Itt Indus. Credit Co., a Nevada Corp. v. Durango Crushers, Inc., a Delaware Corp. Roger Morrison, 832 F.2d 307 (4th Cir. 1987). · Go Syfert
Itt Indus. Credit Co., a Nevada Corp. v. Durango Crushers, Inc., a Delaware Corp. Roger Morrison, 832 F.2d 307 (4th Cir. 1987). Cases Citing This Book View Copy Cite
28 citation events (19 in the last 25 years) across 12 distinct courts.
Strongest positive: Campbell v. Navy Federal Credit Union (scd, 2025-08-27)
Treatment trajectory · 1987 → 2026 · click a year to view as-of
1987 2006 2026
Top citers, strongest first. 23 distinct citers. How cited ↗
discussed Cited as authority (rule) Campbell v. Navy Federal Credit Union (2×) also: Cited "see"
D.S.C. · 2025 · confidence medium
Credit Co. v. Durango Crushers, Inc., 832 F.2d 307, 308 (4th Cir. 1987) (finding the limited authority of the district courts to award fees as a sanction for a removal taken in bad faith is widely recognized.) Here, it does not appear to the court that defendants acted in bad faith.
cited Cited as authority (rule) Zambito v. Ocular Benefits, LLC
D. Maryland · 2023 · confidence medium
Credit Co. v. Durango Crushers, Inc., 832 F.2d 307, 308 (4th Cir. 1987).
cited Cited as authority (rule) Goucher College v. Continental Casualty Company
D. Maryland · 2021 · confidence medium
Credit Co. v. Durango Crushers, Inc., 832 F.2d 307, 308 (4th Cir. 1987)) (“The court’s limited authority ‘to award fees as a sanction for a removal taken in bad faith is widely recognized.’”).
discussed Cited as authority (rule) Joyce Barlow v. Colgate Palmolive Company
4th Cir. · 2014 · confidence medium
In ITT Industrial Credit Co. v. Durango Crushers, Inc.—a case decided eight years after Three J Farms—this Court affirmed the district court’s award of attorneys’ fees to the plaintiff as a sanction based on the defendants’ improper removal of the case to federal court. 832 F.2d 307, 308 (4th Cir. 1987).
discussed Cited as authority (rule) Joyce Barlow v. Colgate Palmolive Company
4th Cir. · 2014 · confidence medium
In ITT Industrial Credit Co. v. Durango Crushers, Inc.—a case decided eight years after Three J Farms—this Court affirmed the district court’s award of attorneys’ fees to the plaintiff as a sanction based on the defendants’ improper removal of the case to federal court. 832 F.2d 307, 308 (4th Cir. 1987).
discussed Cited as authority (rule) Joyce Barlow v. Colgate Palmolive Company (2×)
4th Cir. · 2014 · confidence medium
In ITT Industrial Credit Co. v. Durango Crushers, Inc.—a case decided eight years after Three J Farms—this Court affirmed the district court’s award of attorneys’ fees to the plaintiff as a sanction based on the defendants’ improper removal of the case to federal court. 832 F.2d 307, 308 (4th Cir. 1987).
discussed Cited as authority (rule) Wieters v. Bon Secours-St. Francis Xavier Hospital, Inc. (2×)
S.C. · 2011 · confidence medium
Credit Co. v. Durango Crushers, Inc., 832 F.2d 307, 308 (4th Cir.1987) (finding “the removal petition was so patently without merit that the inescapable conclusion is that it was filed in bad faith,” thus the federal district court properly imposed sanctions for removing the case when clearly there was no basis for removal); Massad v. Greaves, 116 Conn.App. 672 , 977 A.2d 662 (2009) (state court is the appropriate forum to sanction party for abuse of removal process); Nodier v. Ungarino & Eckert, LLC, No. 2006 CA 1461, 2007 WL 1300805 , * 7-8 (La.App.
discussed Cited as authority (rule) Ginsberg v. Granados
D.C. · 2009 · confidence medium
Credit Co. v. Durango Crushers, Inc., 832 F.2d 307, 308 (4th Cir.1987) (“[T]he district court did not err in awarding attorney’s fees ... because [litigants’] removal petition was so patently without merit that the ‘inescapable conclusion’ is that it was filed in bad faith.”).
cited Cited as authority (rule) Phillips v. BJ's Wholesale Club, Inc.
E.D. Va. · 2008 · confidence medium
Credit Co. v. Durango Crushers, Inc., 832 F.2d 307, 308 (4th Cir.1987).
cited Cited as authority (rule) Seeger v. Superior Diesel, Inc.
D.S.C. · 2005 · confidence medium
Credit Co. v. Durango Crushers, Inc., 832 F.2d 307, 308 (4th Cir.1987).
cited Cited as authority (rule) McGinty v. Player
D. Maryland · 2005 · confidence medium
Credit Co. v. Durango Crushers, Inc., 832 F.2d 307, 308 (4th Cir.1987).
cited Cited as authority (rule) Iceland Seafood Corp. v. National Consumer Cooperative Bank
E.D. Va. · 2003 · confidence medium
ITT Industrial Credit Co. v. Durango Crushers, Inc., 832 F.2d 307, 308 (4th Cir.1987).
cited Cited as authority (rule) Tincher v. Insurance Co. of State of Pennsylvania
E.D. Va. · 2003 · confidence medium
ITT Industrial Credit Co. v. Durango Crushers, Inc., 832 F.2d 307, 308 (4th Cir.1987).
