McAllister v. Chesapeake & Ohio Railway Co.

Background

A Kentucky resident sued two railroad companies after a family member was run down and killed by a train in Fullerton in March 1902. The railroad line was owned by a Kentucky company and operated under lease by a Virginia company. The Virginia company removed the suit from the state court to federal court, claiming the controversy was separable and that the Kentucky company had been joined only to block removal. The case then sat through many delays, dismissals, and reinstatements over fifteen years.

Reasoning

The Court asked whether the federal court could keep the case or whether it should go back to state court. Relying on Kentucky decisions, the Court found that the amended complaint, if proved, alleged that people habitually used the track area and that the operating company owed a duty of care. Kentucky law also treated the lessor as still liable for torts of the lessee under the lease in question. Because the petition stated a joint cause of action against both companies and offered no factual proof of fraudulent joinder, removal to federal court was improper.

Real world impact

The Court reversed the federal court and ordered the case remanded to state court for prompt handling. That means the plaintiff can pursue the claim in Kentucky courts and the defendants cannot keep the case in federal court based on the removal theory the Virginia company used. The opinion also criticizes the lengthy procedural delays and directs quick return to the state forum.