paul mercury indem red cab argued decided february burke slaymaker indianapolis petitioner william reiley indianapolis respondent justice roberts delivered opinion decision review although time removal cause state complaint disclosed amount controversy requisite federal jurisdiction subsequent amendment reducing sum claimed substantially less amount necessitates remand state granted writ certiorari alleged conflict decisions federal courts respondent corporation indiana issued summons superior marion county indiana petitioner minnesota corporation business indiana one harlan agent complaint alleged respondent subject provisions indiana workmen compensation act acts amended entered contract insurance petitioner evidenced binder whereby petitioner insured respondent loss expense reason claims compensation period thirty days december agreed act respondent filing reports notices act term insurance employes respondent suffered injury course employment made claims therefor petitioner notified injury investigated connection claim compensation expiration contract petitioner notified respondent recognize claims denied liability binder consequence respondent compelled employ attorneys investigators medical assistants investigate satisfy claims covered contract pay employes suffered injuries contract period pay obligate pay medical hospital dental bills connection injuries damage respondent sum alleged petitioner acted making contract harlan authorized agent representative order prayed harlan retain moneys due petitioner purpose answering judgment might recovered complaint concluded demanding appropriate relief upon petitioner timely application cause removed district southern indiana respondent thereafter filed amended complaint substance material later amended complaint breach contract damages allegations original complaint repeated damages claimed sum exhibit attached gave names employes amounts expended connection asserted injuries totaling dismissed harlan defendant transferred cause law docket overruled demurrer complaint stating facts sufficient constitute cause action answer denied making contract jury trial waived made findings stated conclusions entered judgment respondent petitioner appealed circuit appeals refused decide merits ground record showed respondent claim equal amount necessary give district jurisdiction case remanded state question presented one statutory construction act defining jurisdiction district courts section judicial code far material code confers jurisdiction suit civil nature matter controversy exceeds exclusive interest costs sum value citizens different authority removal certain causes state federal first given section judiciary act permitted removal civil suit instituted citizen state suit brought citizen another state matter dispute exceeded sum value exclusive costs removal instance nonresident defendant act july enlarged privilege removal providing civil suit shown nonresident defendant party separable controversy determined without presence defendants defendant might remove cause judiciary act altered preexisting law permit suits involving controversy citizens different removed either party judiciary acts increased jurisdictional amount exclusive interest costs confined right removal nonresident defendant judicial code increased limit exclusive interest costs also restricted privilege nonresident defendants statute governing dismissal remand want jurisdiction section judicial suit commenced district removed state district shall appear satisfaction said district time suit brought removed thereto suit really substantially involve dispute controversy properly within jurisdiction said district parties said suit improperly collusively made joined either plaintiffs defendants purpose creating case cognizable removable chapter said district shall proceed therein shall dismiss suit remand removed justice may require shall make order costs shall provision first appeared section act march supra save elision concluding clause substitution identical section included judiciary acts supra continuously force since altered practice requiring dismiss remand motion proper case although want jurisdiction raised appropriate motion plea change substantial basis action principles governing dismissal cause intiated federal remand one begun state remained section adopted intent congress drastically restrict federal jurisdiction controversies citizens different always rigorously enforced courts rule governing dismissal want jurisdiction cases brought federal unless law gives different rule sum claimed plaintiff claim apparently made good faith must appear legal certainty claim really less jurisdictional amount justify dismissal inability plaintiff recover amount adequate give jurisdiction show bad faith oust jurisdiction fact complaint discloses existence valid defense claim face pleadings apparent legal certainty plaintiff recover amount claimed proofs satisfied like certainty plaintiff never entitled recover amount claim therefore colorable purpose conferring jurisdiction suit dismissed events curring subsequent institution suit reduce amount recoverable statutory