cited Cited as authority (rule) Biggerstaff v. Voice Power Telecommunications, Inc.
D.S.C. · 2002 · confidence medium
Credit Co. v. Durango Crushers, Inc., 832 F.2d 307, 308 (4th Cir.1987).
cited Cited as authority (rule) Sherman v. Sigma Alpha Mu Fraternity
D. Maryland · 2001 · confidence medium
Credit Co. v. Durango Crushers, Inc., 832 F.2d 307, 308 (4th Cir.1987).
discussed Cited as authority (rule) Castle v. Laurel Creek Co., Inc.
S.D.W. Va · 1994 · confidence medium
A defendant may not remove to federal court on the basis of diversity if any of the defendants is a citizen of the state where the action is filed.”); ITT Industrial Credit Co. v. Durango Crushers, Inc., 832 F.2d 307, 308 (4th Cir.1987) (in civil action brought in Maryland state court by Nevada corporation against Delaware corporation and Maryland citizen, removed action was remanded because, “[sjection 1441(b) forbids removal of a suit on the basis of diversity where a defendant is a citizen of the state in which suit is brought”); Ravens Metal Products, Inc. v. Wilson, 816 F.Supp. 427,…
cited Cited as authority (rule) Miranti v. Lee
5th Cir. · 1993 · confidence medium
Credit Co. v. Durango Crushers, Inc., 832 F.2d 307, 307-08 (4th Cir.1987) (reviewing district court’s award of fees as a sanction for a removal taken in bad faith).
cited Cited as authority (rule) Wilnet Ashley Brown v. Elliott Roy Brown
4th Cir. · 1992 · confidence medium
Credit Co. v. Durango Crushers, Inc., 832 F.2d 307, 308 (4th Cir.1987).
discussed Cited as authority (rule) Creekmore v. Food Lion, Inc.
E.D. Va. · 1992 · confidence medium
Credit Co. v. Durango Crushers, Inc., 832 F.2d 307, 308 (4th Cir.1987) (upholding award of attorney fees under section 1447(c) before the 1988 amendments expressly authorized award of such expenses) (quoting Peltier v. Peltier, 548 F.2d 1083, 1084 (1st Cir.1977)). 14 This court cannot conclude that Food Lion filed its notice of removal in bad faith, although its position was not persuasive and somewhat unreasonable.
discussed Cited as authority (rule) Melvin J. Morris v. Eric Boucher
6th Cir. · 1989 · confidence medium
ITT Industrial Credit Co. v. Durango Crushers, Inc., 832 F.2d 307, 308 (4th Cir.1987); Lewis v. Louisville & Nashville Railroad Co., 758 F.2d 219, 221 (7th Cir.1985); New England Concrete Pipe v. D-C Systems of New England, Inc., 658 F.2d 867, 872-74 (1st Cir.1981); Union Planters, 557 F.2d at 89 . 20 Applying this test to the case at bar, it is apparent that plaintiffs suffered but one wrong: the publication of their photograph in conjunction with the other material included in the Frankenchrist record album.
discussed Cited as authority (rule) Anton Leasing, Inc., a Maryland Corporation, and Phanton Leasing, Inc. v. Richard Engram, Jr., an Individual and Resident of West Virginia, Defendant
4th Cir. · 1988 · confidence medium
Credit Co. v. Durango Crushers, Inc., 832 F.2d 307, 308 (4th Cir.1987) (citing Peltier v. Peltier, 548 F.2d 1083, 1084 (1st Cir.1977)). 11 Defendant in this case, a licensed attorney, attempted to remove an action from the state courts of Maryland to a federal district court in West Virginia despite the removal statute's clear statement that an action may be removed only to the district in which it is pending.
discussed Cited as authority (rule) Harris v. Marsh
E.D.N.C. · 1987 · confidence medium
See Perichak v. International Union of Electrical Radio & Machine Workers, Local 601, AFL-CIO, 715 F.2d 78, 83 (3d Cir.1983); ITT Industrial Credit Co. v. Durango Crushers, Inc., 832 F.2d 307, 308 (4th Cir.1987) (fee award affirmed where claim “so patently without merit that the ‘inescapable conclusion’ is that it was filed in bad faith”). *1378 Bad faith, of course, becomes all the more obvious with the passage of time after it becomes reasonably apparent that a claim or defense is frivolous.
cited Cited "see" In Re Peterson
Bankr. W.D.N.C. · 2003 · signal: see · confidence high
See, ITT v. Durango Crushers, 832 F.2d 307 (4th Cir.1987).
Retrieving the full opinion text from the archive…
ITT INDUSTRIAL CREDIT COMPANY, a Nevada Corporation, Plaintiff-Appellee,
v.
DURANGO CRUSHERS, INC., a Delaware Corporation; Roger Morrison, Defendants-Appellants
85-1976.
Court of Appeals for the Fourth Circuit.
Nov 5, 1987.
832 F.2d 307
1987 U.S. App. LEXIS 14669
Don Michael Blumenthal (Roger A. Morrison, Chevy Chase, Md., Joann Langston, on brief), for defendants-appellants., Wayne G. Gracey (B. Marvin Potter, Schlachman, Potter, Belsky & Weiner, P.A., Baltimore, Md., on brief), for plaintiff-ap-pellee.
Chapman, Wilkinson, Haynsworth.
Cited by 27 opinions  |  Published
WILKINSON, Circuit Judge:

