Case of the Sewing MacHine Companies

85 U.S. 553, 21 L. Ed. 914, 18 Wall. 553, 1873 U.S. LEXIS 1330
CourtSupreme Court of the United States
DecidedMarch 18, 1874
StatusPublished
Cited by80 cases

This text of 85 U.S. 553 (Case of the Sewing MacHine Companies) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Case of the Sewing MacHine Companies, 85 U.S. 553, 21 L. Ed. 914, 18 Wall. 553, 1873 U.S. LEXIS 1330 (1874).

Opinion

Mr. Justice CLIFFORD

delivered the opinion of the court.

Original cognizance of all suits of a civil nature, at common law or in equity, is given to the Circuit Courts by the eleventh section of the Judiciary Act, concurrent with the courts of the several States, where the matter in dispute exceeds, exclusive of costs, the sum or value of $500, . . . and an alien is a party, or the suit is between a citizen of the State where the $uit is brought and a citizen of another State, subject, however, to the restriction that no civil suit shall be brought before any Circuit Court against any inhabitant of the United States by any original process in any other district than that whereof he is .an inhabitant or in which he shall be found at the time of .serving the writ. *

Suits commenced in a State court against an alien, or by a citizen of the State in which the suit is brought against a citizen of another State, may, under the twelfth section of the same act, be removed for trial by the defendant into the Circuit Court for the same district if- the matter in dispute exceeds the sum or value of $500, provided the defendant file a petition requesting such removal at the time of entering his appearance in the State court, and offer good and sufficient surety that he will enter copies of the process against him in such Circuit Court oi. the first day of its next session, and for his appearance, and that he will give special bail in the case if such bail would be requisite in the State. ■ court.

Jurisdiction in such a ease is concurrent between the proper State court and- the Circuit Court for the- same distinct, and the provision is that such a suit, if comipenced in the State court, may be removed by the defendant for trial into the Circuit Court, subject to the conditions before mentioned, the privilege being given to the defendant only, as *574 the plaintiff, when he institutes his suit, may elect in which of the two concurrent jurisdictions he prefers to go to trial.

These expressions in the act of Congress, where an alien is a party or the suit is between a citizen of a State where the suit is brought and a citizen of another State, says Marshall, C. J., the court understands to rñean that each distinct interest should be represented by persons all of whom are entitled to sue or may be sued'in the Federal courts; or, in other words, that where the interest is joint each of the persons concerned in that interest must be competent to sue or be liable to be sued in the court .to which the suit is removed. * All of the complainants in that case were citizens of Massachusetts,- and so also were all of the respondents, except one, who, it was admitted, was a citizen of Vermont. Due service was made upon the resident respondents, and the record showed that the subpoena had. also been served upon the other respondent in the State where he resided. Want of jurisdiction was set .up by the respondents in the Circuit Court, and the judge presiding in-the Circuit Court entered a decree dismissing the bill of complaint. Appeal was taken to the Supreme 'Court, and the Supreme Court unanimously affirmed the decree of the Circuit Court. Repeated decisions have since been made by this court and by many other courts, State and-Federal, to .the same effect. Prior to the case of Railroad v. Letson, it had frequently been held by this court that a corporation aggregate, as such, was not properly included in the word citizen, as used in the Judiciary Act, and consequently that such a corpbration, if regarded merely as an artificial being, could not sue in the Federal courts, yet the court decided, in sevpral cases, that the court would look beyoud the corporate character of such an artificial being to the individuals- of whom it was composed, and if it appeared that they were citizens of a different State from the party sued, that the suit, whether an action at law or a suit in equity, could be maintained in the *575 proper Circuit Court. Cases of that description are quite numerous, and yet in all of them it was held by this court that all of the corporators must be citizens of a different State from the party sued,- else the jurisdiction could not be sustained. * Corporations, it is true, are now regarded by this court as inhabitants of the State by which.they are created and in which they transact their corporate business, and it is also held that a corporation is capable of being treated as a citizen for all purposes of suing and being sued in a Circuit Court, but the rule as modified, in that regard, does not diminish the authority of those cases as precedents to show that by the true construction of the Judiciary Act it requires that each of the plaintiffs, if the interest be joint, must be competent to sue each of the defendants in the Circuit Court to sustain the jurisdiction under the eleventh section of that act.

Certain sums of money, it is alleged, in excess of what could properly be exacted by the defendant corporations, had been paid to those corporations by the plaintiffs, and the corporation defendants refusing to refund the amount of such alleged excess the corporation plaintiffs instituted an action at law, in the Supreme Judicial Court of the State, against the corporation defendants, to recover back the amount of the alleged overpayments. Patent rights, it seems, are owned by the three corporation defendants, for the exclusive privilege to construct, use, and vend certain patented sewing' machines, and the inference is that the corporation plaintiffs are or have been licensees of the corporation defendants. What the precise terms of the license are or were, does not very satisfactorily áppear, but it may be inferred that the plaintiffs covenanted to pay to the defendants a certain pat *576 ent rent or tariff for the use of the patent right, subject to be reduced in amount in case the defendants granted licenses to other parties at a lower rate, and the charge is that the defendants did.grant licenses to others at a lower rate without making to the plaintiffs the stipulated reduction; that the corporation defendants have ever since exacted the higher patent fee or tariff in violation of the terms of the license. Payments having been made the plaintiffs commenced this suit to recover back the amount. They joined as defendants the Grover & Baker Sewing Machine Company, which is a corporation established under the laws of Massachusetts; the .Wheeler & Wilson Manufacturing Company, which is a corporation established under the laws of Connecticut; and the Singer Manufacturing Company, which is a corporation established under the laws of New York. Seasonable appearance was entered by the company first named at the return term, and they filed an answer within the time required by the rules -of the court. Neither of the other corporation defendants entered a general .appearance- at the return term, but the plaintiffs caused an order of notice to issue to those corporations respectively to appear at the next term of the court, and subsequently filed proof that the order of notice was duly served by publication.

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Cite This Page — Counsel Stack

Bluebook (online)
85 U.S. 553, 21 L. Ed. 914, 18 Wall. 553, 1873 U.S. LEXIS 1330, Counsel Stack Legal Research, https://law.counselstack.com/opinion/case-of-the-sewing-machine-companies-scotus-1874.