Kelly v. Raese
Kelly v. Raese
Opinion of the Court
This appeal is from a decision by the District Court for the Northern District of West Virginia dismissing both an action in the nature of an interpleader and a cross-claim by one defendant against another.
Ráese, a West Virginia resident, and Mrs. Kelly, a Florida resident, were hus- and and wife until divorced in May, 1955. Mrs. Kelly was in control of several West Virginia Corporations, the outstanding stock of which was distributed as follows:
Preston County Supply Company:
Jane G. Kelly (defendant-appellant) 1717 Shares
Richard Greer Ráese (minor child) 450 “
John Reeves Ráese (minor child) 300 “
Agnes J. Reeves Greer (mother of JGK) 3 “
Richard Aubrey Ráese (defendant-appellee) 1 “
Total 2471 Shares
Preston County Light & Power Company : Preston County Supply Company 497 Shares
Agnes J. Reeves Greer 3
Total 500 Shares
Preston County Telephone Company : Preston County Light & Power Company 2500 Shares
Total 2500 Shares
The minority stockholders of Preston County Supply Company have contested the 1963 reorganization.
To resolve this controversy and litigate others, or to avoid their resolution in the actions pending in the state courts of West Virginia, Preston Corporation and Preston Public Service Corporation, the Delaware corporations, as plaintiffs, brought this action in the nature of an interpleader in the United States District Court for the Southern District of Florida.
Mrs. Kelly and the West Virginia corporations answered admitting all allegations of the complaint. At the same time,. Mrs. Kelly cross-claimed against Ráese seeking a declaratory judgment of the rights she claims as custodian of the children and her rights as trustee of their stock. Mrs. Kelly also joined a claim for money damages of $68,000 arising from a dispute incident to her divorce from Ráese. In addition, she moved for summary judgment on her claims.
On motion by defendant, Ráese, to dismiss or transfer, the action was transferred to the Northern District of West Virginia.
There is a basis for a finding that the interpleader suit was collusively brought in Florida by the Delaware corporations to get in personam, jurisdiction of Ráese on the other claims. In Bierman v. Marcus
Moreover, the prayer for interpleader relief was joined by a large claim for damages against defendant, Ráese. Though not suspect in itself, when viewed in the context of this acrimonious family dispute and the identity of interest between the Delaware corporations and Mrs. Kelly, the suit does not bear close scrutiny.
The interpleader action is further suspect from the face of the pleadings. It is apparent from Mrs. Kelly’s cross-claim
Accordingly, we affirm the District Court’s ruling that interpleader jurisdiction has been improperly invoked.
Affirmed.
. Preston Corp. v. Raese, N.D.W.Va., 236 F.Supp. 135 (1964).
. An action was instituted by Ráese on .December 5, 1963, in the Circuit Court of Preston County, West Virginia for this purpose. This suit was brought by Ráese in his own right and as legal guardian for the two minor Ráese boys. The three West Virginia corporations, Preston Corporation, the Kellys, and Agnes J. Reeves Greer were made defendants. The four corporations entered general appearances. The Kellys, nonresidents, were proceeded against by publication under West Va.Code 56-3-23, 24.
Additionally, in February, 1964, the corporations applied to the West Virginia Public Service Commission for approval of the reorganization since West Virginia public utility properties were involved. The Raeses have intervened in this action which has been stayed pending the outcome of the proceeding in the Circuit Court of Preston County.
. Jurisdiction was based upon 28 U.S.C. §§ 1335, 1397 and 2361.
. Service was made upon an assistant secretary of the corporations 'in Florida.
. Although the interpleader complaint alleges also, as property in dispute, $2253.00 dividends paid or payable by Preston County Supply Company, no cash was paid into court.
. Mandamus to rescind the transfer order was denied, 5 Cir., No. 21415, April 7, 1964. Appeal from the transfer order was dismissed by this court. Preston Corp. v. Ráese, 4 Cir., 335 F.2d 827.
. 3 Cir., 246 F.2d 200, cert. denied, 356 U.S. 933, 78 S.Ct. 774, 2 L.Ed.2d 762.
. There has been a reluctance to allow unrelated in personam cross-claims by one adverse claimant against another when nationwide service of process has been used. See, e. g., Hagan v. Central Ave. Dairy, Inc., 9 Cir., 180 F.2d 502; Hallin v. C. A. Pearson, Inc., N.D. Calif., 34 F.R.D. 499 (1963).
Reference
- Full Case Name
- Jane Greer KELLY, individually and/or in any fiduciary capacity, and as legal guardian and custodian of Richard Greer Raese and John Reeves Raese v. Richard Greer RAESE and John Reeves Raese, infants, by Richard Aubrey Raese, their duly authorized legal guardian Richard Aubrey Raese, as legal guardian of Richard Greer Raese and John Reeves Raese, infants, and Richard Aubrey Raese, individually, Appellees PRESTON CORPORATION and Preston Public Service Corporation v. Richard Greer RAESE and John Reeves Raese, infants, by Richard Aubrey Raese, their duly authorized legal guardian Richard Aubrey Raese, as legal guardian of Richard Greer Raese and John Reeves Raese, infants, and Richard Aubrey Raese, individually
- Cited By
- 12 cases
- Status
- Published