Summary

Portrait of Tom C. Clark Tom C. Clark Horton v. Liberty Mutual Insurance Company…

It is now an unequal race to the courthouse door-a race which the insurers will invariably win, since they have resident counsel in Austin (the location of the Texas Industrial Accident Board) who quickly secure news of Board awards and are thus enabled to 'beat' the workman in the choice of forums. Thus, the Court-contrary to the specifically expressed intention of the Congress-grants the insurance companies the option of going into federal court, with all its attendant difficulties to the already overburdened federal judiciary and the impecunious workman.
Source: Wikisource

Portrait of Tom C. Clark Tom C. Clark Horton v. Liberty Mutual Insurance Company…

Once again the United States District Courts in Texas will be flooded by compensation cases, [1] and the Congress once again will be obliged to amend the diversity statute. Moreover, today's decision practically wipes out the longexisting distinction between declaratory judgment actions and conventional suits. See 28 U.S.C. § 2201, 28 U.S.C.A. § 2201. For these reasons I must dissent.
Petitioner, an injured workman, filed a claim under the Texas Workmen's Compensation Act before the Texas Industrial Accident Board for the maximum allowable recovery, $14,035 (401 weeks at $35 per week) .
Source: Wikisource

Portrait of Tom C. Clark Tom C. Clark Horton v. Liberty Mutual Insurance Company…

If petitioner defaulted, the District Court would set aside the Board award. If respondent lost and petitioner filed no counterclaim, the judgment could only be for $1,050. It was only if petitioner counterclaimed for an amount in excess of the jurisdictional amount of $10,000, that respondent could have controverted a claim cognizable in federal court. It seems impossible to avoid the conclusion that the Court is allowing diversity jurisdiction to be predicated upon a counterclaim which might possibly be filed by petitioner.
Source: Wikisource

Get perspective with Kwize: daily news enlightened by great literature