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Smart Summary

Summary of Opinion: Susan E. Gordon v. James R. Steele et al.

Factual and Procedural Background

This is a malpractice action brought by plaintiff Susan Gordon against two physicians and an osteopathic hospital in Erie County, Pennsylvania. The alleged malpractice concerns an injury to plaintiff's wrist on February 25, 1972, and an assertedly wrongful diagnosis that resulted in continuing pain, hospitalization, medical attention and partial disability of the wrist and right hand.

Plaintiff was born November 20, 1953. Prior to August 9, 1972 she lived at 227 Goodrich Street, Erie, Pennsylvania with her parents. On August 9, 1972, she enrolled at Ricks College in Rexburg, Idaho and rented an apartment there which she retained. The complaint was filed April 10, 1973, when plaintiff was 19 years old.

All defendants are citizens of Pennsylvania. On January 21, 1974, defendants moved to dismiss the case for lack of diversity jurisdiction, arguing that plaintiff remained a Pennsylvania citizen at the time the suit was filed. The court deferred decision pending supplemental depositions of the plaintiff; the matter is now before the court for disposition.

Legal Issues Presented

  1. Whether, for purposes of diversity jurisdiction under 28 U.S.C. § 1332, plaintiff Susan Gordon was a citizen (domiciliary) of Idaho or remained a citizen of Pennsylvania at the time the action was commenced (April 10, 1973).
  2. Relatedly, whether plaintiff has met the burden of proving by convincing evidence that diversity of citizenship existed when her claim was challenged.

Arguments of the Parties

Defendants' Contentions / Evidence

  • At the time of application to Ricks College, plaintiff listed her address as Erie, Pennsylvania.
  • College records from 1972 and as late as May 4, 1973, show her address as Erie, Pennsylvania.
  • She worked in Erie, Pennsylvania during summer vacations.
  • She held a Pennsylvania driver's license and maintained a bank account in Erie.
  • She returned to Erie for Christmas vacations.
  • Ricks College is affiliated with the Mormon Church; defendants note information from supplemental depositions indicating that females are generally not required to participate in missionary activity and plaintiff has no present intention to undertake missionary work (arguing that religious compulsion to remain in Idaho is absent).

