Stoll v. Hawkeye Casualty Co.
Decision Date | 10 November 1950 |
Docket Number | No. 14136.,14136. |
Parties | STOLL v. HAWKEYE CASUALTY CO. OF DES MOINES, IOWA. |
Court | U.S. Court of Appeals — Eighth Circuit |
H. L. Fuller, Sioux Falls, S. D. (C. L. Morgan, H. T. Fuller, Mitchell, S. D., M. T. Woods, Sioux Falls, S. D., J. B. Schultz, Sioux Falls, S. D., and Theodore M. Bailey, Jr., Sioux Falls, S. D., on the brief), for appellant.
Gale B. Braithwaite, Sioux Falls, S. D. (M. Q. Sharpe, Kennebec, S. D., and Joe W. Cadwell, Sioux Falls, S. D., on the brief), for appellee.
Before SANBORN, WOODROUGH, and JOHNSEN, Circuit Judges.
This is an appeal from two orders of the District Court, one granting and the other continuing in effect an injunction which prevented the plaintiff (appellant here), in an action brought in a State court of South Dakota, from the further prosecution of a garnishment proceeding against the garnishee-defendant, Hawkeye Casualty Company of Des Moines, Iowa (appellee).
The facts giving rise to this controversy are, in substance, as follows: The plaintiff was injured by a motor vehicle belonging to Walter Manhalter, who was insured against liability for such an injury by the Hawkeye Casualty Company of Des Moines, Iowa, an Iowa corporation. The driver of the vehicle, at the time the plaintiff was injured, was Emil Wagaman. The plaintiff brought an action against the owner and the driver in a State court of South Dakota to recover for her injuries. The parties were all residents and citizens of South Dakota. The Casualty Company was not a party. A trial of the action resulted in a judgment for the plaintiff against Wagaman, the driver, for $6,735.60, and a judgment in favor of Manhalter, the owner. No appeals were taken from the judgments, which became final.
The policy of liability insurance issued by the Casualty Company to Manhalter contained a clause covering, in addition to the named insured, any person using the vehicle with his permission.
The plaintiff caused execution to be issued upon her judgment against Wagaman and garnished the Casualty Company upon the theory that at the time of the accident Wagaman was using the vehicle with the consent of Manhalter, that the Company was therefore indebted to Wagaman in the amount of her judgment, and that the plaintiff was entitled to have that indebtedness applied in payment of the judgment.
The affidavit in garnishment and the garnishee summons, both dated January 18, 1950, were served upon the Casualty Company. It was required to answer within thirty days whether it was indebted to Wagaman or had in its possession or under its control any property belonging to him.
On February 4, 1950, the Casualty Company, in conformity with § 1446 of Title 28 U.S.C.A., filed in the United States District Court for the District of South Dakota a petition for the removal of the garnishment proceeding. After a recital of the facts which gave rise to the garnishment, the petition alleged:
On February 9, 1950, the Casualty Company filed in the federal court its answer, as garnishee, asserting that it was not indebted to Wagaman, had no property of his in its possession or under its control, and was in no manner liable as garnishee.
The plaintiff, on February 17, 1950, made a motion in the District Court to dismiss the petition for removal or to remand the proceeding to the State court. The District Court, on February 18, upon application of the Casualty Company, enjoined the plaintiff from proceeding further in the State court unless or until a remand should be granted. On February 28, 1950, the District Court denied the plaintiff's motion to remand, holding, in effect, that the garnishment proceeding had been properly removed and that exclusive jurisdiction had been acquired by the District Court. The order enjoining the plaintiff from conducting further proceedings in the State court was continued in effect, and this appeal followed.
If the garnishment proceeding was removable and was properly removed, the District Court did not err in protecting its jurisdiction by the orders complained of. The proceeding is undoubtedly a controversy involving more than $3,000 between citizens of South Dakota, namely, the plaintiff and Wagaman, who are interested in having the Casualty Company pay the plaintiff's judgment, and the Company, a citizen of Iowa.
The applicable removal statute is § 1441 (a), Title 28 U.S.C.A., which reads as follows: "Except as otherwise expressly provided by Act of Congress, any civil action brought in a State court of which the district courts of the United States have original jurisdiction, may be removed by the defendant or defendants, to the district court of the United States for the district and division embracing the place where such action is pending."
The term "civil action" was used in § 1441 as a substitute for "suit of a civil nature", § 71, Title 28, U.S.C., 1946 Ed., and equivalent terms found in former removal statutes. See Reviser's Notes relative to § 1441 in Title 28 U.S.C.A. A "civil action" is a civil suit. Whether a garnishment proceeding is a "suit" or civil action which may be removed, is a question upon which the courts are in disagreement.1
The generally accepted definition of the term "suit" is that of Chief Justice Marshall in Weston v. City of Charleston, 2 Pet. 449, 464, 7 L.Ed. 481. He said: ...
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