limit oust jurisdiction already said circumstances later discussed lead conclusion dismissal justified suit brought federal principles govern remand removed cause urgently require remanded cause instituted federal plaintiff chooses forum knows know whether claim within statutory requirement amount good faith choosing federal forum open challenge resort face complaint facts disclosed trial either source clear claim never amounted sum necessary give jurisdiction injustice dismissing suit indeed duty act original actions may also well plaintiff defendant colluded confer jurisdiction method one claiming fictitious amount failing deny veracity averment amount controversy upon disclosure state facts dismiss different situation presented case suit instituted state thence removed strong presumption plaintiff claimed large amount order confer jurisdiction federal parties colluded end purpose suit instituted first instance state federal highly unlikely parties pursue roundabout troublesome method get federal removal device suit instituted moreover status case disclosed plaintiff complaint controlling case removal since defendant must file petition time answer forever lose right remove course upon face complaint obvious suit involve necessary amount removal futile remand follow fact appears face complaint defendant valid defense asserted portion claim circumstance rulings district removal reduce amount recoverable jurisdictional requirement justify remand though plaintiff removal stipulation affidavit amendment pleadings reduces claim requisite amount deprive district jurisdiction thus events occurring subsequent removal reduce amount recoverable whether beyond plaintiff control result volition oust district jurisdiction attached well illustrated kirby american soda fountain company suit brought kirby alleged induced company false representations agree exchange apparatus one made defendant pay addition prayed cancellation obligation pay balance damages general relief cause removed circuit company answered denying kirby charges fraud relied upon written agreement alleged contain terms contract asserted full performance part paid obligation pay company demanded interest kirby establishment lien apparatus delivered kirby answered voluntarily dismissed original suit brought within jurisdiction claim excess exclusive interest costs plea overruled judgment rendered affirming referred amount demanded kirby original complaint said matter dispute thus made exceed sum value exclusive interest costs defendant presented petition bond removal cause thereupon removed jurisdiction thus acquired circuit devested plaintiff subsequent action fifty years earlier kanouse martin held voluntary reduction amount demanded sum necessary give circuit jurisdiction defeat jurisdiction removal proceedings perfected reliance upon precedents many cases cited note decided think well established rule supported ample reason plaintiff matter bona fide original claim state reduce amount demand defeat federal jurisdiction defendant supposed statutory right removal subject plaintiff caprice claim whether well ill founded fact fixes right defendant remove plaintiff able defeat right bring cause back state election desire try case federal may resort expedient suing less jurisdictional amount though justly entitled defendant remove view supported authorities causes jurisdiction depends diversity citizenship uniformly held suit properly begun federal change citizenship party oust jurisdiction rule governs suit originally brought state removed federal decisions remand cause removed involves separable controversy inconsistent concerning remand lack jurisdictional amount case separable controversy removal plaintiff discontinues dismisses defendant removed longer exists separable controversy cause must remanded cause removed ground whole case including controversy citizens state taken federal one defendants entitled invoke jurisdiction basis federal jurisdiction failing proper remaining parties involuntarily taken federal upon cessation separable controversy cause transmission another tribunal case returned state present case well illustrates propriety rule subsequent reduction amount claimed oust district jurisdiction suit instituted state june lump sum claimed largely excess exclusive interest costs items went make respondent demand indemnity numerous turn total several items expenditure liability nothing indicate sums reimbursement claimed actually expended prior beginning suit sums thereafter expended ascertained second amended complaint filed november respondent furnish statement particulars claim statement inconsistent making claim good faith suit instituted evidence petitioner removed cause knew reason believe respondent claim whether well ill founded law fact involved less face pleadings petitioner entitled invoke jurisdiction federal reduction amount claimed removal take away privilege judgment reversed cause remanded circuit appeals proceedings conformity opinion reversed remanded ordered justice cardozo justice reed took part consideration decision case footnotes act march stat amended tit act stat chapter stat act