Ban v. Columbia Southern Ry. Co.

117 F. 21, 54 C.C.A. 407, 1902 U.S. App. LEXIS 4401
CourtCourt of Appeals for the Ninth Circuit
DecidedMay 5, 1902
DocketNo. 752
StatusPublished
Cited by7 cases

This text of 117 F. 21 (Ban v. Columbia Southern Ry. Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ban v. Columbia Southern Ry. Co., 117 F. 21, 54 C.C.A. 407, 1902 U.S. App. LEXIS 4401 (9th Cir. 1902).

Opinion

HAWLEY, District Judge,

after stating the foregoing facts, delivered the opinion of the court.

This is a suit to foreclose a mechanic’s lien upon an extension of a line of railroad from Moro, Sherman county, Or., to Shaniko, Wasco county, Or., belonging to the Columbia Southern Railway Company, defendant herein. The record shows that a demurrer to the original bill of complaint, which was filed by complainant, Ban, was sustained by the court upon the ground that the statute of Oregon, which it was claimed authorized a lien for work and labor done was repealed by implication by a subsequent statute approved February 25, 1889. It was also held that Seaman, who was interested with Ban, should have been made a party complainant in the suit. Complainant thereafter filed an amended bill of complaint, to which the railway company and the defendant Hammond interposed a demurrer upon the ground that “it affirmatively appears from the complainant’s bill that there is no equity therein, and the complainant is not entitled upon the facts alleged to the equitable relief prayed for, or any relief.” This demurrer was also sustained by the court. The amended bill was dismissed, and judgment rendered in favor of defendants for their costs. From this judgment the appeal herein is taken. The material portions ■of the amended bill are set forth in the foregoing statement of facts, as are certain portions of the mechanic’s lien laws of 1885 and 1889, and also the assignment of errors on behalf of appellant and the points relied on by appellees to sustain the judgment of the court below.

I. Did the court, under the facts stated, have any jurisdiction of this case ? Section 629, Rev. St., among other things, provides:

“No circuit court shall have cognizance of any suit to recover the contents ■of any promissory note or other chose in action in favor of an assignee, unless a suit might have been prosecuted in such court to recover the contents, if no assignment had been made.”

The object and intent of this restriction as to suits brought by assignees were evidently to prevent and prohibit the making of assignments of choses in action for the purpose of giving jurisdiction to the national courts. The language of this statute must be interpreted by the purpose to be effected and the mischief to be prevented. In Bushnell v. Kennedy, 9 Wall. 387, 391, 19 L. Ed. 736, the court, speaking of the eleventh section of the judiciary act, said:

“The denial of jurisdiction of suits by assignees has never been taken in ■•■an absolutely literal sense. It has been held that suits upon notes payable to a particular individual or to bearer may be maintained by the holder, without any allegation of citizenship of the original payee, though it is not to be doubted that the holder’s title to the note could only be derived through transfer or assignment. Bullard v. Bell, 1 Mason, 259, Fed. Cas. No. 2,121; Bank of Kentucky v. Wister, 2 Pet. 321, 7 L. Ed. 437. So, too, it has been ■decided, where the assignment was by will, that the restriction is not applicable to the representative of the decedent. Chappedelaine v. Dechenaux, 4 Cranch, 308, 2 L. Ed. 629. And it has also been determined that the assignee of a chose in action may maintain a suit in the circuit court to recover possession of the specific thing, or damages for its wrongful caption ■or detention, though the court would have no jurisdiction of the suit if brought by the assignors. Deshler v. Dodge, 16 How. 631, 14 L. Ed. 1084.”

[26]*26This line of exceptions illustrates the general character of cases to which the statute would not be applicable.

In Shoecraft v. Bloxham, 124 U. S. 730, 735, 8 Sup. Ct. 686, 31 L. Ed. 574, the court held that a suit to enforce the performance of a contract is a suit to recover the contents of a chose in action, within the meaning of section 629 of the Revised Statutes, and in the course of the opinion the court said:

“The terms used, ‘the contents of any promissory note or other chose in action,’ were designed to embrace the rights the instrument conferred which were capable of enforcement by suit. They were not happily chosen to convey this meaning, but they have received a construction substantially to that purport in repeated decisions of this court. They were so construed in the recent case of Corbin v. Black Hawk Co., 105 U. S. 659, 26 L. Ed. 1136, where the subject is fully considered and the decisions cited. There a suit brought to enforce the specific performance of a contract was held to be a suit to recover the contents of a chose in action, and therefore not maintainable, under the statute in question, in the circuit court of the United States, by an assignee, if it could not have been prosecuted there by the assignors, had no assignment been made.”

We agree with the court below that:

“Unless Seaman’s citizenship was such as to entitle him to bring this suit, Ban, as his assignee, cannot maintain it. If, without the assignment, in an-action brought by Seaman and Ban, the court would have been without jurisdiction, it is equally without it when the action is brought by Ban in his-own right under the contract and as the assignee of Seaman.”

In other words, complainant, Ban, under the provisions of the statute cannot rely upon any rights under the assignment from Seaman in so far as the question of jurisdiction is concerned. But the question whether Ban, upon the facts alleged in the amended bill, can maintain the suit in his own name without the assignment from Seaman, presents other questions for our consideration. Upon the facts of the agreement, with Mason the rights of Ban and Seaman were the same. They were equally interested in the contract and equally responsible under it, and if that condition existed at the time of the commencement of the suit Ban would not be able to maintain the suit in his own name. Seaman would be not only a necessary, but an indispensable, party complainant. It is, however, claimed that the agreement between Ban and Seaman was made prior to the contract with Mason and of which Mason had knowledge. This shows-that at the time of the commencement of this suit Seaman had no interest whatever in the matter in controversy; that Seaman’s interest., at best, was only in the profits; that there were no profits, and would be none if Ban should succeed and recover the entire amounts sued for.

The crucial test on this branch of the case depends upon the question whether, upon the facts stated in the amended bill Seaman was an indispensable party to the suit. The general principles relied upon by appellees are that a complainant seeking equity must bring before the court all such parties as are necessary to enable it to do complete justice, and that he should so far bind the rights of all parties interested in the suit as to render the performance of the decree which he seeks safe to the party called upon to perform it by preventing his-[27]*27being sued or molested again respecting the same matter, either at law or in equity, x Daniell, Ch. Prac. 192; 1 Bates, Fed. Eq. Proc. §§ 39) 40. These general principles are well settled, and furnish more or less aid in determining whether or not any of the indispensable parties to the suit have been omitted.

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Bluebook (online)
117 F. 21, 54 C.C.A. 407, 1902 U.S. App. LEXIS 4401, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ban-v-columbia-southern-ry-co-ca9-1902.