Donaldson v. Tucson Gas, Electric Light & Power Co.
District Court, D. Arizona · 1935-11-27 · cited 5×
The case involves a negligence claim by plaintiff Donaldson against Tucson Gas, Electric Light & Power Co. and its electrical department superintendent Russell V. Sanford for injuries allegedly caused by failure to comply with Arizona Corporation Commission safety regulations (General Order No. 37, adopting the National Electric Safety Code) in maintaining electrical equipment. The defendant company sought removal to federal court, arguing that the joinder of Sanford was fraudulent to defeat diversity jurisdiction because the complaint alleged only nonfeasance for which an employee is not liable to third parties, creating a separable controversy. The court held that Arizona law (Rev. Code §729) imposes a statutory duty on corporate officers and employees that can give rise to civil liability for violations, making a joint cause of action possible, and that the joinder was not a sham; therefore the case must be remanded to state court as it does not present a removable separable controversy.