Missouri State Life Ins Co v. Jones

• Decision Date: 04 December 1933
• Docket Number: No. 16,16
• Citation: 78 L.Ed. 267,290 U.S. 199,54 S.Ct. 133
• Parties: MISSOURI STATE LIFE INS. CO. et al. v. JONES
• Court: U.S. Supreme Court

290 U.S. 199

54 S.Ct. 133

78 L.Ed. 267

MISSOURI STATE LIFE INS. CO. et al.

v JONES.

No. 16.

Argued Nov. 8, 1933.

Decided Dec. 4, 1933.

Messrs. Allen May, of St. Louis, Mo., and Paul B. Cromelin and Bolitha J. Laws, both of Washington, D.C., for petitioners.

Mr. Tom Poe, of Little Rock, Ark., for respondent.

Mr. Justice McREYNOLDS delivered the opinion of the Court.

In a removal proceeding based upon diversity of citizenship, is it proper to treat attorneys' fees imposed by the Arkansas statute and claimed by the plaintiff, as part of the sum necessary for jurisdiction in the federal court?

Section 41(1), 28 USCA (Jud. Code § 24(1), confers original jurisdiction upon District Courts of the United States of suits of a civil nature between citizens of different states 'where the matter in controversy exceeds, exclusive of interest and costs, the sum or value of $3,000.' And section 71, 28 USCA (Jud. Code § 28), provides for removing suits of which District Courts are given original jurisdiction.

Section 6155, Crawford & Moses' Digest, Statutes of Arkansas: 'In all cases where loss occurs, and the fire, life, health, or accident insurance company liable therefor shall fail to pay the same within the time specified in the policy, after demand made therefor, such company shall be liable to pay the holder of such policy, in addition to the amount of such loss, twelve per cent. damages upon the amount of such loss, together with all reasonable attorneys' fees for the prosecution and collection of said loss; said attorneys' fee to be taxed by the court where the same is heard on original action, by appeal or otherwise and to be taxed up as a part of the costs therein and collected as other costs are or may be by law collected. Act March 29, 1905, p. 307.'

Seeking to recover upon two insurance policies, respondent Johnson, a citizen of Arkansas, sued the petitioner, a Missouri corporation, in the Hot Springs circuit court. He asked judgment for $3,000, total of the policies, 'together with a reasonable attorney's fee for his attorneys herein and for all of his costs herein expended.'

By proper proceeding the defendant company asked removal of the cause to the United States District Court. It alleged a reasonable attorney's fee would amount to $250 and that the matter in controversy exceeded $3,000, exclusive of interest and costs. Removal was denied. Judgment went in favor of Johnson for $3,000; also the court further found and adjudged 'that the plaintiff is entitled to an attorney's fee of $550, and the same is hereby assessed and taxed as a part of the costs in this case.' Upon appeal the Supreme Court affirmed the judgment. Among other things, it said: 'Appellant contends for a reversal of the judgment upon the ground that the trial court erred in denying its petition for removal of the cause to the federal court. It is argued that to include an attorney's fee in the amount sued for exceeds $3,000, interest, and costs, and in amount makes the cause a removable one under the federal removal statute (Judicial Code §§ 24(1), 28, 28 USCA §§ 41(1), 71). This court has ruled otherwise in the case of Mutual Life Ins. Co. v. Marsh, 185 Ark. 332, 333, 47...