Plaintiff's Contentions / Evidence

  • She expressed an intention not to return to Pennsylvania — a subjective declaration of intent to remain in Idaho.
  • She rented and maintained an apartment in Rexburg, Idaho, which she regards as her residence and does not sublet.
  • She returned to Erie only one summer in 1973 for eye treatment and took medical treatment in Erie and Cleveland.
  • Her trip to Erie at Christmas 1973 was for deposition and medical appointments; she had not returned for spring or Thanksgiving vacations.
  • Her religious aims as a sincere Mormon — including desire to marry in a Mormon Temple and limited opportunities to do so in Erie — weigh on her choice to be located where such opportunities exist.
  • She became a Blue Cross of Idaho subscriber in 1972 and offered documentary exhibits to that effect.
  • She acknowledged that after graduation she might locate in any other state or abroad and that, as a likely future spouse, she might follow her husband; she also admitted the possibility of returning to Pennsylvania.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Shivelhood v. Davis, 336 F. Supp. 1111 (D.Vt. 1971) Illustration of recent litigation concerning students' residence for voting purposes. Used as an example to show the volume and relevance of student residence litigation informing the court's broader framing of the issue.
Carrington v. Rash, 380 U.S. 89 (1965) Reference regarding residency issues for military personnel in a state. Quoted as an analogous example of disputes over residency which inform the court's understanding of domicile/residence disputes.
Wilkins v. Bentley, 385 Mich. 670, 189 N.W.2d 423 (1971) (and 44 A.L.R.3d 797 annotation) Part of the annotated body of law on voting-residence of students. Cited to demonstrate the substantial secondary literature and case law on student residence questions that frame the court's perspective.
Wurzer v. University of Houston, 487 F.2d 612 (5th Cir. 1973) Example of litigation on residency for tuition purposes at state colleges. Used to illustrate analogous litigation about student residence in another context (tuition), supporting the observation of widespread disputes over student domicile.
Chicago & Northwestern Ry. Co. v. Ohle, 117 U.S. 123 (1886) Establishes that determinations of domicile are matters for the trier of fact. Cited to affirm that domicile is a factual determination for the factfinder, supporting the court's approach to weighing evidence of domicile and intent.
Spears v. Ohio River Company, 406 F.2d 344 (3d Cir. 1969) States that citizenship at the time the action is commenced is controlling. Applied as the controlling temporal rule: the court must determine plaintiff's citizenship as of April 10, 1973, the date the suit was filed.
Krasnov v. Dinan, 465 F.2d 1298 (3d Cir. 1972) Provides the Third Circuit's recent exposition: burden on plaintiff to show diversity by convincing evidence; domicile requires residency plus intent to remain indefinitely; lists factors for intent (declarations, political activity, taxes, house, place of business). Relied upon heavily for legal standards and quotes. The court used Krasnov to frame the burden of proof, the relevant indicia of intent (animo manendi), and to support finding that subjective declarations are important.
Brough v. Strathmann Supply Co., 358 F.2d 374 (3d Cir. 1966) Affirmation that citizenship at the time the suit is begun is controlling (quoted in Krasnov). Referenced within the Krasnov discussion to support the temporal rule on citizenship.
Gibbs v. Buck, 307 U.S. 66 (1939) Confirms that the burden of showing federal jurisdiction rests upon the complainants. Quoted in Krasnov and relied upon to state that when jurisdictional allegations are traversed the plaintiff must prove diversity.
Tanzymore v. Bethlehem Steel Corp., 457 F.2d 1320 (3d Cir.) Included among Third Circuit authorities on burden when jurisdictional allegations are contested. Referenced as supportive authority for the proposition that the complainant bears the burden of showing jurisdiction.
Nelson v. Keefer, 451 F.2d 289 (3d Cir. 1971) Another Third Circuit decision cited in the context of burden and domicile analysis. Used as part of the set of authorities emphasizing plaintiff's burden when domicile is contested.
Mitchell v. United States, 88 U.S. (21 Wall.) 350 (1874) Authority cited (via Wright's Federal Courts) for the factors to determine intention to establish domicile. Cited to support the set of circumstances (declarations, political rights, taxes, residence) looked to in determining intent to establish domicile.
Gallagher v. Philadelphia Transp. Co., 185 F.2d 543 (3d Cir. 1950) Warns that requiring permanence of attachment demands too much; it is enough to intend to make the new state one's home; emphasizes intention at time of arrival. Quoted to reject a hyper-emphasis on permanence and to adopt the view that intent to make a place one's home for an indefinite period suffices for domicile acquisition.
Gilbert v. David, 235 U.S. ___ (citation in text) Cited in support of the principle that a vague possibility of going elsewhere does not defeat acquisition of new domicile. Cited (via Gallagher's discussion) to support the proposition that the possibility of eventual departure does not negate a present intention to make a home.
Mid-Continent Pipe Line Co. v. Whitely, 116 F.2d 871 (10th Cir. 1940) Support for the statement that if the new state is to be one's home for an indefinite period, a new domicile is acquired. Used in Gallagher's exposition (quoted in the opinion) and thereby informs the court's standard for when a domicile is acquired.

Court's Reasoning and Analysis

The court framed the analysis by first emphasizing two controlling legal propositions drawn from the authorities cited:

  • Citizenship (domicile) is determined as of the date the action is commenced; here the controlling date is April 10, 1973 (citing Spears and related authorities).
  • When a plaintiff's claim of diversity is challenged, the plaintiff bears the burden of proving by convincing evidence that diversity exists (citing Krasnov and related Third Circuit authorities, and Gibbs).

Having established those legal rules, the court turned to the familiar two-part test for domicile: (1) physical residence in the new state and (2) an accompanying intention to remain there indefinitely (animo manendi). The court relied on Krasnov for the rule that residency must be coupled with intent to remain indefinitely and on Gallagher for the clarification that permanence is not required — it is sufficient to intend to make the new state one's home for an indefinite period and to examine objective indicia and declarations of intent.

The court listed and weighed the factual indicia presented by both sides. Defendants emphasized objective signs suggesting continued Pennsylvania citizenship (Pennsylvania address on applications and college records, summer employment in Erie, Pennsylvania driver's license, bank account, and holiday visits). Plaintiff relied heavily on subjective declarations of intent not to return to Pennsylvania, maintenance of an Idaho apartment she regarded as her residence, membership in Idaho Blue Cross, limited returns to Erie for medical and deposition reasons, and religious considerations that make Idaho more conducive to her religious plans.

