Egan v. American Airlines, Inc.

Citation324 F.2d 565
Decision Date21 October 1963
Docket NumberNo. 77,Docket 27985.,77
PartiesElizabeth Anna EGAN and John H. Seiter, as Administrators of the Estate of Eileen M. Seiter, Plaintiffs-Appellants, v. AMERICAN AIRLINES, INC., Defendant-Appellee.
CourtUnited States Courts of Appeals. United States Court of Appeals (2nd Circuit)

Burton S. Cooper, New York City (Leonard Lerner and Shatzkin & Cooper, New York City, on the brief), for plaintiffs-appellants.

Robert F. Ewald, New York City (P. G. Pennoyer, Jr., Peter J. Magee and Bigham, Englar, Jones & Houston, New York City, on the brief), for defendant-appellee.

Before LUMBARD, Chief Judge, and MEDINA and FRIENDLY, Circuit Judges.

MEDINA, Circuit Judge.

We affirm in open court. The asserted basis of jurisdiction is diversity of citizenship. Judge Rayfiel held that defendant American Airlines, Inc., while incorporated in Delaware, had its principal place of business in New York and dismissed the action for lack of jurisdiction, applying 28 U.S.C. § 1332(c). In concluding that New York was the state where American Airlines, Inc. had its principal place of business, Judge Rayfiel correctly analyzed the facts of this particular case. He found that American's "general over-all management and business policy is prescribed in and directed from New York" where it also conducts a substantial operation; and the record shows that in other states where its physical volume of operation was larger (due in some part to their greater area), American maintained, for the most part, only officers concerned with the activities conducted there. There is no conflict between Judge Rayfiel's decision and Judge Weinfeld's in Scot Typewriter Co. v. Underwood Corp., D.C.S.D.N.Y., 1959, 170 F.Supp. 862, on the one hand, and the Third Circuit case of Kelly v. United States Steel Corporation, 3 Cir., 1960, 284 F.2d 850, on the other; in that case over-all management control was split between New York and Pennsylvania and the court found a predominance of activity in the latter state.

Since appellants have not been able to point to any single state which should be more properly regarded as American's principal place of business, the fact that New York activities are a modest fraction of the total proves nothing. The argument of appellants that jurisdiction should be sustained because "the vast majority of key activities and situs of operations of the * * * airline were performed and located outside of the State of New York" is untenable for the reason...

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25 cases
  • Kubin v. Miller, 92 Civ. 0756 (SWK).
    • United States
    • U.S. District Court — Southern District of New York
    • July 31, 1992
    ...when the corporation generally conducts its business policy and makes management decisions in a single state. Egan v. American Airlines, Inc., 324 F.2d 565, 565-66 (2d Cir.1963). When a corporation's activities are "far-flung and varied," however, it is more difficult to determine its princ......
  • Mennen Co. v. Atlantic Mut. Ins. Co.
    • United States
    • U.S. Court of Appeals — Third Circuit
    • June 26, 1998
    ...antagonistic. See, e.g., Merino de Walker v. Pueblo Intern., Inc., 569 F.2d 1169, 1171 (1st Cir.1978); Egan v. American Airlines, Inc., 324 F.2d 565, 566 (2d Cir.1963); 13B Federal Practice and Procedure § 3625 (2d ed. 1984 & Supp.1998). Several courts have more recently embraced a "total a......
  • Pinnacle Consultants, Ltd. v. Leucadia Nat. Corp., 163
    • United States
    • U.S. Court of Appeals — Second Circuit
    • December 10, 1996
    ...no principal place of business. However, the diversity statute was designed to preclude such an argument, see Egan v. American Airlines, Inc., 324 F.2d 565, 566 (2d Cir.1963), and we have rejected the notion that a corporation can exist without a principal place of business, see Wm. Passala......
  • Freeman v. Northwest Acceptance Corp.
    • United States
    • U.S. Court of Appeals — Fifth Circuit
    • March 4, 1985
    ...1332(c) for multiple corporate citizenship. Delalande, Inc. v. Fine, 545 F.Supp. 268, 271 (S.D.N.Y.1982), citing Egan v. American Airlines, Inc., 324 F.2d 565, 566 (2d Cir.1963); see generally S.Rep. No. 1830, 85th Cong., 2d Sess., reprinted in 1958 U.S.CODE CONG. & AD.NEWS 3099, The concep......
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