march stat act march stat act stat act march stat act march stat tit stat prior courts act motion upon motion dismiss plea abatement smith kernochen mcnutt general motors corporation since duty act upon motion dismiss steigleder mcquesten state practice permits upon denial jurisdiction answer gilbert david north pac soley act sua sponte mcnutt general motors corporation supra upon disclosure whether pleadings proofs satisfies exercise sound judicial discretion plaintiff fact claim jurisdictional amount value knew reasonably known fact williams nottawa mcnutt general motors corporation supra plaintiff burden allege sufficient particularity facts creating jurisdiction view nature right asserted appropriately challenged inquiry made motion support allegation mcnutt general motors corporation supra pages kvos associated press even appellate must notice absence elements requisite original jurisdiction removal williams nottawa supra robinson anderson mcnutt general motors corporation supra american bridge hunt international hoyle wilson daniel dall barry edmunds sherman clark fed mclean stuckert alexander peeler lathrop ung lung chung holmes washington county williams greene county bank teasdale american sheet tin plate winzeler bruner manefee walker grain southwestern tel tel barry edmunds supra wetmore rymer waterworks ryan hampton stave gardner smithers smith holden utah maffet quine kunkel brown ung lung chung holmes supra washington county williams supra denver city tramway norton hampton stave gardner supra lewis mercantile klepner tammany bank winfield ragsdale rudich walker grain southwestern tel tel kimel missouri state life ins simecek nat bank interstate edgefield hotel armstrong walters mullins lumber williamson land williams nottawa supra barry edmunds supra vance vandercook lion bonding karatz first national bank louisiana highway simon house horst merkley cabot mcmaster bank arapahoe bradley armstrong walters supra maurel smith leroy hartwick sclarenco chicago bonding operators first wisconsin trust wilderman roth chick new england tel nixon town taxi cohn cities service colorado mill mutual life ins rose hood bell smith greenhow case trespass entering plaintiff premises carrying away goods value interfering plaintiff business annoying disturbing damages laid though diversity citizenship pleadings raised federal question cause removed remanded circuit thought federal question involved decision reversed speaking facts disclosed said ground remanding cause suggested record sufficiently apparent justify us resorting support action circuit value property taken stated declaration although damages alleged trespass laid course assume matter law amount laid less amount greater recoverable upon case stated declaration therefore justify order remanding cause ground matter dispute exceed sum value circuit found matter fact amount damages stated declaration colorable laid beyond amount reasonable expectation recovery purpose creating case removable act congress words fifth section act appeared suit really substantially involve dispute controversy properly within jurisdiction said circuit order remanding state sustained appears reported case removal plaintiff authorized act distinguishable ground respects possibility plaintiff claim may colorable purpose removing case hayward nordberg mfg per taft lurton clark jj gordon longest pet kanouse martin chesbrough northern trust affirming chesbrough woodworth muns denemours riggs clark hayward nordberg mfg supra johnson computing scale north american morrison levinski middlesex banking stribling shoe roper mannheimer nederlandsche contra jones western union tel co kanouse martin supra kirby american soda fountain wright wells roberts nelson blatchf zinkeisen hufschmidt waite phoenix ins riggs clark supra hayward nordberg mfg supra johnson computing scale supra coffin philadelphia donovan dixieland amusement bernheim louisville property jellison krell piano twin hills gasoline bradford oil corporation kane reserve oil corporation travelers protective smith beddings great eastern stages contra hughes peper tobacco two tort cases large damages claimed appeared trial plaintiff injuries losses slight verdict fraction jurisdictional amount sustained courts remanded though placed upon ground action may justified conviction defendant removed knew amount involved little give jurisdiction turmine west jersey american stores gerlach principle applies cases fixed amount requisite jurisdiction appeal lee watson wall cook wall woods massachusetts protective amendment state reducing claim jurisdictional amount removal perfected effective invalidate removal requires remand cause maine gilman waite phoenix ins supra harley firemen fund ins morgan morgan wheat mullen torrance wheat dunn clarke pet clarke mathewson pet tug river coal brigel affirming haracovic standard oil lebensberger scofield change parties substitution intervention oust jurisdiction phelps oaks hardenbergh ray wichita light public utilities texas transportation seeligson torrence shedd iowa homestead des moines bane keefer youtsey hoffman cassidy atlanta ry sklarsky great atlantic tea