The court repeated the Third Circuit's guidance that animo manendi is largely subjective and that the party's own declarations of intent are important. The opinion specifically noted (quoting Krasnov) that a factfinder will look to an individual's declarations, exercise of political rights, payment of personal taxes, house of residence, and place of business, and that declarations and explanations (for example concerning religious assignments) may be persuasive.

The court also took account of the changing legal context: the contemporary tendency to treat students 18 years of age and older as emancipated for many legal purposes, and the Pennsylvania legislative changes (cited in the opinion) that enable persons 18 and older to enter into contracts and be treated as emancipated for certain legal purposes. The court considered that context relevant because it reduces the weight of the traditional rule that students maintained by parents have not acquired a new residence.

Applying the legal standards to the facts here, and giving significance to plaintiff's age (18 at the time of the events and 19 at filing), her maintenance of an apartment in Rexburg that she regards as her residence, her expressed intent not to return to Pennsylvania in the foreseeable future, and other indicia (Blue Cross of Idaho subscription, limited returns to Erie primarily for medical and deposition reasons), the court concluded that plaintiff had established by the requisite proof that she had acquired a domicile in Idaho for purposes of diversity jurisdiction.

Holding and Implications

Holding: The court held that, on the facts of this case, plaintiff Susan Gordon was a citizen (domiciliary) of Idaho for purposes of diversity jurisdiction as of the date the action was filed, and therefore the defendants' motion to dismiss for lack of diversity was denied.

Implications:

  • The direct effect is that the motion to dismiss for lack of diversity is denied and the federal court may proceed to adjudicate the malpractice action on the merits between parties of diverse citizenship.
  • The opinion situates this decision within a broader trend and body of authority addressing student domicile questions — noting increased litigation over students' residence for voting and tuition purposes and recognizing a contemporary tendency to treat students 18 and older as emancipated for many legal purposes. The court applied existing Third Circuit precedent (notably Krasnov and Gallagher) rather than announcing a new legal rule.

This summary is based exclusively on the information contained in the provided opinion and does not add or infer facts beyond the opinion's text.

Susan E. GORDON v. James R. STEELE et al.

OPINION

KNOX, District Judge.

The problems of students have lately become numerous with respect to their legal status and the law with respect to them is in a constant state of flux. In recent years, there has been a deluge of litigation with respect to the residence of students for voting purposes. See Shivelhood v. Davis, 336 F. Supp. 1111 (D.Vt. 1971). See also Carrington v. Rash, 380 U.S. 89, 85 S.Ct. 775, 13 L. Ed.2d 675 (1965) with respect to military personnel in a state. The very size of this problem is shown by the extensive annotation on voting-residence of students in 44 A.L.R.3d 797 annotating Wilkins v. Bentley, 385 Mich. 670, 189 N.W.2d 423 (1971). The other situation which is a prolific source of litigation is the question of tuition fees charged by state colleges and universities to non-resident students where the state is required to set up extensive standards in an endeavor to determine who is a resident and who is a non-resident. See for example Wurzer v. University of Houston, 487 F.2d 612 (5th Cir. 1973). It was inevitable that the federal courts would soon feel the impact of this litigation with respect to problems arising under diversity jurisdiction. Thinking of the courts in this area is probably colored by numerous constitutional and statutory provisions in various states to the effect that no one shall be deemed to have gained or lost a residence by attendance at an institution of higher learning.

Citing 28 U.S.C. § 1332 Diversity of Citizenship:
"(a) The district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $10,000, exclusive of interest and costs, and is between —
(1) citizens of different States;

(2) citizens of a State, and foreign states or citizens or subjects thereof; and
(3) citizens of different States and in which foreign states or citizens or subjects thereof are additional parties."



The thinking is also colored by the traditional rule that the fact that a college student is supposedly maintained by his or her parents is a strong circumstance indicating no gain of residence in the college town. See 44 A.L.R.3d 822 and this is in accord with Restatement of Conflicts of Laws, Section 30, that a minor child has the same domicile as its father. In these days when nearly all the state legislatures have reduced the age of majority to 18, this poses a more pressing problem with respect to college students who can no longer be put off with the explanation that those under 21 are minors and hence continue their residence with their parents. See the various acts of the Pennsylvania Legislature approved June 16, 1972, particularly 73 Purdon's Pa.Stats. § 2021 permitting persons 18 years of age and older to enter into legal contracts and depriving such persons of the defense of minority.

