. took place September 1, 1948, effective date revision laws relating judicial procedure. 62 Stat. 992, note preceding 1. former provision removal, 71, read: 'And when any mentioned section shall controversy wholly citizens different States, can fully determined them, then or more defendants actually interested may remove said into district district.' 7 section, states: 8 '(c) Whenever claim cause action, joined otherwise nonremovable removed determine all therein, or, discretion, matters within original jurisdiction.' 9 One purpose Congress adopting action' test removability 1441(c) 1948 lieu simplification avoid difficulties experienced determining meaning provision.1 Another limit courts.2 Section allowed states determinable them. Such 'separable.' inherent show plainly majority concurring opinions Pullman Co. Jenkins, 305 534, 542, 59 347, 351, 83 334. note, 41 Harv.L.Rev. 1048. Often plaintiffs actions residents out-of-state so pleaded. effort frequently failed, see at page 538, 349, allowed. Our should carried out light congressional intention. Cf. supra, 547, 353; Phillips 312 246, 250, 61 480, 483, 85 800. 10 Congress, revision, abridge right removal.3 Under provision, authorized suit. 'Controversy' had long associated legal thinking 'case.' covered disputes might come courts adjudication. In 'controversy' interpreted possible litigant properly bring states. So, federally cognizable controversy, court.4 11 A no longer adequate ground unless constitutes action. Compare Barney Latham, 103 205, 212, 26 514, revised 1441. has now only action.5 Of course, restricts than 'separable controversy.' covering multiple parties based single claim, yet controversies.6 addition word 'independent' gives emphasis intention require complete disassociation those allowing removal. 12 effectiveness restrictive policy ascribed * action'. Although 'cause are treated synonymous situations where considerations absent,7 here obvious concepts involved.8 We unmindful phrase many meanings.9 To accomplish limiting simplifying used obtain result. By interpretation defeat purpose. 13 turning action,' announced description. Baltimore S.S. Phillips, 274 316, 47 600, 1069.10 This said, 321, 602: 14 'Upon principle, perfectly plain actionable wrong entitled recovery, his injury due several distinct acts alleged negligence combination some view, wrongful invasion primary plaintiff, namely, bodily safety, constituting many, simple complex. 15 'A does consist facts, unlawful violation facts show.' 16 Magnolia Petroleum Hunt, 320 430, 443, 64 208, 215, 88 149.11 Considering previous history controversy,' broad resulting conclude relief sought, arising interlocked series transactions, 1441(c).12 17 making look plaintiff's pleading, controls. 334.13 sought failure pay compensation property. Liability lay among three parties, uncertain responsible. Therefore, petition. First, petitioner, liable. company, through insured destroyed claimed, Reiss gave credit premium, controlled her insurance, agreed keep times. She further Company issued retained document possession refused deliver fire. Then prayer Company. 18 next portion complaint stated, alternative, obligation same loss. attached exhibit, allegations similar first made. second added recovery Lumbermens. 19 last complaint, alternative preceding, jointly severally liable broker, responsible keeping house insured. Plaintiff never notified cancellation expiration. later insure American, promised policy, failed make delivery. 'anything results policies' he 'the direct condition, proximate troubles confusion.' pleader asserted: 20 'That conduct part Joe companies, renders agent, Agency Orlando, Florida, Indianapolis, Indiana, full damages reason Five Thousand Dollars.' 21 petition joint defendants, third set allegations. 22 past 'separable' controversies, create surer test, restrict leads us stated. each involve damage comes incident. substantially transactions do companies. cannot requires. II. 23 There cases uphold judgments even though removal.14 posture time actual entry judgment. is, litigation comprised cognizance case. circumstance relied foundation holdings.15 who held estopped protesting could originally, estoppel endow possess. 24 case, however, suit, because side citizen 1332, 1332. barred jurisdiction. remained defendant. decreeing jury's verdict, added, over American's objection, 25 'It Is Further Ordered, Adjudged Decreed take nothing Defendants, individually doing business Agency, Defendants go hence day their costs.' decree merits adjudicated.16 request dismiss acted 27 carefully guarded expansion prior consent parties.17 enter act work extension give power must reversed directions steps taken affect jurisdiction,18 Harris County, Texas, costs State Tennessee Union Planters Bank, 152 454, 464, 654, 657, 38 511. 