Alabama Great Southern Ry. Co. v. American Cotton Oil Co.

229 F. 11, 143 C.C.A. 313, 1916 U.S. App. LEXIS 1534
CourtCourt of Appeals for the Fifth Circuit
DecidedJanuary 10, 1916
DocketNo. 2786
StatusPublished
Cited by15 cases

This text of 229 F. 11 (Alabama Great Southern Ry. Co. v. American Cotton Oil Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alabama Great Southern Ry. Co. v. American Cotton Oil Co., 229 F. 11, 143 C.C.A. 313, 1916 U.S. App. LEXIS 1534 (5th Cir. 1916).

Opinion

SPEER, District Judge

(after stating the facts as above). [1] Because of the probable recurrence of the question before the court, and others cognate, it has been thought: proper to detail with some care the various facts of the transcript. We inquire, first, is the cause removable ? The law relating to the question before the court is found in subdivision 1 of section 24 of .the Judicial Code, defining the original jurisdiction of the District Court as follows:

“Sec. 24. The District Courts shall have original jurisdiction as follows:
“First. Of all suits of a civil nature, at common law or in equity, brought by the United States, or by any officer thereof authorized by law to sue, or between citizens of the same state claiming lands under grants from different states; or, where the matter in controversy exceeds, exclusive of interest and costs, the sum or value of three thousand dollars, and (a) arises .under the Constitution or laws of the United States, or treaties made, or which shall be made, under their authority, or (b) is between citizens of different states, or (c) is between citizens of a state and foreign states, citizens or subjects. No District Court shall have cognizance of any suit (except upon' foreign bills of exchange) to recover upon any promissory note or other chose in action in favor of any assignee, or of any subsequent holder if such instrument be payable to bearer and be not made by any corporation, unless such suit might have been prosecuted in such court to recover upon said note or other chose in [15]*15action if no assignment had been made: Provided, however, that the foregoing provision as to the sum or value of the matter in controversy shall not he construed to apply to any of the cases mentioned in the succeeding paragraphs of this section.”

Subdivision 8 of section 24 of the Judicial Code confers additional jurisdiction upon the District Courts of all suits and proceedings arising under any law regulating commerce, except those suits and proceedings exclusive jurisdiction of which has been conferred upon the Commerce Court. The Commerce Court having been subsequently abolished, the exception will doubtless fail.

For more than 40 years causes involving these issues, colloquially and often judicially termed “federal” questions, have been removable from a state court to a United States court. This appeal's from section 2 of the act of Congress enacted March 3, 1875. This provides,:

“That any suit of a civil nature, at law or in equity, arising under the Constitution or laws of the United States, or treaties made, or which shall be made, under their authority, of which the Circuit Courts of the United States are given original jurisdiction by the preceding section, which may now be pending, or which may hereafter be brought, in any state court, may be removed by the defendant or defendants therein to the Circuit Court of the United States for the proper district.”

Abolishing the Circuit Court, the Judicial Code (section 28) adopts the language of the act of 1875 just quoted, except that the word “District” is used instead of the word “Circuit.” It is clear, then, if it sufficiently appears from the pleadings that the controversy before the court arises under the Constitution and laws of the United States, by section 24 of the Judicial Code, the District Court would have original jurisdiction had the suit been brought therein. If such is found to be the case, then by virtue of the Judicial Code (section 28), when brought in the state court, it is removable to the District Court of the United States for the proper district.

Now, does the declaration disclose that the suit was one arising under the Constitution or laws of the United States? The amendment known as the Carmack’ Amendment, of June 29, 1906, to the Hepburn Act of Congress, has been set out in the statement heretofore made. It is intended to define the liability of a common carrier, like that charged here. The declaration in the state court alleges that the defendant companies are common carriers. The amendment related to contracts for transportation from a point in one state to a point in another state. The declaration alleges that the car of cotton seed oil was shipped out of Vicksburg, Miss., and that: its destination was Cincinnati, Ohio. The act is designed to make the railway receiving the initial shipment liable for loss, damage, or injury to the property shipped, caused by it or by any common carrier, railroad, or transportation company to which such property may be delivered, or from whose line or lines such property may pass. The declaration recites that the oil was shipped from Vicksburg over the line of the Mississippi Company and was to be delivered at Meridian to the Alabama Great Southern Railway, and was to be routed by the Queen & Crescent to its destination To the declaration was attached, as [16]*16Exhibit C, the bill of lading. This states the rate of freight from Vicksburg, Miss., to Cincinnati, Ohio. It contains this clause:

“Consigned to order of shippers, destination Cincinnati, state of Ohio. Notify American Cotton Oil Co. at Cincinnati; state of Ohio. Route Q. & C. [by which is meant Queen & Crescent], Car initials A. C. O. X. Car No. 578. One tank of crude oil,” etc.

In addition, the declaration alleges that it was an interstate shipment; that it was delivered by the Mississippi Railway to the Alabama Railway -at Meridian; that, thus received, it moved from Meridian en route to Cincinnati, over the lines of the Alabama Railway, but said car never reached its point of destination, and the oil in question was lost or wasted en route and never delivered. The suit is brought for loss, damage, and injury. The amount claimed was over $3,000. Had this declaration been filed in the proper District Court of the United States, at a glance, it would have been seen to be a suit arising under a law of the United States. That law, of course, is the Carmack Amendment, designed to give relief to shippers in interstate commerce from just such injuries as the plaintiff in the state court alleged. The nature of the injury 'and the validity of the remedy is referred to in the opinion of the District Court in the Riverside Mills Case, 168 Fed. 990. That is arises under the Constitution is evident. The opinion just quoted, holding the amendment constitutional, was questioned with great ability by very eminent counsel soon to become a member of the Supreme Court, but the validity of the amendment in all respects was by that court upheld.

It is true that the plaintiff in the state court in its declaration made no formal mention of the Carmack Amendment, but substantial averments to that effect were clearly made, and this court will not, of course, look solely to'the form, but to the substance also. Indeed, it is plain that, but for the Carmack Amendment, there would have been no semblance of jurisdiction in the state court. The declaration alleges that tire car of oil was delivered by the Mississippi Railway to the Alabama Railway, at Meridian, in good condition, and without exception. The Mississippi Railway was then conceded to be not at fault. Warren county, where the suit was brought in the state court, is on.the western boundary of Mississippi. Meridian, where the car and oil were delivered in good condition to the Alabama Railway, is on the eastern boundary. .There was obviously no local jurisdiction over the Alabama Railway. In the absence of tire national law, the plaintiff then would have been helpless.

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Cite This Page — Counsel Stack

Bluebook (online)
229 F. 11, 143 C.C.A. 313, 1916 U.S. App. LEXIS 1534, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alabama-great-southern-ry-co-v-american-cotton-oil-co-ca5-1916.