Owen Equipment & Erection Co. v. Kroger
Encyclopedia
Owen Equipment & Erection Co. v. Kroger, , is a case that was decided by the United States Supreme Court
regarding the civil procedure
subject of ancillary jurisdiction
.
Kroger, a citizen of Iowa
, filed suit
against the Omaha Public Power District
(OPPD), a Nebraska
utility company. Her suit was to recover damages
for the wrongful death of her husband, who was electrocute
d while walking next to a crane whose boom came too close to a power line. OPPD, which owned the power line, filed a third-party complaint against Owen Equipment & Erection Co., which owned and operated the crane. Kroger then amended her complaint to name Owen as an additional defendant. While Owen initially stated that it was a Nebraska corporation, it was later found that Owen's principal place of business was in fact in Iowa
, thus destroying the diversity of citizenship
required for jurisdiction
under .
reserved ruling until the end of the trial. Following a jury verdict in favor of the plaintiff, the federal district court in an unreported decision denied the motion to dismiss on diversity grounds. The Court of Appeals for the Eighth Circuit
affirmed the lower court's decision, and the Supreme Court granted certiorari.
, , the Supreme Court in its 7 to 2 majority decision
written by Justice Potter Stewart
limited Gibbs to pendent jurisdiction
, bringing state claims in addition to a federal claim. The Court set forth two limits on ancillary jurisdiction beyond the "common nucleus of operative fact" of Gibbs. First, the non-federal claim must be "ancillary and dependent" on the original claim rather than "new and independent", and second, courts can be more lenient to defendants than to plaintiffs because plaintiffs choose where the claims will be brought. In this instance, Kroger was a plaintiff who had chosen federal court and the claim against Owen was "entirely separate" from her original claim against OPPD "since [Owen's] liability to her depended not at all upon whether or not OPPD was also liable." Thus, the court generally upheld the complete diversity requirement of (a)(1) but allowed certain limited exceptions for ancillary jurisdiction. Kroger, however, did not meet those exceptions.
dissented
, stating that the majority overlooked such factors as convenience, judicial economy
, and considerations of fairness in order to rigidly uphold legislation.
statute.
, Iowa, which is west of the Missouri River
. Although the Missouri River
generally is the boundary between Iowa and Nebraska, the river in 1877 had avulsed
one of its bends
, cutting off the land that later became the city of Carter Lake on the western side. The Supreme Court six years earlier had mentioned the circumstances of Carter Lake when it ruled on a boundary dispute between the two states in Nebraska v. Iowa, 406 U.S. 117 (1972).
Supreme Court of the United States
The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...
regarding the civil procedure
Civil procedure
Civil procedure is the body of law that sets out the rules and standards that courts follow when adjudicating civil lawsuits...
subject of ancillary jurisdiction
Ancillary jurisdiction
Ancillary jurisdiction allows a United States federal court to hear certain claims sufficiently related to the original claim that would otherwise defeat the court's jurisdiction...
.
Facts
RespondentRespondent
A respondent is a person who is called upon to issue a response to a communication made by another. In legal usage, this specifically refers to the defendant in a legal proceeding commenced by a petition, or to an appellee, or the opposing party, in an appeal of a decision by an initial fact-finder...
Kroger, a citizen of Iowa
Iowa
Iowa is a state located in the Midwestern United States, an area often referred to as the "American Heartland". It derives its name from the Ioway people, one of the many American Indian tribes that occupied the state at the time of European exploration. Iowa was a part of the French colony of New...
, filed suit
Lawsuit
A lawsuit or "suit in law" is a civil action brought in a court of law in which a plaintiff, a party who claims to have incurred loss as a result of a defendant's actions, demands a legal or equitable remedy. The defendant is required to respond to the plaintiff's complaint...
against the Omaha Public Power District
Omaha Public Power District
Omaha Public Power District, or OPPD, is a public electric utility in the State of Nebraska. It is one of the largest publicly owned electric utilities in the United States, serving more than 340,000 customers in 13 southeast Nebraska counties. OPPD was formed in 1946 as a political subdivision of...
(OPPD), a Nebraska
Nebraska
Nebraska is a state on the Great Plains of the Midwestern United States. The state's capital is Lincoln and its largest city is Omaha, on the Missouri River....
utility company. Her suit was to recover damages
Damages
In law, damages is an award, typically of money, to be paid to a person as compensation for loss or injury; grammatically, it is a singular noun, not plural.- Compensatory damages :...
for the wrongful death of her husband, who was electrocute
Electric shock
Electric Shock of a body with any source of electricity that causes a sufficient current through the skin, muscles or hair. Typically, the expression is used to denote an unwanted exposure to electricity, hence the effects are considered undesirable....
d while walking next to a crane whose boom came too close to a power line. OPPD, which owned the power line, filed a third-party complaint against Owen Equipment & Erection Co., which owned and operated the crane. Kroger then amended her complaint to name Owen as an additional defendant. While Owen initially stated that it was a Nebraska corporation, it was later found that Owen's principal place of business was in fact in Iowa
Iowa
Iowa is a state located in the Midwestern United States, an area often referred to as the "American Heartland". It derives its name from the Ioway people, one of the many American Indian tribes that occupied the state at the time of European exploration. Iowa was a part of the French colony of New...
, thus destroying the diversity of citizenship
Diversity jurisdiction
In the law of the United States, diversity jurisdiction is a form of subject-matter jurisdiction in civil procedure in which a United States district court has the power to hear a civil case where the persons that are parties are "diverse" in citizenship, which generally indicates that they are...
required for jurisdiction
Jurisdiction
Jurisdiction is the practical authority granted to a formally constituted legal body or to a political leader to deal with and make pronouncements on legal matters and, by implication, to administer justice within a defined area of responsibility...
under .
