Court Opinion

ID: 9442318
Source: CourtListenerOpinion
Date Created: 2023-08-03 18:43:47.890706+00
Date Added: 2024-06-11T17:29:03.664490
License: Public Domain

BRATTON, Circuit Judge,
dissenting.
The Declaratory Judgment Act, 28 U.S. C. § 2201, does not enlarge the jurisdiction of the district courts of the United States. It does not undertake to change the character of controversies which may be litigated in the federal courts. It does not attempt to change the essential requisites for the exercise of judicial power. It merely provides another remedy which may be invoked in cases coming within the jurisdiction of the courts of the United States. United States v. West Virginia, 295 U.S. 463, 55 S.Ct. 789, 79 L.Ed. 1546; McCarty v. Hollis, 10 Cir., 120 F.2d 540; Commercial Casualty Ins. Co. v. Fowles, 10 Cir., 154 F.2d 884, 165 A.L.R. 1068.
When a court acquires jurisdiction of a cause based upon diversity of citizenship with the requisite amount involved, a dependent jurisdiction arises to settle controversies between citizens of the same state if it is reasonably necessary to the full exertion of the main jurisdiction. But such dependent jurisdiction is not to be extended beyond that point. Republic National Bank & Trust Co. v. Massachusetts Bonding & Insurance Co., 5 Cir., 68 F.2d 445. Dependent jurisdiction is appropriately invoked and exercised where the court has jurisdiction of the cause based upon diversity of citizenship between plaintiff and all defendants and the defendants who are citizens of the same state assert conflicting claims to property involved in the action or in the custody and control of the court. In such a case, the court has jurisdiction to adjudicate the conflicting rights or claims, even though the parties are citizens of the same state. But de*671pendent jurisdiction must be purely ancillary to the primary jurisdiction. Hoffman v. McClelland, 264 U.S. 552, 44 S.Ct. 407, 68 L.Ed. 845.
The court acquired jurisdiction of this cause based, upon diversity of citizenship between the insurance company on one hand and Harvey and Collier on the other, with the requisite amount involved. The court had jurisdiction to determine and adjudicate the question whether the insurance company was obligated to defend in the name of Harvey the suit pending in the state court and to pay on his behalf within the limits of the policy any judgment which might be rendered in favor of Collier. The adjudication of that question involved a construction of the policy in respect to coverage and whether notice had been given within the time required by its terms. But with the adjudication of the question whether the insurance company was obligated to defend the action and pay within the limits of the policy any judgment rendered in favor, of Collier, the primary or main jurisdiction of the court was effectively and completely exerted.
There was no diversity of citizenship between Harvey and Collier. They were both citizens of Oklahoma. And the counterclaim did not relate to conflicting claims to property involved in the action or in the custody and control of the court. Neither did it concern itself with any comparable controversy. The essence of the counterclaim was that under the substantive law of Oklahoma Harvey was not liable to Collier in damages for personal injuries. And after adjudicating the question whether the insurance company was liable under its policy to defend the suit in the state court and to pay within the limits of the policy any judgment which might be rendered in such suit, it was not necessary or essential that the court go further and determine whether Harvey was liable under the law of Oklahoma to Collier for damages. In other words, it was not necessary or essential to the effective and full exertion of the main jurisdiction in determining whether the accident was within the coverage of the policy and whether notice of the accident had been given as required by the policy for the court to go further and determine whether under the substantive law of Oklahoma Harvey was liable to Collier in tort. And not being necessary or essentially ancillary to the full and complete exertion of the main jurisdiction of the court, there was no dependent jurisdiction to entertain and enter judgment on the cross-claim. Magnolia Petroleum Co. v. Suits, 10 Cir., 40 F.2d 161.
The case of Till v. Hartford Accident & Indemnity Co., 10 Cir., 124 F.2d 405, does not sustain the contention that the court had jurisdiction to entertain and determine the cross-claim in this case. There jurisdiction of the court was invoked in the first instance based upon diversity of citizenship between the plaintiff and all defendants. The defendants were all citizens of Oklahoma. The insured answered and counterclaimed against the plaintiff, and also sought a judgment of non-liability against certain other defendants. The court entered judgment in favor of the company determining that it was not liable under its policy to defend in the name of the insured suits in the state court or to pay judgment rendered in such suits, and also judgment in favor of the insured determining that she was not liable to her codefendants. And the judgment was affirmed. We held that the insured should not be arraigned as a party _ plaintiff; that in the absence of such arraignment there was the requisite diversity of citizenship; and that therefore the court had jurisdiction. But everything said in the opinion concerning jurisdiction was directed to the alignment of the insured with the insurance company and diversity of citizenship or the lack of it resulting from such realignment. The opinion was completely silent in respect of the jurisdiction of the court to entertain and enter judgment upon the cross-claim of the insured against other defendants, all citizens of the same state. That question was not decided.
In a case of this kind it is conceivable that if the insured be denied the right on jurisdictional grounds to maintain a cross-claim against the party asserting damages, arid judgment be rendered in favor of the insurer determining that it is not obligated *672to defend the suit in the state court or to pay within the limits of the policy any judgment rendered in such' suit, the insured would be subject to the danger of the state court later determining that he is liable in damages and in such event he would find himself without protection under the policy. But if the insured feels any concern in that respect, his remedy is to make appropriate application to the United States Court in the exercise of its sound judicial discretion to dismiss the action for a declaratory judgment. Maryland Casualty Co. v. Boyle Construction Co., 4 Cir., 123 F.2d 558. Instead of pursuing that course, Harvey exerted with success every effort to obtain a summary judgment determining and adjudicating that he was not liable to Collier for damages.
I would reverse the judgment insofar as it determined the cross-claim.