Durango Crushers, Inc. and Roger Morrison appeal the district court’s award of attorneys’ fees against them in connection with their attempt to remove an action from state court. We affirm.

In 1983, Durango entered into a security agreement with ITT Industrial Credit Co. and executed an installment note to ITT. Morrison, as president of Durango, personally guaranteed Durango’s debt to ITT in a separate instrument. Durango defaulted[*308] on the note in 1984, and ITT brought suit in Maryland state court against Durango and Morrison. Durango and Morrison sought removal under 28 U.S.C. § 1441 on the basis of diversity of citizenship.

Section 1441(b) forbids removal of a suit on the basis of diversity where a defendant is a citizen of the state in which suit is brought. Morrison was a resident of Maryland, but Durango and Morrison claimed that the entire suit could be removed under § 1441(c), which allows the removal of non-removable claims if they are joined with a “separate and independent claim or cause of action, which would be removable if sued upon alone.” 28 U.S.C. § 1441(c) (1982). Diversity existed between ITT and Durango, and appellants contended that ITT’s claims against them were separate and independent.

The district court, however, rejected that argument and granted ITT’s motion to remand the entire case to state court. The removal statutes permit the award of “just costs” if a suit is “removed improvidently and without jurisdiction,” 28 U.S.C. § 1447(c) (1982), and the district court awarded ITT attorneys’ fees of $3,991 and costs of $25.93. Durango and Morrison contend that the district court erred in granting attorneys’ fees.

Ordinarily, a district court may not award attorneys' fees absent express Congressional authorization. Alyeska Pipeline Service Co. v. Wilderness Society, 421 U.S. 240, 95 S.Ct. 1612, 44 L.Ed.2d 141 (1975). Exceptions to the “American Rule,” whereby each party pays its own attorney’s fees, are matters of legislative providence. As the Alyeska court pointed out, however, courts do have inherent power to award attorney’s fees against a party who has acted in bad faith. 421 U.S. at 258-59, 95 S.Ct. at 1622. The limited authority of the district courts to award fees as a sanction for a removal taken in bad faith is widely recognized. See, e.g., Cornwall v. Robinson, 654 F.2d 685, 687 (10th Cir.1981); Muirhead v. Bonar, 556 F.2d 735, 737 (5th Cir.1977). Although § 1447(c) itself conveys no power on the district courts to award attorneys’ fees, the district court did not err in awarding attorney’s fees against Durango and Morrison because their removal petition was so patently without merit that the “inescapable conclusion” is that it was filed in bad faith. See Peltier v. Peltier, 548 F.2d 1083, 1084 (1st Cir.1977).

It was clear at the time of the removal petition that Morrison was a citizen of Maryland, and that the appellants could not remove the suit under § 1441(b). It should have been clear to the appellants, and would have been clear to any reasonable attorney, that § 1441(c) provided no basis for the removal.

In American Fire & Casualty Co. v. Finn, 341 U.S. 6, 14, 71 S.Ct. 534, 540, 95 L.Ed.2d 702 (1951), the Supreme Court stated that “where there is a single wrong to plaintiff, for which relief is sought arising from an interlocked series of transactions, there is no separate and independent cause of action under § 1441(c).” Appellants are correct in observing that ITT’s two claims were brought against two distinct parties and were based on two different instruments, but it is readily apparent that the claims grew out of “a single wrong ... arising from an interlocked series of transactions.”

The guarantee of Morrison, as president of Durango, was a condition of ITT’s loan to Durango. ITT’s claims thus arise from a single transaction and a single debt. Du-rango and Morrison argue that the claims are separate and independent, but it would be nearly unthinkable for a creditor like ITT to seek to collect a debt in this situation without joining both the corporate debtor and the individual guarantor. The very purpose of a guarantee is to link the obligations of debtor and guarantor.

The removal statutes allow defendants to invoke federal jurisdiction in appropriate cases. They do not make of the courts a maze through which plaintiffs can needlessly be run in order to have their claims determined. The district court properly imposed sanctions for this abuse of the removal process. Its decision is hereby

AFFIRMED.