Illinois Central Railroad v. Sheegog
Opinion of the Court
delivered the opinion of the court,.
This is a writ of error to reverse a judgment rendered by the Court of Appeals of Kentucky in favor'of the defendant in error, notwithstanding a petition and bond for removal to the Circuit Court of the United States. I. C. Ry. Co. v. Sheegog's Admr., 126 Kentucky, 252.
The defendant in error brought this actijon for causing the'{ death of his intestate, John E. Sheegog, by the throwing off the track of a railroad train upon which th^ deceased was employed as an engineer. The defendants were the conductor of the train, the Illinois Central Railroad' Company, which was operating the railroad and owned the train, and the Chicago, St. Louis and New Orleans Railroad Company, which owned the road and tracks where the accident happened, but, which had let the same to the first-mentioned road.; It was alleged that through the negligence of both companies the roadbed, track, etc., were in an improper condition; that through the negligence of the Illinois. Central the engine and cars were in an improper condition; and that the death was due to these causes acting jointly, the negligence of the Illinois Central in permitting its engine, cars and road to be operated while in such condition, and the negligence of the conductor in ordering and directing the management of the 'train.
In due season the Illinois Central Railroad Company, being an Illinois corporation, filed its petition to remove. The difficulty in its way was that the other two defendants were citizens and residents of Kentucky, to which State the plaintiff also belonged. To meet this the petition alleged that the . plaintiff had joined these parties as defendants solely for thej purpose of preventing the removal. It admitted the léase and averred that the Illinois Central Company operatéd the road exclusively and alone employed the deceased. It went on to allege that the charge of joint negligence against the lessor and lessee in causing the wreck as stated was made only for ■ the above purpose and was fraudulent and knowingly false.'
Of course, if iti appears that the joinder was fraudulent as alleged, it will not be allowed to prevent the removal. Wecker v. National Enameling & Stamping Co., 204 U. S. 176. And further, there is no doubt that the allegations of fact, so far as material, in a petition to remove, if controverted, must be tried in the court of the United States, and therefore must be' taken to be true when they fall to be considered in the state courts. Crehore v. Ohio & Mississippi Ry. Co., 131 U. S. 240, 244. Chesapeake & Ohio Ry. Co. v. McCabe, 213 U. S. 207. On the other hand, the mere epithet fraudulent in a petition does not end the matter. In the case of a tort which gives rise to a joint and several liability the plaintiff has.an absolute right to elect, and to sue the tort-feasors jointly if he sees fit, no matter what his motive, and therefore an allegation that the joinder of one of the defendants was fraudulent, without other ground for the charge than that its only purpose was to prevent removal, would be bad on its face. Alabama Great Southern Ry. Co. v. Thompson, 200 U. S. 206. Cincinnati, New Orleans & Texas Pacific Ry. Co. v. Bohon, 200 U. S. 221. If the-legal effect of the declaration in this case is that the Illinois Central Railroad Company was guilty of certain acts and omissions by reason of which a joint liability was imposed upon it and its lessor, the joinder could not be fraudulent in a legal sense on any ground except that the charge against the alleged immediate wrongdoer, the Illinois Central Railroad itself, was fraudulent arid false.
We assume- for the purposes of what we have to say, that ■ the allegations concerning the lessor state.merely a conclusion of law from the acts and omissions charged against its lessee. Or, if they he taken to be allegations Of fact, we as
We should observe in the first place that the cause of action alleged is not helped but rather hindered by the allegation that the deceased was an employé of the Illinois Central Road. The case did not stand on the’ breach of any duty owed peculiarly to employés, and on the other hand was encumbered with the fact that a part of.the negligence charged was that of a. fellow-servant. The plaintiff recovered for a. breach of a duty to the public which at best was not Released or limited by his intestate’s having been in the company’s service. Now whether we agree with it or not the doctrine is familiar that in the absence of statute a railroad company cannot get rid of the liabilities attached to the exercise of its franchise, by making a lease. Whatever may be the law as to purely contract relations, to some extent at least the duties of the lessor to the public, including that part of the public that travels on the railroad, are held to remain unchanged. In this case the Court of Appeals, after noting that it does not appear that the lessor was relieved by statute, quotes an earlier Kentucky decision which seemingly adopted the following language of a commentator: “If it be true, as the decisions with substantial unanimity admit, that a lessor railway remains liable for the discharge of its duties to the public unless expressly exempted therefrom by statute, it seems difficult to conceive its absence of liability in any event, except perhaps when the plaintiff is suing upon an express contract made with him by the lessee corporation.” McCabe v. Maysville & Big Sandy R. R. Co., 112 Kentucky, 861, 875.
