Document: 493 U.S. 5 110 S.Ct. 273 107 L.Ed.2d 6 James M. WHITE, etc., petitioner,v.UNITED STATES, et al. No. 88-928. Supreme Court of the United States October 16, 1989 On writ certiorari to Appeals for Second Circuit. PER CURIAM. The is dismissed as improvidently granted. Justice WHITE dissents. Northbrook Nat. Ins. Co. v. Brewer [110SCt297,493US6,107LEd2d223] 297 223 NORTHBROOK NATIONAL INSURANCE COMPANY, Petitioner Larry W. BREWER. 88-995. Argued Oct. 4, 1989. Decided Nov. 7, Syllabus Texas law provides that any party dissatisfied with a State Industrial Accident Board workers' compensation ruling may bring civil suit set decision aside. court determines such cases de novo, and seeking bears burden proof regardless which prevailed before board. Pursuant law, respondent Brewer, citizen employed by corporation, filed claim board against employer's insurer, petitioner here, an Illinois corporation its principal place business in State. After awarded compensation, action Federal District Court, invoking court's diversity jurisdiction under 28 U.S.C. § 1332. lack subject-matter jurisdiction. Holding Fifth Circuit precedent, Campbell Insurance North America, 552 F.2d 604, required it apply direct proviso 1332(c)—which states "in insurer policy . liability insurance ., shall be deemed insured citizen. ."—the attributed citizenship petitioner, thus eliminating between Brewer. affirmed. Held: does not actions brought federal insurer. proviso's language unambiguously applies only insurers mention insurers. This reading reinforced legislative history. Campbell's analysis—that petitioner's since entire process initiated employee's board, employee has at trial, insurer's merely "appeal" board's ruling—is rejected. Although retains some characteristics plaintiff commenced when files complaint court, his Moreover, award vacated once acquires over suit. seeming incongruity Congress created retaining out-of-state while withdrawing removal eliminated them insufficient persuade this extend scope precise wording. Cf. Horton Liberty Mutual Co., 367 348, 351-352, 81 1570, 1572-1573, 890. Pp. 9-13. 854 742 (CA5 1988), reversed remanded. MARSHALL, J., delivered opinion REHNQUIST, C.J., BRENNAN, BLACKMUN, O'CONNOR, SCALIA, KENNEDY, JJ., joined. STEVENS, dissenting opinion, post, p. 13. Peter Michael Jung, Dallas, Tex., petitioner. Timothy Fults, respondents. MARSHALL Court. 1 case presents question whether "direct action" 1332(c) (1982 ed.)—which same purposes jurisdiction—applies held applied so bar employee. (1988). Accordingly, affirmed Court's dismissal Because limited insurers, we reverse. 2 * Respondent Whitmire Line Clearance, Inc., corporation. National Company, State, was Whitmire's Under Workers' Compensation Act, who suffers injury course employment "shall have no right [the] employer but look solely [employer's insurer]." Tex.Rev.Civ.Stat.Ann., Art. 8306, 3(a) (Vernon Supp.1989). An must file Board. 8307, 4a. after he allegedly suffered during employment. processed him compensation. 3 Texas' permits 5. issues proof, Ibid. 4 1332 ed.). jurisdiction, holding 604 (1977) (per curiam ), statute. App. Pet. Cert. A-11. That states: "[I]n or contract insurance, incorporated unincorporated, joined party-defendant, citizen, well been where business." ed.) (emphasis added). therefore Northbrook, on basis Campbell. It noted, however, stood "weak jurisprudential legs." F.2d, 745. II 7 We hold applicable because Northbrook's by, against, insurer.1 "[W]e take intent regard filing Courts clearly sets forth." 352, 1573, 890 (1961) (holding Congress' elimination suits did withdraw original suits). could more clear. insurers; 8 history reinforces our pellucid language. added 1964 response sharp increase caseload Louisiana resulting largely from State's adoption statute, La.Rev. Stat.Ann. 22.655 (West 1959). See S.Rep. 1308, 88th Cong., 2d Sess., (1964); H.R.Rep. 1229, (1964), U.S.Code Cong. & Admin.News 1964, 2778. statute permitted injured sue tortfeasor's directly without joining tortfeasor defendant. Its effect create both were residents Louisiana, considered resident another Believing "not come within spirit basic purpose judicial system," supra, 2784, enacted "to eliminate district courts, certain tort claims parties are local residents, which, 'direct action' foreign carrier tort-feasor defendant," id., 1, pp. 2778-2779 also 1. Nowhere express concern about carriers. 