The plaintiff Susan Gordon is one of those who was benefited by the provisions of the aforesaid emancipation acts of June 16, 1972. She was born November 20, 1953 and hence was 18 years of age at the time the cause of action hereinmentioned arose and was 19 at the time this action was brought, April 10, 1973.

The action is one for malpractice against two physicians and an osteopathic hospital in Erie County, Pennsylvania. All of the defendants are citizens of Pennsylvania. There seems little question that prior to August 9, 1972, the plaintiff was also a citizen of Pennsylvania, residing at 227 Goodrich Street, Erie, Pennsylvania, with her parents and if this continued to be her address, her suit must fail for lack of diversity jurisdiction.

She complains that she suffered an injury to her wrist on February 25, 1972, and there was wrongful diagnosis as to the existence of fractures in the bones by the defendants at that time. She claims that they concluded that there were no such fractures and that as a result she endured continuing pain and disability resulting in hospitalization and medical attention and that her wrist and right hand remain at least partly disabled as the result of the alleged malpractice.

On August 9, 1972, plaintiff enrolled in Ricks College at Rexburg, Idaho where she rented an apartment which she has retained ever since. Defendants on January 21, 1974, moved to dismiss for lack of diversity. Briefs have been filed, arguments held and the court postponed decision on the matter until further depositions of the plaintiff could be taken. The matter is now before the court for disposition.

We approach the problem recognizing, of course, that it is citizenship at the time of filing suit, in this case April 10, 1973, which is controlling. Spears v. Ohio River Company, 406 F.2d 344 (3d Cir. 1969). Further, the rule is unquestioned that where plaintiff is challenged on her claim of diversity, the burden is upon her to show by convincing evidence that diversity jurisdiction exists. Krasnov v. Dinan, 465 F.2d 1298 (3d Cir. 1972).

As is required in all of such cases, we must reckon up the indicators pointing for and against acquisition of a new domicile for diversity jurisdiction purposes. Defendant claims that the following indicate that plaintiff is still a citizen of Pennsylvania and has not acquired a new residence or citizenship in Idaho:

(1) At the time of application for admission to the college at Rexburg, Idaho, she gave her address as Erie, Pennsylvania.

(2) The college records dated in 1972 show her address as Erie, Pennsylvania. The same is true of the college records dated May 4, 1973.

(3) During summer vacations, she worked in Erie, Pennsylvania.

(4) She held a Pennsylvania Driver's License and had a bank account in Erie.

(5) She came to Erie for Christmas vacations.

(6) While Ricks College is a Mormon Church Institution, the supplemental depositions which were taken at the request of the court indicate that females unlike males are generally not required to participate in the missionary activity of the church and that she has no present intentions of participating in such missionary work which, of course, might take her to any part of the world.

On the other side of the ledger, plaintiff points to the following:

(1) Her expressed intention is not to return to Pennsylvania. This, of course, is a very strong factor in a situation where subjective intent plays a part in determining what is her animo manendi.

(2) She has an apartment in Rexburg which she regards as her residence and this is not sublet during various times of the year but remains hers.

(3) She states she came back to Erie only one summer in 1973 because of her eye problems and that she took eye treatment in Erie and Cleveland.

(4) She claims that her purpose in visiting at Christmas 1973 was to be deposed and for medical appointments. She has not returned to Erie during Spring or Thanksgiving vacations.

(5) Her religious desires as a sincere Mormon are to further her faith and insure that she marries in a Mormon Temple to someone of her faith. At the present time, she has no present plans of marrying anyone but she does desire to marry in her faith and claims that the opportunities for such a marriage in Erie are very small and that she would be unable to marry in a Temple here.

(6) She has introduced exhibits showing that she is a member of the Blue Cross of Idaho, becoming a subscriber in 1972.

(7) She claims she may locate after graduation in any other of the 49 states or abroad. She may, of course, return to Pennsylvania. She, like many other females, has vague intentions of marrying some day but does not know to whom and in such case it is likely that she would follow her husband where his work may take him.

We recognize that the problem of students' residence is not altogether a new one but has concerned the federal courts since Chicago and Northwestern Railway Company v. Ohle, 117 U.S. 123, 6 S.Ct. 632, 29 L.Ed. 837 (1886) where the court held that determinations of a domicile were a matter to be determined by the trier of fact.

