Document: 348 U.S. 48 75 S.Ct. 151 99 L.Ed. 59 LUMBERMEN'S MUTUAL CASUALTY COMPANY, Petitioner,v.Florence R. ELBERT. No. 11. Argued Oct. 14, 1954. Decided Dec. 6, Mr.Charles L. Mayer, Shreveport, La., for petitioner. Messrs. John M. Madison, Whitfield Jack, Shrevoport, respondent. Mr. Chief Justice WARREN delivered the opinion of Court. 1 This case concerns Louisiana direct action statute. Court has today had occasion to test that statute against certain claims unconstitutionality, Watson v. Employers Liability Assurance Corp., 66, 166.1 Questions are raised here involving diversity jurisdiction federal courts in cases arising under 2 Respondent, a citizen Louisiana, was injured an automobile accident at allegedly because negligence Mrs. S. W. Bowen, also citizen. Petitioner, Illinois corporation, issued public liability policy Bowen insuring him and members his household from their negligent operation family car. The applied for, issued, within State Louisiana. Petitioner certificated do business had, as legal prerequisite thereto, consented writing be sued directly damages sustained accidents its policyholders. 3 pertinent portion provides: 4 'The person or her heirs, option, shall have right insurer terms limits parish where injury occurred insured domicile, said may brought alone both insurer, jointly solido.' LSA Rev.Stat., Tit. 22, § 655. (Italics added.) 5 Pursuant this provision, respondent petitioner United States District Western alleging citizenship excess $3,000. alleged tortfeasor, not made codefendant. moved dismiss complaint lack jurisdiction; district judge granted motion. 107 F.Supp. 299, 108 157. Appeals, 201 F.2d 500; 202 744, reversed remanded trial, one dissenting denial petition rehearing. From decision, certiorari, 347 965, 74 773. Thus, sole question decided is whether over suit wrongdoer's alone, exists between complainant defendant but wrongdoer. 6 Section 1332(a) Judicial Code, 28 U.S.C. 1332(a), U.S.C.A. reads follows: 7 original all civil actions matter controversy exceeds sum value $3,000 exclusive interest costs, between: 8 '(1) Citizens different * *.' 9 It petitioner's contention 'matter controversy' underlying tort If were true, course, no would exist real party-defendant interest. But differentiated by party those either tortfeasor together with insurer. In former action, foreclosed asserting defenses such coverture, normally available tortfeasor. Edwards Royalty Indemnity Co., 182 La. 171, 161 So. 191. Similarly, severely restricted advancing technical based upon policy, failure notice, when brings action. Jackson Farm Mutual Automobile Ins. 211 19, 29 So.2d 177. While type encompasses proof tortfeasor's negligence, separate plaintiff must establish policy. characterized creating distinct cause which elect lieu West Monroe Bakery, 217 189, 46 122; supra. 10 therefore merely nominal here. conclusion disregard instant purposes fortified honoring states' characterization guardian other fiduciary determinative litigation. New Orleans Gaines's Administrator, 138 595, 11 428, 34 1102; Mexican Central Co. Eckman, 187 429, 23 211, 47 245. There even greater justification disregarding than beneficiary since unlike fiduciary—has financial outcome next asserts indispensable litigation, join deprives court jurisdiction. Clearly practice argument merit.2 And circumstances led findings indispensability present Shields Barrow, 17 How. 130, 139, 15 158, parties defined 'Persons who only controversy, nature final decree cannot without affecting interest, leaving condition termination wholly inconsistent equity good conscience.'3 person. state created optional proceed insurer; bringing petitioner, apparently abandoned tortfeasor.4 See Miller Commercial Standard 199 155, 526, 646, 649. Thus complete disposition entire claim injustice any participants. 12 Finally, contends should decline, discretion, exercise suits alone. differing standards review on appeal jury verdict courts.5 relies Burford Sun Oil 319 315, 63 1098, 87 1424, authority suggested discretionary refusal jurisdiction.6 Burford, declined avoid potential interference state's administrative policy-making process, consideration Moreover, traditional equitable authority, here, relied justify holding. 13 language congressional grant lower courts, clear, seems us fall squarely provision. long been recognized. e.g., Amsterdam Casualty Soileau, Cir., 167 767, A.L.R.2d 128, certiorari denied, 335 822, 69 45, 93 376; Bankers Green, 181 1; Belanger Great American 188 196. Neither nor law suggests reason disturb practice. decision Appeals affirmed. 14 Affirmed. FRANKFURTER, concurring. 16 Not deeming it appropriate now Meredith City Winter Haven, 320 228, 64 7, 88 9, I Court's opinion. our holding results glaring perversion purpose directed ought go comment, further mounting mischief inflicted judicial system unjustifiable continuance stuff availability tribunals controversies concerning matters themselves outside power exclusively essence solely resting fact citizens States. Congress confer desire Framers assure out-of-state litigants free susceptibility local bias. That supposed fear rooted weighty experience attested so ardent nationalist Marshall gave proposal Philadelphia Convention tepid support Virginia Convention. Elliot's Debates 556 (1891). event, whatever 'fears apprehensions'* entertained ratifiers, there parochial prejudice toward another, well aliens, lead unjust treatment foreign countries. 