American Ins. Co. v. Bradley Mining Co.

Thirty-one out of state insurance corporations filed this action against defendant mining company, a California corporation, for a judment declaring plaintiffs have no liability to defendant under certain “Business Interruption and Property Damage Insurance” policies. Plaintiffs allege in the complaint that defendant is asserting an aggregate demand against them in the sum of $71,885.60 for business and property losses caused by the negligent breaking by employees of a pipe-line at defendant’s mine in Idaho — a risk which plaintiffs claim is not covered by the policies. Federal jurisdiction of the alleged controversy obtains, it is claimed, because of diversity of citizenship between all of plaintiffs and defendants, and because the aggregate money demand exceeds $3,000. Present jurisdiction, the power of the court to grant the relief sought comes from the Federal Declaratory Judgment Act. § 274d, Judicial Code, 28 U.S.C.A. § 400 .

Defendant has moved to dismiss the complaint on the ground that

(1) Two California insurance corporations are indispensable parties and are not joined and that, if joined, there would not be diversity of citizenship, thus defeating federal…