Northern Pacific Railway, a Corporation (Now Burlington Northern, Inc.) v. Theodore E. Herman, D/B/A Pete Herman Auction Market

This case, which arises under Montana law, is an action seeking indemnity for money paid by the plaintiff railroad in satisfaction of a claim against it by one of the railroad’s employees injured on the job. The single issue that this court need decide is whether the jury instruction formulated by the court below constituted reversible error. The parties do not dispute the applicability of Montana law, nor apparently do they dispute the applicable law of that state. The only dispute concerns whether the trial court accurately conveyed that law to the jury in its instruction. From a general verdict in favor of the defendant, plaintiff appeals.

Jurisdiction is based on diversity of citizenship. 28 U.S.C. § 1332 . The amount in controversy is $62,797.86. Plaintiff Northern Pacific Railway (Railroad) is a corporation with its principal place of business in Minnesota and is incorporated under the laws of the State of Delaware. Defendant Theodore E. Herman (Herman) is a citizen of Montana.

In 1957 the Railroad leased some property to Billings Eagle Implement Co. which in turn subleased the property to Herman in 1965. The sublease provided that sublessee agrees to assume all the rights…