The court, however, then goes on to refer to a distinction'
It follows, if our interpretation of the decision is correct, that no allegations were necessary concerning the Chicago, St. Louis and New Orleans Railroad Company, except that it owned and had let the road to its co-defendant. The joint liability arising from the fault of the Illinois Central Road gave the plaintiff an absolute option to sue both if he preferred, and no motive could make his choice a fraud. The only way in which fraud could be made out would be by establishing that the allegation of a cause of action against the. Illinois Central Railroad was fraudulent, or at least any part of it for which its lessor possibly could be held. But it seems to us that to allow that to be doné on such a petition as is before us would be going too far in an effort to counteract evasions "of Federal jurisdiction.’ We have assumed, for purposes of decision, that the railroad held on what may be called a secondary ground is to be charged, if at all, only as
Judgment affirmed.
Dissenting Opinion
dissenting.
In my view this decision departs from rulings recently, made, and tends to disturb settled principles essential to the maintenance of jurisdiction in the Federal courts. In order to apply my views I will briefly restate the facts of the case.
Sheegog’s administrator brought an action in the state court of Kentucky against the Illinois Central Railroad Company, a corporation of the State of Illinois, the Chicago, St. Louis and New Orleans Railroad Company, a corporation of the State of Kentucky, and F, J. Durbin, a citizen of Kentucky. The Illinois Central Railroad Company was the lessee of the Chicago, St. Louis and New Orleans Railroad Company, and F. J. Durbin was alleged to be a conductor in the employ of the lessee road and in charge of the train, in the operation of which, as engineer, plaintiff’s intestate was killed. The charge of the complaint was that at the time of injury the defendant, the Chicago, St. Louis and New Orleans Railroad Company, was the owner of the roadbed, right of way, etc., and the Illinois Central Railroad Company was the lessee of
Within the time allowed by law the' Illinois Central Railroad Company, the present plaintiff in error, appeared and filed its petition for removal to the Federal court. As the sufficiency of this petition to make a cause for removal is the ultimate question in the case it is necessary to set out its allegations somewhat in detail:
“Your petitioner says that plaintiff’s decedent at the time he received the fatal injury complained of was an employé of your petitioner, and not an employé of either of your petitioner’s co-defendants, and was not and never had been an employé or in the employ of said lessor, or said F. J. Durbin,*321 and-that-all the said facts were well known to plaintiff when this action was brought. Your petitioner says’that to avoid such removal to the Federal court of this action plaintiff joined your petitioner’s co-defendants, one a Kentucky corporation and the other a citizen of Kentucky, and falsely and fraudulently alleged in its petition that the train on which decedent was engaged was, through joint and gross negligence and carelessness of all the defendants, derailed, and said decedent instantly killed, and falsely .and fraudulently alleged that by the negligence of both defendants’ roadbed, rails, track, cattle guards, fences and right-of-way of the. said railroad was allowed to be, and for a long time had been, in a weak, rotten, ruinous, defective and improper condition, and by the negligence of your petitioner its engine and cars were knowingly allowed to remain in an improper and defective and dangerous condition, and said engine and cars to be so constructed as to be in a dangerous condition,' and that this improper and dangerous condition of the road premises and •cars of the defendants was known to the defendants, and that at the time of the wreck and accident the same were being operated in a careless manner by all the' defendants, and the defendant Durbin, by his negligence in running, ordering and directing said'train contributed to cause said accident, and that the negligence of the defendant in its maintenance of its track, roadbed, engine, cattle guards, rails, ties, .fences, etc., as' set out above, together with the negligence of your petitioner in directing and permitting its engine cars and roadbed to be operated while in a defective and dangerous condition, and the negligence of said Durbin in ordering’ and directing the running and management of said train, and in failing to give proper directions, altogether caused said wreck, and killed said decedent, when the plaintiff well knew that such allegations were untrue, and plaintiff did not expect to establish said allegations, and did not make them for the purpose of proving- them át the trial, or of substantiating his cause of action therewith, but made them solelv for the pur*322 pose of attempting to set up a joint cause of action against the three defendants in order to make a case which would not be removable to the Federal court.”