9 reasoned is, context, actually noted trial. award. 605. 10 reject analysis. still inescapably one Fed.Rule Civ.Proc. ("A court"). suit, longer force significance. Latham Security Hartford, 491 S.W.2d 100, 104 (Tex.1972). Horton, U.S., 355, n. 15, S.Ct., 1574, 15 ("This makes all clear matter controversy will aside automatically determination novo "). Thus, concluded appeals law. 354, 1573 (citing Booth Employers' Assn., 132 Tex. 237, 246, 123 322, 328 (1938)). 11 considerations employees thus, stated would unfair provide those access courts denying employees. argues, ignored crucial difference two situations justifies different treatment. Absent state it. 8307a Supp.1989) (suit county occurred resided time injury). unlike employee, would, "at least theory, subject prejudice favor resident." Aetna Casualty Surety Greene, 606 123, 127 (CA6 1979) (rejecting approach). 12 Petitioner's position wholly convincing. explain why permit deny forum initiate court. By prevented removing originally courts. 1441(a) ed.).2 Yet difficult see how nonresident interest greater brings than does. seems somewhat anomalous retain 13 incongruity, us wording 1332(c). In confronted similar question: explicit withdrawal cases, 2, precluded first instance had answered affirmative, reasoning concerns persuaded jurisdiction—reducing congestion relieving having litigate distant courts—were actions. 1572-1573. these "appealing," refused assume intended anything unambiguous terms. Similarly, refuse attribute broader specifically expressed proviso. easily used can do still. ibid. 14 sum, terms cannot doubt meant what said. reverse remand further proceedings consistent opinion. ordered. 16 dissenting. 17 generally control minimal contact. Act unusual employers carry normally processing made their made, either company obtain review proceeding requested review. other words, administrative proceeding, assert prove meritorious. 18 One consequences unique program generation unusually large volume litigation companies. 1957 dockets burdened 2,147 cases. Over half (1,148) removed Of remainder, 957 25 carriers.1 1958,2 prevents little affect (1961); ante, 9. 19 passed curtailing As correctly notes, 9-10, dramatic workload enactment authorizing companies alleged tortfeasors parties.3 ousted remaining docket was, therefore, 20 has, steps. 1974, Hernandez Travelers 489 721, cert. denied, 419 844, 95 78, 42 73 (1974), "policy insurance" meaning ed.).4 took care percent post-1958 residue 1977, second step dispose handful cases—those (1977), specific appropriate treat "against insurer" 21 Today rejects second, relatively unimportant, Campbell, leaves standing Hernandez. net result case, then, preserve tiny fraction carriers leave untouched interpretation governing 971/2 percent. Since adopted Circuits, 126 1979), involves turns part understanding features I agree untouched. disagree, disposition issue decide. 22 merits, three scheme make characterize "against" proceeding. First, underlying beginning end unquestionably company. Second, fact remains importance determining true character identity initial pleading.5 Third, perhaps greatest importance, sufficient sustain determined magnitude claim, rather amount challenges. (1961).6 Arguably, overcome literal approach art statutory interpretation. They are, buttressed additional persuasive me. resolution depends correct believe should give deference Appeals' evaluation procedures. Bishop Wood, 426 341, 346, 96 2074, 2078, 48 684 (1976). evenhanded treatment parties, whereas expresses today gives favored carriers;7 unlikely kind discriminatory impact. construction provision