Harold Patterson v. American Casualty Co., Surety

Appellant brought suit in the Idaho state courts seeking damages for fraud. In his complaint he alleged that in proceedings before the State Industrial Accident Board he stipulated for a lump-sum settlement of claims for disability arising out of an industrial accident; that the stipulation was in reliance upon fraudulent misrepresentations by defendant and that defendant wilfully and fraudulently withheld medical data bearing on the severity of his injury. He sought substantial money damages: $148,000 loss of wages; $10,000 projected medical expenses; $90,000 “general damages” (without any suggestion as to their nature).

Appellee, as defendant, removed the ease to the District Court for the District of Idaho upon the ground of diversity of citizenship. In that court appel-lee asserted that under Idaho law the subject of the action was within the exclusive jurisdiction of the State Board; that plaintiff’s remedy was to petition the Board to reopen the original settlement and proceed thereafter before the Board.

The District Court agreed with appel-lee and granted summary judgment, dismissing the action.

On appeal the sole question is whether under these circumstances dismissal…