Procedure
When confronted with a motion to dismiss for lack of complete diversity, the United States District Court for the District of NebraskaUnited States District Court for the District of Nebraska
The United States District Court for the District of Nebraska is the Federal district court whose jurisdiction is the state of Nebraska. Court offices are in Omaha, Lincoln, and North Platte....
reserved ruling until the end of the trial. Following a jury verdict in favor of the plaintiff, the federal district court in an unreported decision denied the motion to dismiss on diversity grounds. The Court of Appeals for the Eighth Circuit
United States Court of Appeals for the Eighth Circuit
The United States Court of Appeals for the Eighth Circuit is a federal court with appellate jurisdiction over the district courts in the following districts:* Eastern District of Arkansas* Western District of Arkansas...
affirmed the lower court's decision, and the Supreme Court granted certiorari.
Issue
Whether a court can hear a plaintiff's claim against a third-party defendant when there is no independent basis for federal jurisdiction over that claim in an action in which federal jurisdiction is based on diversity of citizenship, a circumstance called ancillary jurisdiction.Holding
Whereas the Eighth Circuit relied on United Mine Workers of America v. GibbsUnited Mine Workers of America v. Gibbs
United Mine Workers of America v. Gibbs, 383 U.S. 715 , was a case in which the Supreme Court of the United States held that in order for a United States district court to have pendent jurisdiction over a state-law cause of action, state and federal claims must arise from the same "common nucleus...
, , the Supreme Court in its 7 to 2 majority decision
Majority decision
A majority decision is a winning criterion in several full-contact combat sports, such as boxing, kickboxing, Muay Thai, mixed martial arts and others sports involving striking...
written by Justice Potter Stewart
Potter Stewart
Potter Stewart was an Associate Justice of the United States Supreme Court. During his tenure, he made, among other areas, major contributions to criminal justice reform, civil rights, access to the courts, and Fourth Amendment jurisprudence.-Education:Stewart was born in Jackson, Michigan,...
limited Gibbs to pendent jurisdiction
Pendent jurisdiction
Pendent jurisdiction is the authority of a United States federal court to hear a closely related state law claim against a party already facing a federal claim, described by the Supreme Court as "jurisdiction over nonfederal claims between parties litigating other matters properly before the...
, bringing state claims in addition to a federal claim. The Court set forth two limits on ancillary jurisdiction beyond the "common nucleus of operative fact" of Gibbs. First, the non-federal claim must be "ancillary and dependent" on the original claim rather than "new and independent", and second, courts can be more lenient to defendants than to plaintiffs because plaintiffs choose where the claims will be brought. In this instance, Kroger was a plaintiff who had chosen federal court and the claim against Owen was "entirely separate" from her original claim against OPPD "since [Owen's] liability to her depended not at all upon whether or not OPPD was also liable." Thus, the court generally upheld the complete diversity requirement of (a)(1) but allowed certain limited exceptions for ancillary jurisdiction. Kroger, however, did not meet those exceptions.
Dissent
Justice WhiteByron White
Byron Raymond "Whizzer" White won fame both as a football halfback and as an associate justice of the Supreme Court of the United States. Appointed to the court by President John F. Kennedy in 1962, he served until his retirement in 1993...
dissented
Dissenting opinion
A dissenting opinion is an opinion in a legal case written by one or more judges expressing disagreement with the majority opinion of the court which gives rise to its judgment....
, stating that the majority overlooked such factors as convenience, judicial economy
Judicial economy
Judicial economy refers broadly to the principle that the limited resources of the legal system or a given court should be conserved.-Multiple causes of action in a given case :...
, and considerations of fairness in order to rigidly uphold legislation.
Subsequent History
The majority's holding on ancillary jurisdiction was subsequently codified by Congress in (b) as part of its supplemental jurisdictionSupplemental jurisdiction
Supplemental jurisdiction is the authority of United States federal courts to hear additional claims substantially related to the original claim even though the court would lack the subject-matter jurisdiction to hear the additional claims independently. is a codification of the Supreme Court's...
statute.
Carter Lake
The Court noted that geography had caused the issue. Owen was based in Carter LakeCarter Lake, Iowa
Carter Lake is a city in Pottawattamie County, Iowa, United States. The population was 3,248 at the 2000 census.-Geography:Carter Lake is located at ....
, Iowa, which is west of the Missouri River
Missouri River
The Missouri River flows through the central United States, and is a tributary of the Mississippi River. It is the longest river in North America and drains the third largest area, though only the thirteenth largest by discharge. The Missouri's watershed encompasses most of the American Great...
. Although the Missouri River
Missouri River
The Missouri River flows through the central United States, and is a tributary of the Mississippi River. It is the longest river in North America and drains the third largest area, though only the thirteenth largest by discharge. The Missouri's watershed encompasses most of the American Great...
generally is the boundary between Iowa and Nebraska, the river in 1877 had avulsed
Avulsion (river)
In sedimentary geology and fluvial geomorphology, avulsion is the rapid abandonment of a river channel and the formation of a new river channel. Avulsions occur as a result of channel slopes that are much lower than the slope that the river could travel if it took a new course.-Deltaic and...
one of its bends
Meander
A meander in general is a bend in a sinuous watercourse. A meander is formed when the moving water in a stream erodes the outer banks and widens its valley. A stream of any volume may assume a meandering course, alternately eroding sediments from the outside of a bend and depositing them on the...
, cutting off the land that later became the city of Carter Lake on the western side. The Supreme Court six years earlier had mentioned the circumstances of Carter Lake when it ruled on a boundary dispute between the two states in Nebraska v. Iowa, 406 U.S. 117 (1972).