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Jacob Traber BURNS, Plaintiff-Appellant, v. David L. ANDERSON and United States Fidelity & Guaranty Company, Defendants-Appellees

United States Court of Appeals for the Fifth Circuit1974-10-11No. No. 74-2498
502 F.2d 970

Summary

Holding. The district court properly dismissed the diversity action for lack of subject matter jurisdiction because the extensive record established to a legal certainty that the amount in controversy was less than the jurisdictional minimum. The judgment was affirmed.

A plaintiff injured in an automobile accident brought a diversity lawsuit in federal court claiming over $60,000 in damages, consisting of approximately $1,026 in economic losses and $60,000 for pain and suffering. After extensive discovery and a pre-trial conference, the district court dismissed the case for lack of subject matter jurisdiction, finding that the amount in controversy fell below the federal jurisdictional minimum. The plaintiff appealed, arguing that his good-faith claim should control the jurisdictional analysis.

The court applied the established standard requiring that dismissal be appropriate only when it appears to a legal certainty that the claim is actually for less than the jurisdictional amount. Reviewing an extensive factual record—including medical testimony from three treating physicians and the plaintiff's own deposition—the court found overwhelming evidence that the injury was minor and short-lived. The plaintiff returned to heavy manual labor within weeks, experienced no pain by late July, received only minimal medication, incurred minimal medical expenses, and his wage loss claims were modest. The court concluded that as a matter of law, no reasonable jury could award the required jurisdictional amount, and the case could not proceed in federal court regardless of the plaintiff's good-faith pleading.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Standard for dismissing diversity cases based on failure to meet jurisdictional amount requirement
  • Role of plaintiff's good-faith claim versus objective evidentiary determination
  • When district courts may examine discovery and pre-trial record to determine jurisdictional amount

Procedural posture

The plaintiff appealed the district court's dismissal for lack of subject matter jurisdiction based on an insufficient amount in controversy.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

JOHN R. BROWN, Chief Judge:

The question on this appeal is whether a district court may dismiss a personal injury diversity suit where it appears “to a legal certainty” that the claim was “really for less than the jurisdictional amount.”

The suit grew out of an auto accident in which plaintiff Burns’ automobile was struck amidships by that of defendant Anderson. Burns’ principal injury was a broken thumb. .He brought the action in the Eastern District of Louisiana, claiming $1,026.00 in lost wages and medical expenses and another $60,000.00 for pain and suffering. After a pre-trial conference and considerable discovery, the District Court dismissed for want of jurisdiction. Plaintiff appeals.

The test for jurisdictional amount was established by the Supreme Court in St. Paul Mercury Indemnity Co. v. Red Cab Co. There, the Court held that the determinant is plaintiff’s good faith claim and that to justify dismissal it must appear to a legal certainty that the claim is really for less than the jurisdictional amount. There is no question but that this is a test of liberality, and it has been treated as such by this Court. This does not mean, however, that Federal- Courts must function as small claims courts. The test is an objective one and, once it is clear that as a matter of law the claim is for less than $10,000.00, the Trial Judge is required to dismiss.

In the instant case, the District Judge dismissed only after examination of an extensive record. This record included the testimony of three doctors who treated Burns, as well as his own deposition. The accident occurred on May 26. The evidence is without contradiction that by the middle of August only very minimal disability remained. By December, even this minor condition had disappeared. Burns’ actions speak even more strongly than the medical testimony. In his deposition he testified that he took a job as a carpenter’s assistant on June 21 or 22 — less than a month after the accident. He did heavy manual labor for the remainder of the summer with absolutely no indication of any difficulty with his thumb. It is equally clear that any pain he suffered was not of very great magnitude or lasting duration. Burns admitted that by the end of July there was no pain whatsoever. As a matter of fact, the evidence reveals that the only medication he ever received was a single prescription on the day of the accident fo-r Empirin, a mild aspirin compound. Nor did his special damages take him a significant way down the road to the $10,000.-00 minimum. His total medical bills were less than $250.00. Although he claims $800.00 in lost wages, it is difficult to see how this could have amounted to even $300.00 at Burns’ rate of pay that summer.

The point of this fact recitation is that it really does appear to a legal certainty that the amount in controversy is less than $10,000. This is no Plimsoll case, where dismissal was based on “bare bones pleadings” alone. The present situation differs from that case also in that this dismissal was fo-r lack of subject matter jurisdiction not for failure to state a claim. Here the Trial Court examined an extensive record and determined as a matter of law that the requisite amount in controversy was not present. Indeed, had the case gone to trial and had the jury returned an award of $10,000, a Gorsalitz-girded Judge would have been compelled as a matter of law to- order a remittitur. He would have inescapably found that the verdict was “so inordinately large as obviously to exceed the maximum of the reasonable range within which the jury may properly operate. ” Of course, we decline to make any more precise determination of plaintiff’s loss since to do so-might prejudice his right to a trial in another court.

Neither are we affected by plaintiff’s plaintive plea that he is being deprived of a jury trial. The question in this case is not whether Burns is entitled to a trial by jury but rather where that trial is to be. We ho-ld only that the case cannot be tried in the Federal Court because competence over it has not been granted to that Court by Congress.

Affirmed.

. St. Paul Mercury Indemnity Co. v. Red Cab Co., 1938, 303 U.S. 283, 289, 58 S.Ct. 586, 590, 82 L.Ed. 845, 848.

. Id.

. See Bell v. Preferred Life Assurance Society, 1943, 320 U.S. 238, 64 S.Ct. 5, 88 L.Ed. 15; Horton v. Liberty Mutual Ins. Co., 1961, 367 U.S. 348, 81 S.Ct. 1570, 6 L.Ed.2d 890.

. E. g. Jones v. Landry, 5 Cir., 1967, 387 F.2d 102; Mas v. Perry, 5 Cir., 1974, 489 F.2d 1396; Miami Beach Yacht Corp. v. Terro Corp., 5 Cir., 1972, 461 F.2d 770; Anderson v. Moorer, 5 Cir., 1967, 372 F.2d 747; Burks v. Texas, 5 Cir., 1954, 211 F.2d 443. Of course there have been situations where the pain, suffering and other intangible factors were so slight that no substantial evidence could be offered to support a verdict for as much as the jurisdictional amount. Starks v. Louisville & Nashville R.R. Co., 5 Cir., 1972, 468 F.2d 896; Matthiesen v. Northwestern Mutual Ins. Co., 5 Cir., 1961, 286 F.2d 775; Leehans v. American Employers Ins. Co., 5 Cir., 1959, 273 F.2d 72.

. Burns was making the minimum wage, $1.-65 an hour. Four forty-hour work weeks at this wage grosses $264.00.

. Cook & Nichol, Inc. v. Plimsoll Club, 5 Cir., 1971, 451 F.2d 505.

. Gorsalitz v. Olin Mathieson Chemical Corp., 5 Cir., 1970, 429 F.2d 1033, 1046.