The state court overruled this motion to remove, and its action was affirmed by the Court of Appeals of Kentucky. I. C. Ry. Co. v. Sheegog’s Admr., 126 Kentucky, 252.
In the court below a peremptory instruction was given the jury to find in favor of the Kentucky corporation and the individual defendant. Notwithstanding this fact the Court of Appeals of Kentucky applied a rule which it had laid down in former decisions, and held that the facts developed on the trial had shown that the administrator had reasonable grounds to join the local defendants, and was therefore justified in overruling the motion to remove. In other words, while the opinion seems to recognize that if the allegations of the petition for removal were true a fraudulent joinder was shown, nevertheless the proof upon the merits showed that the joinder was proper.
The ground upon which the Kentucky Court of Appeals held the Kentucky railroad jointly liable with the Illinois Central for the injuries sustained is not very clear, in view of the fact that the opinion in some parts of it seems to make the liability depend upon the failure to construct a proper road and in other parts seems to rest the responsibility upon the continuing duty of the lessor railroad company to furnish and maintain a safe roadbed in order to discharge the duties which it had undertaken by accepting the franchise which the State had conferred upon it. In the case to which the court makes reference, Nugent v. Boston, C. & M. R. Co., 80 Maine, 62, where a brakeman was injured by reason of the negligent construction of an awning of a station house of the defendant company, near the track, the liability , of the lessor company was rested both upon the ground of'the continuing duty to the public a^id'-because of the'application of the principle which makes a lessor liable for a defective construction of the subject-matter of the lease. In either view it is perfectly
“In all cases where a valid lease is found (or, as in this discussion where it is assumed), the lessor company owes no duty whatsoever as an employer to the operatives of the lessee company. The claim of relationship of employer and employé under such circumstances is a false claim and quantity. It does not exist. The respónsibility of the lessor company, when it attaches, does not spring from this relationship, but. arises from a failure of the lessor company to perform its duty to the public, of which public the employé of the operating company may be regarded as one. Thus, in those cases where the injury has resulted to an employé of the operating company by reason of the negligence of a fellow servant, or of want of care of the lessee company in managing the road, or in negligence in furnishing suitable appliances, these and kindred matters being entirely and exclusively within the control of the lessee company for injury which may result, the lessor is in no way responsible. But where injury has resulted to an employé of the operating company by reason of a failure of the lessor to perform its public duty, as in the failure to construct a safe road, as is here charged, the injured employé may sue the lessor company, as one of the public, for its failure to perform that duty, and not because, between himself and the lessor company, the relation of em-ployé and emplover, or any relation of contractual privity, exists.”
After citing the case from 80 Maine, supra, the court adds (p.277):
“This case is very similar to the one at bar, in which it was*324 alleged and proved that the intestate's death was the proximate result of the failure of the lessor to perform its public duty in its failure to construct a safe roadbed.”
It. is apparent that' the liability of the two railroad companies, although both might be liable for a defective,'roadbed, .track, etc., sprang from a different relation,'and was controlled by different principles. The liability to the plaintiff’s intestate, of the Kentucky corporation, was to him as one of the public, that of the Illinois corporation arose from the relation of master and servant, and the duties thereby imposed, upon the. employer.
But let it be conceded that .a proper construction of the opinion of the Kentucky Court of Appeals' holds both the railroad companies, although upon different relations to the plaintiff’s intestate, liable for a defective roadbed, it is none the less true that the Illinois Central Railroad Company had a .right of removal to the Federal jurisdiction, in which to test its.liability, unless it was properly joined with the other defendants in an action brought in good faith in the state court.