The most recent exposition of the law on this subject for our edification by the Third Circuit is found in Krasnov v. Dinan, 465 F.2d 1298 (3d Cir. 1972) from which we quote at length:

" It is the citizenship of the parties at the time the action is commenced which is controlling. Brough v. Strathmann Supply Co., 358 F.2d 374 (3d Cir. 1966). One domiciled in a state when a suit is begun is `a citizen of that state within the meaning of the Constitution, art. 3, § 2, and the Judicial Code. . . .'"

* * * * * *

" The fact of residency must be coupled with a finding of intent to remain indefinitely. Proof of intent to remain permanently is not the test. `If the new state is to be one's home for an indefinite period of time, he has acquired a new domicile.' Gallagher v. Philadelphia Transp. Co., supra, 185 F.2d (543) at 546. Where jurisdictional allegations are traversed, as here, `the burden of showing . . . that the federal court has jurisdiction rests upon the complainants.' Gibbs v. Buck, 307 U.S. 66, 72, 59 S.Ct. 725, 729, 83 L.Ed. 1111 (1939); Tanzymore v. Bethlehem Steel Corp., 3 Cir., 457 F.2d 1320, supra; Nelson v. Keefer, 451 F.2d 289 (3d Cir. 1971). `In determining whether a party has intended to establish a domicile in the state to which he has moved, the factfinder will look to such circumstances as his declarations, exercise of political rights, payment of personal taxes, house of residence, and place of business.' Wright Federal Courts § 26, at 87 (2d ed. 1970); Mitchell v. United States, 88 U.S. (21 Wall.) 350, 353, 22 L.Ed. 584 (1874)."

* * * * * *

"Applying these principles to the evidence before the factfinder, we cannot construe, as clearly erroneous, its finding that the defendant `intended to remain in the Commonwealth for an indefinite period of time.' Because animo manendi is at best a subjective manifestation, Dinan's own declarations of intent are important, as were his explanations of the lack of compulsion in religious order assignments and his failure to obtain a Pennsylvania driver's license."

We also have further instruction on this subject in the case in Judge Hastie's opinion in Gallagher v. Philadelphia Transportation Company, 185 F.2d 543 (3d Cir. 1950) in which the lower court was criticized as putting too much emphasis on permanence of the attachment to a given state. We also quote at length from this decision.

" The emphasis of the court on the permanence of the anticipated attachment to a state, in our opinion, required too much of the plaintiff.

* * * * * *

"It is enough to intend to make the new state one's home. Restatement, Conflict of Laws (1934) §§ 19, 20; Chicago Northwestern Ry. Co. v. Ohle, 1885, 117 U.S. 123, 6 S.Ct. 632, 29 L.Ed. 837. It is not important if there is within contemplation a vague possibility of eventually going elsewhere, or even of returning whence one came. Goodrich, Handbook of the Conflict of Laws (3d ed. 1949) § 28; See Gilbert v. David, supra, 235 U.S. (561) at page 569, 35 S.Ct. (164) at page 166 ( 59 L.Ed. 360). If the new state is to be one's home for an indefinite period of time, he has acquired a new domicile. Mid-Continent Pipe Line Co. v. Whitely, 10 Cir. 1940, 116 F.2d 871. Finally, it is the intention at the time of arrival which is important. The fact that the plaintiff may later have acquired doubts about remaining in her new home or may have been called upon to leave it is not relevant, so long as the subsequent doubt or the circumstance of the leaving does not indicate that the intention to make the place the plaintiff's home never existed."

In the light of the foregoing and in view of the current tendency to treat students 18 years of age and above as emancipated and particularly in view of fact that in this case the plaintiff has rented an apartment in Rexburg and with due regard for Judge Goodrich's statement from his Handbook of the Conflict of Laws that the possibility of eventually going elsewhere or even returning whence one came does not defeat the acquisition of a new domicile, we conclude upon the facts of this case considering the student's connection with Idaho and her subjective intention of not returning to Pennsylvania in the foreseeable future that she is a citizen of Idaho for the purpose of diversity jurisdiction and the motion to dismiss must be denied.

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Comments

GORDON v. STEELE, (W.D.Pa. 1974)
(May 31, 1974)