18 Such enabling press stand defense, state-created, another latter's State. abuses opportunity put when, more hundred years ago, corporations began transforming influence economic social life familiar history. Their classic exposition Gerard C. Henderson's Position Foreign Corporations Constitutional Law lost neither vividness force during intervening decades. short resorting corporation sought gain, much too frequently did, advantage Instead protecting discrimination effect favor 19 Diversity aroused opposition very inception, modern manifestation these evils through corporate litigation gathered increasing hostility repeated attempts restriction eventually abolition. proliferation doctrine Swift Tyson, Pet. 1, 865, into lurid light discriminatory distortions could subverted sanction professional astuteness. growing sense developments serious hurt prestige essential jurisdiction, came head Black & White Taxicab Transfer Brown Yellow 276 518, 404, 72 681. became target acrimonious political controversy. course history first time played ill turn. Again again 60's 70's 80's conflict flared up, earlier periods way being East agrarian West. President Hoover's Attorney General Senator George Norris Nebraska united disclosed 20 Mitchell urged measure whereby deemed, purposes, carries 'as respect itself residents thereof out carried State.' Hearings before Subcommittee Senate Committee Judiciary 937, 939 3243, 72d Cong., 1st Sess. 4. At same time, Committee, leadership Chairman Norris, went further. Twice reported bills abolition Rep. 691, 71st 2d Sess.; 530, Legislative correction thus far failed. overruling despite century-old credentials, uprooted most noxious weeds grown around What permeation national feeling mobility life, little excuse left Erie Railroad Tompkins, 304 64, 58 817, 82 1188, stop unwarranted freedom fashion rules defiance law. 21 A device like inherently, believe be, founded reason, offers constant temptation new abuses. instance. Here we litigant sure obtaining himself mete own citizens. order consequences every bound suing Florence Elbert, plaintiff, sue owner offending caused injury, if she insurance company chartered choice go, sues fellow receive administered courts. fortuitous circumstance company, can amenability concrete terms, cash governing trials restrictive appellate verdicts, escape jurisprudence reviewing verdicts. is, sure, kind irony defendants discover two play game working, use colloquial term, perverse potentialities less unreason fairness forum gain State, secure given citizens, going adjudication state-created rights. 22 case, however, stirs anew issue cuts deeper natural selfishness exploit law's weaknesses. My concern bearing effective functioning judiciary. Circuit Judge Rives agreed court. rehearing, he stated impressive bluntness work allowing purposes: 'On hearing, strong misgivings submitted my brothers, unable crystallize thinking clearly enough dissent. Continued convinced me something fundamentally wrong theories they permit great bulk casualty damage clog dockets while, understand, some judges actually keep them busy.' Elbert Lumbermen's 744. 24 plaintiffs suddenly found protectors companies discovered virtues York, run cover feel outraged process attrition enforcing claims, due delay three four come trial. As situations, vice true York varying degrees, big center. 25 constituted considerable filed For last ten proportion greatly increased, safe say taking least half Courts devoting cases. (This Division Procedural Studies Statistics Administrative Office Courts.) rise motor-vehicle registration 32 million 1940 56 1953 inevitably reflected resort ordinary suits. entails whole system—for increase means swelling petitions here—cannot met steady number judges. particularly drastically factories. function role involve impalpable factors, subtle far-reaching, satisfied enlarging plant. recent report House proposed required amount $10,000. Referring 'a tremendous filed,' felt appointment additional 'has done alleviate problem' recognized multiplying solution. H.R.Rep. 1506, 82d 1. farthest reaches problem does alleviate; judgment, depreciate quality judiciary thereby adversely affect system. 26 Since increasingly biggest source Courts, will necessarily inflation turn result, Gresham's law, depreciation currency consequent impairment efficacy Madison believed return entrusted 'when find states established footing.' 536 Can fairly sufficiently 'good footing' adjudicate arises States, including artificial larger volume citizens? yet trusted justice nonresident litigants; resident compelled trust tribunals? sound withdraw incentives energies reforming tribunals, reform needed, interests influential groups enabled courts? McDowell National Surety La.App., 68 dismissed, 995, 867. Two proposals compulsory joinder party-defendants failed passage Legislature years. Bill 73, 1952 Session; 600, 1954 Session. Moore's Federal Practice (2d ed. 1948), 19.07 et seq.; Note, Indispensable Parties 65 Harv.L.Rev. 1050 (1952). No cited, although nearly quarter-century statute, attempted bring following unsuccessful Appellate limited ultimately Seventh Amendment. Parsons Bedford, Breedlove Robeson, 433, 7321. extends fact. La.Const., Art. §§ 10, 29. Commonwealth Pennsylvania Williams, 294 176, 55 380, 79 841; Lakes Dredge Dock Huffman, 293, 1070, 1407; Alabama Public Service Commission Southern 341 341, 71 762, 95 1002, cited below. 234, 236, 237, 11, 12, 9. 'However administer impartially nation, description, constitution entertains apprehensions subject, views indulgence possible fears suitors, aliens citizen, states.' Bank Deveaux, Cranch 61, 87, 38.

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