It is the result of the decisions of this court, as I understand them, that if the facts which asserted a joint liability with the local defendant are shown by proper petition for removal, and proof if necessary, to have been made for the purpose of defeating the jurisdiction of the Federal court, the right of removal still exists in favor of the non-resident company. This court has had occasion to consider this subject in a number of recent cases. Before taking them up w.e may state certain principles applicable to the law of removals under the removal act which are so well settled as scarcely to need the citation of authorities.
When the petition for removal is filed in the state court, accompanied by the proper bond, a question of law as to the sufficiency of the petition for removal only is presented to" that court. Steamship Co. v. Tugman, 106 U. S. 118; Stone v. South Carolina, 117 U. S. 430; Carson v. Hyatt, 118 U. S.
It is equally well settled, and is a result of the principle just stated, that where the right of removal arises because of certain facts averred in the petition, that issue cannot be tried in the state court, but must be heard in the Federal court, which alone has jurisdiction to determine such issues of fact. Carson v. Dunham, 121 U. S. 421; Burlington, Cedar Rapids & Northern R. R. Co. v. Dunn, 122 U. S. 513; Crehore v. Ohio & Miss. Ry. Co., 131 U. S. 240; Kansas City Railroad v. Daughtry, 138 U. S. 298; Traction Company v. Mining Co., 196 U. S. 239.
In recent cases in this court the former adjudications have been reviewed and followed, and it has been held that for the purposes of removal the cause of action must be regarded as joint or several, accordingly as the plaintiff has averred the same to be in his- complaint, in the absence of inferences arising from the pleading or shown extrinsically upon a petition for removal, which warrant the conclusion that a fraudulent joinder has been made for the purpose of avoiding the jurisdiction of the Federal court. Chesapeake & Ohio Ry. Co. v. Dixon, 179 U. S. 131; Alabama Great Southern Ry. Co. v. Thompson, 200 U. S. 206; Cincinnati, New Orleans & Texas Pacific Ry. Co. v. Bohon, 200 U. S. 221. In the Alabama Great Southern Ry. Case, 200 U. S. 206, certain employés, citizens of Tennessee, had been joined with the Alabama and Great Southern Railroad Company in an action for negligence, and .the question of thé right to join them was certified to this court, and it was held, after reviewing the former cases, that, in the absence of fraudulent joinder, the cause of action might be regarded for the purposes of removal.to be that which the plaintiff had averred it to be.
In the Bohon Case, 200 U. S. 221, considered with the Alabama Great Southern case, supra, the action was brought against the railroad company and one Milligan, an engineer
“A, State has an unquestionable right by its constitution and laws to regulate actions for negligence, and where it has provided that the plaintiff in such cases may proceed jointly and severally against those liable for the injury, and the plaintiff in due course of law and in good faith has filed a petition electing to sue for a joint recovery given by the laws of the State, we know of nothing in the Federal removal statute which will convert such action into a separable controversy for the purpose "of removal, because of the presence of a nonresident defendant therein properly joined in the action under the constitution and laws of the State wherein it is conducting its operations and is duly served with process.”
In Weaker v. Enameling & Stamping Company, 204 U. S. 176, suit was brought in the state court in Missouri by Wecker against the Enameling and Stamping Company, Harry Schenck and George Wettengel. Wéttengel was a citizen of the State of Missouri, the enameling company was a foreign corporation. The complainant charged that the plaintiff was employed by the company in working about certain pots
In its petition for removal the non-resident corporation charged that Wettengel was not, at the time of the accident and prior thereto, charged with the superintendence and oversight of the plaintiff, or with the duties of planning or directing the construction of the furnace, or-providing a reasonably safe and suitable furnace and pots and railings or other device to protect the plaintiff, and was not charged
This court declined to consider the question as' to whether, as a matter of law, the cause of action was joint or several, or whether, upon the allegations of the complaint, Wettengel could be held jointly with the corporation, (204 U. S. 183), and affirmed the judgment of the court below upon its findings of fact upon the issue of fraudulent joinder.
