Fagnan v. Great Central Insurance Co. case brief

Fagnan v. Great Central Insurance Co. case brief summary
577 F.2d 418 (1978)

CASE SYNOPSIS

Appeal from the United States Court for the Western District of Wisconsin in which the court held the federal compulsory counterclaim rule did not preclude an action against defendant under the Wisconsin direct action statute when an action directly against defendant would be barred by the rule.

CASE FACTS
Two automobiles were involved in an accident, which resulted in various lawsuits in two states. On appeal, the issue presented was whether Fed. R. Civ. P. 13(a)precluded an action against defendant under the Wisconsin direct action statute, Wis. Stat. §§ 204.30(4) & 260.11(1), when an action directly against defendant would be barred by the rule. The lower court answered the question in the negative and entered judgment against defendant.

DISCUSSION

• The appellate court reviewed the facts and determined that plaintiffs' claim against decedent's administrator was a compulsory counterclaim that was extinguished by the judgment in that action. 
• Because plaintiffs' claim against the decedent's administrator was barred, plaintiffs' claim against defendant was also barred under the direct action statute. 
• Thus, the judgment was reversed and remanded.

CONCLUSION
The court reversed and remanded the lower court's decision and held that because plaintiffs' claim against the decedent's administrator was barred, plaintiff's' claim against defendant was also barred under the direct action statute.


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