29 ordered. 30 Judgment reversed, directions. 31 DOUGLAS, BLACK MINTON concur, dissenting. 32 I think having asked Federal Court, lost court, 33 Mere irregularity waived originally Baggs Martin, 179 206, 109, 45 155.1 receiver instituted rendered him. stop inquire compliance provisions, holding circumstances lie mouth deny sought. And Toledo, St. L. W.R. Perenchio, 205 F. 472; Handley-Mack Godchaux Sugar 435, 437; 153, 155. 34 since diversity citizenship $3,000. requirements jurisdictional waived. But involved here. Judicial Code reads: 35 'Whenever non-removable 36 argument individual suits nonresident asserted them independent.' 37 reviewed originally2 invoked observed closely analogous 155, situation equivalent initiating appears.'3 abusive interests challenge raised dignity question. Any requirement met rose level higher irregularity, far concerned. Both dismissed satisfies Petitioner—the result consequences judgment—should heard complain. govern Reviser's Note H.R. Rep. 308, 80th Cong., 1st Sess., 25, 1947, accompany bill, 3214. (U.S.C.Cong.Serv., Title 28, pp. 1697, 1699, 1855.) reprinted National City Lines, 337 78, 81, 69 955, 956, 959, 93 1226. Note: 'Subsection (c) permits Courts. respect will somewhat decrease volume litigation.' enacted restrictions Employer's Act. 71; 1445, 1445. Care maintain opportunity non-federal matters. 'Rules 18, 20, Rules Civil Procedure most liberal joinder claims, remedies civil actions. Therefore procedural difficulty occasioned Conversely, desires, matters.' McFadden Grace Line, 82 F.Supp. 494. good illustration. corporation individuals accounting land sales. group sales nonresidents conveyance corporation; conveyance. California conductor's death caused drunken passenger. passenger (a Californian), railroad Kentucky allegedly negligent letting pass gates), (an Illinois corporation), porter Pullman. Had Californian, defendants' liability predicated. 539, 349. 'All persons able remove.' Discussed Moore's Commentary Code, p. 247. 'claim' rests. For words cover contain they 4, supra. E.g., Tolbert Jackson, 99 513, 514 valuable case) Des Moines Elevator Grain Underwriters Ass'n, 63 103; Nichols Chesapeake Ohio R. 195 913. Memphis Cotton 288 62, 67 69, 53 278, 280, 281, 77 619; Bemis Bros. Bag. 289 33, 456, 1011; Hurn Oursler, 238, 247, 586, 590, 1148. sailor filed libel admiralty recovered failing provide safe work, use reasonable care striking libellant, unseaworthiness, incompetency officers instruct inexperienced sailor, duties. Later accident, employees operation vessel. Recovery first. Chase Securities Corp. Donaldson, 325 304, 311, 65 1137, 1141, 89 1628, rule: seem setting up bases common-law tort retrial enacted. regard light.' So 1148: bill alleges protection copyrighted play. Indeed, infringement unfair competition precisely rest identical little epithets characterize circumstances. injunction put end essentially wrong, however differently characterized, enjoin wrongs basis action.' Behrens Skelly, 173 715, 719; Cope Anderson, 331 461, 466, 1340, 1342, 91 1602. discussion code pleading. Clark Pleading (2d ed.), 137 et seq. 251—252: 'But joins recover injury, charges liability, At presented alleged, removal.' D.C., 81 323, reversing 155; Toledo Godchaux, 435; 153. hands proceeding wherein 'mere consent, voluntary (conferred) possessed 209, 110. Burton-Lingo Lay, Tex.Civ.App., 142 S.W.2d 448; Spann Brothers Anto Supply Miles, 135 1016, 1017. People's Bank Belleville Calhoun, 102 256, 260 261, 101: needs citation authorities mere confer hear decide If once conceded, become common resort Constitution litigate courts.' Mansfield C. L.M.R. Swan, 111 379, 383, 510, 512, 462, quoting approval excerpt dissent Dred Scott Case: true 'as general rule, allow rely anything advantage. follow ancient law. careful law preservation course exception assign error advantage, departure itself settled procedure." Also see, e.g., Wabash Barbour, 73 516; Capron Van Noorden, Cranch 126, 229. Issues records briefs passed upon, propriety Court's allowing, vacation defendant; problem: whether, dismissal allowed, verdict trial. questions decision See, Dollar Lines Merz, 68 594; International Ladies' Garment Workers' Donnelly 121 561. noted Martin displaces view earlier expressed Torrence Shedd, 144 527, 529, 726, 727, 528 Snyder, 148 663, 706, 602. Chicago, B. Q. Willard, 220 413, 418, 460, 55 521. Alabama Great Southern Thompson, 200 161, 50 441; Rupp Wheeling L.E.R. 825. remedy

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