ignores dominant heeded whenever construe statutes 23 "These requirements, however technical seeming, viewed perspective constitutional limitations upon power Judiciary Acts defining authority they sit, effect, Madisonville Traction Mining 196 239, 255 [25 251, 255, 49 L.Ed. 462], Ex parte Schollenberger, 369, 377 [24 853]. note successive enactments relating jealous restriction, avoiding offense sensitiveness, overwhelming 'business intrinsically belongs courts,' order keep free distinctive business. Friendly, Historic Basis Diversity Jurisdiction, 41 Harv.L.Rev. 483, 510; Shamrock Oil Corp. Sheets, 313 108-09 [61 868, 872, 85 1214]; Healy Ratta, 292 263, 270 [54 700, 703, 78 1248]." Indianapolis Chase Bank, 314 63, 76 [62 20, 86 47] (1941). 24 Finally, add word unwisdom granting decide merits case. settled perfectly sound sensible way decade four Members voted hear Measured standards, affects out total then amounted 2,147. jurisdictional increased $3,000 $50,000, number affected today's even smaller.8 although observes amend disparate consequences, 12-13, hardly likely consider worth effort. most significant aspect revelatory light sheds manage scarce resources. respectfully dissent. argues inapplicable involve A action, according claiming seeks relief legally responsible injury; neither joins nor obtains judgment party. contends benefits Instead, "look [insurer]." liable benefits, asserts, "liability need reach arguments here 1445(c) "A arising workmen's laws States." There transferred jurisdictions. 1830, 85th (1958), 1958, 3099. "Sec. (a) Section 1445 title Code amended adding thereof new paragraph follows: " '(c) States.' 72 Stat. 415. 4-5 (1964). section provides: "(c) For 1441 title, business: Provided further, "The this: Does alignment relation real interests 'matter controversy' satisfy requirements jurisdiction? "As many problems answer found legal learning realities record. Though variously decisions, principles To there exist 'actual,' Helm Zarecor, 222 32, 36 [32 10, 12, 56 77], 'substantial,' Niles-Bement-Pond Iron Moulders Union, 254 77, [41 39, 41, 65 145], citizens states, whom side side. Strawbridge Curtiss, Cranch 267 [2 435]. conferred parties' own plaintiffs defendants. duty, lower 'look beyond pleadings arrange sides dispute.' Dawson Columbia Trust 197 178, 180 420, 421, 713]. 69, 62 47 Judge Tuttle explained: Law interested party, including, course, 'set aside' previously, commenced, becomes absolute nullity itself, abrogates award, if voluntary nonsuit taken merits. obligation erroneous, though designated contrary, filed, trial conducted, (here, defendant) plead extent entitled institutes 'plaintiff' name only. nothing notice into claim. "Thus until responds insured's 'counterclaim' intents purposes, involved action." Hardware McIntyre, 304 566, 570 (CA5) (citations omitted), 371 878, 83 147, 115 (1962). 362-363, 1578-1579, (1961), Clark, familiar procedures, observed: "Moreover, Senate Report '[S]ome [workmen's compensation] limit venue accident workman's residence. When provisions applied. Very often require workman travel long distances witnesses great expense. places undue very settles afford luxury court.' Sess. [U.S.Code 3106]. "While prohibit clearer expression congressional dislike saddling imagined. should, wherever possible. Not fail this, goes defeat intent. statement 'the option court,' 3106], correct. now unequal race courthouse door—a invariably win, counsel Austin (the location Board) quickly secure news awards enabled 'beat' choice forums. Court—contrary intention Congress—grants going attendant difficulties already overburdened judiciary impecunious workman." Sixth declaratory proviso, (1979), might blush thought conflict Circuit's (1977). apparent conflict, illusory special replicated Tennessee. Indeed, later itself recognized constructions policies covering personal injury. Evanston Jimco, 844 1185, 1189 (1988); Dairyland Makover, 654 1120, 1124-1125 (1981).

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