This case,, therefore, held the doctrine of this court to be
But this case presents a very different question. The in-, quiry here is not whether a cause of action exists which may be prosecuted in either court, but whether the allegations of the complaint, which give the right to a joint action in the state court, are falsely and fictitiously made without the intention of proving them, and with the sole purpose of avoiding Federal jurisdiction. Since its decision the case of Wecker v. The Enameling & Stamping Company has been frequently cited and followed in the Federal courts. McGuire v. Great Northern Ry. Co., 153 Fed. Rep. 434; Donovan v. Wells, Fargo & Co., 169 Fed. Rep. 363; Lockard v. St. Louis & S. F. R. Co., 167 Fed. Rep. 675; People’s U. S. Bank v. Goodwin, 160 Fed. Rep. 727; McAlister v. Chesapeake & Ohio Ry. Co., 157 Fed. Rep. 740.
Applying these principles to the.case at bar, the allegations of the complaint filed in the -state court undertook to make a cause of action against the Illinois Central Company, 'the non-resident corporation, upon three grounds: First, because it was jointly liable with the Chicago, St. Louis and New Orleans Railroad Company, the local corporation, for a defective .roadbed; second, because it was liable for the negligent conduct of the conductor, Durbin, in running its trains; third, because it was liable for the negligent and improper construction of its locomotive and cárs. As to the third ground of the complaint, the defective locomotive and
If the allegations which gave á right to join.these defendants were false and fictitious, such joinder should not be allowed to defeat the right of the foreign corporation to avail itself of the Federal jurisdiction. As we had occasion to say in the Wecker case, the courts of the United States should not interfere with the jurisdiction of the state courts in cases properly within the sanie/and the. Federal courts should be equally vigilant to defeat all fraudulent devices or attempts to avoid the jurisdiction, of the Federal courts. If the allegations of the petition for removal were true the. statements of the complaint as to the negligence of Durbin and the local corporation were false and fraudulent, and made without the intention of proving the same, and for the purpose of preventing removal.
The sole jurisdiction to inquire into the truth of these allegations was in the Federal court, and while it would require a clear and strong case to make out such allegations of fraudulent joinder, jurisdiction to make just such an inquiry is vested by law, under the removal act, in the Federal courts. It may be that the allegations for removal might have been more specific, but they were sufficient to enable the Federal court to enter into an inquiry as to the fraudulent character of the joinder of the resident defendants. It might find, upon investigation, that the allegations' as to the condition
I therefore reach , the conclusion that, upon .the face of the petition for removal, there were allegations which ended the jurisdiction of the state court, and a sufficient statement of facts to enable the Federal court to investigate the truthfulness thereof with .a view to determine whether they were so false and fictitious as .to show that they were made with ,a ■ view to prevent the removal to the United States court.
In 'my opinion the judgment of the Court of Appeals .of Kentucky should be reversed.
Reference
- Full Case Name
- Illinois Central Railroad Company v. Sheegog
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- Where the joinder of the resident and the non-resident defendants prevents removal to the Federal court, the fact that on the trial •• the jury finds against the non-resident defendant only has no bearing on the question of removal if the joinder was not fraudulent. Allegations of fact; so far as material in a petition to remove, if con- . troverted, must be tried in the Federal court, and therefore must be taken to be true when the state court fails to consider them. A plaintiff may sue the tort-feasors jointly if he sees fit’, regardless of motive, and an allegation that resident and non-resident tort-feasors are sued for the purpose of preventing removal to the Federal court is not a sufficient allegation that the .joinder was fraudulent. A lessor railroad company remains responsible, so far as its duty to the public is concerned, notwithstanding it may lease its road, unless relieved by a statute of the State. •Whether defendants can be sued jointly as tort-feasors is for the state court to decide; and so held-that, where the state court decides that a lessor'road in that State is responsible for keeping its road- ' bed in order, the joinder of both lessor and lessee roads in a suit for damages caused by imperfect roadbed' and management is not-, fraudulent and the lessee road, although non-resident, cannot remove if the lessor road is resident.